Mr. Speaker, the Export Development Corporation, EDC, has been in regular contact with Davie Industries, Société de Developpement Industriel du Quebec, SDI, and the other participants in this transaction.
EDC has provided two separate financing options to the project sponsors in support of the Davie contract. The first was dated June 17, 1996 and the second, October 10, 1997. Both proposals, however, have been put aside by the project sponsors that would like EDC and SDI to participate in a structure which the sponsors have engineered.
Unfortunately, following a detailed review by EDC and SDI it was determined by both that the project sponsors were asking EDC and SDI to assume unacceptable commercial risks.
Regardless, upon the request of Davie Industries, in conjunction with EDC and SDI, we have continued discussions on this transaction. At the present time EDC and SDI are working on a viable financing structure in co-operation with Davie Industries and the project sponsors.
It should be emphasized that EDC is a self-sustaining crown corporation operating at arm's length from the government and is not part of the government per se. We also want to make it very clear that EDC could act quickly to implement the financing question once a structure has been agreed to.
EDC appreciates the urgency Davie Industries faces in having to secure financing for this project. We await an acceptable proposal.