Profit And Risk Evaluation Of Loan Project By Baiyinhua Power Station

In recent years, with the continuous development of china's economic, the competition among banks is getting more intense. Commercial banks in our country have been unremittingly to credit business as an important work, and through strengthening credit management, optimize the flow of credit to regulate and promote the development of credit business. Project loan assessment is the first gate in bank credit management system to prevent risk, which can evaluate the necessity and feasibility of the project, predict the project's economic benefits, screened the progect that does not conform to the terms of the loan or has big risky, to avoid making false decision in loans, guarantee the loans recovery in safely, reduce bad loan assets, enhance asset quality in order to achieve the scientific decision-making and reasonable delivery, and then ensure high efficient, low-risk in loans.Only the correct use of the project loan assessment--the special method, Commercial banks can achieve the purposes of avoidance, prevention and control of credit risk, realize the basic requirements for loans to improve efficiency. Loan project assessment in commercial bank is the process for selection and optimization of loans, as well as a prerequisite and an important step for decision-making.With the implemention of the nation rules to revive the old industrial bases in northeast, the Northeast region will have the strong growth in electric power load. In particular, Liaoning Province, as the load center of Northeast, will increase rapidly. At present, liaoning province power load accounted for about half of the northeast power grid, and also is the most serious in shortage of electric power in northeastern. BaiYin Hua Jin Shan power grid closer to the MengDong power grid in northeast, development and construction Baiyinhua Jinshan and the power grid and then plant the power into the Northeast Grid, is essential to satisfy the northeastern and liaoning power load of growth.Baiyinhua power plant project is approved by the State Development and Reform Commission, located in Xilin Gol League in Inner West Ujimqin Baiyinhua Sumu territory under construction Baiyinhua 2×600MW power plant project air cooling units, this study used project loan assessment method based on modern finance theory, financial management, econometrics, engineering and economics theory, evaluated the feasibility of Baiyinhua power grid from profitability, liquidity and risk three aspects, proposed evaluation opinions. The paper is divided into five chapters.The first chapter is introduction, describes the project financing and significance of assess loans, as well as the background of Baiyinhua power plant project finance. State support Fuxin Mining (Group) Co., Ltd. exploration and development building Baiyinhua on the 4th mine, construction of pit power plants, supply of Liaoning Power Market. Given the significant Baiyinhua Peak Power Plant Project and cost advantage pit power plants, commercial banks think that support the project in line with national strategy to revitalize northeast old industrial, accrod with credit policies. The borrower Baiyinhua Jinshan Power Company will finance by bank loans to construct projects in Baiyinhua 2×600MW air cooling power plant.The second chapter analyzed the borrower and financing project, to study the project weather or not compliance with national policies and development prospects, introduced the basic situation of lender Baiyinhua Jinshan Power Company, analyzed the feasibility of the Baiyinhua Jinshan Power project from the project location, production conditions and other aspects. Based on the analysis of product features, target market, predict the product supply, demand situation and price trend, analyzed product competitive advantage in the market and marketing strategies, comprehensive evaluation the project product sales potential and prospects.The third chapter, identification of project financing options, calculated ablity to repay debt through evaluation financial benefits of the project, evaluated the project investment estimation and financing program, including assessment of project investment and financing programs in various funding sources and use rationality and reliability.. Based on the analysis of basic financial data, calculated the financial performance index, selected financial evaluation data and parameters, calculated Sales (operating), sales income tax and extra cost, value added tax, estimated cost for profit measurement; preparation of financial assessment of relevant statements; calculate financial evaluation indicators, to assess the profitability and solvency of the project.The fourth chapter, analysis the project risk and develop risk prevention measures. Reveal loan project risk from the industry risk, policy risk and business operating risk three aspects, to formulate guaranty assures, strengthen risk management, strengthen financial monitoring risk mitigation measures, and proposed corresponding regulatory requirements.Through the benefit and risk assessment of BaiYin China power plant loan project, analyzed the project risk and financial benefits, draws the following conclusion: BaiYin China power plant conforms to national industrial policies and environmental protection requirements, has local government support, appropriate geographic location, convenient to obtain raw materials, production capacity can be used effectively and then promote economic development, after the completion of the project to produce good economic benefit. The major potential risks of Bai yinhua Jinshan Mine Power Plant project is: the rising price of coal and other raw materials will directly influence power cost and profit, Plant operating risks, borrower moral hazard. Main safeguard measures are: this project has good economic benefits, strong ability to resist risk, Timely tracking and understand the borrower, the project's construction and the future operating situation, while also making the subject of the tariff revenue as a pledge for opening accounts and supervision to ensure the implementation of the repayment of funds; to electricity charges the borrower the right to pledge against moral hazard. Based on BaiYin China plant loan programs benefit and risk assessment, this paper think the risk situation can be controlled, the loan project can support the development of the local old industrial base, while bank will obtain long-term stable income.Baiyinhua power plant project loan has been paid, the company has entered to production. The project loans not only supporting the national economic development but also brings objective of economic benefits to commercial banks.