SMM News: since 2016, China's PPP business has made great progress, and Minmetals 23 Metallurgical Investment Company (referred to as "Investment Company") has also made little gains. In the past three years, it has opened up 13 PPP projects, involving an investment of nearly 30 billion yuan. However, due to the immature implementation conditions of some projects and the frequent adjustment of PPP policy, the implementation process is slow, and it is difficult to form business results in the short term.
In the face of difficulties and dangerous obstacles, investment companies seize the opportunity, adjust the strategic direction, and "dive" into the blue sea of the project general contracting market. A few days ago, the investment company held hands with the Southwest Branch of the Minmetals 23 Metallurgical Market Development Department (hereinafter referred to as the "Southwest Branch") and successfully developed the Dongshan Scenic spot Construction Project in Tongguan County, Shaanxi Province, and the Jiangxi Wanzai Green Industrial Park Infrastructure Construction F+EPC Project, with a total bid amount of 1.426 billion yuan in the two projects. This means that investment companies to implement the F+EPC development platform to achieve new results.
Complement each other and promote hand in hand
Investment companies have the advantage of investment and financing ability, which is the lack of southwest branch. The southwest branch of a large number of effective project information, for investment companies, is also a piece of attractive cake. Close hand in hand to open up the market, the investment company and the southwest branch hit it off.
Back in December 2018, Southwest Branch and Shaanxi Hualu Group reached a framework cooperation agreement on the development of the ancient city of Tongguan, opening the door to win-win cooperation between the two sides. In order to implement the cooperation project and promote the cooperation process, the investment company and the southwest branch actively promote the high-level docking between the two sides. In March 2019, Fan Zhengxue, secretary of the Tongguan County CPC Committee, Zhang Quan, secretary of the party committee and chairman of the Shaanxi Huali Group, visited the Minmetals 23 Metallurgical Group, Wu Jianguo, deputy secretary of the party committee and general manager of the Minmetals 23 Metallurgical Group, and Yang Xingchuan, deputy general manager. Hu Jianjun, party committee secretary and chairman of the Minmetals 23 Metallurgical Investment Company, met with Fan Zhengxue and his entourage, and the two sides reached consensus on project cooperation. In late March, Hu Jianjun visited Tongguan and made arrangements for project financing and bidding. Investment company, southwest branch quickly set up a marketing team, careful arrangement, less than 3 months to complete the preparation work and bidding organization work before bidding, and finally achieved results.
At almost the same time, the investment company and the southwest branch launched the substantial cooperation process of the ten thousand years green industrial park infrastructure construction project. In the early stage, a large number of pragmatic work of the resident staff of Southwest Branch laid a good foundation for the orderly progress of the project. In May, Zhang Zhigang, deputy general manager of the investment company, and his entourage visited the project site and finalized with the owners the relevant matters related to the implementation of the project, and the work immediately drove into the fast lane. Together with the Southwest Branch, the investment company poured resources, focused on the main work, and connected separately, and finally obtained the notice of winning the bid for the project on June 18.
Innovation Mode to solve difficult problems
The difficulty of financing is a general problem for the constructors of the current project. Tongguan County Dongshan Scenic spot construction project and Jiangxi Wanzai Green Industrial Park infrastructure construction F+EPC project development process, investment companies make full use of the group authorized to build investment and financing + project general contracting development platform advantages, together with the Southwest Branch, the use of "F+EPC" cooperation model for overall design, financing, construction, effectively solve the difficult problems of project financing.
In the face of a relatively unfamiliar financing environment, the investment company and the Southwest Branch, on the basis of full communication with the China Travel Group, actively docking the project information and capital needs with a number of interested banks, collecting and providing the basic information of the project according to the requirements of the banks; on the other hand, in view of the requirements of the bank, coordinate the interest demands between the bank and the China Travel Group. With China Travel Group as the financing main body, the financing structure of "bank liquidity loan + corporate bond + project income bond" is adopted to raise the funds needed for the construction of the project. In mid-May, I received a reply from Changan Bank of 200 million yuan in bank liquidity loans. According to the financing needs of the second phase of the Tongguan ancient city project, the investment company has contacted a number of banks in Xi'an, Shaanxi Province, as well as Everbright Securities, Minmetals Securities and other financial institutions to negotiate the issuance of bonds in the latter part of the project. At present, the Everbright Securities team has also completed the field research on the China Travel Group and Tongguan project site, and reached a consensus with the investment company on the follow-up financing plan of the project.
In the development of the infrastructure construction project of the Wanzai Green Industrial Park, the investment company and the Southwest Branch responded to the new mode of attracting investment from the local government, that is, using the resources of the original leading enterprises to drive the upstream and downstream industries, build 1 million square meters of standard plant assets to "build nests and attract the Phoenix", take capital support for high, new and pointed projects, actively promote the investment work of the green industrial park, and successively help it introduce high-quality enterprises into the park. For example, Shenzhen Antarctic Optoelectronics Technology Co., Ltd., Guangdong Panax notoginseng New Energy Co., Ltd., for the industrial park to industrial projects as the support, standard plant as the platform to invigorate assets and achieve financing has laid a solid foundation.
The walkers are boundless and forge ahead. The successful development of the two F+EPC projects marks the success of the construction of the company's investment and financing + general contracting development platform. It is believed that in the near future, the market management footsteps and construction footprints of investment companies will be based on Hunan, gradually radiate the southwest, northwest and central regions, and realize the dream of strategic planning in the next three years.
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