Taipower’s second phase wind farm has been reduced to a mess! Fuwei Energy’s board of directors approved the bankruptcy application on the 29th. Fuwei Energy’s chairman Lin Kunhuang made four points to criticize Taipower as a “state-level robbery.” Because Fuwei and Taipower failed to reach a consensus in negotiations, Taipower has taken over all the projects, but the expenses and responsibilities must be borne by Fuwei. In addition, the wind turbines were removed and installed during the Mid-Autumn Festival holiday, and reasonable additional project fees and construction periods were not paid. A fine of 9.5 billion yuan has been set. Fuwei Energy currently advocates that Taipower should return the withheld deposits and project retention money of approximately 6 billion yuan to Fuwei or Liandai Bank. Fuwei currently owes more than 10 billion yuan to Liandai and self-lending banks.
Taipower and Fuwei each have their own opinions on the "ownership of wind turbines." Taipower stated that the two parties had made a settlement at the end of August under the witness of a notary. The ownership of the wind turbines already belonged to Taipower. However, without Taipower's knowledge, Fuwei set up a chattel mortgage on the wind turbines to Fuwei's parent company Senwei Energy to guarantee the parent company's debt of more than 6 billion yuan lent to Fuwei. Fuwei has no However, Lin Kunhuang said that the debt could have been set, and Taipower's delivery was done at Taipower's Terminal 5A in Taichung Port. "He sent people to order and found people to order the equipment himself." We did not agree. Now the ownership of the entire equipment is disputed and everyone has their own opinions.
Lin Kunhuang first pointed out that Fuwei wanted to terminate the contract with Taipower as early as last year, but for the sake of national construction, he agreed to continue to perform the contract. He admitted that the biggest difficulty was the wind turbine installation contract, because the wind turbine manufacturer was an exclusive manufacturer. Fuwei and the wind turbine manufacturer's contract renegotiation failed to produce results, and Taipower finally took over. However, Taipower believed that Fuwei still had contractual responsibilities, so all additional expenses and warranty responsibilities were borne by Fuwei.
He also criticized Taipower's unwillingness to pay reasonable project fees due to price adjustments. Taking last year's additional project payment as an example, the increase in daily ship charter costs was 6 billion yuan more than when the previous contract was signed. In the end, it only agreed to 3 billion yuan, and the secondary structural steel materials were 2.1 billion yuan, and only 200 million yuan was given. This year's submarine cable project alone cost Dongfang Wind Energy 2.3 billion yuan, but only 1 billion yuan was given. He also said that Taipower asked Fuwei to prepare peripheral ships in May, and it cost NT$500 million to rent the ship, fuel, etc. for a month, but Taipower "ignored" and only asked Fuwei to send the additional amount to the Engineering Council for mediation. According to Fuwei's process He initially proposed an additional amount of more than 20 billion yuan, but it was eventually revised down to more than 10 billion yuan. In the end, the two parties only negotiated 5.55 billion yuan. He criticized "the wolf has cried many times." It is difficult for us to believe it (mediation).
Lin Kunhuang said that Fuwei has lost more than 20 billion yuan in contracting projects. His original mentality was to hope that the project could be completed. If it was ruined, it would be ruined. Fuwei did not have to hold on until now. According to the material adjustment mechanism, the completion of the wind farm should cost more than 70 billion yuan, and according to last year's construction only lasted until mid-October. If it is to be completed by the end of this year, it still depends on weather factors, but the probability is very low.
Lin Kunhuang pointed out that Fuwei is already insolvent. He said that his current demand is that Taipower should terminate the contract with an agreement and obtain ownership of the wind turbines, but it must return the project retention money and performance deposit of approximately 6 billion, or directly reimburse Fuwei Liandai and self-lending banks. However, there is still at least more than 4 billion yuan in additional construction funds to be negotiated.
Regarding the company's bankruptcy and Taipower's fine of 9.5 billion yuan, Lin Kunhuang said frankly that the company has gone bankrupt and he really wants to terminate the contract with Taipower. If Taipower is unwilling, Taipower will have no choice but to directly litigate for subsequent fines and other matters.
