Dear Sir

In order to reduce the total cost for the quotation,. I have configured the quantity of different models, here is one solution:

solution to reduce to total quotation:
models	YTK6110G	YTK6110GC	YTK6760	JA quotation (not ours, only for comparison)
seat	62+1	42+1	24-43	35+1+1
quantity	100.00	120.00	80.00
unit price	107,777.78	106,349.21	63,047.62	40,256.00 (fob Shanghai)
subtotal	10,777,777.78	12,761,904.76	5,043,809.52
			28,583,492.06

 

solution to reduce to total quotation:
models	YTK6110G	YTK6110GC	YTK6760	JA quotation (not ours, only for comparison)
seat	62+1	42+1	24-43	35+1+1
quantity	100	80	120	　/FONT>
unit price	107,777.78	106,349.21	63,047.62	40,256.00 (fob Shanghai)
subtotal	10,777,778.00	8,507,936.80	7,565,714.40	　/FONT>
　/FONT>	　/FONT>	　/FONT>	26,851,429.20	　/FONT>

 

The quotation is based on CIF FT in US Dollar and including concessional financing cost, our profits, Chinese Currency appreciation cost (concessional financing has no fixed time for effectuation of the contract due to approval process between two governments), commission for two sides.

I have checked your sent quotation of JA, my comments:

1.       This JA is second level of producer of sedan cars in China, in China I never found one of my friends bought a car from it, never talk on high brand of coach or bus. Beiben is a sub company of CNGC. China North Industries Group Corporation (hereinafter abbreviated as CNGC) is an important mega state-owned key enterprise under the direct administration of the Central Government and a strategic group of China to react to challenges and crises. CNGC brings together the key research and production forces of Chinese ordnance industry, representing the development direction and level of Chinese ordnance industry. The Group owns over 120 research institutes, trading companies and manufacturing enterprises and nearly one hundred overseas affiliates distributed in scores of countries or regions. CNGC has RMB 100 billion of total assets and over 300 thousand employees.

2.       These buses and trucks and vehicles are equipped with China’s most advanced technologies, key technologies are imported from Benz and kraisbauer of Germany, with view to improve China’s mobility equipments.  

3.       JA quoted model is lower in brand than the three models of Beiben (Beiben is name from North Group and Benz).

4.       JA quotation is based on FOB China. if considering all the factors in their quotation or quotation from TA or Bz, our price is not too higher than those competitors.

5.       If for concessionary financing, we are the best choice, JA as a local provincial producer, it is rather difficult for them to facilitate the financing from Eximbank of China, when compared with our financing ability, esp, when my classmate Mr. xx’s help (Mr. xx is the Vice President of xxx, who is now dealing with Africa’s 5 billion railway project EPC and financing, 1.5 billion USD, 500 million USD hospital project, and my Ghana, Nigeria, Kenya EPC+financing projects, xxx  billions USD projects�?) . if you signed with JA or other small and low influential companies, just wasting time.

Dave, try to configure other solution of different models and to let the total fit your demand, and try to persuade your Ministers and President to sign  the purchase contract, so that xxx and Mr. xx and I can guide you to the next step of getting concessionary financing from China, which is the most challenge tasks, and this is why so many producers including world famous brands in China are very keen to be our suppliers. we have the highest possibility to get the concessionary financing approved by Chinese government. If the bus contract signed and financing approved, then you and I will accumulate more credit, and more big EPC+financing project will be continued.

So now it is time for you and I to get the contract signed, this is the start.

Bu the way, I got another IPP of DT, they asked me to locate renewable IPP power projects (wind, hydro, solar, biomass) for them to invest, you should locate these renewable projects and local influential partner (maybe you can be the equity partner for these projects, DT will invest most of the money, you only invest partial equity, even though not confirmed by them, to my understanding, 30% as equity investment, 70% as debt financing from Bank upon DT’s credit, for the 200mw hydro power plant, the total investment saying 300 million USD, 90 million USD, and local partners invest 10%, then 9 million USD or even less, if for other small MW plant, maybe 1-5 million equity from local partners possible). The Chinese IPP needs local partners to coordinate with government departments to handle all the formality issues, to get PPA, land, tax, and incentives, clear tough issues with government departments, and protect their investment and profits from the invested projects.