EximBank issued two bank guarantee letters totaling more than $ 23 million for Hidrocontrucția, one of the largest Romanian private capital constructors, which will allow the company to run a $ 115.5 million contract in Jordan.
The two guarantee letters – an advance repayment and a performance guarantee of $ 11.53 million each – are intended to help Hidrocontrucția run the contract it was awarded last year following an international tender organized by the Arabian Potassium Company from the Hashemite Kingdom of Jordan, the bank said in a press release.
“The contract concluded by Hidrocontrucția with the Jordanian company is one of the most important projects of a Romanian society in the Middle East in recent years and it can open the way for other projects implemented by Romanian companies in the area. Reorienting local companies to the former traditional foreign markets is a justifiable move and it is possible for two reasons: on the one hand, the growth prospects for these markets are much higher than in the developed countries – which offers increased opportunities, and on the other hand, there is a good history of trade relations with these countries, which can be an asset for the development of future relations”, said Traian Halalai, executive president of EximBank.
Hidrocontrucția received the tender documentation for the auction in January 2017 after the first pre-selection stage ended in 2016 and during the evaluation of the offers, the representatives of the Jordanian company visited similar works of the Romanian contractor executed or under execution.
At the end of October, Hydropower was awarded a winning bid.
Under the project, the company will carry out special earthworks, developed over a length of more than 10 km, geomembrane waterproofing works, metallic works (pumping station, large diameters piping, connections, bypasses ) works for the water supply (protected open channels), construction supervision over time (measuring and control equipment, monitoring network), mechanical works (high-power pumps, connections), electrical works (pumping station supply ), site construction work (roads, storage, accommodation, car workshops, quarries).
“The economic conjuncture in recent years, for us characterized by the lack of major investment projects in construction, both from the state and from private companies, has led us to change our business strategy and focus on strengthening our international presence. Our efforts are beginning to bear fruit, as winning this contract in Jordan is a first step in this direction. There are countries and regions around the globe that promote generous project portfolios, most of them new, securely funded investments, and we will continue to take part in other auctions abroad involving complex work and we count on EximBank support their execution,”, said Mihăiţă Fundeanu, general manager of Hidroconstrucția.
EximBank has been on the market for 25 years, with its specific financial instruments dedicated exclusively to the corporate segment. They can be accessed by any type of trading company, whether it is an SME or large company that carries out international transactions, or addresses only the domestic market.
Hidroconstrucția, a company who come from the “General Directorate of the Bicaz Hydro Power Plant”, established in 1950, specializes in the execution of complex hydraulic and hydrotechnical works (135 big dams, 125 hydroelectric plants), being especially known for its contribution to the works at the Bicaz, Vidraru, Iron Gates I and II.
The company was privatized in 1995 and has as main shareholder the Association of Employees and Management. It is already active abroad, currently carrying out construction works in Bulgaria, Belgium, Germany, Iraq and Jordan.
Hidroconstrucția had 2.200 employees at the end of 2016, and ended the year with a 405 million lei turnover and a 6.3 million lei profit. In 2011, the company had 6.528 employees, a turnover of over one billion lei and a net profit of 50 million lei.