(Thank you to Liao Ziyu of the Alliance for your support and support. It has been upgraded to Platinum Alliance - one more chapter added)
In the evening, Yang Deshan, Wang Wen and Abacha also rushed over. Together with Liang Siqian, the old chief and others, everyone was grilling tender lamb chops, mutton, chicken, and vegetables in the open space in front of the wooden building.
It's green and spicy, and the cook has just learned how to eat old tofu in a few days.
Abacha took Yang Deshan and Wang Wen to meet the chairman of the Longta Municipal Committee and everything went smoothly.
Previously, Cao Mo, Xie Sipeng, and Yang Deshan invested in private investments, and there were some local concerns.
Now that Dongsheng Group, which has strong financial resources and has invested tens of millions of dollars to acquire oil palm land in Lungta, is leading the construction of the industrial park, how can the local government still have doubts?
Dongsheng purchased oil palm land on a large scale in Longta, but the powerful family named Longta made a fortune.
The contract period is ninety-nine years, and the land price per acre is US$800, which is definitely not high in China. However, quite a few families in Lungta have a long history of planting oil palm trees. There are more than 200 tribal leaders in Lungta, large and small, and they have as few as
There are hundreds of acres, sometimes tens of thousands of acres of oil palm land, and this time it is considered an excellent cash-out opportunity.
And when they sell mature oil palm land, they can also open up new oil palm planting land at low cost to replace it.
This large-scale acquisition by Dongsheng is equivalent to a direct capital injection of tens of millions of dollars into Longta.
It is a pity that local people have poor investment awareness. In addition to opening up more new oil palm land, few people think about investing in manufacturing or infrastructure.
Of course, there are many people like Kenhardt who took the large sums of cash from the sale of oil palm land and went to Draculamore to buy houses and enjoy the colorful world.
Cao Mo once thought about asking Abacha to come forward and negotiate loan agreements with these families who were selling oil palm land and had large sums of cash in their hands, but after a month of contact, there were only three transactions of less than two million US dollars in total.
Agree to open a trust account at the United Bank of Oman and then lend it to Felician Electric Power Company at a fixed annual interest rate for the development and construction of upstream hydropower stations and supporting facilities.
In the construction of industrial parks, the most important thing is to ensure power supply.
In the car that arrived in Longta in the morning, Cao Mo communicated with Yang Deshan about asking China Civil Engineering Construction Co., Ltd. in Cardiff to undertake the advance construction.
Yang Deshan and the others did not know the indefinite carte blanche management agreement privately signed by Cao Mo, the Felician family, and Abacha, nor did they know how beneficial the whole matter would be to Cao Mo personally.
The construction of upstream hydropower stations will always be negotiated in the name of the Felician Family Power Company in the future.
At this time, let Yang Deshan and Wang Wen participate in the discussion, and even let them know some of the current operating conditions of Felician Family Electric Power Company and Felician Family Building Materials Company. There is no problem.
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The cement storm over Kanem has not stopped yet, but no matter when it stops, Cao Mo will no longer worry about anything.
The total investment of the first ladder hydropower station is US$1.5 million. Calculated based on the monthly power generation of one million kilowatt hours, the depreciation of facilities and equipment, the water source fee paid to the water conservancy department of the Longta region and the state government, and 3% profit
Taxes, river management in the reservoir area, replacement and consumption of materials and spare parts, employee salaries, etc. are all included, and the cost per degree is about three cents.
The cost is higher than in China, but there is also a huge profit margin.
By the time the five-year facilities and equipment depreciation period is over, the cost of water and electricity will be diluted to a level comparable to that in China, and the profit margin will be even greater.
In the upstream mining of limestone, silicate, volcanic ash and other raw materials for cement production, three Chinese businessmen have entered the industry and invested millions of dollars in succession to transform and upgrade the mining and transportation equipment processes of these raw materials.
On the one hand, the upstream raw materials of cement are fully supplied, so Cao Mo does not need to worry about it. On the other hand, with the upstream mining, transportation costs have dropped significantly, and the scale of mining is quite large, so the price of supply to Ibogu Cement Factory has also dropped.
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Just because of the decline in electricity and raw material prices, the production cost per ton of finished cement at the Ibogu Cement Plant has actually dropped by nearly $60.
This is unimaginable in China. After all, a ton of ordinary cement in China cannot be sold for US$60. How can there be such a huge space for cost reduction?
Local governments only need to pay a nominal 3% profit tax.
At present, the price of finished Kanem cement remains at a high of 380 US dollars per ton. The profit margins are so large that in China, cement manufacturers would probably go crazy laughing just thinking about it.
Unfortunately, from the end of October to the beginning of next year, Kanem will gradually release nearly 1.8 million tons of new domestic cement production capacity. Even if the cement import ban is not lifted, cement prices will fall step by step.
By the middle of next year, 1.2 million tons of new cement production capacity will be released one after another, and cement prices will inevitably fall further.
If we take into account that repeated bans are difficult to stop, and the huge profits are even attracting the further expansion of cement smuggling, in the spring of next year or later, the cement price of Kanem will slide to a low point in recent years, Cao Modu said.
It won't feel strange.
Of course, even then, the profit margin that Felician Family Building Materials Company can have can still be called huge profits.
To be honest, if it were not for the idea of transferring part of the profits back to China, the profits generated from the Felician Family Building Materials Company alone would be able to support the construction of new hydropower stations and new cement plants in the next two years.
The main dams of the three stepped hydropower stations on the Gray Crow River will begin irrigation operations at the end of September and are expected to be completed at the same time as the transmission grid by the end of the year.
At this time, as long as there are funds, continuing to invest in the construction of hydropower stations in the upper reaches of the Lukaku River can be considered a safe investment with quite controllable risks.
The so-called safety applies whether Cao Mo continues to raise money to invest in construction or China Civil Engineering Construction Corporation advances funds for construction.
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The second stepped hydropower station on the upper reaches of the Yibagu River, the gorge with a small mouth and deep valley is called Yeyang Gorge.
Although Cao Mo entrusted professional organizations under the Oyo State Water Conservancy Department for compliance, hydropower station planning and geological survey, Liang Siqian did not know how many times he visited the site and was dragged by Cao Mo to attend several seminars.
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He is very clear about the planning and site selection of the Yeyangxia Ladder Hydropower Station.
After dinner, I was sitting on the terrace of the small building by the lake, enjoying the lake breeze. When I heard Cao Mo mention the advance financing for construction, he bluntly raised his doubts:
"The concrete pouring volume of Yeyangxia Hydropower Station is not small. The current price of cement in Kanem is too high. It is difficult to estimate and prepare the project payment. Not to mention bot\bt, it is difficult to negotiate ordinary advance funds..."
Liang Siqian came into contact with Cao Mo at the beginning of the year. After signing the contract agreement for the first small hydropower station before March, he was in charge. Now he is responsible for the construction of three hydropower stations along the Gray Crow River at the same time.
Cao Mo is about to activate the Yeyangxia Hydropower Station, and it is basically certain that he will be in charge.
The Yeyangxia Hydropower Station will have higher specifications in all aspects. Liang Siqian can be responsible for this project, which is extremely beneficial to his development within China Civil Engineering Construction Corporation.
Of course he hopes to make this happen.
The problem is that the price of cement in Kanem fluctuates too much. Serious disagreements will inevitably arise over the calculation of the investment scale of the entire project, and negotiations will easily reach a deadlock.
"This is easy to handle," Cao Mo said, having considered this issue for a long time. "Abacha is here. I have talked with the old chief and Ojosan. The finished cement used in the construction of the dam will be directly supplied by the Ibogu Cement Factory.
For supply, the project payment will be calculated at a fixed rate of US$250 per ton, which should avoid entanglement on this issue..."
Abacha sat aside and simply rolled his eyes.
Fortunately, Cao Mo had agreed in advance that the final distribution of equity in the Yeyangxia Hydropower Station would be based on the proportion of equity in the Felician Family Building Materials Company.
Thinking that he would eventually own 15% of the Yeyangxia Hydropower Station when it was completed, Abacha had to hold back even if he was thrown out by Cao Mo as a gun.
Kanem's domestic cement prices are currently falling, and are very likely to fall in the future. However, no one can predict the trend of finished cement prices during the project construction period.
Cao Mo has now decided that Yibogu Cement Factory will directly supply cement at a fixed price, which will avoid the two parties getting entangled in this issue.
"There are a large amount of low-interest assistance loans to Kanem every year in China. These aid loans are actually mainly divided into two categories. One is buyer's credit, which is mainly used to support Kanem's government and commercial companies in purchasing Chinese mechanical and electrical products.
, large complete sets of equipment, ships and other commodities. This requires a certain credit rating to apply to the Export-Import Bank of China. Felician Family Power Company has a short development time and is not very formal in all aspects. It should not be available yet.
Eligibility to Apply for Buyer's Credit,"
Liang Siqian, as the grassroots supervisor of the China Civil Engineering and Construction Branch in Cardiff, still knows the relevant policies in quite detail.
"There is also seller's credit. In theory, if our branch in Cardiff wants to undertake the Yeyangxia Hydropower Station on the upper reaches of the Yibogu River, it can directly apply for a loan from the Export-Import Bank to advance the construction...
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"Manager Liang said this. Now that I understand, I have the confidence to contact Mr. Bian directly..." Cao Mo said.
After listening to Liang Siqian's explanation, Cao Mo understood.
As a pure engineering contracting enterprise, China Civil Engineering Construction Co., Ltd. has very limited working capital. It would be very troublesome to apply for advance construction funds from the group headquarters, but it can apply for a seller's credit from the Export-Import Bank of China.
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In fact, the funds used by Dongsheng to acquire oil palm plantations in Longta came from the buyer's credit provided by the Export-Import Bank of China to support companies going overseas.
In China, it has long been the norm for project construction to have the general contractor advance funds for construction.
This model is not new overseas either.
Especially in Africa, the buyer, that is, the project contractor, has very limited capital at its disposal. Chinese companies need seller credit leasing as a tool to compete with mature European and American companies for the project market.
Liang Siqian will not forget that he is just a grassroots supervisor. He did not speak too fully, but he still thinks that there is room for discussion on this plan...