Application And Investment Evaluation Research Of BOT Investment Project Of Sewage Treatment In City W

With the acceleration of metropolisztion resulted from the rapid economic development in China, the life sewage increases, so that the sewage treatment has become the important part of the municipal establishment. This thesis argues that it is multiple-win to use no-government funding for sewage treatment, by introducing and analyzing the cases of the technical and investment models of municipal sewage treatment models.Based on the relevant theories about project feasibility and evaluation, this thesis analyzes the BOT model of sewage treatment project in City W, also introducing the BOT investment model, discussing the application of BOT in environment protection industry, and operation of BOT model. First, this thesis analyzes the meaning, derivations, characteristics, application and advantages of BOT model, followed by the necessity of project in City W. Next, analyzing the reality of sewage treatment technologies and municipal layout, sewage and drainage system, and remains treatment, this thesis advocates the technical blue print for sewage treatment project in City W, using blue evaluation method to select and evaluate the blue print. Thirdly, financial evaluation is performed with the cash flow model and the net value method using factors including sewage treatment volume of the W city, treatment charge/income, maintenance fee and overhead, and tax rate, with consideration of the characteristics of the sewage treatment project of the W city. Various financial evaluation criteria, including the after tax profit and the internal income rate during the life of the sewage treatment project, the before tax investment return period, are calculated, which reveals that the project is feasible with stable income. Next, evaluate the risk of the sewage treatment BOT project of the W city using the indefinite analyzing method, the franchising period, the asset to debt ratio and the debt coverage ratio. It shows that although the sewage treatment cost and the charge price are sensitive and the financial burden is heavy from the first year to the 11th year, the risk is acceptable and controllable, and the franchising period is appropriate. Finally, the model investment conclusion is drawn.