Research On Investment Control In The Implementation Process Of Hydropower Project Based On The Owner’s Perspective

The control result of project investment not only directly affects the state investmentperformance, but also affects the owner’s immediate interests. At present, as themanagement system of China’s state investment reforms continuously, hydropower projectinvestment control has been improved a lot. However, the issues such as breakthrough andadjustment of budget estimate in a vacious cycle are still present in the implementationprocess of investment control, which needs a further discussion and to be settled in thefuture.The owner’s ultimate goal is to save construction investment under the premise ofensuring the quality and the construction period. With the development of the socialeconomy and the energy structure adjustment from all over the world, hydropower projectsspring up like mushrooms. And so, it has become a very important issue that how to makea scientific cost estimation and how to control the investment properly to achieve agood social and economic benefit.This paper discusses the key point of investment control during the process ofdesigning, bidding and contract implementation from the project owner’s perspectiveaccording to my study and practice activities. The paper’s main content and innovations areas follows:First, it explains theoretically the meaning of the owner’s investment control duringthe design phase and the control procedures. And the paper also analyses the investmentcontrol problems existing in design phase and focuses on the investment control measuresand methods in this phase.Then, it analyses the investment control issues in the bidding phase from theperspective of control science and transaction cost. In this part, the paper focuses on theselection of contractors, and offered the EAHP-GRAP method by examples for theselection of contractors, which also introduces the steps and process of the method. At thesame time, it offered the investment control measures during the bidding phase from theowner’s and the external monitoring system’s perspective, which is the basic and key partof the paper.Finally, it discusses the necessity of investment control during the contractimplementation, analyzes the factors which have an impact on investment control in thisphase, focuses on investment change due to contract value adjustments and makes a scientific and objective evaluation on the determination of the parameters in the priceadjustment formula.Moreover, due to the high comprehensiveness of hydropower projects, this paperrefers to value management, transaction costs, control theory and other theories to lay afirm theoretical foundation for the smooth development of this paper.