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PhilEXIM to guarantee AG&P’s $1.25-M loan

September 20, 2006 9:51pm
By RUBY ANNE M. RUBIO, Reporter/BusinessWorld

State-owned Philippine Export-Import Credit Agency (Phil-EXIM) has guaranteed the $1.25-million loan availed by leading steel fabrication and construction company Atlantic, Gulf & Pacific Company of Manila, Inc. (AG&P) from Philippine Veterans Bank as working capital.

In a term sheet obtained by BusinessWorld, Consunji-led DMCI Holdings, Inc., which owns 46% of AG&P, would provide a $500,000 loan while the rest of the project requirements will be financed by AG&P which is engaged in heavy fabrication, industrial construction and engineering services.

AG&P is participating in the fabrication of a $1.4-billion integrated commercial nickel-cobalt mining plant and production facility in the Goro Nickel project in the French territory of New Caledonia in the South Pacific.

Goro Nickel S.A., the project owner, awarded $6.4 million as contract price for the first package of the project which includes pre-construction works, fabrication -- an industrial term applied to the building of metal machines and structures -- and packaging and securing modules for shipment, including protection from damage and corrosion. It will supply all primary and secondary steelwork required for the fabrication of the modules. This includes floor support beams, equipment support beams, primary framing beams, columns and bracings.

STEELWORK

AG&P will be responsible for the supply of all tertiary and miscellaneous steelwork and consumables.

"AG&P will provide the facilities, equipment and manpower necessary for material management, module fabrication, installation and testing, and delivering the modules to the agreed load out location. All these activities will be done in AG&P’s Batangas heavy fabrication yard. Subsequently, the owner will be responsible for the shipment of all the completed modules and ancillaries to Goro, New Caledonia," it added.

Duly licensed by the Philippine Contractors Accreditation Board (PCAB), AG&P is principally classified as a general engineering and general building contractor with specialties in civil/structural, architectural, mechanical/HVAC, piping, electrical, instrumentation and related works.

Since its inception, AG&P has diversified into other activities and contributed immensely to the growth of several major Philippine industries which have become milestones in the economic development of the country.
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