The Research On Economic Evaluation Of Changsha City Metro Line 5 Project

As one type of public works which demands huge investment, Cities subway project ushered in a huge investment in building climax. With the constant enlargement of the scale of Changsha, the traffic system is facing increasingly severe challenge. Meanwhile, The pollution which caused by the waste gas and noise from all vehicle is more and more serious. With the advantages of fast speed, high efficiency, low pollution, traffic advantage, the city subway has become a new direction for the development of city traffic. But because of the huge investment and long construction period of the subway project, it is necessary to advance the comprehensive economic evaluation to ensure the smooth completion and operation. It plays an important role in increasing the investment income level and reducing the investment risk.This paper first inspects about the experience and methods of public projects economic benefit evaluation at home and abroad. On the basis of the analysis data of the Changsha city subway line 5 project phase first phase project, and clear guidelines and principles for its economic evaluation, this paper constructs the Changsha subway project economic benefit evaluation system. This system includes the national economic evaluation and financial assessment. The analysis is scientific and comprehensive. It also uses financial evaluation index such as the financial net present value, internal rate of return, loan repayment period to evaluate the profitability and solvency of subway project. According to this evaluation, it gets the conclusion that from the financial perspective the project is not workable, would require government support. This paper also uses the national economy index such as economic net value, economic internal rate of return to proceed economic evaluation and analysis for the project. It calculates quantifiable benefit including the increasing passenger flow benefit, the improving transport quality benefit, time-saving benefits, investment and operation cost saved by replacing the ground traffic benefit, reducing traffic accidents benefit. And it undertakes qualitative analysis for the non-quantifiable benefit such as the social and ecological, benefits. It reaches a conclusion that the project is considered acceptable from national economy prospect.