Study Of HD Transmission Project Financial Feasibility

Power industry is the foundation to support industry, and its level of development isdirectly related to the quality of related industries, it is the social harmony and an importantguarantee for the healthy development of the economy, while the power transmission projectfeasibility study and construction of the power industry, the importance of expanding the scaleof production manifested in the socio-economic development and the protection of living hasan important role.The B City West is located in Guangdong, western Guangdong Province, the whole gridload center. With steel base, in the Division of large projects such as oil refining and chemicalproduction, consumption will be increased rapidly. B City is currently facing power shortage,power shortage trend, HD project construction can effectively alleviate the pressure of B citypower grid, grid load is enormous pressure for the power shortage problem, and to ensure thatresidential electricity consumption, promote local economic rapid development. Before theinvestment decision must conduct a feasibility study on the project, the project technicallyfeasible preconditions, but also a financial feasibility study of the project, how to determinewhether the project is financially feasible to determine on what basis is this need solve theproblem.This article first HD project construction and project construction area of environmentalprofiles were analyzed to determine the scale of construction projects, the construction period,the project site is reasonable. Secondly, in determining the project investment estimate,through comparison with limit indicators for the rationality of the project investment analysis,but also from a financing perspective, analyzing the project’s funding ratio to determine themanner of financing the project and plans for financing life; then " transmission projecteconomic evaluation guidelines" as a basis for financial evaluation, prediction obtained bycalculation and analysis of financial data, preparation of project cash flow statement, usingthe net present value and internal rate of return as profitability the decision index, calculatednet present value of11708.53yuan, the project’s internal rate of return of9.95%, the project’spayback period is10.38years; simultaneously through asset-liability ratio, interest coverage ratio, debt service coverage ratio dynamic indicators to evaluate the solvency of investmentunits, the project has drawn HD profitability, the expected period of the borrowings investedenterprises can pay off the debt, so the project financially unviable.Because of HD projects at the feasibility study stage, most of the data are estimated fromthe experience of previous projects, the evaluation results and the actual possible bias.Therefore, you also need the HD project uncertainty analysis, this paper first project wascarried out on single factor sensitivity analysis, the choice of NPV and IRR two dynamicdecision indicators to determine the sensitivity factor HD project, and then through the dataanalysis to determine the sensitivity factors change floating through multivariate sensitivityanalysis for identifying risk factors for the project, and raised the question of risk preventionrecommendations.