EFIC provided advance payment and performance bonds to support Environmental Systems & Services
Environmental Systems and Services Pty Ltd (ES&S) has established a reputation throughout the Asia-Pacific region as a leading supplier of Australian-designed and manufactured satellite ground stations for environmental monitoring and weather forecasting.
The Melbourne-based company won a US$800,000 contract to design, manufacture, supply and install three meteorological satellite ground stations for the Defence Acquisition Program Administration (DAPA) of the Republic of Korea, and to provide training to Korean Air Force officers.
The stations will provide the Korean Air Force with essential meteorological data for weather forecasting.
Export Finance and Insurance Corporation (EFIC), Australia’s export credit agency, helped ES&S win the contract by providing guarantees to ES&S’s bank, which in turn issued an advance payment bond and a performance bond to DAPA.
These bonds give a buyer comfort that if an exporter doesn’t perform the contract obligations, an upfront payment from the buyer will be returned and that there are funds available to reduce their losses.
"‘We approached EFIC when it became clear we needed additional financial assistance for the Korean contract," said ES&S chief executive officer, Bob Wright. "EFIC’s assistance in the early stages of the tender process was crucial to developing a competitive proposal."
EFIC has also helped ES&S to win other highly competitive tenders for the supply of a weather satellite ground station to the Hong Kong Government and the installation of ground stations at two Chinese research stations in Antarctica.
"Winning these contracts in international tendering is a success for the export of Australian technology, but it stretches our working capital," said Mr Wright. "We’re very grateful for the support EFIC provides through its facilities."
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