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Chapter 536 Investment Negotiations

In fact, the so-called investment promotion is not mysterious.

Generally speaking, local governments either rely on unique resources or provide convenient conditions to attract foreign investors to invest and build factories.

After the factory is built, it will inevitably create more jobs and increase local tax revenue.

At the same time, it will also drive upstream and downstream industries and cause chain effects.

Just like when a big stone is dropped into a lake, it will first splash a large amount of water, and then create layers of ripples.

The actual influence will definitely be greater than that of a whole stone.

Now, Zhongtian Group is that stone. As long as it can hit this pond in Luancheng, the ripples it will create in the future are definitely worth looking forward to.

When it comes to negotiation, there is a certain procedure.

Their respective subordinates started to discuss the specific content. After the basic process of the entire investment project was completed, it was the turn of Fang and Shuang's managers to hold a meeting to discuss the big benefits.

For example: the length of tax exemptions, the approved area and price of land use, etc. These all need to be implemented by the person who can make the final decision.

Especially when investors are negotiating with local governments, as long as the bosses on both sides are silent, the staff below will negotiate vigorously. If they can get 1 more point of benefit, they will definitely not get 1% less, although it is not possible to talk about it with words.

, however, it is common to blush when talking about something intense.

The negotiators brought here by Wei Zhongtian and the representatives from Geng Qiusheng first went through a period of intense negotiations. The investment details were basically agreed upon. What remained was the specific address of the factory and the length of the tax-free period.

Issues need to be discussed by the leaders of both parties.

During the negotiation process, Lu Ye was in a wait-and-see state throughout and did not say a word. Until this time, he knew it was time for him to speak.

There are not many places suitable for building factories in Luancheng. The Xinxing District at the foot of the mountain belongs to the old city, with poor basic conditions and high investment costs. The Taoshan District on the mountain belongs to the new city. Although the investment cost is low, it is a heavily polluting enterprise and is not suitable for factories.

It is suitable to be established near densely populated urban areas. Taking into account the transportation cost of coal and the cost of laying various pipelines in the future, there are only a handful of addresses suitable for establishing a coal chemical plant in Luancheng.

Luye, on the other hand, is more inclined to Xinxing District and Taoshan District. It is at the junction of Luancheng North, where there are few residents and convenient transportation roads, which solves the problem of transportation costs and the distance of pipelines laid into the city is short.

The cost is low. Choosing to build the factory here is the most beneficial to both of them.

"Director Wei, as for the specific choice of the factory site, it is better to choose the location west of the intersection of Huancheng Road and Woken Road in the north of the city. The cost of demolition is low and there is no need to worry about the pollution problem of the city."

Lu Ye then looked at Geng Qiusheng who was sitting opposite and said: "To build a coal chemical plant, we must take into account future pollution problems. I personally think it is more appropriate to choose the site of the plant where it is far away from the city and away from drinking water resources.

Yes, and there are not many residents nearby. The pressure for demolition is relatively small. I wonder, Mayor Geng, what do you think?"

After listening to Lu Ye's words, Geng Qiusheng thought for a while, and the land that Lu Ye pointed to appeared in his mind. There is a bridge at the junction of Huancheng Road and Woken Road, called Champion Bridge.

It is a bridge built to commemorate the first Olympic champion who walked out of Luancheng City. Vehicles entering the city from the north usually pass through this bridge. There are really no residents nearby. It was originally a wasteland. It is also far away from cultivated land. It is completely

There is no need to consider the pollution of surrounding farmland after the completion of the coal chemical plant.

If the coal chemical plant is placed there, it is indeed a very suitable choice.

Geng Qiusheng nodded secretly, looked at Lu Ye and Wei Zhong and said: "Mr. Lu's suggestion is very good. It is indeed a very good choice to choose the factory site there."

Wei Zhongtian laughed when he heard this. His investigators had already concluded the basic situation of urban construction in Luan City, and the conclusion they reached was also in the north of the city, which almost coincided with Lu Yede's suggestion.

Wei Zhongdao: "Since both Xiao Liu and Mayor Geng think so, I believe there is no problem in building a factory there, but the cost of land reclamation is not low, and the coal chemical plant has more equipment and the infrastructure construction takes a long time.

, it is difficult to return to costs in a short period of time. Not to mention making a profit in the past few years, you basically needed blood transfusions from the head office to survive. I wonder how much support the city can give?"

Wei Zhong's toughness showed no trace of shyness in his words.

When Lu Ye heard this, he understood that it was now the turn of the principals of both parties to start a real negotiation of interests.

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The real purpose of investing in and building factories is the huge profits that can be expected in the future, while the ultimate purpose of attracting investment is around economic development and solving people's livelihood problems. It seems that the interests of both parties are consistent, but in fact it is a contradiction.

It is difficult for both parties to have a win-win situation.

Enterprises want to save taxes when investing, while local governments want to increase taxes. There is a natural contradiction in this.

Now Wei Zhongtian has made it clear that he wants more support from the local government. If he cannot achieve his expected goals, I am afraid he may not nod easily.

Geng Qiusheng also understood what Wei Zhongtian meant.

Before the negotiation, the investment promotion team had already made a plan for the negotiation.

We have made calculations on the issue of tax exemption years. If the overall investment exceeds 1.5 billion yuan, and there are no major changes in the coal market, it will take at least 8 to 10 years for coal chemical plants to recover their costs in the future. Such a long recovery

Period, it is indeed difficult for them to give them a tax-free period that both of them are satisfied with.

If you decide to set the tax-free period within ten years, it will be difficult to impress the other party. After all, it will be very difficult for the company just to recover its capital during this period.

However, if the tax-free time is set too long, it will be very inconsistent with local tax collection.

Tax exemption for the first ten years, fixed taxation for the next three years, and normal taxation policy after thirteen years. This is the final suggestion given by the investment promotion team.

Geng Qiusheng said: "In order for this coal chemical plant project to be implemented, our investment team has also done a lot of work. The city is currently able to provide support, including several directions. First: the issue of land for building the factory, the city can

In accordance with the minimum standards for industrial land, 150,000 square meters of industrial site will be granted to the future coal chemical plant."

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"Secondly, on the issue of random taxes, we can provide a policy of ten plus three, with tax exemption for the first ten years and fixed taxation for the next three years."

Geng Qiusheng was talking here, and Wei Zhongtian was thinking secretly in his heart.

As for the first two policies, they are not very attractive to him. Over the years, he has invested in many places, tax exemptions, and provided land at low prices. These are the most basic investment policies.

Seeing Geng Qiusheng finish speaking, Wei Zhongtian shook his head: "If this is the case, it is still far from our investment expectations. The total investment in building a coal chemical plant this time is as high as 1.5 billion, which is such a huge amount of money.

No one can say how many years it will take to get it back if you smash it, and how many years it will take to see profits."

Having said this, Wei Zhongtian looked at Geng Qiusheng with a solemn expression: "We need a loan, and it is an interest-free loan."

Corporate loans are normal. However, banks usually charge high interest rates. Unlike home loans, the interest rates on commercial loans can sometimes be as high as more than ten points. Moreover, collateral is usually required to obtain a loan.

But there is one exception, that is, in the process of attracting investment, the local government communicates with the banking department and can provide low-interest or even interest-free loans to enterprises. This is the policy support provided by the state to support local economic development.

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Wei Zhongtian knew this policy, and so did Geng Qiusheng.

Geng Qiusheng responded: "I wonder how much money you want to borrow?"

There is an upper limit on low-interest and interest-free loans for investment promotion in a city. If you give them too much, other investment promotion projects in the future will inevitably be greatly affected. Only Geng Qiusheng would have this question.

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"500 million!" Wei Zhong said.

A loan of RMB 500 million for a project worth RMB 1.5 billion is understandable. However, in this era, this loan of RMB 500 million has exceeded the amount of low-interest loan subsidies that the local government can provide.

If you want to implement such a large loan amount, you need to review and approve it at all levels and report to the top. Only through approval by the province can it be passed. Such a large amount is no longer something Geng Qiusheng can decide.

When Director Luo heard this, he was constantly calculating in his mind that this investment project was brought in by him. The 1.5 billion project can be said to be the largest investment project in the entire Black Province so far. The province has always been concerned about this.

With a high degree of concern, it is not a big problem to get a loan of 500 million yuan. But the premise is that Zhongtian Mining Group can come up with another 1 billion investment amount. Only then will the province feel at ease.

Geng Qiusheng looked at Director Luo next to him, his eyes full of inquiry.

At this time, Director Luo said: "The interest-free loan limit is definitely not that high. It can give up to 200 million, which already takes up 80% of the province's limit. As for the other 300 million,

We can try our best to negotiate lower interest rates with banks."

This is not something that Director Luo can decide on his own. This is the result of prior communication with his superiors before he came to Luancheng.

Wei Zhongtian was quite satisfied with the answer given by Director Luo.
Chapter completed!
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