Foreign power losses across the board 120 billion foreign China tide?

Almost all foreign power plant losses

Meteorologists say it is a warm winter this year, but for foreign power companies in China, this winter is cold.

"We are early to come to China to invest in foreign companies, with us to the foreign colleagues, has nearly 40 pack away." Pacific peak power company CEO Robert helpless.

Pacific peak is the top five foreign power companies in China, the world's top 500 United Energy Corporation and the world bank. By the end of 2004, Robert invested a total of seven cogeneration enterprises in China, with a total installed capacity of 400 thousand kilowatts, with a total investment of RMB 2 billion yuan. A few years ago, the Pacific peak in China's cogeneration operation has been in a state of profitability.

However, the peak of the seven Pacific power plant in 2004 has been a loss of four, three home appliance factory profit situation, general accounting, the company will be a loss this year, which for the company's CEO Robert is not a good news.

Meager profit three home appliance factory is very special, are located near the coal mine, the impact of small coal prices." Of course, it will take at least seven or eight years to recover all of the investment in the power plant. At the moment, it will take at least three years to recover the fastest investment in the Pacific ocean.

In 2004, CEO, the leader of the Pacific Ocean, led his investment managers, who traveled around many cities and towns in northern China, and visited nearly 40 projects, but Robert never dared to invest. Robert observed that in the winter of foreign power companies, at this time, seems to be very unwise.

Moreover, the Pacific peak of its foreign shareholders also questioned Robert, why other companies have withdrawn from China, you do not withdraw. Robert embarrassed.

Robert said that because of their own companies only in China, so the withdrawal of China means that all lose, unlike other companies in other countries also have investment, can go back.

In fact, for foreign power plants, the 2004 day, there are few better, almost all losses, or close to loss.

If the 2000 to 2001, foreign power companies have withdrawn from the Chinese market as the first wave, then the withdrawal of foreign capital companies in the Chinese market in 2004, can be called the second wave.

Power Grid Corp said the State Power Economic Research Center Director Hu Zhaoguang, before 1990, foreign investment accounted for power China's fixed assets investment ratio of 12.2%; by 2002, this proportion fell sharply to 7.5%. China Energy Network CEO Han Xiaoping feel that such estimates may be somewhat optimistic, in fact, the proportion should fall faster and more.

At present, there are about 120 billion yuan of foreign investment in China's stock of electricity, they can survive in the cold wave of China's power reform uncertainty, is still a question.

Two wave wave

In fact, electricity is a small number of China's accession to the WTO, has been relatively open to the industry.

Foreign investment in China, began in the late 1980s. At that time, China's rapid growth in electricity demand, the central government and local governments to encourage and attract foreign capital to enter the field of China's power generation, the annual fixed rate of return of 15% to 20% conditions.

At the time of the local government, such as Shandong, Fujian, Guangdong Province, on the other, perhaps in foreign fixed return tariff commitments, such as the number of years in the number, and in the form of a contract that, in order to reduce the risk of foreign exchange for foreign investment.

It opened, many of the world's large power investors have come to seek opportunities China. Such as France, South Korea, the world's top 500 companies. By 1997, the proportion of foreign investment in China's fixed asset investment reached the highest, to 14.5%.

However, a good dream of foreign power in 1999 awakened. At that time, China's electricity restructuring, the supply of excess. During this period, the fixed return on foreign capital has not been in line with the interests of some local governments at that time, China gradually canceled a fixed return policy, leading to foreign companies have left.

In the first round of the wave of withdrawal, there are still some foreign companies have confidence in China's power development, I believe that they can make money in China, so still stick to the position to stay.

And in 2004, these foreign capital to stay ushered in the second wave of divestment tide. Experts said that coal prices rose in 2004, the state-owned power plants due to the relatively low price of the planned coal and profit, but non-state power generation companies are struggling.

Two rounds of speculation why failure?

A foreign power equipment enterprise executives told reporters, there are several reasons decided their retreat Chinese: one is the 15% rate of return on investment can not be met; two is not optimistic about the prospects for the development of domestic electric power; three is the electric power system reform and their ideas. The best time for approval may be complex, some investment they tend to lose because time is too long and cumbersome approval procedures; fourth, some local governments do not have the funds, but the share holding position in the new power plant, so that foreign companies can not understand; fifth, electricity prices, and the electricity price has basically without making adjustments, the foreign power enterprises suffered heavy losses.

More importantly, the expectations of foreign investment in the reform of the power system in vain. Zhejiang