Export Finance and Insurance Corporation (EFIC) has provided performance bonds to support the participation of McConnell Dowell Corporation Limited (McConnell Dowell) in two contracts, together worth over $US500 million, relating to the $US18 billion Papua New Guinea LNG project.
Key elements of the project:
- McConnell Dowell will undertake the contract work with international joint venture partners.
- The two contracts involve construction of the new Komo Airfield in Papua New Guinea and of roads and bridges required for construction, together with the installation of a fibre optic communications cable along one of the roads.
- A consortium led by ExxonMobil will develop, own and operate the integrated LNG facility in the Southern Highlands of Papua New Guinea.
- The performance bonds, worth over $US20 million, have been issued under an existing bonding line that Export Finance and Insurance Corporation provides to McConnell Dowell.
“Export Finance and Insurance Corporation will lend $US350 million as part of a syndicate providing finance to the project,” said EFIC’s Executive Director, Origination and Portfolio Management, Peter Field. “We’re delighted that McConnell Dowell has won these contracts, as the principal reason for EFIC’s involvement in the financing is to encourage the use of Australian companies like McConnell Dowell in the project. We expect to see more contracts awarded to Australian companies in coming months, as the project gathers momentum.”
McConnell Dowell’s bonding line with Export Finance and Insurance Corporation was established in 2006 and has supported several major construction contracts in Asia undertaken by the company.