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Rich-world development agencies also offer guarantees for projects their countries' firms invest in.
Opponents have complained that loan guarantees for projects that cannot attract commercial investment amounted to "nuclear socialism".
The proposal — sponsored by Senator John Kerry, Democrat of Massachusetts, and Senator Kay Bailey Hutchison, Republican of Texas — would establish an independent bank to provide loans and loan guarantees for projects of regional or national significance.
It gives advice and arranges credit (through private banks, though with government subsidies and guarantees) for projects ranging from organic farming to buffaloes, sugar cane and African palm.A well-managed small farm can provide an income of at least three times Colombia's minimum wage, says Francisco de Roux, the director of Desarrollo y Paz and a Jesuit priest.
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Both of those guarantees are for projects to generate electricity, considered a relatively safe credit risk because the electricity can be sold by contract for years in advance, even before the plant is built.
Vogtle 3 and 4 were supposed to be the first in a wave of new projects after the Bush administration set aside $17.5 billion in loan guarantees for nuclear projects.
Administration officials confirmed that their 2011 federal budget request next week would raise potential loan guarantees for the projects to more than $54 billion, from $18.5 billion.
It is also seeking advice on whether it can cancel insurance and loan guarantees for the projects if Enron misrepresented its finances.
The bill — a component of Mr. Obama's $447 billion jobs package — would also provide $10 billion in loans and loan guarantees for transportation projects, water and sewer systems and other infrastructure.
[Reuters] Breaking ranks with some other Republicans, Senator Lisa Murkowski of Alaska suggests that there's no reason to throw the baby out with the bathwater when it comes to federal loan guarantees for energy projects.
The Obama administration moved vigorously on two fronts Friday to promote nuclear power, proposing a tripling of federal loan guarantees for new projects and appointing a high-level commission to study what to do with nuclear waste.
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