Research On Optimization Of Financial Management Of DASU Hydropower Project Joint Venture

The joint venture model,as an important business operation model for the high-end market of international engineering contracting,is of great help in promoting the company’s development of international level,entering the global market,and improving the level of localization.However,overseas engineering projects are implemented in different countries and regions,involving laws and regulations of many countries,and the implementation of the projects is affected by the macroscopic situation such as international politics.At the same time,the economic environment,situation and cultural differences of the joint venture parties are different.Joint ventures are more complex,which in turn leads to uneven effects of joint ventures,resulting in that the advantages of joint ventures in risk sharing and resource complementarity cannot be brought into full play.In addition,most of the countries where overseas engineering contracting projects are located are developing countries,and the management requirements for international engineering joint ventures are different.The large fiscal deficit of developing countries leads to irregular tax collection and management,and the transfer of foreign exchange funds is controlled and cannot flow freely.In the process of project implementation,the fund management,external account management,tax management,cost and liquidation management of overseas joint venture projects also bring new challenges to financial personnel.Based on the Pakistan DASU hydropower station implemented by Zhongnan Company and the General Hydropower Joint Venture,this paper studies the content,difficulties and causes of the financial management of overseas engineering joint ventures in combination with Pakistan’s laws and tax policies,different corporate cultural backgrounds and interest demands.By rationally splitting contract execution entities into offshore and onshore entities;fully optimizing taxation on the basis of optimizing contract entities;starting from the improvement of the capital management system,comprehensively managing the joint venture letter of guarantee and exchange rate;standardizing project cost management Mechanisms,formulating a rigorous project contract templates,obtaining compliant pre-tax vouchers and other means to optimize cost management,and optimize the financial management of the DASU project joint venture,so as to effectively avoid the project’s financial and tax risks with the management efficiency of the joint venture.Increase the probability of successful project operation.This paper provides solutions in terms of capital management,foreign account management,tax management,cost and liquidation management of overseas joint venture projects.The financial and taxation problems faced by the joint venture in the implementation process can improve the management efficiency of the joint venture.