Research On Economic Evaluation Of Water Supply Project A

As is known to everybody，water is indispensable to the development of the cities。It’sthe reason why the human settlements appeared to be near the water. Water requirement inthe modern cities is much more the the ancient cities，which needs to be well planed with thewater supply system. The construction of the water supply project has significantimplications for the development of the city and the people lives their. It is an important partof the city municipal construction and belong to the public services and facilities，whichneeds high input, long cycle and high level assurance. So, water supply project should meetthe requirement of the continuable development of society.Water supply project with the character of high input and long cycle，is a major part ofthe city’s infrastructure. We should analyze the rationality and feasibility of the projectbefore the construction of the project has actually been implemented, in case of makingmistakes on the decision and leading to great economic loss. The economic evaluation of thepublic services and facilities project consist of financial evaluation and national economicevaluation，which could be useful to have multi-analysis economic feasibility of theproject.his research aims to make a multi-analysis on the water supply project with financialevaluation and national economic evaluation. In order to give investors some reassuranceabout the project，and to ensure the healthy development of the water supply project, weneed to report result of the whole assets investment.The focus of this research is to construct the system of evaluation of the water supplyproject.It bases on the theory of project evaluation, which use the water supply project as theobject of research. The evaluation system of the water supply project is constructed after thetheory of economic evaluation is discussed. In addition, the research also verified thetheory and method by actual case.With the economic evaluation of Aershan water supply project A，we get a conclusionthat this project is feasible in thetechnology and it is reasonable in teconomy. With theresonable theoretical pricing,The FIRR is7.49%, which is higher than the standard rate6%.The capital payback period is be10.85years, which is sooner than the standard rate15years.And the FNPV is larger than0,These all prove it’s a good financial results. So, this project is feasible in finance. Meanwhile, The EIRR is29%,which is much higher than socialdiscount rate8%, and the ENPV is positive,the EBCR is larger than1. So the project isfeasible in national economy.