Chinese contractor taps First Metro to jump-start PHL biz

ONE of China’s largest energy contractors and engineering firms is headed to the Philippines to take part in the government’s infrastructure program, with a keen interest to invest in power and transportations projects.

Beijing-based China National Heavy Machinery Corp. (CHMC) is looking at various opportunities in the Duterte administration’s “Build, Build, Build” program. In this undertaking, it has tapped the services of First Metro Investment Corp., the investment arm of the Metrobank Group, to become its executive consultant in the country.

First Metro revealed its partner is determined to secure projects in the infrastructure program, particularly on power, transportation, water supply and sewage, metallurgy and cement. As the CHMC’s adviser, First Metro will provide consultancy services in relation to project developers, potential partners and other relevant information that can assist the Chinese firm in its new business venture in the country.

The agreement between CHMC and First Metro mandates the latter to contact the government on its infrastructure plans and policies; provide general advice regarding local business landscape, laws, commercial issues and regulations; and render assistance in referring technical specialists and advisers on legal, taxation, insurance, accounting, regulatory and strategic matters. The deal was signed by CHMC President Xiao Ping and First Metro President Rabbon Francis B. Arjonillo.

“We see a lot of potential projects where we can work together and bring about the innovation and development needed in boosting our country’s growth,” said Charles Ian Salvador, head of the International Desk. The International Desk was established to find spot opportunities for First Metro, as well as forge alliances and create business linkages with other countries.

CHMC is engaged in contracting engineering projects and provides trade service, capital operation and technical solutions, including metallurgy, mines, transportation, building materials, power, hydraulics, environmental protection, chemistry, agricultural products storage and processing. It was founded in 1980 as a subordinate to China National Machinery Industry Corp.

The Beijing-based firm has offices in Cambodia, Ethiopia, Guinea, Indonesia, Kenya, Myanmar, South Sudan, Sri Lanka, Thailand, Turkey, Vietnam and Tajikistan. One of its recent undertakings is a hydropower project in Laos that will install three sets of Francis turbine generators, with a total capacity of 240 megawatts, and is scheduled to be finished in five-and-a-half years.

On the other hand, First Metro is one of the country’s leading investment banks with over five decades of service in the development of Philippine capital markets. Along with its subsidiaries, it is in the business of debt and equity underwriting, loan syndication, project finance, financial advisory, investment advisory, government securities and corporate-debt trading, equity brokering, online trading, asset management and research.

In 2016 First Metro was able to conclude 18 deals that raised P191.59 billion for both the public and private sectors. During the same year the domestic bank engaged in 87 percent of total bond issues resulting to its dominance in the domestic bond market.