Investment Analysis Of Guangzhou North Water Supply Plant Project

Water supply system is one of the important municipal buildings of city,to build a safe,reliable,security and efficient water supply system,is the need of a livable city,the guarantee of health people life,the requirement of social development,but also essential basic conditions for a world-class city.However,the prediction of water need for the highest Guangzhou city center in 2015 was 5.17 million m3 / day and 2020 of 6.1 million cubic meters/day,the current water supply facilities already saturated and was badly in need of expansion,especially in northern baiyun district,the water quality is not up to standard.In order to ensure the security of northern baiyun district people's drinking water,to meet to the needs of the development of Guangzhou city,to promote the integration of urban and rural water supply,the construction of the north water plant project is of urgent,it would change the pattern of water supply in Guangzhou.In this article,we intend to find out the best strategy of profit model.First of all,to analyst the actual situation of Guangzhou water supply,and demand of central area,segmentation of target market to determine the construction scale and construction process of preparation of northern water plant project investment budget.Secondly,take the north of water project investment plans and financial condition into account,to determine the fund-raising way,using its own funds accounted for 20%,bank loans account for 80% of the investment plan,and according to the 20 years(15 years,respectively,of phase I and II merging calculation for 20 years)and calculate the debt of bank loan.Third,compared with other Guangzhou waterworks operation revenue for estimation the income of northern waterworks,and measure the return on investment cycle and yield.Fourth,consider the original investment programs is hard to reach the expected return,three patterns of northern waterworks operation programs were built with detail analysis of business condition and financial situation to detemin how to achieve expected earnings.The advantages and disadvantages between three kinds of model were also compared.Finally,the outcome of the sensitivity analysis and risk analysis of the north water plant project showed that it is necessary to control the investment and operating costs of fixed assets.In conclusion,by comprehensive comparison and analysis of theses three patterns of water plant project,combination of government subsidies for land prices rise,rising the water price and apply for tax preferential policies is the best advice.