Investment Risk Analysis For The Project Of Jinan Queshan Water Supply

In the recent years, with the new settlement of several key plants in east Jinan industrial zone and also the fast development of the original local enterprises, the water demand has raised dramatically within this area. Groundwater was overdrawn. The contradiction between supply and demand of water resources has been more intense. In terms of total water resources in the area, Jinan is one of the important cities suffering from severe water shortage. The contradiction will remain a key factor constraining economic and social development in Jinan City for certain period. At present, development and investment in domestic water market has just started. Operating water supply project can optimally scheduling water resource in this region. To increase utilization of surface water and water from the Yangtze River and the Yellow River, to reduce the exploitation of groundwater, can achieve economic and social significance for enterprises. Comprehensively considering their actual situations, and according to their own advantages, Shandong Water Works Investment Company decided to invest in construction of Queshan water supply project.In this paper, the theory of project evaluation was comprehensively used to conduct a comprehensive assessment of the investment risks of the project. The author also raised risk control measures, drew assessment conclusions, and also provided reference for assessment of other similar projects.Study In this paper included six sections: introduction , project evaluation, theoretical overview of risk management ,environmental risk analysis, carrying capacity of the project risk analysis , project financial risk assessment and conclusion. The first session mainly introduced the background, significance, method, content of the study and briefly introduced the basic situation of Queshan water supply projects .The second section made a brief demonstration of the relative theories of projects to assessment. The third section evaluated environmental risk of the project from points of resources conditions, the competitive environment, project management and construction organization. The fourth section assessed risk of carrying capacity in terms of supply, transferring and using volume of water. The fifth section demonstrated the financial risk assessment through comprehensive use of various indicators of financial analysis. Section six drew a conclusion from the analysis made in part two to part five.