Clough Projects Australia
Clough Projects Australia (trading as Clough) is an Australian engineering and construction business that delivers high-performing assets for the energy, resources and infrastructure industries.
Need
To secure a large contract to deliver the new Dampier Bulk Handling Facility, Clough was required to provide bonds to cover performance risk to practical completion and the warranty period.
Solution
We provided Clough with performance and warranty bonds to meet its contract requirements, enabling the business to secure the project with the Pilbara Ports Authority.
Clough is a wholly owned subsidiary of the Webuild Group (listed on the Milan stock exchange), a global leader in the design and construction of large, complex projects. Headquartered in Perth, Australia, Clough delivers high-performing assets for the energy, resources and infrastructure industries.
Clough has delivered a wide range of projects across the globe for private clients, local and federal governments. These range from the design and construction of a gold processing plant in Mongolia and earthquake remediation works in Papua New Guinea to delivering the engineering, procurement and construction scope for Australia's first net zero emissions hydrogen and gas capable power station in New South Wales.
As part of the expansion of the Dampier Cargo Wharf, Clough secured a contract to deliver the design and construction for the new Dampier Bulk Handling Facility.
Export Finance Australia has been able to properly address the complexity and peculiarities of our business with the right collaborative approach to find a solution. For Clough and Webuild Group, it represents the starting point of a relationship with Export Finance Australia to assist us with future opportunities with export content.
Andrea Galati
Chief Financial Officer, Clough Projects Australia
The contract required Clough to provide bonds to cover an 18-month defect liability period and a six-month buffer for project delays.
Finance to support the export supply chain
The new Dampier Bulk Handling Facility will support a ship loader and conveyor for the bulk export of urea. As there is an export component of the project, we were able to provide the bonding support that Clough needed to secure the contract.
Clough’s Chief Financial Officer, Andrea Galati, had previously experienced the benefit of working with export credit agencies in other countries, so was interested in meeting with Export Finance Australia to investigate what support might be available for Clough’s projects.
Working closely with Andrea, we identified an opportunity for us to support Clough in delivering a contract for the Pilbara Ports Authority.
“The contract is linked to the Perdaman Urea Project, which Export Finance Australia supported,” he explained. “We are supporting the construction of the port that will be used for the transportation of the of the final product, which, of course, is export content.”
Clough’s Director of Finance and Insurance, Alessio Ministeri, highlighted that our support was very important and that the benefits of our support extended beyond the bonds we provided.
“Having Export Finance Australia as the potential guarantor we presented to the beneficiary also supported negotiations of the wording in the contract, particularly around some of the requirements and conditions proposed.”
Andrea also said: “In addition to facilitating these conversations, having Export Finance Australia’s support gave the client a higher level of comfort throughout the process.
“As new export-related opportunities arise where there is the potential for collaboration, we will be having discussions with Export Finance Australia to support us.
“Export Finance Australia was very supportive and a very important business partner for us.”
