The Feasibility Research On West Central Heating Project In Shouguang City

With the rapid urbanization of Shouguang,increasing numbers of residential districts have been built in the western part of the city.However,small boiler rooms are still the main heating equipment in the region which makes it a blind area of central heating.This has caused problems of low heating efficiency and serious environmental pollution.Shouguang City Investment Group has planned the West central heating project to meet the heating demands in the western part of the city.The project is one of important livelihood projects held by Shouguang government in recent years.The central heating will be achieved through installation of heat pipe transporting high temperature circulating water network to the local district.The new central heating network will serve an area of 5.556 million square meters which greatly improve the heating situation in Shouguang.On the basis of the theoretical research,this paper analyzes the feasibility of the project.Firstly,it introduces the basic situation of the project,including the content,conditions and significance of the construction;secondly,it carries out a technical analysis of the project,consisting of the project design and technology scheme;Then,the environmental,economic and social benefits of the project will be analyzed.The environmental benefit will be focused on environmental improvement and energy conservation and it is estimated that energy consumption expenditure can be savedRMB 30.896,000 annually which fully meets the nation's requirements of energy saving and emission reduction.The economic benefit analysis mainly considers the financial indicators such as NPV,Payback Period,IRR,ROE,the NPV of the project is calculated to be RMB 7,877,greater than zero.The Payback Period of investment is7.2 years,lower than Payback Period of the benchmark of the same industry,The IRR is12.54%,greater than that of the industry benchmark,and the ROE is 26%,also high in the industry,which means good economic benefits;In the aspect of social benefits,it concerns the improvement of the overall urban environment,impact on the residents' living standards and the overall local economy.The project is conducive to the promotion of the overall city image,the residents' living standards and the sustainable development of the local economy.Through these three aspects of analysis,it is concluded that the project has good environmental,economic and social benefits,and the project is feasible.