§ Mr. Whittingdale
To ask the Secretary of State for Trade and Industry what the savings have been resulting from hedging the cost of interest make-up on fixed rate export finance loans offered by the Export Credits Guarantee Department in each of the last 20 years. 
§ Ms Hewitt
ECGD's interest rate hedging activity protects against the risk of increased support costs arising from adverse interest rate movements under the Fixed Rate Export Finance (FREF) scheme.
ECGD began hedging its exposure 15 years ago, using interest rate swaps. During the previous five years, the total net cost of FREF interest support, without hedging, was £2,189 million. Over the following 15 years, up to and including 2000–01, the total net cost of support was £1,703 million, within which the net cost of interest rate swaps was £319 million. The yearly breakdown of net swap costs over the period was as follows:
Year £ million 1986–87 4.4 1987–88 10.2 1988–89 -6.2 1989–90 -27.4 1990–91 -3.6 1991–92 13.1
Year – million 1992–93 37.9 1993–94 48.1 1994–95 48.7 1995–96 15.6 1996–97 37.4 1997–98 29.8 1998–99 21.7 1999–2000 71.6 2000–01 12.9 318.9
Future outturn will depend on future interest rate movements and business volumes.
§ Matthew Taylor
To ask the Secretary of State for Trade and Industry what assessment she has made of the reasons for which the annually managed expenditure of the Export Credit Guarantees Department has risen. 
§ Ms Hewitt
Annually managed expenditure (AME) for the Export Credits Guarantee Department has risen due to the extra cost needed to unwind interest rate swaps. These swaps were used to hedge interest make up (IMU) costs on fixed rate export finance loans and commitments being guaranteed by ECGD. These loans are now being refinanced using direct funding from HM Treasury, as this produces greater value for money in terms of cost and hedging uncertainty. AME estimates have risen as the cost of unwinding swaps in the financial markets has increased since the AME forecast figures were last published at the time of the Budget 2001.
§ Ms Hewitt
The major aircraft financing support for Airbus and Rolls Royce is governed by the OECD Consensus Large Aircraft Sector Understanding Arrangements.
Officials at ECGD together with those from its European partners, Hermes (Germany) and Coface (France) have been reviewing their products which are applicable to this agreement and intend to announce new products by 30 March 2002.
This review and product development has been carried out in consultation with the major manufacturers and they are broadly happy with progress to date. These products as a package are intended to match those provided to Boeing by the US authorities.
Together, the three Export Credit Agencies which provide support to Airbus and Rolls Royce continue to match the needs for support placed on them by these manufacturers especially since September 11 this year.
§ Tom Brake
To ask the Secretary of State for Trade and Industry (1) what power projects planned in(a) the Philippines and (b) Thailand, the Export Credits Guarantee Department has agreed to support; and which UK companies are involved; 104W
(2) what power projects the Export Credits Guarantee Department has provided support for in (a) the Philippines and (b) Thailand during the last five years; and which UK companies are involved. 
§ Ms Hewitt
In the Philippines ECGD has provided support for the following power project.
Year/description UK investor Insured amount ($ million) 2000 Overseas Investment Insurance for San Lorenzo Project: 500 MW gas fired combined cycle power station British Gas (BG Group plc) 122
In Thailand ECGD has provided support for the following power projects:
Year/description Exporter Contract value (£ million) 1997 Mini Hydros for Provincial Electricity Authority Balfour Beatty 9 2000 Pluak Daeng substation for the Electricity Generating Authority Va Tech Reyrolle 7
ECGD has not currently agreed to support any future power projects in these countries.