AAEngineering Group LLP successfully competes in the international market with the leading engineering and construction companies of the Russian Federation, Western Europe and China.
In particular, since 2018, AAEngineering Group LLP (hereinafter - the Company) has been constructing a gold recovery plant at the Jeruy Field, the largest undeveloped gold field in the Kyrgyz Republic, which is scheduled for completion this year. The project is implemented in full compliance with FIDIC international standards in the form of EPC-turnkey contract – "Silver Book". The customer is a subsidiary of "Russian Platinum" Group of Companies – one of the leading producers of platinum group metals in the world. The volume of export of services will be more than KZT 40 bln., the volume of local content - at least KZT 20 bln.
During Project implementation the customer required guarantee of return of advance payment and obligations performance under the contract of the Bank with a rating not lower than BB+ from such international rating agencies as Standard & Poor's, Fitch or not lower that Ba1 according to the Moody's.
Thus, the Company faced the need to choose a domestic partner Bank that could provide this financial service and meet the requirements of the customer. Taking into account the current state of the banking system, the choice among commercial banks was not great and the Company decided to apply to Development Bank of Kazakhstan JSC (hereinafter - DBK, Development Bank). The Development Bank structured the transaction professionally and in a short time and issued Bank guarantees to the total amount of USD 37.750 mln. It is worth noting that the export of works and services for the construction of a gold recovery plant at Jeruy Field in Kyrgyzstan became the first project in the history of DBK to support the export of Kazakhstan services. The sister company of DBK, Export Insurance Company KazakhExport JSC, which provided insurance coverage for DBK guarantees, also participates in the transaction.At the moment, the percentage of completion of construction work on the project is 97%. At the final stage of construction of the gold recovery plant and in Q3 2020, it is planned to receive the first ingot of gold.
For AAEngineering Group LLP, this was the first step towards entering the foreign market and the Company plans to increase its presence in foreign markets in the future. In particular, negotiations are underway for the construction of a gold recovery plant in 2020 at Jamgyr Field, which is also located in the Kyrgyz Republic. The customer of the project is an international company Global Asia Mining registered in the UK.
In addition, DBK has a number of tools to promote the export of domestic products, works and services, including lending to the importer, which the Company plans to use in the implementation of the project at Jamgyr Field.