China’s 2nd richest man investing up to $4 billion in RP

China’s second richest man is investing between $2 billion and $4 billion in high-end hotels and residential properties in the Philippines.

Trade Secretary Peter Favila said the Shimao Group of China will sign an agreement today with the Bases Conversion Development Authority for the multi-billion dollar investment.

Shimao Group chairman Xu Rongmao, listed by Forbes magazine as the second richest man in China for 2006, met with President Arroyo last Tuesday during which he announced his decision to invest in the country.

Favila said Shimao Group is eyeing BCDA properties in Fort Bonifacio in Taguig, including the 35.5-hectare property of the Joint US Military Advisory Group or Jusmag. The group is also exploring tourism investments in Palawan.

He pointed out that a team from the Shimao Group arrived in the country last February to explore investment opportunities.

“We met with them. We suggested that now that they have seen what the country has to offer, maybe they should go around and ask the private sector for them to have a good feel of what is in store in the Philippines,” Favila said.

In his meeting with Mrs. Arroyo, Xu spoke of the huge potential of the hotel business in the Philippines, according to Favila.

Latest data showed that of the 10 million Chinese who visited Southeast Asia, only 300,000 arrived in the Philippines, the trade chief said.

For Palawan, Xu reportedly wants to develop an airstrip in San Vicente.

Malacañang has assured Xu of full government support for his business initiatives in the country.

Under the agreement, the BCDA will be a lessor and according to Favila, the government is willing to provide the Shimao Group the longest lease term possible.

The Shimao Group, which is listed in the Hong Kong Stock Exchange, is one of the biggest real estate developers in China.

Favila noted that the Shimao Group owns three other listed companies, namely the Shimao Property Hong Kong, Shimao Stock, Shanghai and the Shimao International Off-shore in Hong Kong. It owns hotels in Australia, Russia, and other countries in Southeast Asia.

Xu told Favila that the floor area of its planned development in the country would be around 10 million square meters.

Meanwhile, the RockCheck Steel Group Co. Ltd. of China is set to invest $200 million for the construction of a ferro nickel plant in Eastern Samar.

The company’s chairman Zhang Xiangqing informed the President of his company’s plan to set up facilities at the Hinatuan Mining Corp. (HMC) plant site in Manicani, Guiuan, Eastern Samar.

“I am determined to bring more investments here in the Philippines. Filipinos are very hardworking, kind and good. I am impressed with your very good government, with your great leadership. It’s very democratic and very hospitable,” Zhang told the President.

RockCheck, one of China’s top 100 corporations, has a combined steel production of 3.5 million tons, with annual sales last year reaching more than RMB22 billion or $300 billion.

The firm has RMB5.5 billion or $700 million worth of property and more than 7,000 employees.

RockCheck Steel has signed an agreement with Fulim Mining and Export Corp., the exclusive marketing arm of HMC in China, for its Manicani project.

Construction begins in the third quarter of this year and when fully operational, the plant will employ at least 5,000 local residents.