Research On The Decision-making Of Urban Sewage Treatment Projects Based On Value For Money (VFM)

With the further acceleration of China's urbanization, the number and size of the cities also increased rapidly with the expansion,which bing serious urban sewage water pollution.Municipal sewage treatment project are playing an increasingly important role in China's environmental construction.However,the construction of municipal wastewater treatment projects require large capital.To a certain extent,which increased the financial burden of the Government.Public-Private-Partnership(PPP) not only can ease the pressure on government funds,but also can help the government to solve some problems of technology and operations.Therefore,PPP model has been vigorously promoted in the sewage treatment industry,in which the use of BOT model is used more widely.Urban sewage treatment BOT projects are often large investment, long period,long payback time and have a higher risk.How to scientifically evaluate and make decisions on the project will directly relate to the success or failure of the project.The traditional evaluation mode is more emphasis on the economic analysis of the project.At the same time, there is no clear evaluation about whether BOT mode is applicable in the project,which leads to problems in the early stage of project decision-making.With the further research of PPP/BOT model,The Chinese Ministry of Finance issued?PPP value for money Assessment Guidelines(Trial Implementation)?(Financial [2015]167)in 2015,which aims to standardize the management of PPP projects.Value of money(VFM) evaluation includes two stages: qualitative assessment and quantitative evaluation,which is an important basis for the early decision-making of PPP projects. When carrying out the government procurement,expected PPP model is adopted only when it passes the VFM evaluation.Firstly, this paper summarizes the theory of BOT model and the VFM evaluation system which has just released in China.At the same time, compared with the traditional BOT evaluation method, VFM evaluation system was found to be more systematic and standardized,In the early stage of the BOT project decision-making and bidding units, it will pay more attention to the long-term benefits of the project.Then according to the characteristics of China's urban sewage treatment BOT project, a VFM evaluation model of sewage treatment BOT project was established,which includes three parts: preparation, qualitative analysis and quantitative analysis.This model has a reference to other BOT projects.Finally,I would make the practical application of the S company sewage treatment upgrade BOT project,other indicators of the value for money evaluation model are distinguished,which take into account of China's laws and regulations and the specific situation of the sewage.For example, the costs of raw PSC,competitive neutrality,project risk cost and the net present value of project costs in the full life cycle. These form a complete VFM evaluation model of wastewater treatment BOT Project.The project has a high feasibility from a qualitative analysis point of view through the analysis of the project.As a result of the net present value of projects undertaken by government departments less than the cost of conventional mode under the BOT model cost, So the BOT project is feasible.based on the VFM evaluation of the S company sewage treatment upgrade BOT project,both for S company provide a basis for decision-making,find out more sewage treatment projecs evaluation methods and procedures available to other companies within the industry.