Highway Project Value of Money Assessment under PPP Mode and Its Application

Table 7

The calculation process of PPP₀,   unit: million Yuan.

Project	Construction period			Operation period
Features	2016	2017	2018	2019	2023	2028	2033	2038	2043	2048
1 Cash inflow	0	0	0	71.74	84.47	102.36	127.21	160.71	189.30	224.88
1.1 Operating Income	0	0	0	28.18	40.97	58.84	83.68	117.15	145.72	181.28
1.2 Recycling residual value	0	0	0	0	0	0	0	0	0	0
1.3 Financial subsidy	0	0	0	43.27	43.27	43.27	43.27	43.27	43.27	43.27
1.4 Input VAT	0	0	0	29	23	25	27	29	31	33
2 Cash outflow	189.89	266.72	222.13	69.90	70.16	72.23	75.02	78.69	111.29	129.60
2.1 Owning funds	183.29	244.38	183.29	0	0	0	0	0	0	0
2.2 Operations Management Fee	0	0	0	2.23	1.77	1.91	2.06	2.22	2.39	2.57
2.3 Maintenance costs	0	0	0	2.74	2.18	2.35	2.53	2.73	2.94	3.16
2.4 Overhaul costs	0	0	0	0	0	0	0	0	0	0
2.5 Output VAT	0	0	0	2.79	4.06	5.83	8.29	11.61	14.44	17.96
2.6 Income tax	0	0	0	0	0	0	0	0	22.60	33.66
2.7 Provident Fund	0	0	0	0	0	0	0	0	6.78	10.10
2.8 Debt service	6.60	22.34	38.84	6214	62.14	62.14	62.14	62.14	62.14	62.14
3 Net cash flow(1-2)	-189.89	-266.72	-222.13	1.84	14.31	30.13	52.19	82.02	78.02	95.28
IRRR of PPP = 4.30%				= 1208.14 million Yuan