Sail across the sea

Chapter 484 You are the only one asking
"This is Director Hu's achievement, congratulations!"

Gao Fan cupped his hands in a gesture of respect to Hu Dongming, his tone carrying a hint of teasing.

His congratulations were a double entendre: first, he congratulated Hu Dongming on the completion of the mining-fertilizer integration project, and second, he congratulated Hu Dongming on his promotion to section chief.

The initial budget for the mining and fertilizer project was as high as 17 billion yuan. However, due to rising domestic prices and the impact of some international turmoil, the budget was overrun and eventually reached 23 billion yuan.

A comparison will make it clear: Eight years ago, Zheng Linong and Gao Fan discussed the nationwide promotion of small nitrogen fertilizer ammonium to urine conversion, saying that they planned to invest 600 million yuan over the next three years. This 600 million yuan was raised only after repeated communication with the national treasury.

In eight years, domestic prices have doubled, and GDP, calculated in nominal prices, has nearly tripled. The domestic capital shortage is much better than it was eight years ago. Even so, an investment of 23 billion yuan is still astonishing, and provincial leaders have repeatedly used exaggerated terms like "a cross-century project" when talking about this project.

The 23 billion yuan investment in the project came from multiple sources. The bulk of the funding came from national treasury funds, disbursed through a China Construction Bank loan. Additionally, there was a World Bank loan, also handled by the national treasury. Besides these two main sources, there were matching funds from the provincial government, as well as grants obtained from various national ministries under different pretexts.

Muyang Province initially applied for special funds for fertilizer construction from the government, which was determined when the project was approved by the Planning Commission. Subsequently, Muyang Province applied for technological reform funds from the State Science and Technology Commission, citing the introduction of advanced technology and the improvement of domestic phosphate fertilizer production technology. Later, it applied for funds under various other names, such as mining, environmental protection, agricultural support, and education; it applied for any fund that could be considered relevant.

The phrase "lobbying for funds" commonly used refers to this practice of applying for funds under various pretexts. For example, the trade union might propose improving the cultural life of employees and establish a cultural development fund. You would immediately submit a report stating that the Fanjiawan Mine has 2 employees and needs to build a cultural palace, several libraries, and purchase a certain number of books. After review by the trade union, if your requests are deemed feasible, hundreds of thousands or even millions of yuan will be allocated.

Once the money is in the account, how to spend it is up to the province. The promised cultural palace might end up being replaced by a staff canteen, with the money saved going to more important places. The explanation to the higher-ups is easy: this amount of money isn't enough to build a cultural palace, so we'll use it for two purposes—a canteen during mealtimes, and a dance hall afterward. Saving money is a consistent national policy, after all.

For many central government ministries, spending money is the goal, and the results achieved are secondary. Spending more money gives the department a sense of purpose. To ensure the money is spent smoothly, it's crucial to avoid causing too much trouble for local officials. Otherwise, if they find it inconvenient and are too lazy to apply, the inability to spend the money will be seen as a sign of incompetence by the leadership.

There's no need for excessive criticism here; this has always been the way things are done throughout history. A massive, widespread stimulus can always irrigate a region. Take, for example, those industries that received significant domestic support since the beginning of the new century—which one hasn't faced criticism for "false reporting" and "subsidy fraud"? Yet, these industries have indeed developed. If out of a 100 billion yuan investment, 1000 billion yuan actually reaches the intended recipients, that's enough to support an industry.

Returning to the local government's perspective, a few hundred thousand or even a million yuan may seem insignificant compared to the total investment of 23 billion yuan. However, local governments must have the spirit of sacrificing even the smallest amount to accumulate wealth and ultimately accomplish great things.

Over the past few years, Hu Dongming has spent more time in Beijing than in Muyang, mainly responsible for "lobbying" with government departments. Gao Fan has eaten with him many times, listened to him talk about the difficulties of lobbying, and even used his connections to help him make connections several times.

It was during these past few years that Gao Fan personally witnessed Hu Dongming's promotion from chief clerk to deputy director, and then to director. His promotion to director happened just last month, and he's still thrilled about it. According to Hu, the province promised him that his promotion would coincide with the completion of the first phase of the project. Gao Fan clearly remembers this, hence the congratulations.

Gao Fan's attendance at the completion ceremony of the Fanjiawan mining-fertilizer integration project was at the invitation of Hu Dongming, and also at the request of Wu Zhefu, Deputy Director of the Fertilizer Department of the Ministry of Chemical Industry. Zheng Linong had stepped down as Vice Minister two years prior to become President of the China Chemical Industry Association. Wu Zhefu did not continue as Zheng Linong's secretary but was instead assigned to the Fertilizer Department as Deputy Director.

Over the years, Gao Fan frequently reported to Zheng Linong and sought his instructions, and also became quite familiar with Wu Zhefu. Furthermore, Gao Fan held a unique position in the domestic chemical industry, and after taking office, Wu Zhefu maintained close cooperation with him, essentially replacing the previous connection between Zheng Linong and Gao Fan.

This time, with the completion of the Fanjiawan Fertilizer Mine Project, the Ministry of Chemical Industry naturally received an invitation to attend the ceremony, and Wu Zhefu was the leader representing the Ministry of Chemical Industry. After receiving this assignment, Wu Zhefu called Gao Fan and invited him to come along.

The two arrived in Jiangcheng, the capital of Muyang Province, by train. Wu Zhefu was then picked up by leaders of the Muyang Provincial Planning Commission, while Gao Fan was arranged to be entertained by Hu Dongming.

The head of the Provincial Planning Commission in Muyang said the following at the time:

"Xiao Hu, I heard that you and Mr. Gao were classmates in college. So you'll be in charge of entertaining Mr. Gao in Muyang. Mr. Gao is a nationally renowned entrepreneur and a distinguished guest of our Muyang Province. You'd better take good care of him. If anything goes wrong, I'll hold you responsible."

This sounds warm and comforting; in layman's terms it means:
Get lost! We need to discuss important matters with Director Wu. What are you, a private entrepreneur, doing here? Go hang out with your college classmates...

Of course, arranging for a newly appointed section chief to accompany Gao Fan wasn't considered impolite by the province. After all, Gao Fan was a graduate of Peking University and had arrived in the same car as Wu Zhefu; he was a promising young man with some connections, and the province knew the principle of "don't underestimate a young man's potential." Sending him away on the grounds of not interfering with his university classmates' reunion was a reasonable gesture.

Gao Fan, of course, didn't care about such things. He didn't want to curry favor with the Muyang Planning Commission, nor was he interested in the frivolous affairs of officialdom, so he happily accepted the arrangement.

At this time, he was accompanied by Hu Dongming and arrived at Fanjiawan in a car from the Muyang Finance Department.

"Old Hu, there's something I don't understand." After exchanging pleasantries, Gao Fan pointed to the factory area ahead and asked Hu Dongming:

"I remember the first time you went to Beijing to seek funding, you said you were planning to build a phosphate fertilizer plant. How come you ended up changing it to a heavy calcium carbonate plant?"

(End of this chapter)