Financial Evaluation Of Expressway Project Based On System Dynamics

The expressway is the important foundation of national economic and social development. Our national expressway, since1988, develop from nothing and now became a traffic network that nearly one hundred thousand kilometers across the East and West, runs through the North and the South, and laid a solid foundation for the development of national economic and social development. Since the expressway construction project will consume large amounts of resources and funds, how to evaluate the financial situation of the construction project in the case of of the shortage of our national resources, energy and funds.In recently years, a number of expressways had the problems about economics loss and operational difficulties, it highlights the importance of scientific assessments and decision making.The financial evaluation of construction project involves many factors, which is a complex, dynamic and nonlinear relationship between them.The link between them is particularly strong.When one of a factor of this system changes, it would cause a global change. It is difficult to predict the influence of that kind of change by only using the method of the financial statement.System dynamics has a genius part in analyzing this complex system’s problem, and at the same time, it provides a strategic policy laboratory for the expressway-constructional assessment. This article, which from the situation of economic evaluation of construction project,introduces the basic feature of expressway construction project,the principle and index system of financial evaluation, and the method of system dynamics modeling.What method focuses on is to seize the causal relations between things and establish mathematics model that reflect the qualitative causal relationships through the quantitative form.It combines the financial analyzing method, analyzes the expressway in investment financing activities,business activities,cash flow and debt repayment thought computers. At last,the compare of simulative result and real result confirm the superiority of the method of system dynamics, and provides a new analysis method for the construction of the project financial evaluation.The paper includes24Figers,3tables and64references.