Our Solutions

Surety Bonds

Bonds are an essential element of most contractual relationships. This product protects government agencies and contracted companies to ensure that contracts are completed according to mutually agreed terms. Although a bond will not provide complete indemnity to the project owner, it acts as a deterrent for contractors to do their utmost to comply with the terms of a contract.

Bonds offer protection at every stage of a contract – from inception, when a company bids for a contract and may have to provide a bid bond, to the implementation phase, when questions may arise about the agreed-to terms of the performance. Bonds also protect the project sponsor to ensure that the money they have advanced to the contractor is secure.

ATIDI’s role is to issue bonds to project sponsors or the contracted firm and to reinsure the bank or the insurance company issuing the bond. We also add value to transactions by doing our credit analysis on the contracted firm.

ATIDI currently offers the following bond products:

  1. Advance Payment
    These protect the issuer of the contract to ensure their advance payment to the contractor will be reimbursed in the event that the works are not completed satisfactorily.
  2. Bid Bonds
    These protect the party who has advertised the project against a contractor who submits a bid but does not take up the contract when awarded. Bid bonds act as a deterrent so that a prospective contractor offers bids that can be implemented under the terms quoted.
  3. Customs and Warehouse bonds
    These protect any party who has allowed an importer or a logistics agent to obtain delivery of goods, or store goods in warehouses.
  4. Performance Bonds
    These ensure that the contractor performs his duties as per the terms specified in the contract.

Project Samples

Risk Country: Tanzania

Sector: Financial & Insurance Activities
Project: Construction of a water & sanitation station
Financier: Local Bank
Cover: Credit Risk
Amount: USD0.8 million

Risk Country: Uganda

Sector: Construction & Real Estate
Financier: Local Bank
Cover: Bonds
Amount: USD0.38 million

Risk Country: Tanzania

Sector: Financial and Insurance Activities
Project: Counter guarantee bond to the construction of office for Roads Agency
Financier: Local Bank
Cover: Bonds
Amount: USD1.3 million