Yunnan’s largest single photovoltaic power plant bidding shady lot tracking

Polaris solar PV net news: August 18, Tiger financial exclusive first reported China’s single largest terrestrial photovoltaic power plant bids “suspicious” tufted, Trina Yingli, who will win? , Disclosed for the first time the photovoltaic industry giant is the biggest concern of the PV power plant project bidding process and reveals the process by clusters of “heavy black curtain”. The first financial, securities times and other media follow up reports, and the Yunnan provincial development and Reform Commission to conduct an interview, results contradictory, evasive. From currently parties of track reported and survey view, the PV project of bid at least exists several cannot avoided of problem: 1. the project may no after NDRC of agreed that in Exchange secretly operation, against has because previously Yunnan baiyao event and established of case principles, “State equity transfer needed by full sector approval, without full sector approval of State equity transfer are invalid”; 2. the bid process in the on bid enterprise of provides is demanding, even currently days collection, and British Lee two home PV giant are may unmanned method meet exchange of conditions, this means with, this times bid may is a “interlude”, real of meaning unmanned knows; 3. This times transfer “flagging” price is market of near 3 times times, makes industry persons shocked, and this almost more deep of reaction has PV industry of “approval value”, but approval whether the has market pricing such of origin problem is is by ignored.

From the tendering procedure all opaque, to the “flagging” cost a catch is higher than the market price, and won’t be able to see the light of the tangle of interests, all kinds of incredible details were giving Yunnan’s largest single photovoltaic power station bidding of moral integrity.

Although the transfer of State-owned assets in the process of black-box operations are no longer news, but “300MW PV in Jianshui County, Yunnan province,” bidding mode of operation has many shady. This is not only a possible transfer of a specific point; or do not exist “played games”.

A repeat drug cloud?

Recently, “300MW PV in Jianshui County, Yunnan province,” bidding will be the solar circle on its head on a grand scale, sharpen the PV mixer head wants to elbow its way into this project tries to get a piece of the action. It is reported that the above tender attracted the attention of two photovoltaic giants, namely the domestic photovoltaic industry leading Trina solar and Yingli Green energy.

However, the project was suspicious clumps in the bidding process, Tiger financial August 18, exclusive reports from the three doubtful points in the bidding process of the project: transfer of Yunnan metallurgy energy GmbH (hereinafter referred to as the clouds ye renewable energy) submitted incomplete information exchange; bids the suspect targeted settings; “flagging” cost puzzling details such as bizarre is higher than the market price.

Report upon the issue of PV market immediately attracted widespread attention, the mainstream media coverage followed, found that in addition to the above points, and tender procedures there is a larger question – the clouds ye new energy transfer without consent of the Yunnan provincial development and Reform Commission approved.

Statistics show that Yun Ye new energy is the “300MW PV in Jianshui County, Yunnan province,” the project company, the project is in the Honghe Prefecture, Yunnan province Jianshui County nanzhuang, company has a registered capital of 100 million Yuan, the paid-up capital of 20 million Yuan, the company operating range of photovoltaic power generation and energy-saving development, investment and technological development in the field of the company employs 14 people.

According to cloud development and reform energy “2013” No. 2074 on nanzhuang approval document approved by the on-grid PV power station in Jianshui County, Yunnan province, approved on December 23, 2013, approved construction of the 300-megawatt photovoltaic power plant project, the project company for the rule of the new energy and investment cost of about 2.77 billion dollars, documents for a limited period of two years.

Well worth mentioning is that the sixth, rule provides: “without consent of the project approval authorities, the project legal person may not transfer, auction items or otherwise change the proportion of investors and investment. ”

After being approved by the national development and Reform Commission approved more than half a year, Yunnan metallurgy group choose to transfer, the clouds ye 90% stake in renewable energy and, in effect, introduction to transfer “300MW PV in Jianshui County, Yunnan province”.

However, the bidding information published in Yunnan property rights Exchange, the company only provides a simple audit report, the Commission [Twitter] application form and evaluation reports, and not approved by the national development and Reform Commission agreed to transfer files.

Interviews were conducted with media of Yunnan provincial development and Reform Commission, two staff members are given the opposite response. One staff member said the NDRC would not interfere with corporate actions, must be approved by the local government, while at the national development and Reform Commission for the record.

Another staff member said, since the reply explicitly requested the transfer, subject to approval by the Department, Yun Ye new energy for the share transfer must go through development and Reform Commission agreed to in principle. The staff member added, this project ought to be informed by the Truth Commission, estimated to be orally informed leadership and the national development and Reform Commission here in advance.

This means that Yun Ye new energy there may be loopholes in the transfer of shares in a competitive bidding process, if the transfer had not agreed to by the national development and Reform Commission, then this transaction is “desperate”, either the transferor or transferee is a huge risk.

Yunnan baiyao ownership dispute and a series of earlier cases, the Supreme People’s Court embodies a fundamental principle, namely, “State-owned equity transfer are subject to sector-wide approval, without the approval of the State-owned share transfer shall be null and void.”

The coincidence is that “medicine” and the PV power station in Yunnan province in Yunnan. Yunnan Provincial Government has put an end to the “manipulation of individual departments, and caused the loss of State assets and other related events taking place”, but the largest single photovoltaic power plant in Yunnan province on the bid, “medicine” may be repeated.

“Flagging” resale business

Price analysis, the project aims to build a 300MW PV, 90% per cent stake if calculated according to the listing price of 146.5 million, “flagging” cost of about 0.55 Yuan per watt. But under normal circumstances, “flagging” is 0.2-0.3/watt. This means that even by the lowest bidder, “flagging” the cost is much higher than the market price.

It is reported that “flagging” market in the photovoltaic industry is quite advanced, PV investors obtain “flagging” process: planning for PV power plant project, exploration work, followed by docking with the local government, winning project land, and received on the preliminary permit grid access, and finally got the preliminary project work from the local development and Reform Commission of “flagging”.

Under normal conditions, the “flagging” is 0.2-0.3 Yuan per watt, this tender “flagging” cost of about 0.55 Yuan/w, close to the market value of 3 times. According to the announcement, mark 90% the listing price of the shares of the company was 74.715 million (45.9% shares) + 58.6 million (36% shares), +1318.5 (8.1% shares) = 146.5 million.

While buying “flagging” potential photovoltaic power plant investment rules, but the transfer of “flagging” 3 times times the price closer to the market price, or let the market was a bit shocked. “Flagging” prices are so high, businesses in droves. Market participants said the 146.5 million-dollar listing price was in large part are considered ‘ flagging ‘ of opportunity cost, because it contains a hidden value, high prices are bearable.

Because of “flagging” is to determine death’s first line permits for the project and, therefore, run “flagging” became the priority of projects, in order to get the “flagging” even bribery, leads to an underground gray value chain.

Industry sources, about 1GW of scale by “flagging” transfers can be derived out of the 2.4 billion-dollar commissions market, which will undoubtedly increase the cost of photovoltaic companies. In fact, the country had clean shots, but lucrative, information on “flagging” has not stopped.

Yun Ye new sources of “flagging” belonging to the administrative examination and approval procedures are fully completed immediately after the development and construction of “the road”, investment value is large, the transfer of nominal transfer of company shares, but the actual “flagging” transfers can be so much higher than the market price, it is inevitable to the imagination.

In fact, in lengthy approval chains each link there is a “rent-seeking” conditions, relevant departments have been brewing cancel PV “flagging”. October 2013, the media reported that the NDRC was in accordance with the deployment of a new round of institutional reform of the State Council, amend the list of Government-approved investment projects, approved by the new approach, as a pre-condition of project approval, businesses and local governments for a long time suffered from bitter “flagging” approval and is expected to be canceled, however, after which no further details.

“Superficial” assessment report

In addition to the series of strange events, this stock right transfer of assets appraisal reports there were flaws.

Assessment report showed that Yun Ye new energy was founded in March 25, 2013, the paid-up capital of 100 million Yuan, for 2013-net assets of 20 million Yuan, in accordance with the basic law after the assessment of the net assessed value of 19.9977 million Yuan, according to the income approach the appraisal amount to 134 million Yuan. Announcement according to equity exchange, the listing price in the light of the transfer of income approach ultimately to 146.5 million dollars.

Worth noting is that asset based method set out in the detailed assessment has dozens of pages, and the income approach, only one sentence conclusion, there is no evaluation process.

At the end of the report “hearsay evidence” said the photovoltaic industry is a key national policies to support the industry, its (stake) in value reflected in the completion of the future benefits of income results reflects the company’s shareholders ‘ equity value of law.

According to the securities times reported, one industry source said that whatever the asset evaluation report is generally applied in the underlying approach, income approach, market approach two or three ways to undertake detailed analysis of, in particular, assess the value of the final choice will be a detailed comparison.

Not only that, the equity exchange provides even, eventually winning bidder must bid on signed a contract on the spot, so much the subject matter of the bidding does not give enterprises leeway time unless prior talk or who dared to offer.

Although the winning results are not yet public, appears to have caused a stir.

The latest situation was even more saddened, as of August 28, find Tiger financial news, published July 16, 2014 in exchange of Yunnan “listing bulletin” column in the clouds ye new energy stock right transferring announcement becomes extinct, whether publicity has already been removed, or any other reason is not known, finance will continue to track the Tiger.

Original title: the largest single photovoltaic power plant bidding shady lot tracking

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