Finance of premiums. ECA insurance premiums (i.e., the payments for an
ECA assuming full cover or political risk cover) can be substantial, as they
are generally paid at Financial Close, but cover the risk for the whole life of
the financing (i.e., the premium is the NPV of an annual fee charged for in-
suring the debt). The level of premium varies according to the risk of the
country and the nature of the coverage provided, but on a typical project
financing for a developing country may reach or exceed 10% of the amount
covered.
Some ECAs include their premium within the costs for which they will
provide coverage or finance, but others will not.
Interest during construction. Similarly, some ECAs will cover and finance
IDC, but others will not.
Environmental ...