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EFIC supports Bothar to upgrade Kuwaiti sewerage system::

Export Finance and Insurance Corporation (EFIC), the Australian Government’s export credit agency, has provided a performance bond to support the participation of Bothar Boring & Tunnelling (Bothar) in a KWD (Kuwait Dinar) 2.35 million (approximately AUD8.2 million) subcontract to provide tunnelling services on a sewerage construction project in Kuwait.

The project is funded by Kuwait’s Ministry of Public Works to upgrade sewerage systems in the Al Firdous and Ardiya areas. The main contractor is the Kuwait Company for Process Plant Construction & Contracting K.S.C. (KCPC).

KCPC sub-contracted Bothar, an Australian company that specialises in underground pipeline construction and tunnelling, to install sewage systems via micro tunnelling works for a total of 15,445 metres of various diameter pipes.

KCPC required Bothar to provide a performance bond in the form of a demand guarantee and with the encouragement of its financiers, Bothar approached EFIC about the provision of the performance bond.

To facilitate Bothar’s participation in this contract, EFIC provided a KWD235,748 (approximately AUD900,000), 36 month performance bond.

Mark Dart, Managing Director of Bothar explains, “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.

“The performance bond provided by EFIC has enabled us to participate in this major contract and keep growing our business.”

The financial tug-of-war between working capital needed to meet current contract requirements and that required to pursue further business opportunities is one faced by many SME exporters who approach EFIC for support.

“By providing this performance bond, EFIC is able to facilitate not only Bothar’s participation in the project but also cascading benefits to the Australian economy through the involvement of Australian labour,” said Andrea Govaert, EFIC’s Executive Director of SME and Mid-Market. .

About Bothar Boring & Tunnelling

Bothar Boring & Tunnelling is a specialist engineering servicescompany proficient in the non-destructive installation and rehabilitation of underground services and facilities for water, gas, sewage and utilities housing cables, through the use of a full range of trenchless installation techniques.

With two decades of cutting edge experience in the trenchless engineering industry, Bothar Boring & Tunnelling has become one of Australia’s most skilled providers of subsurface pipeline construction and tunnelling.

With key offices in Brisbane, Sydney, Abu Dhabi and Kuwait and further operational expansion into Germany on the near horizon, Bothar Boring & Tunnelling continues to broaden its international reach, offering innovative trenchless engineering solutions for major global boring and tunnelling projects.

About Export Finance and Insurance Corporation

EFIC provides finance and insurance solutions to help Australian exporters overcome the financial barriers they face when growing their business overseas.

15 Aug 2011.