Value For Money Of NC Water Environmental Treatment Project

In recent years,the water environment situation is severe in China,especially in the Q District,S City of Sichuan Province.The problems of poor water quality,heavy water ecological damage,and many environmental problems are abnormal,which seriously damage the health of the public around.At the same time,the bad watershed environment is not conducive to the sustainable development of the economy and society in the Q district.The construction of NC Water Environmental Treatment Project will help to strengthen water pollution control and rural reconstruction in river basins.Meanwhile,NC Water Environmental Treatment Project will improve the ecological environment and further build ecological city.Therefore,NC Water Environmental Treatment Project in S City of Sichuan Province has come into being that is important and imminent.Based on the financial pressure of Q District in S City,PPP arrangement is designed to be adopted,but whether this water environmental treatment project is suitable for PPP scheme is worth exploring.That means the objective of this paper is to conduct value for money assessment,providing reference for future VFM of such water environmental treatment project.First,a comprehensive literature review concerning PPP scheme and value for money is presented.And then based on the explanation of six basic indicators,five additional indicators including the size of NC Water Environmental Treatment Project,income forecast and growth capacity,ecological benefits,social benefits and demonstration effect are illustrated.Through the expert scoring from different industries,the weights and scores of the eleven above-mentioned indicators of this project are analyzed.The final score of the qualitative analysis of NC Water Environmental Treatment Project is 81.87,which is greater than 60.That means,NC Water Environmental Treatment Project can achieve value for money from the perspective of qualitative analysis.In addition,relative scores of each index of NC Water Environmental Treatment Project are proposed.The findings show that the relative scores of the whole life cycle integration,performance oriented and encouraging innovation,and ecological benefits are more than 85%,which is at the degree of excellence,while the relative scores of social benefits and financing is poor.However,the relative scores of every indicator is greater than 70%,indicating that PPP scheme is appropriate for NC Water Environmental Treatment Project.Then the quantitative analysis model is constructed.The results demonstrate that the value of VFM is 92.05 million RMB and the index of VFM is 5.44%,both of which are greater than 0.Thus,PPP arrangement is suitable for this water environmental treatment project.Finally,the sensitivities of VFM about the discount rate,the operation and maintenance unit price of sewage treatment project,water cost per unit price,the cost of financing in the operation period and the rate of return on investment is presented,providing scientific basis for achieving value for money of NC Water Environmental Treatment Project as more as possible.