EFIC provide a bonding line to McConnell Dowell to help support the contract
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 US$500 million, relating to the US$18 billion Papua New Guinea LNG project.
McConnell Dowell will undertake the contract work with international joint venture partners.
The performance bonds, worth over US$20 million, have been issued under an existing bonding line that EFIC provides to McConnell Dowell.
The two contracts involve the construction of the new Komo Airfield in Papua New Guinea and of roads and bridges required for construction, together with the installation of fibre optic communications cable along one of the roads.
A consortium led by ExxonMobil will develop, own and operate the first phase of the integrated LNG facility in the Southern Highlands of Papua New Guinea.
Under the bonding line between EFIC and McConnell Dowell, EFIC issues or guarantees bonds to support approved export contracts undertaken by the company or its subsidiaries. The bonding line was established in 2006 and has supported several major construction contracts of the company in Asia.
“The scope, complexity and location of our projects means bonds aren’t always available in the commercial market. Our ability to utilise EFIC’s bonding line has streamlined our process for securing international projects and freed up our finance and bonding facilities for local projects,” said CEO of McConnell Dowell, David Robinson.
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