Chapter 46 Negotiations
As for the investment in the power station, Chi Yanyan accepted it on behalf of Jinshan Investment Company, saying that this matter can be solved, including the establishment of a power grid.
But she demanded that the grid be owned by investors.
Including networking, including fees, are led by investors and do not accept government instructions.
China's domestic policy is different, the power supply is owned by the state, even if the factory builds its own power station and builds its own network, then the ownership of the power grid must also belong to the state, there is no such thing as private networking.
Gaining ownership of the grid in a special economic zone is tantamount to monopolizing the electricity supply in that area.
In a country of peaceful development, the power to monopolize the supply of electricity is incredible.
This means that he can decide which factory to send electricity to and which factory to shut down, and it also means that he can decide which city to supply electricity and which city to shut down.
Generally speaking, no country wants to delegate such authority to private individuals.
However, the Santos team had to say yes.
If you don't agree, no one will want to come here to invest in the power grid, and without electricity, the word industrial development is just an empty word.
It is impossible for country A to squeeze out such a sum of money to build a large-scale thermal power station, so it must take the opportunity to lay eggs and agree to some conditions that may suffer big losses in the future.
If you agree, you may suffer a big loss in the future, but if you don't agree, you won't even have a future.
Santos is very clear about the priorities.
But he also imposed a constraint that investors would only be allowed to own the grid for 50 years, after which the grid would be owned by the state.
Of course, the power station still belongs to the investor, and the electricity produced can continue to be sold to the State Grid, through which it can be sold to thousands of households.
In addition, there is a major infrastructure project, and that is the construction of the port.
Country A is close to the sea, and it is not that there is no suitable place to build a port, but there is no such cost to build a port.
The investment of one billion dollars to build a modern port can only be regarded as a small investment.
In fact, a large-scale modern port can easily invest tens of billions or even tens of billions of dollars.
Country A's economy is quite limited in terms of imports and exports.
Even after receiving the investment from Jinshan Investment Company, the economy may develop relatively rapidly, but there will be its limitations, and there will not be too many materials to be transported.
There is no need to invest in a large, modern port all at once.
However, the construction of the port must also be carried out, otherwise the materials from outside will not be able to come in, and the materials from the own country will not be able to go out, and there will be no way to talk about economic construction.
As for the construction of the port, country A could not come up with the money, so it could only grant land, and the construction still depended on the Jinshan Investment Company.
The idea put forward by Santos is that country A will take the land as a shareholder, and Jinshan Investment Company will be responsible for all the capital investment in the construction of the construction, and the two sides will jointly obtain the right to operate the port.
Of course, Jinshan Investment Company knows the importance of the port, so it did not reject this proposal, but there are some detailed requirements for the right to operate the port and the proportion of shares held by both parties.
The land of country A is not valuable, and if you use land as a shareholder, you will inevitably not be able to occupy too many shares.
Jinshan Investment Company can only promise to give 15% of the shares of country A - in fact, according to the current land price of country A, compared with the funds needed to build the port, such shares are already too much.
But everyone has an eye on the future, and there is nothing wrong with giving a little more.
Everyone chooses to invest here, betting that the future will develop better here.
As for the right to operate, Jinshan Investment Company's requirement is that in addition to the right to operate the port, it also needs to turn a large piece of land near the port into the ownership of the investor for commercial development.
The term of the right to operate is ninety-nine years.
Ninety-nine years later, the right to operate the port was vested in the state.
For the construction of the port, Kingsoft Investment Company promised that the investment capital would not be less than 2 billion US dollars.
It will be divided into three phases for development and construction.
As for what kind of scale it will build in the end, it depends on the subsequent economic development of country A.
If the economy develops well, there is a very sufficient demand for transportation capacity, and even further can become a bridgehead for the sea route to the interior of the African continent and become a large international port, then there will be a fourth phase, or even a fifth phase of expansion construction.
If it doesn't get to that point, and economic development is just a general situation, then the third phase of the project will be completed.
If there is a construction of the fourth and fifth phases, the government of country A must pay the construction funds proportionally if it wants to guarantee the same shares.
Santos agreed to such conditions in principle, but he suggested that the agreement should be marked that the port should not be used for military purposes.
It is important to note this.
Although Jinshan Investment Company is registered on an overseas duty-free island, Wang Yongyuan and Gu Mu are both Chinese, and it is easy to arouse some unnecessary suspicions if they do not indicate this.
Regarding this point, Zhao Jiajia, who was observing, suddenly expressed her opinion and objected to the indication of this article.
Her reason was that Gu Mu had been attacked in country A this time, and the army of country A was not capable of responding in time.
She felt that when Huaxia had so much capital entering the market, it was necessary for those investors to see the security guarantee, and if necessary, they should have the right to apply for the protection of the motherland.
Although such power may not necessarily be used, if such power is stifled, it will make some hostile forces unscrupulous, which is very detrimental to many investors.
Chi Yanyan was originally indispensable to this article, but Zhao Jiajia opposed this article, and she could only support Zhao Jiajia.
She understands Zhao Jiajia's background, and of course she understands why Zhao Jiajia made such a request.
The two sides have been arguing for a long time about this article.
In the end, Santos agreed not to include this clause in the agreement, but also made a stipulation: if the port is used for military purposes, it must be approved by the government of country A.
Otherwise, it would be considered illegal and State A would have the right to take back ownership of the port in advance.
This can be regarded as opening a small back door, not a complete back door.
Santos is the president of country A, he must take into account the sovereignty and integrity of country A, take into account the dignity of country A, and cannot consider everything from the perspective of economic development, and the bottom line must still be there.
If the bottom line is breached, the agreement will be useless in practice, and it will soon be vetoed by the people of country A, and the regime will be overthrown by the way.
Both sides are well aware of this, so no one will make any overly demanding requests.
Of course, the interests of the contest will be contested, but there must be a margin to ensure that this is a win-win outcome.