Vol 5 Chapter 55: Increase construction costs

At the beginning of the Ten-Year Plan, the Bulgarian government was busy again. The big outline plan had been set. There were still a bunch of sub-projects in it, which needed to be discussed and discussed.
At present, the cabinet is most worried about the road construction tendering conference, which involves tens of billions of levs in capital investment. The world's strongest participants in the bidding are single digits. It would be embarrassing if no one came.
Constantine asked with interest: "How's it going, how many consortia apply?"
Minister of Transport Beshir Ivanov thought for a moment and said, "So far, only two consortia have registered!"
After hearing this result, Constantine was relieved, as long as someone signed up. This kind of long-term investment is inherently small.
After all, for more than a decade of pure investment, the hope of returning to capital will not be seen in the next two or three decades. Capitalists are all pursuing profits. How can it swarm?
Constantine asked, "Which two consortia?"
Besil-Ivanov shook his head and said, "It is not an international consortium. Both are temporary groups of our domestic capitalists. The leaders are United Bank and Royal Bank. They came forward and pulled up a group of people. , Ready to participate in this bid! "
When I heard that it was a group of domestic capitalists, Constantine could basically guess the result. Except for these two banks, other capitalists did not have this appeal, nor did they have the financial resources!
Although National Bank also claims to be one of the three major domestic banks, it is a pity that when it comes to the strength of funds, these two banks have been left behind.
Even if the government puts all the financial funds in the National Bank, it still cannot reverse their weak capacity to absorb reserves.
The Royal Bank has absorbed a large number of deposits from farmers, aristocrats, and some workers and capitalists. The United Bank has absorbed most of the capitalists and workers' deposits, and the country's positioning is somewhat blurred.
At the beginning, because of the service attitude, it was overtaken by the two new private banks. Although the service has improved in the future, there is not much effect!
This advantage is even more obvious after the two major banks have obtained the banknote rights. Although the National Bank has endorsed the government, the two major banks also have hundreds of tons of gold there as security deposits, and their security cannot be doubted.
Prior to this, the government did not make the National Bank take the lead and form a joint company to bid. Unfortunately, the investment amount was too large and the rate of return was too low. Few people were willing to participate. In addition, the management of the National Bank was also very resistant to this. investment.
This cannot be said that they made a wrong judgment. After all, purely from the perspective of return on investment, this project is difficult to make a profit. Even if it can make money, it will be three or fifty years later.
Constantine asked with concern: "Which companies are involved in the country?"
Bessier thought for a while and said, "Basically, it's all domestic oil companies and automobile manufacturers, as well as related industries in these fields. I have read the bid reports submitted by them.
They hope to improve the traffic, thereby expanding the market and increasing corporate profits. They are not very concerned about whether the highway itself can be profitable.
Judging from their plan, their expectations for this project are very low. The plan can achieve capital preservation within 20 years and return on investment within 50 years! "
Constantine rubbed his forehead and said, "Our road project won't be so bad? It will take 50 years to get back the money?"
Bessier shook his head and said, "I don't know! In theory, after ten years, the maximum number of motor vehicles in our country can reach 10 million, of which the number of cars can reach 2 to 3 million. Cars.
Considering that in order to protect agricultural production and the daily lives of residents, the oil prices of agricultural vehicles, trucks, and buses will be limited. It is almost impossible for them to make money from these two or three million cars!
Even if the annual fuel cost of each car is as high as 2,000 levs, they have half of the huge profits, and they only have a gross profit of 2-3 billion levs. After deducting road maintenance costs, gas station operating costs, and interest on funds After the cost, they are still at a loss! "
Constantine also said nothing. If so, it is estimated that only these directly benefiting companies will come to invest. After all, once the road is completed, their market will expand several times. Even if this investment does not make money, but in other The lack of real estate can be profitable.
Time passed quickly, and on December 12, 1921, the bidding conference organized by the Ministry of Communications was grandly opened, and hundreds of media at home and abroad gathered together.
This bid was extraordinary, known as the "million km road" big bid!
Yes, according to the plan of the Bulgarian government, within 10 years, the total mileage of Bulgarian national highways will exceed 1 million square kilometers, of which 50,000 kilometers are high highways, 150,000 kilometers are secondary highways, and the rest are rural roads. .
At present, the total mileage of highways in Bulgaria is no more than 300,000 kilometers, and most of these roads are dirt roads. The high highway is only more than 10,000 kilometers, which requires extensive reconstruction.
This means that in the future, Bulgaria will begin to explode highways at an annual rate of 70,000 kilometers. Once this plan is completed, the total mileage of highways owned by Bulgaria in ten years will be more than 6 in Europe.
Media around the world have set their sights here, and they are all waiting to see the results of this tender. If successful, it is estimated that it will have an intuitive impact on the transportation policies of the next countries.
After all, roads are not as good as railways. Except for special sections, most areas do not have great technical requirements for construction. Even today's high highways do not have the high standards of future generations, and the construction is not difficult.
If the government can invest no penny, just make land and policies, it can use the wealth of capitalists to improve the national road system. It is estimated that governments of all countries are willing to follow suit!
Out of the importance attached to this bidding conference, Minister of Transport Beshir Ivanov personally presided over the meeting. The threshold for this bidding conference was very high, and a bid deposit of two billion levs must be paid first. Eliminated the vast majority of investors without strength.
If you do not really want to win the bid, it is estimated that no one will make a joke of 2 billion levs. Although the price will be refunded after the bid is closed, the cost of this capital is also very high.
Of course, banks are very dominant in this regard. For example, Royal Bank and United Bank, just write a check and the Ministry of Communications does not need to collect cash!
Foreign consortia are very injured. They must call the funds. Such a large amount of funds must first be exchanged internationally. This time cost is difficult to accept.
Chancellor of the Treasury Kennedy brought the bad news: "Beshill is bad, the three British consortiums registered in advance, and the two French consortiums announced their withdrawal from the bid, leaving two bidding companies now!"
Transport Minister Beshir Ivanov said incredulously, "What? How could they suddenly withdraw? Couldn't they bid for the security deposit?"
Kennedy said with a blushing face: "Until now, our Ministry of Finance has not received a deposit from them. Before they applied for international exchange, they asked for an extension of the deposit. Considering their strength, we agreed.
We learned from the banks that these consortia did indeed conduct exchange business with them, but suddenly they cancelled the bidding plan yesterday! "
Behir's face suddenly became gloomy. As long as the two companies participated in the bidding, the bidding activity undoubtedly put the Bulgarian government into shame.
...
On the other hand, Dougall Transport Company is very happy. It is true that they are the temporary bidding company formed by the British Rothschild Consortium, and the top of the company is also the top of the consortium.
Three days ago, they completed a comprehensive survey of the Bulgarian highway planning route. It was not a survey. They just sent someone to evaluate the terrain and construction difficulty and estimate the construction cost.
Then combined with the situation of Bulgaria's domestic economic exhibition, a comprehensive assessment was carried out, and finally everyone came to a conclusion that this is a huge pit!
The information released by the Bulgarian government did not lie, but just ignored a lot of things.
For example: in the Asia Minor Peninsula, Syria, Iraq and many other regions, many areas are now uninhabited areas. All the purchase of materials and transportation will cost a lot. This alone will increase the cost of billions of levs.
In addition, in some areas with poor geological conditions and climatic conditions, the government ignored them during the assessment. The pavement in these areas is definitely not feasible according to ordinary construction methods, and special treatment is needed. It is still unknown how much these problems will increase the cost.
In the end, the construction cost given by the experts of the Dogol company was not the more than 60 billion levs estimated by the Bulgarian government, but it became a huge sum of nearly 100 billion levs.
As for the evaluation of the Bulgarian economic exhibition, the data we all got are similar. The same benefit data and different cost predictions eventually lead to different conclusions!
After a comprehensive evaluation of Ferdinand's consortium, it was finally believed that the cost could be recovered within the latest 50 years. The most optimistic estimate is that the cost can be recovered in 35 years. In addition to the benefits in other fields, this business can be done. .
The Rothschild Consortium has concluded that the huge loss has increased the construction cost by two-thirds, and the interest cost of the capital alone cannot be recovered. Once caught in it, it can no longer climb up!
Several other consortia have also reached similar conclusions. It is estimated that they are now watching jokes and seeing which fool will jump!
As a ground snake, no one knows more about the road planning situation in Bulgaria than Ferdinand. The main cost of road construction is labor, sand, and cement. Some areas require bridges and steel, and earthwork can be ignored. The Bulgarian government will designate free soil fields.
If it is an outsider, of course, raw materials can only be purchased at market prices. As a monopoly consortium, these raw materials, machinery and equipment are all produced by their own. It is nothing more than a left-handed and right-handed problem.
You have lost money on highway projects and made money on other projects. You can also use this list of losses to show the public that it has been miserable and raise the price of oil reasonably and legally.
Even in terms of labor, there are very obvious advantages. It is a big deal to cooperate with the military and let them be responsible for engaging in a portion of cheap labor. Don't doubt their influence. You don't need Ferdinand to end the game. The people below can easily get it.
These favorable conditions are taken into account, and the added costs are offset. Given the advantages of local banks, the cost of international exchange is one or two points lower than that of foreign capital, which are 12 billion levs.
In the future gas station project, as long as it can afford bank interest, Ferdinand is already making money, and ordinary people do not know that this project has achieved profit!
...
No matter how many people participate in the bidding, this step is reached anyway. Even if only one bidding unit has to open the bid, the government's credibility cannot be lost anyway!
Considering that there are too many people in the media, this time the bidding site was placed in the congress hall. Although there were fewer bidding companies, there were a lot of people present.
The two bidders brought a large group of people in tacit understanding. The major media were taking pictures crazy, and some people wanted to go forward to interview, but were stopped by security personnel.
Minister of Transport Beshir-Ivanov stepped onto the podium and said directly: "This time, there were seven applicants for the Bulgarian highway construction bid. Only two submitted bid deposits, and the other five chose to give up.
Now that they have given up, we will ignore them. The two companies participating in the tender now are: Bulgarian Road Group and Bulgarian Road Construction Group.
The project includes the construction of 700,000 kilometers of roads and the maintenance and reconstruction of 300,000 kilometers of roads. The detailed list has been given to the two representatives, and the Bulgarian government has also made public announcements. It is believed that both bidding companies have conducted detailed studies. .
Now that the bidding meeting has begun, as there are less than three bidding companies, according to the Bulgarian Tendering Law, the bidding was changed to a commercial negotiation mode bidding, but the requirements announced by the government will not change.
May I ask the representatives of the two companies? "
"No!"
"No!"
Beshir was relieved, there was no best, what he was most afraid of was that the two companies had also withdrawn, and the Bulgarian government's bidding exercise had failed!
"Naohao is now in the official bidding stage. After the Bulgarian government organized experts to conduct in-depth field investigations, the total mileage of the road project construction is 114.34 million kilometers and the total investment in the construction is 62.618 billion levs.
The details have been listed in the list. Any comments from the public? "
I saw Howell, a representative of Bulgarian Road Group, said, "My company believes that the government-supplied list is not accurate enough, and it is inconsistent with the results of our field survey. Here are the survey data we provided, please review by the expert group!"
Without waiting for Bessier to speak, Smith, the representative of Bulgarian Highway Construction Group, also said, "Agree, our company has the same questions. Here is the information of our engineers' site survey, please review by the expert group!"
Beshir-Ivanov knew that the trouble was serious. Once the current bid list was seriously inconsistent with the actual situation on the site, the Bulgarian government would have to bear full responsibility. Even if these two companies withdraw from this bid, it is reasonable and legal!
However, Bessier still did not change his face, saying: "The proposal is valid and the expert group will conduct on-site review!"
Due to too much information, the expert group can only look at one, but at the beginning, everyone's face was gloomy. The total cost given by the two companies is far from the total cost announced by the government.
They don't think that these data are fake, and later they will know the results by organizing field surveys. Topography, landforms, and climatic conditions, these natural factors cannot be faked!
After more than two hours passed, the expert group exchanged opinions, and the expert Lancelot said, "Because the data provided by the bidder and the bidder for this bid is too large, a field survey is needed to determine it!
Now the total cost of the project given by Bulgarian Road Group Corporation is 100 million levs; the total cost of the project given by Bulgarian Highway Construction Group is 100 million levs; and the project cost given by the Ministry of Transport is 62.618 billion levs.
The cost budget gap between the two parties is too large. After the site survey, the project cost must be re-approved. However, this bid is different from the past. The bidder needs to bear the full investment and realize the return on investment in the mode of gas station.
This calculation result does not affect the final bidding result. The two bidders can still continue to bid, or they can choose to give up. If it is finally determined that the data you provided is true and valid, you can file an administrative claim with the Ministry of Transport! "
Obviously, this is what Ferdinand learned from later generations ~ EbookFREE.me ~ deliberately increasing the cost. For such projects where the bidders fully invest and are self-financing, the investment amount is not too strict.
The advantage is that on the surface, the cost can not be recovered for a long time in the future, and the loss-making projects will naturally not cause people to be jealous.
If the profits are realized quickly and the profits are still huge, the contractor's investors will soon become the target of public criticism, especially the projects involving national economy and people's livelihood.
In order to avoid these unnecessary troubles, Ferdinand was ready to invest in an astronomical figure from the beginning. It is very simple to control this.
For example: rising labor costs, rising material costs, rising capital interest costs, rising transportation costs, and poor geological conditions have increased costs ...
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