Case Study: USD 6,000,000 Advance Payment Guarantee for Water Treatment Plant Rehabilitation in Central Asia

Introduction

In August 2025, Trade Finance Company successfully structured and issued an Advance Payment Guarantee (APG) worth USD 6,000,000 for a client in Central Asia. The guarantee was critical to support a major construction contract for the rehabilitation and extension of the Water Treatment Plant (WTP) in Pitnak, executed under Contract HWP-9 and financed by the European Bank for Reconstruction and Development (EBRD) as part of the Khorezm Water Project.

This flagship infrastructure project was designed to improve water treatment facilities and enhance clean water accessibility across the region. Once completed, the upgraded WTP will ensure a sustainable, safe, and reliable water supply for tens of thousands of residents, contributing to long-term public health and economic growth.

 

Challenges

The client faced significant obstacles before engaging Trade Finance Company:
◘ Strict International Compliance: Since the contract was backed by the EBRD, the guarantee needed to comply with rigorous standards and align with global best practices in infrastructure financing.
◘ Time Sensitivity: Construction timelines were tightly bound to financing schedules. Any delays in issuing the APG would risk holding up the project’s execution, potentially impacting contractual obligations.
◘ Large-Scale Financial Commitment: A USD 6,000,000 guarantee required precise structuring, ensuring that both the issuing and receiving parties were fully aligned in terms of security, documentation, and legal enforceability.

 

Solutions

Trade Finance Company deployed a tailored solution designed to balance speed, compliance, and client assurance. The approach included:

◘ Expert Structuring: Reviewing contract requirements and adjusting instrument terms to satisfy all parties involved.
◘ Seamless Coordination: Working closely with the client, legal teams, and the Dubai Team to align processes while maintaining efficiency.
◘ Swift Execution: Leveraging our financial networks and expertise in guarantees to ensure issuance was completed within the required timeframe.

 

Solution Implementation

The process was handled with precision and continuous communication to ensure no delays:

◘ The transaction began with a reviewed draft shared by Asia Nexus. While initial discussions took place around structuring, the terms were refined to meet the project’s needs.
◘ On August 4, 2025, the issuing arrangements were finalized, and by August 7, a system draft was formally sent.
◘ On August 12, proof of payment (POP) for the pre-issuance fee was received, and the payment was routed through the Dubai Team for smooth processing.
◘ By August 13, the first relayed copy of the APG was delivered, providing assurance to the client and counterparties that issuance was on track.
◘ Following final reviews and rerouting, the first and final relayed copies were received on August 20, 2025, officially completing the process.

Despite the scale of the transaction, the entire process was successfully completed in just 13 days, from draft to issuance — a testament to Trade Finance Company’s efficiency in managing complex, high-value guarantees.

 

Project Purpose

The rehabilitation and extension of the Water Treatment Plant in Pitnak is one of the cornerstone initiatives under the EBRD-financed Khorezm Water Project. The project aims to:
◘ Expand the treatment plant’s capacity to serve a rapidly growing urban population.
◘ Modernize outdated infrastructure to ensure compliance with international water quality standards.
◘ Provide reliable, clean, and safe water access to tens of thousands of households across the region.
◘ Support broader sustainable urban development by reducing environmental risks and improving public health outcomes.
The upgraded facility will significantly strengthen the region’s resilience and its ability to provide essential services, directly benefiting both residents and local industries.

 

Results

The success of this transaction highlights how Trade Finance Company delivers timely, reliable, and tailored trade finance solutions for large-scale infrastructure projects:
◘ Swift Completion: The USD 6,000,000 Advance Payment Guarantee was fully issued within just 13 days, ensuring the contractor could begin work without delay.
◘ Financial Security: The client was able to meet the requirements of an EBRD-financed contract, enhancing credibility and securing project continuity.
◘ Regional Impact: The rehabilitation of the Pitnak Water Treatment Plant will transform water supply and sanitation systems, ensuring clean water access for thousands of people and setting a foundation for long-term sustainability.
◘ Client Confidence: The seamless process and fast turnaround reinforced the client’s trust in Trade Finance Company as a partner for complex, high-value transactions.

 

Conclusion

This case study demonstrates how Trade Finance Company’s expertise, global coordination, and commitment to speed can make a transformative difference in large-scale infrastructure projects. By delivering a USD 6,000,000 Advance Payment Guarantee in just 13 days, we not only helped our client meet critical contractual requirements but also played a role in accelerating a project that will improve the lives of tens of thousands of people in Central Asia.
The Pitnak Water Treatment Plant rehabilitation stands as an example of how effective financial solutions, when executed with precision, can drive sustainable development and empower communities for generations to come.