Financial Feasibility Research Of Section G Highway Greening Project

Over the past 40 years of reform and opening up,the Chinese economy has witnessed a period of rapid development,which has greatly met the material needs of people.However,during this process,problems in economic development such as imbalance,incoordination,and unsustainability have become increasingly prominent,especially the urgent conflict between environmental protection and economic development.At present,the Chinese economy is under the transition from high growth to high quality and the ecological civilization construction serves as an essential link in high-quality economic development.Among others,the large-scale land greening initiative acts as a significant measure to construct the ecological civilization and build a beautiful China and Expressway greening is an the important project of national land greening and environmental protection.The highway greening project belongs to the infrastructure project with features like a large-scale investment and long investment cycle and it has largely increased government’s financial burden.Relying solely on government funding for construction,the financial funds are overburdened,the government has released the document of Guidance on the Promotion of Government Purchasing of Services in Transportation,which has facilitated the introduction of public-private partnership(PPP)model into the highway greening project.The cooperation between the government and the social capital is able to effectively alleviate the pressure on government finance and is of great importance for vigorously promoting the highway greening construction.At present,PPP projects have developed rapidly in China,but the related theoretical research is slightly behind,and the practical experience is relatively insufficient.In the process of implementation,there have been some cases of failure,To ensure PPP projects operate smoothly,it is important to establish and improve the investment evaluation system of PPP projects.By taking the investment financial feasibility of the G section highway greening project as the study object,Based on PPP model theory,analyzed the project’s overview,operation mode,and reward mechanism,and the necessity of adopting the PPP model for this project,to lay a theoretical foundation for later investment benefit evaluation.To help investors recognize the external investment environment of the project,the article conducts a detailed analysis of the project ’s industry macro environment and market environment,Based on it,the investment benefit evaluation of the G section highway greening project has been carried out in accordance with the sorted industrial data.According to the estimation and analysis of financial evaluation indicators,such as the net present value,internal rate of return,dynamic investment pay-back period,static investment pay-back period,and debt solvency,According to the result,the investment benefit evaluation of the project is carried out.In order to ensure that the investment in the project is practical and operational,the paper has identified and evaluated the potential policy and legal risk,the social risk,the operation and management risk,and the force majeure risk of this project and put forward the corresponding risk control measures.Judged from the G section highway greening project financial feasibility research results,the project is with features of a favorable investment environment,considerable investment benefits,and controllable risks,which means the financial feasibility of investment.Furthermore,the financial feasibility study results of the G section highway greening project can deepen the theoretical research of the PPP project investment value evaluation system to a certain extent and provide a reference for investors to correctly make investment decisions for PPP projects,and it can also provide guidance and experience for the long-term development of public infrastructure construction projects for local government.