An Assessment the Financial Performance of Muangkhay Water Supply System in Luang Prabang Capital, Luang Prabang Province

Abstract

Water supply is essential and an indispensable factor in the daily life of all populations. To improve the quality of life of citizens and lead to sustainable economic and social development; the party and the government has highlighted as crucial to the development of the water sector. the Some projects have been completed implement, but some of them were not matched to technical standard. Concessionaire seeks to cancel or sell the concession contract to others because they had invested, and the return is less than ought. Therefore, to guarantee the Water Supply System's implementation under the Public Private Partnership Project. This assessment aims to study and evaluate the financial performance of MuangKhay Water Supply System, Luang Prabang City, Luang Prabang Province that invest and operate by the private sector, and Build-operate-transfer for 30 years. To do this we collect data with the private operator which cost of investment, personnel, an average of chemicals, operation fees, electricity, etc., to calculate the Payback Period, Net Present Value, Internal rate of Return, and Cost Benefit Ratio. The assessment of The estimated total income for the 30-year project is 1.877.122 USD, the estimated total expenses are 667.153 USD, the investment cost is $404.425 USD, and the net cash flow is 1.209.969 USD, investors will realize a profit in 14 years, 7 months, and 18 days, therefore, the net present value is 790.488 USD, the rate of return within the project is 6,98%, the net cash flow from operations is 1.209.669 USD, and the return on capital ratio is 1,9. As a result, investment in the water supply at the MuangKhay village cluster in Luang Prabang City, Luang Prabang Province yielded a satisfactory return.