| Environmental protection is becoming the focus of people's attention. Energy-saving emission reduction has become one of the priorities of Governments also. Hydroelectric power as the only large-scale commercialization of green sustainable energy for human has become an important part of Energy Strategy of our country. The No.1 Document in 2011 by the Central Committee of the Communist Party of China was published. It is the first time that Water reform has been a system deployment since the founding of the state. It also clarifies the strategic position of Water Conservancy. According to the No.1 Document, the average annual investment of the Water Conservancy will be twice as the 2010's level (about 200 billion Yuan) in the next 10 years. The focus of investment in fixed assets Transfer to the Water. Conservancy and Hydropower Industry from Railway Construction, road construction etc. can be expected in the future.Due to the large investment, long construction period and long pay back time, Hydropower projects require the support of bank's credit funds. The importance of the hydropower industry has been recognized by all financial institutions. It also becomes the focal of commercial banks. While customers in the hydropower industry demand for credit, commercial banks also need to expand their market share in order to achieve the goal of maximizing the value. Superficially, the simplest solution is to increase lending efforts. However, this also could bring Non-Performing Loan if you choose the wrong Hydropower projects. Therefore, the choice of customers and projects is the key to risk control.In order to enhance the core competitiveness of the competition, commercial banks must examine and analyze the client's financial situation, the basic situation of the project and the development trend of the hydropower industry, and to establish a reasonable, practical credit policy and risk control measures.This paper focuses on the possible issues commercial banks might encounter in their Project Evaluation of hydropower project, such as the analysis of the customers' financial situation, the analysis of their position in their industry, the area they locate in, and their credit limit, etc. This paper uses a hydropower project as an example to discuss methods on how to evaluate hydropower project comprehensively and systematically so as to help commercial banks enhance their loan quality as well as prevent the possible risks associated with loan.This paper is divided into five parts.Partâ… :IntroductionThe first chapter offers a research background and a brief introduction of the study target, the characteristics of the target, and the significance of this research.Partâ…¡:Literature reviewThe second chapter introduces the existing international and domestic projects, risk assessment, theoretical research and relevant theoretical literature.Partâ…¢:Theoretical Analysis the hydropower project riskThe third chapter describes the investment risk in hydropower projects; Commercial bank loan risk assessment;the method risk assessment of hydropower projects.Partâ…£:Empirical analysisThe forth chapter focuses on how to make a Project Evaluation of hydropower project based on a specific project from the customer's basic assessment of the hydropower industry market analysis, project analysis, credit limit etc.Partâ…¤:Suggestions The fifth chapter mainly talks about bank risk assessment, risk prevention of the risk measures and puts forward policy recommendations. |
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