Chapter 663: An Old Friend
Translator: _Min_ Editor: Rundi
1 US dollar!
The desalinated water at this price was cheaper than some of the water pumped from the underground aquifer! Attri never heard of such a powerful water desalination technology!
The cost of seawater desalination was highly dependant on the local electricity price. Xin had no oil production and used renewable resources for electricity generation. While it was environmentally friendly, electricity was not cheap. Based on CWW’s estimate, a desalination plant on Coro Island, even with the most advanced equipment, would have a cost of 2 US dollar per ton.
So when Jiang Chen suggested the cost of 0.5 US dollars, Attri was very shocked.
Even with a nuclear power plant on Coro Island, the desalinated water wouldn’t be so cheap!
Both parties quickly reach an agreement and penned the negotiating terms.
Future Heavy industrial will build the desalination plant, CWW will be responsible for the pipeline to connect Future Group’s treated water to Xin’s water supply system.
Attri immediately asked his a.s.sistant to print the contract and signed with Jiang Chen a water supplying contract of 20,000 tons per day. He looked anxiously, afraid Jiang Chen may back out on the deal.
When the contract was signed, Attri personally sent him to the door.
“The black coffee I brought back from West Australia, do you want to take some home?”
“No need.” Jiang Chen thanked him for the offer.
He already experienced how awful it tastes.
A 20,000 tons supply agreement, take away the cost related to human labor, 0.5 US dollar per ton of profit could bring Future Group a monthly income of 300,000 US dollar.
The profit was meager, even if Future Group purchased CWW’s water supplying system and vertically integrated the entire chain, it would at most double the number.
From the start, Jiang Chen put his focus on the international market. He happened to have a person’s phone number that would definitely be interested in cheap water.
“h.e.l.lo? Mr. Yerif. It’s me, Jiang Chen. Future Heavy Industries has some new gadgets now… No, no, no, I’m not referring to a new robot, it’s water desalination equipment.”
Just as Jiang Chen got into the car, he took out his phone and called Yerif in the far Saudi Arabia.
“Water desalination equipment? We do have a plan to build a new seawater desalination plant at the coast of the Red Sea, but we contracted Matrix to design it for us. They are the experts in this field and an old partner of ours.” Yerif heard Jiang Chen seemingly to be advertising desalination equipment to him, and his brows slightly furrowed.
Although he had a great personal relations.h.i.+p with Jiang Chen, he would not give grounds because of personal relations.h.i.+ps to a project related to the wellbeing of Saudi’s people. Matrix promised them to build a 1,097,000 cubic meter mixed desalination plant powered by ultra-high-concentration photovoltaic technology in the Mecca area off the Red Sea coast to replace high-energy and the inefficient petroleum energy desalination plant.”
Although in the oil rich Saudi, electricity generation through combustion was cheap, from an environmental and sustainability perspective, the cons of “oil exchange for water” outweighed the pros.
And with this mixed energy desalination plant, the cost per ton would be lowered to 1.5 US dollar. This price was reasonable to Yerif.
“What is the water price for your company?” Jiang Chen asked.
“Based on half year stats, in the Mecca area, on average it is 7 Rial per ton.” Yerif said while giving it a thought.
7 Riyal was equivalent to 1.9 US dollar.
Jiang Chen estimated while a smile emerged on his face.
“Then, are you interested in 1 US dollar per ton of fresh water?”
Yerif was stunned when he heard Jiang Chen’s offer to the point that he forgot to open his mouth when his beautiful Amira put a peeled grape near him.
“1 US dollar per ton? Cost?”
“The cost is going to be a bit lower, 1 US dollar is the price we give you,” Jiang Chen said.
Yerif was stunned. He immediately stood up, and walked to the window of the palace with his phone.
“My friend, you always… amaze me. Ahem! Can I ask, what you have said is for real? Provide water to us at a price of 1 US dollar? This is incredible, please excuse my emtional outbreak.”
Yerif couldn’t even articulate properly.
Saudi had been subsiding their domestic gasoline, power, and hydro. Just take hydro for example, to allow the four million people in their capital Riyadh to drink clear and relatively cheap water, Saudi’s Royal Family must subsidize a couple hundred million a year.
While Saudi is indeed rich, who wouldn’t want to save money?
Jiang Chen’s 1 US dollar price would not only alleviate the water shortage, it would also bring savings to them.
“Of course it is true, truer than gold.” Jiang Chen’s smile was pleasant.
Compared to the water supplying contract signed with CWW which was close to a benefit, the contract with the oil boss Saudi was the key! 1 US dollar price, even with one million tons of water supplies, it would be 15 million US dollar in profits per month.
And the desalination technology he possessed could supply far more than one million ton per month! With the partners.h.i.+p with Saudi, they will evitably increase the contract because of the cheap price. And other countries who experienced similar water shortage would seek partners.h.i.+p seeing how Saudi enjoyed such cheap hydro.
Jiang Chen could imagine the rich Arabians running at him while waving cash in their hands.
“Also, what is the quality of the desalinated water? We won’t feed our citizens water mixed with sand,” Yerif asked another one of his concerns.
Long term consumption of desalinated water was not beneficial to the health. If Future Group’s desalinated water did not pa.s.s the quality test, Saudi’s Royal Family would not withstand this. However, his concern was extraneous as the 22nd century PAC had a far stricter demands on quality than any country in this timeline.
“Be a.s.sured, we’ll finish the construction of the first desalination plant on Coro Island a month later. You can send a team to test our treated water. I can promise you one thing; our desalinated water is cleaner and healthier than any of the desalinated waters available.
With how confident Jiang Chen was, Yerif was a.s.sured.
He trusted Future Group’s promise.
“I will send people for a tour.” Yerif paused for a moment as he hesitated. “Jiang Chen, we are friends right?”
“Of course.” Jiang Chen didn’t know why he suddenly asked this.
“Could you do me a favor?” Yerif whispered.
“Of course. As long as I can help you,” Jiang Chen said gladly.
“For you it is not hard,” Yerif coughed and lowered his voice, “I’ll think of a way to stop the negotiation with Matrix and change it to an open bid. I hope you don’t join our bid.”
“Don’t bid?” Jiang Chen didn’t understand why.
“Yes,” Yeriff nodded, “I will invite you to bid.”
Jiang Chen then instantly understood what he meant.
Yerif was the Crown Prince, but there was more than one prince in Saudi and the old King loved to change THE Crown Prince. Therefore, a lot of people have their eyes on his position. While he was responsible for the cooperation between Matrix, another prince named Ras.h.i.+d initiated the talk.
While the old King didn’t say anything, he seemed to be pleased with Prince Ras.h.i.+d’s performance.
It made Yerif feel unsettled.
“Haha, not a problem, Mr. Yerif, don’t underestimate our friends.h.i.+p.” Jiang Chen laughed.
“Thank you! You’re my great brother!” Yerif said in joy and even used his broken Mandarin to say the last sentence.
While his grammar required fixing, Jiang Chen grinned and chatted with him some more.
For Jiang Chen, it was a small lfavor.
If Yerif would not ascend to the crown, Future Group had nothing to lose. But if he did become the King, he would not forget Future Group’s favor.