The Construction Guarantee Cooperative announced on August 8 that it has issued a direct guarantee (performance bond) for a power grid expansion project being carried out by a Korean company in Rwanda. This marks the first time the institution has issued a guarantee directly for an overseas project site.
The project, commissioned by the Rwanda Energy Development Corporation and supported by the Economic Development Cooperation Fund (EDCF), was awarded to a consortium of GS Engineering & Construction and Saean ENC. Previously, the cooperative’s overseas guarantees were issued indirectly through local financial institutions or domestic banks, using a re-guarantee method.
This time, by providing the guarantee directly to the client without any intermediaries, the Construction Guarantee Cooperative was able to reduce financial costs for its members undertaking overseas projects and streamline the guarantee issuance process. The cooperative noted that after providing a bid bond for Saean ENC’s participation in this project in December of last year, it has now taken its first step as a global guarantee institution by directly issuing a contract performance bond for the jointly awarded consortium.
Lee Eunjae, Chairman of the Construction Guarantee Cooperative, actively promoted the technological capabilities of Korean construction companies and the financial stability of the cooperative to government agencies in Rwanda, Tanzania, and other countries to expand the cooperative’s overseas business network. The cooperative also explained that it has established an overseas network by signing business agreements with local financial institutions in the Middle East and Africa, where the potential for members’ overseas expansion is high.
Chairman Lee stated, "We will do our utmost to provide stable financial services so that K-Construction, recognized for its global technological prowess, can expand into overseas markets."
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