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> these bids are so low that they may require behind-the-scenes support I thought the gap between the lowest and next-lowest gap was interesting: $0.01786 vs $

> these bids are so low that they may require behind-the-scenes support I thought the gap between the lowest and next-lowest gap was interesting: $0.01786 vs $0.02342. Made me wonder what the lowest bidder's advantage is.

michaelbuckbee 9y ago
I had the exact same thought. Two ideas: 1. They're well capitalized enough that they think the actual cost to produce is going to drop significantly. Maybe they're planning on a 50 year lifecycle for this solar plant and thinking: we'll we'll lose money now, but when we have to replace all these panels in a decade, at that point they'll cost nothing and for the remainder of this project we'll make bank (though I'm not even sure if that's how this works) 2. They're somehow financially co-mingled with a solar cell producer and have a significant hidden cost advantage.
- ianai 9y ago
  Or a mixture of both most likely. It might be they’re already there, too.
hn_throwaway_99 9y ago
I would be extremely wary when the lowest bidder is that much lower than all the other competitors. See: legions of failed highway projects in the US.
seb1204 9y ago
Having worked on 2 multi billion dollar projects in Saudi and UAE the price the bids are in very rarely is the final total cost of a contract or purchase order. Ongoing changes, corrections, under preforming suppliers that have underestimated the complexities and cost are always present. The client will need to come up with ways to pay these additional cost if he does not want to sit on a half built plant. It is not uncommon that contractors go bust under this price pressure and another one with a more realistic cost will come in to save the day. Problems like this often involve Saudi or UAE government or royalty as the risk of loosing face is hight. Things then get smoothed over with a cup of tea behind closed doors.
- sandworm101 9y ago
  Those same officials who will smooth over the future problems are happy with the press today. SA is coming off today as a herald of the green future. That's good press regardless of eventual outcomes. (Remember also that SA is currently involved in a messy war against a neighbour. We must assume that any and all news is being carefully managed.)

michaelbuckbee 9y ago

I had the exact same thought. Two ideas: 1. They're well capitalized enough that they think the actual cost to produce is going to drop significantly. Maybe they're planning on a 50 year lifecycle for this solar plant and thinking: we'll we'll lose money now, but when we have to replace all these panels in a decade, at that point they'll cost nothing and for the remainder of this project we'll make bank (though I'm not even sure if that's how this works) 2. They're somehow financially co-mingled with a solar cell producer and have a significant hidden cost advantage.

ianai 9y ago
Or a mixture of both most likely. It might be they’re already there, too.

hn_throwaway_99 9y ago

I would be extremely wary when the lowest bidder is that much lower than all the other competitors. See: legions of failed highway projects in the US.

seb1204 9y ago

Having worked on 2 multi billion dollar projects in Saudi and UAE the price the bids are in very rarely is the final total cost of a contract or purchase order. Ongoing changes, corrections, under preforming suppliers that have underestimated the complexities and cost are always present. The client will need to come up with ways to pay these additional cost if he does not want to sit on a half built plant. It is not uncommon that contractors go bust under this price pressure and another one with a more realistic cost will come in to save the day. Problems like this often involve Saudi or UAE government or royalty as the risk of loosing face is hight. Things then get smoothed over with a cup of tea behind closed doors.

sandworm101 9y ago
Those same officials who will smooth over the future problems are happy with the press today. SA is coming off today as a herald of the green future. That's good press regardless of eventual outcomes. (Remember also that SA is currently involved in a messy war against a neighbour. We must assume that any and all news is being carefully managed.)