EximBank has issued two bank guarantee letters worth over 23 million dollars for hydro-power constructions and hydro-engineering company Hidroconstructia, one of the largest Romanian private equity companies, allowing it to run a 115.5 million US dollar contract in Jordan, the bank said in a release.
The two letters of guarantee – Advance Payment and Performance Guarantee, respectively – worth 11.53 million dollars each, are intended for the contract Hidroconstructia has won last year following an international tender organized by the Arab Potash Company of the Hashemite Kingdom of Jordan.
“The contract concluded by Hidronconstructia with the Jordanian company is one of the most important projects a Romanian company has developed in the Middle East in recent years, and it can pave the way for other projects implemented by Romanian businesses in the area. The reorientation of the local companies to the former traditional foreign markets is an approach justified and made possible by two reasons: on the one hand, these markets have much higher growth perspectives than developed countries – thus offering 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 business relations. This is an approach EximBank encourages and supports at the same time, by providing Romanian exporters with modern products, in line with international practice, which facilitates both the internationalization of the Romanian companies and their participation in projects outside the country,” said Traian Halalai, EximBank executive president.
“The economic context in recent years, characterized – as far as we are concerned – by the absence of major investment in construction projects from both the state and private companies, has determined us to change our business strategy and focus on strengthening our international presence. Our efforts are starting to bear fruit, as winning this contract in Jordan is a first step in this direction. There are countries and regions on the globe that promote generous project portfolios, the vast majority of which are new investments that also have funding ensured, and we will continue to participate in other foreign bids that involve complex works, as we rely on EximBank’s support for carrying them out,” said Hidroconstructia general manager Mihaita Fundeanu.
Hidroconstructia, formerly the Bicaz Hydropower Plant General Directorate set up in 1950, specializes in complex hydro-energy and hydro-engineering works (135 large dams, 125 hydroelectric plants), and earned is good renown particularly with the Bicaz, Vidraru , Iron Gates I and II large-scale projects. The company was put into private hands in 1995, having as a major shareholder the Employees’ and Management Association; today, after 67 years of existence, Hidroconstructia carries out a wide range of works in the field of civil and industrial engineering, roads and bridges, urban works and land improvement, quarry plants etc.
Hidroconstructia is also active abroad, as it has ongoing construction contracts in Bulgaria, Belgium, Germany, Iraq and Jordan.