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EximBank issues banking guarantees of USD 23 M for Hidroconstructia projects in Jordan

EximBank has issued two letters of banking guarantee (LBG) amounting at USD 23 million for Hidroconstructia, one of the main private Romanian contractors, thus facilitating the implementation of a USD 115.5 million contract in Jordan, a press release informs.

The two LBG – for advance reimbursement and good execution, amounting at USD 11.5 million each, are targeted to support the implementation of a contract awarded to Hidroconstructia last year in an international tender by Arab Potash Company from the Hashemite Kingdom of Jordan.

“The contract concluded by Hidroconstructia with the Jordanian company is one of the most important projects of Romanian company in the Middle East during the last few years and has the potential of opening new horizons for the Romanian companies interested to be present in the area. The interest of local companies towards the former traditional markets is a fully reasonable and possible approach due to the growth perspectives of these markets that are significantly higher than the ones of the developed countries – meaning more opportunities – and the very good record of the commercial relationships with these states, which is an advantage for developing the commercial relationships,” said Traian Halalai, Executive President of EximBank.

According to the financial institution, Hidroconstructia received the bidding documentation for the auction in January 2017, after the first stage of pre-selection started in 2016, and during the evaluation of the offers, the representatives of the Jordanian company visited similar works of the Romanian entrepreneur, executed or in progress. At end-October, Hidroconstructia offer was the winner.

“The economic environment from the last few years – mainly defined by the lack of major investments projects in civil engineering both from state and private resources has determined a change in our strategic business approach and a focus on consolidating our presence on international markets. Our efforts are now starting to pay up, winning this tender in Jordan being a first step in this direction. There are countries and regions in the world that are promoting generous projects portfolios, mainly new investments, financed and we will continue to participate in other international tenders counting on EximBank support for their implementation,” Mihaita Fundeanu, General Manager of Hidroconstructia stated in turn.


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