Chapter 45: Throwing Money
As early as the early summer, Wang Yongyuan instructed Jinshan Investment Company to contact some backward industrial owners who were about to be eliminated and ask them if they were willing to go to country A for development.
There are no restrictions on environmental protection โ poor and backward places have to carry out strict environmental protection, which is not much different from IQ.
For example, weight loss is a problem that only overnourished people need to consider, not malnourished.
Most people are reluctant to leave their hometowns and invest in places where the living environment is so bad.
But there are also those who are willing to take that risk.
Because Jinshan Investment Company will provide some economic and policy support for their industrial transfer, including helping them deal with the relationship with the government of country A, providing them with low-interest or even interest-free loans for transferring production capacity, giving them a relatively complete industrial chain, and helping them find sales channels for their products.
Even in some industries, Jinshan Investment Company can also carry out relatively preferential conditions for equity investment to help them upgrade their industries.
Nowadays, many places in China are very strict in pollution control, and it is not difficult for Jinshan Investment Company to find some industrial owners who are willing to go to country A for development.
It's just that because the election situation of country A is not clear, they only did some intentional communication, and did not enter into the actual operation.
Now that Santos has won the election, he can come up with better preferential policies, and such work can be put into practice.
The purpose of this activity is called the "Nugget Plan", and the purpose is to transfer some backward production capacity in China to country A, facing those small and medium-sized enterprises that are about to be eliminated.
The role of Jinshan Investment Company in this is to lead a number of small and medium-sized enterprises to form a barely complete industrial chain, and the other is to provide economic and policy assistance to those small and medium-sized enterprises that are not doing well at present.
After Santos was elected, they proposed to set up a development bank in country A to provide financial assistance to small and medium-sized enterprises (SMEs) that came to invest in country A.
It is a luxury to set up a private bank in China, but in country A, it is not impossible to do so with the support of the government.
Gold Mountain Investment Company has such large assets and the capital to set up a bank in this poor and backward country.
โโWhether it is the requirements of funds or the requirements of reputation, there is a certain guarantee.
At least it is a little stronger than the money and credit of the government of country A.
Santos' team agreed to such an offer.
Country A is not opposed to the establishment of a private bank, and Kingsoft Investment Company is willing to set up a private bank to escort the economic development of country A, and they certainly welcome it, as long as they abide by their laws.
Without setting up a private bank to finance loans, the national banks of country A really can't afford to do that โ although they have the right to issue banknotes, they can only issue their own currency, and they have no way to get foreign currency, so they don't have any attraction to foreign investors.
The proposed bank is called the Southern Development Bank, and the goal of the Jinshan Investment Company is to attract a few more major shareholders to jointly establish such a bank, and if it cannot attract enough major shareholders, it can also be a sole proprietorship.
At least Goldsoft Investment has the capacity to set up a development bank that only serves the Southern Special Economic Zone of Country A.
Lilia also attended an economic conference.
Although she is not very knowledgeable about the economy, she also knows how much interest it is to set up a bank, so she said that she would like to be one of the initiators of this envisioned development bank.
Her charitable foundation has $3 billion in assets, and most of those assets are financial products such as stocks and bonds, which can be easily realized.
She certainly has the ability to come up with a certain amount of money to be the majority shareholder of the bank.
Santos also said he could introduce a few investors to the development bank.
Although country A is a poor country, it does not mean that there are no rich people in the whole country, and some local warlords can still come up with some funds.
As long as the economy of country A can really develop, it is relatively safe to make money as a major shareholder of the development bank.
The problem of electricity is a key issue in industrial development.
State A has its power station, but the power generation capacity cannot even meet the daily electricity of the people, let alone supply electricity for industrial development.
Most of the industries that need to be transferred to Jinshan Investment Company belong to electric tigers, which consume a lot of electricity, and if there is not enough electricity after completion, then building there can only be regarded as a decoration, relying on their own factories to generate power and supply, and the cost is too high.
In order for the SEZ to be built, it must have a large-scale power station.
The Santos team hopes that Kingsoft Investment can solve this problem and ensure the use of electricity in the Southern Special Economic Zone, especially for industry.
What they need is a thermal power station with a total installed capacity of 1.2 million kilowatts to 1.8 million kilowatts.
They want to engage in economic development, they can only save costs as much as possible, and then they need the most stable power generation guarantee, there is no way to engage in wind power generation, or solar power generation and other bells and whistles, environmental protection can not be mentioned in the four words, can only use coal to generate electricity.
Small-scale coal-fired power stations are very polluting, but large-scale coal-fired power stations can reduce environmental pollution as much as possible and reduce costs as much as possible.
Fortunately, although country A does not have a large coal mine, there are also several relatively large coal mines in China, and the supply of coal is not too much of a problem as long as the road is repaired.
There is only one problem that is holding them back from building large power stations, and that is the economy.
The investment cost of building such a power plant is more than $1 billion.
And that's just the cost of investing in the power plant.
It is also necessary to build a power grid.
The laying of high and low voltage lines is a huge cost expenditure.
Such a large-scale thermal power station and related distribution facilities would cost at least $2 billion to lay the foundation.
Country A can't come up with the money.
They can only count on Kingsoft Investments.
The $5 billion promised by Gold Mountain Investment Company seems like a lot, but when it is really used, in a poor country where there is nothing, you will find that it is very little.
Hearing them calculate this account, Gu Mu was in a trance:
"In this small country, if you take out a small area to build a special economic zone, you need to spend so much money. How much money has been spent on the infrastructure that our country has gone from being poor to being so perfect now? How did you do this?"