For subcontracting companies, sometimes winning bids and contracts can be a challenge. At times, financial assistance and insurance arrangements are needed for a solid tender and a successful contract win.

This was the case for Australian healthcare solutions group Aspen Medical. The company had been awarded a subcontract to supply equipment and associated medical design and infrastructure for a new 900-bed hospital in Hambantota, located in the Southern Province of Sri Lanka.

Aspen, which specialises in providing complete healthcare solutions, medical consulting, e-health and project-based healthcare in challenging environments, was awarded the subcontract by Dutch group, Enraf-Nonius BV.

Aspen would undertake design and project management roles in the construction of the hospital, as well as manage the purchasing of a range of medical equipment.

The support of the Australian Government’s export credit agency, Export Finance and Insurance Corporation (EFIC), was key to Aspen winning the subcontract.

EFIC provides tailored finance solutions to help Australian businesses overcome the financial barriers they face when expanding their export activities.

In Aspen’s case, EFIC’s reciprocal reinsurance agreement (RRA) with Dutch export credit agency, Atradius Dutch State Business N.V. was instrumental in the company’s winning bid.

“EFIC’s help was integral to us winning this important contract to provide much needed healthcare services and equipment to a worthy project,” said Aspen Medical managing director Glenn Keys.

“This contract will help further the prevention of disease and the effective treatment of patients in this region of Sri Lanka.”

The hospital project was financed by Rabobank on the back of a EUR39.8 million comprehensive non-payment insurance policy from Atradius.

Atradius stepped in to insure the transaction when the private market was unable to provide the level of support necessary in this challenging, emerging market. Atradius’ commitment was in turn supported by export credit agencies of the main subcontractors, including EFIC’s EUR11.4 million reinsurance arrangement.

EFIC’s provision of reinsurance meant that, despite Atradius’ capacity constraint for additional Sri Lanka exposure, it could still front the entire loan amount. EFIC’s RRA with Atradius is likely to have contributed to Enraf-Nonius selecting an Australian subcontractor.

The deal not only illustrates how EFIC can help contractors and subcontractors involved in export-related deals win more business, but also how we can use these bilateral agreements with other export credit agencies to achieve this aim.

The hospital contract will help further the prevention of disease and the effective treatment of patients in this region of Sri Lanka.

Subcontractors working on export-related deals wanting to bridge the funding gap can visit the EFIC site: www.efic.gov.au

Aspen Medical was awarded the Exporter of the Year and Large Services awards at the ACT Export Awards last month.

Australia’s export credit agency, the Export Finance and Insurance Corporation (EFIC), has sought to strengthen its commitment to Western Australian exporting companies and subcontractors by providing two major warranty bonds to Binder Group.

The bonds, totalling $574,000, will fund Binder’s supply of pipe supports for the Gorgon project. The project, operated by global energy company Chevron, is the largest single resource natural gas project in Australia’s history and one of the largest in the world.

The assistance will also enable Binder Group to use its existing bank guarantee lines for additional liquefied natural gas projects. The company is Australia’s largest designer and manufacturer of proprietary and custom-built pipe suspension solutions for the oil and gas, power generation, petrochemical, mining and mineral processing industries.

“For companies of our size, obtaining performance guarantees required by major project operators- as we are awarded more work- is becoming more onerous,” explained Binder Group managing director Paul Bennett.

“EFIC’s support enables us to compete more effectively and confidently for export work,” he added.

Leela Hanson, EFIC’s SME & Mid Market director, reinforced the advantages of the export credit agency’s support.

“We are able to assist eligible Western Australian companies working on major local resource projects with financing solutions to supplement what their banks offer,” Hanson explained.

“EFIC’s support for Binder is a prime example of how we can help contractors and subcontractors involved in export-related deals win more business,” she added.

The deal reaffirms the EFIC’s commitment to the state, which was recently consolidated with the opening of their Perth office.