Export Finance and Insurance Corporation (EFIC) has provided a performance bond to support Bothar Boring & Tunnelling’s (Bothar) participation in a subcontract with Kuwait Dinar in providing a Kuwaiti sewerage system, located in Kuwait.
The Kuwaiti sewerage system construction project is funded by Kuwait’s Ministry of Public Works and focuses in upgrading the sewerage systems in the Al Firdous and Ardiya areas. The main contractor of the project is the Kuwait Company for Process Plant Construction & Contracting K.S.C (KCPC).
KCPC contracted Bothar Boring & Tunnelling to assist in installing sewage systems through micro tunnelling works with a total of 15,445 m of various diameter pipes. Bothar required a performance bond to provide a demand guarantee to KCPC. Through the encouragement of financers, Bothar approached EPIC for a bond and was provided with a KWD235,748 36 month performance bond to help support their Kuwait construction project.
“Without EFIC’s support, the full cash collateral we needed to provide to secure the bond would have meant diverting working capital from other opportunities and therefore potentially hindering our ability to further develop business opportunities,” says Mark Dart, Managing Director of Bothar.
“The performance bond provided by EFIC has enabled us to participate in this major contract and keep growing our business.”
Export Finance and Insurance Corporation are the Australian Government’s export credit agency and provides finance and insurance solutions to help Australian exporters overcome financial barriers in their overseas projects.