Post-evaluation For The Strategic M&A And Construction Process Of Lubei Thermal Power Plant

Cogeneration is an efficient way to use energy encouraged by relevant policies, which can meet the social load demand and achieve purposes of energy saving. However, a lot of money and technology are in need for acquiring or building new thermal power projects. So it is essential to carry out systematic and comprehensive post-evaluation for the strategic M&A and construction process of a certain thermal power project, so as to provide guidance for the future investment management.Based on the worldwide research literature of project post-evaluation, combined with the characteristics of thermal power projects, related concepts and contents of construction process of thermal power projects are discussed in detail in this paper. According to the theory of the work breakdown structure, taking Lubei thermal power plant as example, the project construction process is divided into four parts including preliminary decision-making management, strategic M&A management, project construction management and project being put into production management.For strategic M&A management, the cost method and the real option method are adopted to evaluate cost replacement value, option value and strategic value of the thermal power project, leading to a more comprehensive value for target project; For preliminary decision-making management, an index system is established focusing on project decision-making, feasibility study, document approval, project design, bidding and construction preparation, then rank and computing method are used to calculate weights, while the evidence theory to fusion results; For project construction management, a total of15indicators are selected in terms of investment control, schedule control, quality control, supervision and coordination, tendering contracts and security risks, then a method based on rough set and the cloud theory is applied here, enhancing the operability and objectivity of the evaluation process.Through a case study of LuBei thermal power project, it is shown that the acquisition lacks of short-term economic benefits but has remarkably flexible value and strategic value; terrible management of project decisions, project design and bidding before the acquisition affects operational benefits; but dynamic and collaborative control of the progress has obvious advantages. So relevant lessons and recommend measures are concluded in this paper, contributing to providing theoretical guidance and practical learning of M&A and construction process in rapid development of thermal power.