A Financial Evaluation And Analysis On Chongjie Sewage Treatment Co. Extension Project

With the improvement of living standards of the city, the population increase and rapid economic development of urban society, the industrial wastewater and domestic sewage emissions increased dramatically. Under this background, the capacity of sewage in D city has been challenged. To the year of 2015, the sewage treatment capacity will be 4,000 tons full year after the municipal pipe network into Chongjie Sewage Treatment Co., but the two engineering design capability is only 25.5 million tons full load operation. Due to the constraints of the current handling capacity of the wastewater treatment plant, it can not get timely and effective treatment to 40 million tons annually by 2015. Sewage treatment rate is still less than 69% of the total wastewater discharge (excluding into the municipal sewage pipe network in future), far less than the national environmental protection model city standards (over 80%). It will inevitably lead to a devastating impact on the ecological environment, if so much distreated sewage is discharged directly into the surrounding water circle. Then it will not only affect the development of the city, but also greatly enhance the D city limit economic development and living standards. Thus the expansion of urban sewage treatment scale is extremely necessary for D city.However, due to the expansion of the sewage treatment project has some weaknesses such as a long construction period, large capital investment, and lack of liquidity of the investment etc., once part of a problem in construction and operation of the process happened, it will give local causing great loss of property. Therefore, before the implementation of project, it needs to be evaluated financial aspects of the expansion project of sewage treatment.This article is based on Chongjie Sewage Treatment Co., renovation and expansion project. It gives a comprehensive financial evaluation and analysis on this project, according to the principles of modern project management, demonstration and evaluation. Firstly, it gives essential information about project management. Secondly, this paper abstracts the background about the extension project of chongjie Sewage Treatment Co... After that, this paper estimates the project profitability, solvency and ability to withstand risk in accordance with relevant data and prepared financial statements. At last, this paper concludes that:The investment project of the static and dynamic financial indices is good, with strong profitability; the project’s debt repayment period is reasonable, and the financial ratios are in a healthy range, which indicate its strong ability to repay debt. Carried out by univariate sensitivity analysis, the results also demonstrate that the project has the strong ability to resist risks.This paper was made in order to provide the basis for the investment decision of the project and to provide effective help for the other sewage treatment expansion projects.