Vol 5 Chapter 56: ,beat

After listening to Lancelot's words, the cold sweats of Beshir-Ivanov will come out. There is no problem in the cost accounting error, but if the error is more than 20%, the cause must be investigated. The multiple gap, if confirmed, is a very serious administrative accident.
If it is normal and you make a mistake, as long as you correct it in time, it is not a big deal. But this time is different. Who is going to fill it?
Fortunately, this is before the successful bid. If the successful bidder can take the evaluation report to touch the porcelain, and directly pay all construction costs and management costs, let the Ministry of Transport help the construction, it is estimated that the Ministry of Transport will be Pit dead!
Of course, this kind of thing is impossible to be born in Bulgaria. I touched the porcelain of the government and still want to have a good life?
Now Bessier is worried that these two companies are scared away by this cost. Then how to end it, the Minister of Transport will be in trouble!
After a moment of silence, Smith said, "Our Bulgarian Highway Construction Company has limited financial strength and cannot afford to invest more than 120 billion levs!"
Howell also said, "Sorry, the investment of more than 120 billion levs is too large. Even if it is divided into ten years, it will cost 12 billion levs every year. We Bulgaria Highway Group also has no strength to undertake this investment independently! "
Neither of them actually said to withdraw. This is undoubtedly good news. Bessier knows that the two shareholders behind the two companies are the beneficiaries of the plan. Will support this plan!
Bessier asked: "If you have any ideas, the government can work with your company's technical staff to re-examine and determine the new project cost. It will take some time.
However, if you want to continue to build this project, you will still have to bear the final investment cost, but the government will give you some support based on the actual situation! "
Smith hesitated and said, "Sorry, Mr. Beshill's investment of more than 120 billion levs has far exceeded our budget, and the Bulgarian highway alone cannot support this cost.
At the same time, the problem of profit is also a trouble. According to the government's plan, non-luxury vehicles cannot make huge profits by using oil. What really belongs to our profit point is family cars.
According to the Bulgarian economic show, the project is fully completed ten years later, and the country's car ownership is between two and three million.
Then the annual revenue may not be enough to pay the bank's interest. If we take into account operating costs, maintenance costs, and time costs of funds, our annual loss will be as high as 5 billion to 8 billion levs.
Even after 20 years, our domestic car holdings have doubled, we are still losing money, and we have to add the interest on the interest owed in the previous 20 years. Our group of economic experts told me that the loss The numbers will be even bigger!
This continues to accumulate, and I suspect that this project has no day to pay off bank interest! Of course, banks don't dare to lend in such an unlimited way. They also need to consider the safety of depositors' funds! "
Howell countered at once: "No! Mr. Smith, you are too pessimistic. In theory, as long as the car ownership in the country reaches 20 million vehicles, and the average fuel cost per car is over 1,500 levs, If we calculate based on doubling the price of oil, then there will be 15 billion Lev's gross profit, and the balance of payments can basically be achieved!
Of course, the prerequisite is to reach this standard within 20 years, otherwise the accumulated capital cost will be in our imagination! "
After hearing Howell's explanation, everyone shook their heads silently, thinking that Smith was pessimistic. Don't you think your statement is even more pessimistic than Smith?
Bulgaria has a population of more than 40 million and needs to have 20 million cars. Doesn't this mean that every adult can drive a car?
Is this possible? One car per household. In history, Americans reached 5.33 million cars at the peak of the economy in 1929!
In the 1990s, North America and Europe only reached the standard of 500 cars per 1,000 people. In this era, the popularization of cars has no feasibility at all!
Even if the car was given to the public for free, their income could not afford a car. Now the average annual income in Bulgaria is only over 1,200 levs. Isn't it nonsense?
Bessier knows that today's negotiations cannot continue. Unless the cost can be reduced or some sections with low traffic volume can be deleted, this plan will not be able to proceed at all!
"Okay, two! I understand what you mean, so let's postpone the meeting first and wait for the final accounting cost to come out, and we'll continue to negotiate!
But I want to ask you a question before again. What is the highest construction cost you can afford? This is related to our next negotiation, please answer carefully! "
Smith replied without hesitation: "The bottom line of the company is the highest total investment, not more than 6.5 billion levs!"
Howell thought about it and said, "Our bottom line is similar to them, even if it is 6.5 billion leva!
Of course, if the government ’s final appraisal price comes down and the construction cost is less than 100 million levs, we are willing to invest in the government to build it. "
As soon as his remarks were finished, the reporters below applauded. This remark was very domineering and almost announced the cost of the project, which could not be less than 100 million leva!
As for whether the Bulgarian government will undertake the construction, everyone knows that this is impossible. Where does the extra funding gap come from?
This is not a small figure, but the movement is tens of billions of levs. Even if the Ministry of Finance has the money, it is not possible to provide such a large sum of money to fill the pit for the Ministry of Transport!
The first day of the meeting was abandoned halfway, and the subsequent meetings were postponed indefinitely. Compared with Bessier's sorrow, the reporters were happy. This is undoubtedly a big news!
Soon the eyes of the world will once again turn to Bulgaria. If the government fails to properly handle this problem, it will become the biggest joke of this century!
After the meeting, Bessier hurried to the palace with the experts and information. What happened if there was such a big thing?
Although Ferdinand had known this problem for a long time, he still didn't come out to stop it. It is also very necessary to take advantage of the opportunity to knock on the cabinet. Otherwise, it will take a long time and people's minds will be wild.
So Ferdinand pretended not to know anything and waited for a cabinet meeting in the palace, waiting for them to come over and be criticized!
...
Ferdinand's complexion looked at the crowd, in fact, he had already blossomed in his heart. As a cabinet that has been in charge of the Bulgarian government for more than two decades, his prestige has already risen to the sky. Now it is just to cool them down.
"Why not say that? If no one wants to say something, then I start asking?"
Everyone bowed their heads honestly. In addition to such a big omission, what else can they say, even if the quotations of these two companies have moisture, no matter how much water is more than 60 billion?
Especially the promise given by Howell later, I know that their cost budget must be well-founded, otherwise they dare not make promises!
Ferdinand glanced at the crowd and asked coldly: "Since you didn't say anything, then I started asking? The cost budget of the bid company, you've all seen it, so who told me why? Will the gap be so big? "
Although not named, Bessier also knows that this is the main responsibility of the Ministry of Transport, and he can only scratch his head and respond, "There are four main reasons:
First, we did not consider the time cost of funds. The project investment was a pure investment stage in the past few years. We did not include the interest on the invested funds. This is the main error;
Second, the construction costs in poor geological conditions and special climate areas have not been completely calculated, but this needs to be verified;
Third, the increase in raw material prices and labor costs. This expenditure is unknown and we have not calculated it.
Fourth, we did not calculate the cost of building the gas station! "
Ferdinand sneered, saying, "What you guys are doing is great. You do n’t even consider it, you do n’t even consider it. Do n’t tell me that all the projects in the 10-year plan are so planned!
So what should we do now? Even if it only requires an investment of 60 billion levs, the average investment, the interest on bank funds is calculated at an annual interest rate of 5%, and the average is at least 1.5 billion levs per year, (formula: 6oo ÷ 2x5 %% = 15 In ten years, that is more than 20 billion levs! (Benefits need to accumulate, compound interest and interest.)
In fact, this number will only be larger. I think your maths have all passed? So who will tell me, who will pay for the added cost? "
Everyone fell into silence. The added funds were not a little bit. The Bulgarian government could not afford this expense, and the same company could not afford this expense for no reason!
Constantine said hesitantly: "Can we let the National Bank provide a low-interest loan to this project to offset the time cost of some funds?"
Chancellor of the Exchequer Kennedy denied: "Impossible! This is equivalent to passing the risks of this project to the bank. In fact, the risks of this project are already out of control. There is a great possibility that the loan will not be available in the future!
Once the bank sinks too deeply into this project, if the project fails in the future, the bank may go bankrupt, and we cannot afford this consequence! "
Constantine stopped talking. This is no longer a matter of high or low interest, but the project itself has huge risks. Once the project fails, the supply will be cut off. Hundreds of billions of billions of funds. No bank can afford this. risk!
Chekov thought for a while and said, "Can our government provide better conditions for them, increase their profit margins, and reduce the risk factor?"
Ferdinand nodded and continued to ask: "Specific points? What aspects of the government can give policy support for the project to continue?"
Chekov thought for a while and said, "For example: allow investors to delay the construction of highways in some areas and reduce their initial funding pressure;
Another example: the part of the gravel yard that has not been opened, the government directly allocates this project to reduce the cost of raw materials;
It is even exempt from the taxation of participating construction enterprises in this project, thereby reducing the construction cost of this project!
The government can also authorize road construction companies to construct a series of facilities such as shops, restaurants, hotels, etc. at the same time as gas stations are being built on roads, and they will also be given free treatment! "
Ferdinand shook his head and said, "The methods are all good, but in fact, these methods cannot be implemented!
Unlike gas stations, we cannot permanently exempt these shops, restaurants, and hotels from taxes, nor can we let them monopolize these industries on both sides of the road!
So in fact, the most we can do is to reduce the cost of some raw materials for this project, but this will save billions of dollars at most, and it is simply unrealistic to increase the income of this project!
It is impossible for us to break the industry chain of our entire society for this project, even to allocate material yards and exempt tax for participating enterprises. This will cause very bad social impact! "
Everyone also looked faint again, as Ferdinand said, can not destroy the industry's industrial chain. The preferential policies provided by the government must be implemented within the framework allowed by Bulgarian law.
Bessier thought for a moment and said, "Can the government find a way to provide a batch of free labor for this project?"
Ferdinand did not answer, but instead turned his attention to Constantine, and it was obvious that he was signalling the answer.
After a moment of silence, Constantine hesitated and said, "At present, the free labor in the hands of the government is composed of criminals. They all work in the mines or on the railway. If they are invested in this project, So what about our mines and railways?
We cannot influence other projects for the highway project ~ EbookFREE.me! Unless we find a way to increase a group of free labor, this problem still needs the cooperation of the military! "
Although I didn't say it straight, everyone knew what Constantine's approach was, but everyone didn't object. Now it seems that this is undoubtedly the best way.
After all, in the construction of highways in this era, labor costs accounted for almost half of the construction costs. If you can save most of this money, the problem of overinvestment will be basically solved!
Ferdinand didn't say anything, but his response was undoubtedly the acquiescence of the government's decision. As for the consequences of this decision, it was beyond his consideration, and he couldn't see it anyway!
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