Chapter 382: Breaking into a New Market
With the very positive conclusion of the delegation, the appetite of the Pakistani side is much greater than that of Bangladesh, and their minister in charge of power development proposed that Dongfang New Energy could consider directly launching 600MW in Pakistan, as a friendly neighbor, Pakistan is willing to fully cooperate with the commercial trial of Lotus Stack.
Even Dongfang New Energy can consider directly going to two sets of units, one by one, so that in case something goes wrong in the middle of one of the units, the other set can also be on top, and it is easier for Dongfang New Energy to improve the lotus pile by comparison and verification.
This is too brotherly, if you don't say it's called Pakistan, you see that being a guinea pig is rushing to be. In other words, ordinary people are probably moved by the Pakistani brothers.
It's just that when Liu Jianji heard the other party's suggestion, he couldn't help but twitch the corners of his mouth, such a poor guy really dared to think about it.
1,200MW of new electricity is not at all difficult for Pakistan to digest, Pakistan's total economic output is more than double that of Bangladesh, and the power supply has always been very short, 1,200MW seems to be a large number, in fact, it is 1.2 million kilowatts, which is the electricity consumption of a medium-sized city in China.
A large city like Rongcheng, with a population of more than 10 million, needs at least seven or eight million kilowatts to barely meet the electricity demand.
Pakistan has a population of 1780 million, and the total installed power capacity of Pakistan is a little more than 20 million kilowatts.
However, even according to Pakistan's current calculations, there is no problem with the gap in installed power capacity of at least 50 percent, so even tens of millions of kilowatts of installed capacity can be easily digested by Pakistan, and the addition of this 1.2 million kilowatts of installed capacity is simply a drizzle for Pakistan.
In fact, the poorer the local power supply, the shortage is basically a theorem, and due to the poor local political stability, the general small-scale enterprises simply do not have the strength to play games with the local government, so enterprises like electric energy industry, backed by giant crocodiles, can have the confidence to establish deep political and business connections in the target country, ignoring the changes in the local political situation.
Demand is one thing, but Liu Jianji knows that this is not the most important thing, these are just high-sounding scenes, in essence, the other party is aiming at the huge interests behind the project of Dongfang New Energy.
After the completion of the Bangladesh project, during the operation of Dongfang New Energy, the Bangladeshi authorities can obtain hundreds of millions of dollars of benefits every year, if Pakistan can directly go to 1200MW, then it is equivalent to an increase of 400 million US dollars a year, for Pakistan, which is also poor and backward, this income is a relief for Pakistan, which is extremely poor and poor, not to mention that in 30 years, this income will become at least one billion US dollars a year.
Such a huge benefit, even if it is a little risky, is nothing, not to mention that experts say that the risk is much smaller than the second-generation nuclear power plants that China has helped build. Therefore, this nuclear power plant can be as big as it can be, and the Pakistani side will not invest a penny anyway, and it is basically a sure profit and no loss.
Pakistan has earned, but can not let Dongfang New Energy suffer, as the general manager, Liu Jianji will not let these Pakistani poor buddies open their mouths, this is the Dongfang New Energy to make money, the experimental reactor can be half sold and half sent, but it is impossible to always engage in such a big gift activity, Liu Jianji just wants to build an experimental reactor, and run the other heaps as purely commercial reactors.
As a commercial reactor, it is obviously unlikely to give such good conditions for an experimental reactor.
"Mr. Minister, although we are indeed very confident in this 600MW model, after all, it has not been commercially used, and it is still a bit risky to put two sets of units at one time. Let's talk about the 600MW experimental reactor unit is more realistic. The investment in nuclear power plants is huge, and the company also needs to have a considerable amount of time to accumulate better experience in construction and operation. ”
The minister who participated in the negotiations on the Pakistani side listened to Liu Jianji's words and smiled kindly, he was just asking for a sky-high price, and he was not angry about Liu Jianji's on-the-spot repayment, and motioned to the people next to him to continue, and it was good for him to be able to finalize a 600MW unit.
Of course, he knows how much Bangladesh's 300MW nuclear power plant will bring to the country, and even a copy of the economic feasibility analysis report made by Dongfang New Energy to the Bangladeshi authorities, if today's negotiations can finalize the 600MW construction intention, it will also be equivalent to doubling the income of Bangladesh for Pakistan, what is he not satisfied with.
What's more, these new power additions can also bring other potential benefits to Pakistan, and every dollar of investment in power infrastructure can directly boost Pakistan's industrial economic growth by at least two to three times.
Therefore, for the Pakistani side, there is no question of whether it will go up or not, but when, how much, and how the benefits will be distributed. Mr. Minister will no longer intervene in these next bargains, and naturally there will be professionals on the Pakistani side who will have direct talks with Liu Jianji.
Compared with the Bangladeshi authorities, the Pakistani authorities are obviously more difficult to deal with, they have a greater appetite and higher demands, and the connections of the Lao Li family in terms of high-level Pakistani dignitaries are much worse than those in Bangladesh, making the specific process of this negotiation very difficult, Liu Jianji spent two weeks in Islamabad before finally getting this BOT contract done.
The first tricky condition is the issue of the duration of the operation. As soon as the Pakistani side came up, it demanded that 30 years is too long, and 25 years is enough for you to earn. After such a request was made, Liu Jianji was almost choked to death, what are you kidding, the first time the Bangladeshi authorities ate crabs was 30 years, if you give the Pakistani side 25 years, isn't this a resounding slap in the face to the Bangladeshi politicians? Does Lao Li's family still want to mix up in Bangladesh?
Therefore, Liu Jianji categorically rejected this unreasonable demand of the Pakistani side, and even though the Pakistani side once threatened to withdraw from the talks, it did not make the slightest concession. In the end, the operating period of Dongfang New Energy will be maintained for 30 years.
The second tricky condition is that the Pakistani side proposes that if Dongfang New Energy continues to build a new Lotus reactor nuclear power plant in Pakistan in the future, Pakistan will have the right to participate in the shares. Initially, it was proposed that the shareholding ratio should not be less than 50 percent, and the economic benefits of this lotus pile were too tempting, so it was inevitable that the Pakistani side would be red-eyed.
Instead, it was euphemistically proposed that the intellectual property rights of the lotus reactor would be converted according to the market price, so that the construction cost of the nuclear power plant could be greatly increased to 2,000 US dollars per kilowatt of installed capacity.
$1,000 per kilowatt is a purely raw cost price, and the amortization of R&D expenses has not been taken into account. Therefore, this cost has not yet been completely clarified between Dongfang New Energy and Dushi Heavy Industry, but it does not prevent Liu Jianji from quoting a high price, anyway, it is not transparent, no matter what he says, there will be no major mistakes in this construction cost.
Liu Jianji's high investment obviously scared the cash-strapped Pakistani side, according to this investment, the last 600MW lotus pile will require a high investment of 1.2 billion US dollars, the same investment if it is to build a thermal power station, can be on two groups of 1000MW thermal power units, the investment cost is simply not the same for thermal power.
It is not easy to finance with their credit, and I am afraid that it will not be easy to finance it by paying more than 10 percent of the annual interest, so the idea of injecting cash into the new nuclear power plant was quickly rejected by the Pakistani side itself. With no capital and no technology, it obviously has no say in this capital-intensive and technology-intensive business.
It's just that for the fragrant dumpling of lotus piles, the benefits are too tempting, and the people of Pakistan not only see it in their eyes, but also prepare to eat it in their mouths. If you can't eat a mouthful, you won't be willing.
So there was a brief pause in this area, and both sides came down to look for and explore alternatives, and finally came up with a compromise plan: Pakistan invested in infrastructure, such as land, power grids, etc., and accounted for 15 percent of the shares in the new nuclear power plant, which is basically the limit of Liu Jianji's concessions, and it is only limited to Pakistan.
This is mainly because he has to make some concessions considering that he does not have the same deep high-level connections in Bangladesh as he does in Pakistan.
However, this is the final concession, with the 600MW commercial experimental reactor in Pakistan and the 300MW commercial experimental reactor in Bangladesh, there will not be such favorable conditions for new market expansion to the local government in the future. After all, it is inevitable that there will be a discount for the first crab eater.