Given the credit environment and capital restrictions facing management, it seems to me very optimistic to expect over $100Million in financing for this company, to be a sure thing. Is there any hard evidence of the funds being there? If BOA for example said it was a done deal, I would tend to believe it. But a local real estate company? Maybe it is just fine, but it leaves me very uncomfortable in today's environment. I still also have a lingering question, why don't the Chinese finance their own wind farm developments?
Humbly, of course, this is my opinion. China has used foreign: technology, energy, and capital to finance its industries. Japan developed its automobile industry during the 60's, 70's, & 80's by watching Italian and German auto makers develop the technology and then when whatever endured as cost effective; Japanese carmakers incorporated these attributes into their cars creating practical and efficient as well as less expensive and long lasting products. China is developing its own alternative energy programs, however, with a technology such as wind turbines and solar, to advance it makes sense to garner as much from as many as fast as one can. Vestas, Suzlon, GE, and other wind turbine manufacturers are producing turbines in China under the 70% rule (70% of the stuff must be made in China by the Chinese). This is to the advantage of the Chinese as it: produces jobs, keeps money in the country, uses foreign expertise, and allows Chinese industries such as Yatu to develop their own turbine technology. Why use your own capital, develop via trial and error, and send money overseas by importing; when you can use the best from the most advanced and successful technologies to fast track and have it funded from private funds. China will end up: reducing deaths from pollution, developing a wind turbine industry for export, and without doing other than purchasing the energy at the going rate. They use and depend on the investment paradigm for just about everything else. As for investment opportunities; money shrinks unless it is invested, pretty much the only money being invested today is for recession proof cash cows such as the Atlantic Bight 200 turbine wind farm and others. Venture Capitalists are looking for places to invest and wind energy is one place where funds are going. Whether or not WWEI will be a part of this has little to do with the industry and obtaining investment for that industry. I am, with the rest of us, waiting for the @##@^&%$#***&^ PPA to see the investment start or not. People have to eat, heat, cool, read in the dark, and nothing moves without energy. Prices are dropping, technology is getting better, and oil is still well above the price per barrel where this was booming two years ago.
Okay, what you are saying makes sense, why should the Chinese not let the outside capital come in to finance the projects. On the other side of the question, if the West has run out of money and credit to invest and China has plenty of funds to invest (our dollars), why bring in a fledgling start up with no assets to rely upon to do the job? Something is not adding up here, but that is just my humble opinion.
They have a contract with the company which has a contract with the decision makers. This is never discussed here. There is no chance that Welwind will see any money. I am what I shouldn't be-an altruist.
What is never discussed is the workings of this sort of enterprise which is different for every situation. The first two PPAs are directly part of WWEI. The other two are indirectly connected, probably with an interest swap between them and the first two. Any advantages regarding financing and expertise may be thrown into the swap. If WWEI is outright lying then too bad for all of us. If they are doing business: adjusting, trading, negotiating, and moving into this new world; as any new business then great for all of us. For me the glass is half full. The industry has the most promise of any industry in existence. The place could not be better. The paradigm is there. If they are outright crooks and/or complete idiots then too bad. If they have half a brain and can see the potential then with patience and perseverance this might pay off at about a buck a couple months after this ***&^%$#@$^PPA we are all waiting for. After that....more of the same.