Advance Payment Guarantee

Contracts sometimes provide for an advance payment be made to a contractor for purposes such as site mobilization and equipment acquisition. In order to obtain this payment a contractor is required to produce an Advance Payment Guarantee from AIB. The Bank under this guarantee undertakes to the beneficiary, on behalf of the contractor, to make payment under the Advance Payment Guarantee within a stipulated time period if the contractor fails to repay the mobilization advance to the beneficiary.