Australia’s Export Finance and Insurance Corporation (EFIC) will provide bonding facilities of up to US$16.5mn in relation to a joint venture involving a subsidiary of Multiplex Engineering Pty Ltd, to provide engineering, procurement and construction services for a mineral sands project in Mozambique.
The joint venture between Multiplex Engineering (Mauritius) and Bateman Projects will undertake key elements of the construction of the Moma Mineral Sands Project located at Moma on the northeastern coast of Mozambique. The project contract is valued at US$220mn.
The project follows previous key engineering contracts for Multiplex Engineering, reinforcing its position as a major contracting entity in the resources sector.
EFIC’s involvement includes the provision of a US$11.5mn construction bond for a term of about 30 months and a commitment to provide a further performance bond of US$5mn for a term of 18 months.
This project also strengthens EFIC’s relationship with the Multiplex Group, which began in 1998 when EFIC provided bonding facilities to assist the group’s entry into the Middle East.
Overseas buyers often require exporters to supply them with bonds as security for tenders, advance payments or in support of their performance obligations under a contract. The requirement for this type of security is increasing and EFIC’s flexible bond facilities can assist Australian exporters to compete more effectively in international markets.
As Australia’s export credit agency, EFIC provides export finance and insurance services to Australian companies exporting and investing in overseas projects.