Content and Procedure of Investment and Construction Management

For example: Before construction, with a flood frequency of P = 0.01%, the loss was 17,000 million VND, but after construction of the flood prevention project, the loss was only 4,000 million VND. So the flood prevention benefit is:

17,000 Tr – 4,000 Tr = 13,000 million VND.


But with the same project, the flood appeared with P = 0.05%. Before the construction of the project, the loss would be 12,000 million VND, after the construction of the project, the loss would be 3,000 million VND. So the benefit of the flood prevention project would be:

12,000 million - 3.00 million = 9,000 million VND.


Thus, different flood frequencies will give different flood prevention benefits. For example: With P = 0.1%, the benefit is 8,200 million VND.

P = 0.05% then the benefit is 9,000 million VND P = 0.01% then the benefit is 12,000 million VND

Flood prevention benefits are calculated by the following formula:


B = S 0 A

B: flood protection benefit with frequency P (VND)


S 0 : loss value per 1 km 2 of reduced flooding (unit/km 2 ) A : area of ​​road reduced flooding (km 2 )

b. Average flood prevention efficiency over many years according to the growth of the national economy:

We know that the national economy in each country has annual growth. For example, in our country in recent years, the annual economic growth is from 7 to 9%, which is the combination of economic growth of different sectors such as agriculture, industry, and transportation. Thus, the area threatened by floods also increases with economic growth. Therefore, if flood protection works can protect a certain area, the flood protection effect will also increase every year.


year

Based on the survey documents to find out the average flood prevention benefits.


B 0 :



B 0 = S 0 A



2

B 0 : average flood prevention benefit over many years.



S 0 : average loss value for many years per 1 km



A : Average area of ​​reduced flooding over many years.


To calculate more accurately, people divide the frequency groups into smaller groups.


(each frequency occurs with a certain flood elevation), so

determined as follows:

B 0 cuffs available


n

B 0 = So A i

i 1


For example, in a flood protection project with a design frequency P = 0.1%, use the economic development level in 1980 to calculate the loss value before and after the construction of the flood protection project with different frequencies P, the value is calculated in million

copper as in the following table:


Frequency P%

0.34

0.20

0.10

0.05

0.01

0.001

0.0001

Facts before construction

0

4700

8200

12000

17000

19500

24000

Real estate after construction



0

2000

5000

14500

22500

Maybe you are interested!

Content and Procedure of Investment and Construction Management

Make a table to calculate the average benefit for many years



P


P

Before construction (million VND)

Loss after construction (million VND)

Loss S with frequency P

Average loss S


PS


S corresponds to P


S


P.S

0.34


0.20


0.10


0.05


0.01


0.001


0.0001


0.14


0.10


0.05


0.04


0.009


0.0009

0


4700


8200


12000


17000


19500


24000


2350


6450


10,100


14500


18250


21750


329


645


505


580


164


20


2243


0


2000


5000


14500


22500


1000


3500


9750


18500



50


140


88


17


295


Analysis of the difference in losses before and after construction of flood protection works is the average benefit over many years.

B 0 = 2243 – 295 = 1984 million VND.

Average utility taking into account the growth of the national economy

is calculated by the following formula:


B t = B 0 (1 + f 0 ) t

B t : average benefit of year t.

f 0 : growth coefficient of the national economy t: Year of calculation t

Back to the above example: B 0 = 1948 million VND

If we know f 0 = 3%, and the starting year of the calculation is 1980, now we need to calculate the average utility of 1980, so t = 1986 – 1980 = 6 years.

So the average utility for 1986 is


t 6

B t = B 0 (1 + f 0 ) = 1984 (1+3%) = 2326 million VND.

4. Non-structural flood prevention measures:


In the past 40 years, some countries in the world have applied the measure of not building flood prevention works in some places because:

- Building flood protection works is very expensive, management must also be strict, management costs are high but the loss caused by floods cannot be reduced.

- The country's economy develops every year, so the damage caused by floods also increases. - The construction of flood protection works also cannot keep up with the goal of protecting economic achievements.

For example, in the US, in 1960, flood damage was 1.7 billion USD. In 1980, flood damage was 2.44 billion USD.

Flood damage was estimated at $3.5 billion by the year 2000.


Therefore, building flood protection works is costly but the damage reduction (benefit) is not much more than the construction investment, so "the benefits do not outweigh the harm".

In our country, flood prevention works are mainly built on the Red River and Thai Binh River systems in the North - but in the Central region, there are almost none.

For the Mekong Delta, whether or not it is necessary to build a protective dyke system is a much debated issue in the irrigation industry.

Some scientists believe that there needs to be a proactive planning system to live with floods. Flood prevention is out of the question.

The main contents of non-structural flood prevention measures include the following main contents:

- Temporarily let the flood pass & pay attention to flood storage measures.

- Establish a flood insurance company.

- Has a tight warning forecast system.

- Proactively take safety measures for flood-prone areas (evacuate people and warehouses)

One of the issues that needs to be addressed is the establishment of a flood insurance company.

The United States is a country that implemented flood insurance very early - in 1959 the US passed the "Flood Insurance Act", in 1962 the National Flood Insurance Act was passed, in 1973 the "Water Disaster Prevention Act" was passed.

ë China also started to have flood insurance. As in Sichuan province with the flood of 1981, the company paid insurance for flood damage up to

up to 7,732 million USD.


The issue of non-structural flood prevention is a new issue that is closely related to the national economy, so it needs to be seriously studied.

Chapter IV

Investment and construction management


i. Contents and procedures of investment and construction management

Investment and construction management is the State management of the investment and construction process from the step of determining the investment project to the stage of exploiting and using the project according to the set goals.

An investment project is a set of proposals on capital investment to build new, renovate, and expand works to achieve set goals within a certain period of time.

The management of basic construction investment is different in each country. In our country, in the development process, there are also many changes to integrate with the world.

- Before 1980, construction investment management did not have strict regulations.

tight


- On September 19, 1985, the Council of Ministers issued Decree 237/HDBT promulgating regulations on examining and approving designs of construction works.

- According to the development and innovation policy, on November 7, 1990, the Council of Ministers issued Decree 385/HDBT with regulations on construction management, with quite strict management content.

- On October 20, 1994, the Government issued Decree 177/CP with regulations on investment and construction management with many new contents.

- On July 16, 1996, the Government issued Decree 42/CP with regulations on construction investment management. Regulation 42/CP compared to regulation 177 has many stricter points in basic construction.

1. Basic requirements and principles in construction investment management:


a. Basic construction management must comply with the following requirements:

- Ensure the right strategic goals of socio-economic development in each period according to the socialist orientation. Implement economic restructuring towards industrialization and modernization of the country.

- Mobilize and use investment capital sources most effectively, exploit potential resources of land, labor and all other potentials, and fight against embezzlement and waste in basic construction.

- Construction according to approved planning and technical design. Conduct construction competition to apply advanced technology to ensure quality and construction time.

b. Basic principles of investment and construction management for all economic sectors.

- Follow the correct investment and construction procedures.


- Clearly distinguish the functions of State management from production and business management. Clearly define the responsibilities of State management agencies.

2. Investment and construction sequence:


The investment and construction sequence according to Article 42 is divided into 3 phases:


- Investment preparation stage


- Investment implementation phase


- Exploitation and use phase.


In regulation 42, the general regulations for construction works are: All 3 phases

The above paragraphs are all about one investor. Because the investor is the capital owner responsible to the State for preparing the investment, then implementing the investment and finally managing the exploitation to recover the capital and return it to the State.

For the irrigation industry, which has its own characteristics, in recent years the following has been implemented:

- Investment preparation stage: Establish an investment preparation committee.

- Investment implementation phase: Establish a project management board (previously it was the Ministry's A board located in various locations. Such as Project Management Board 410,409...).

- Exploitation phase: currently establishing the Management Board for exploitation of irrigation works.

The order of investment management and construction works in our country is implemented according to the following diagram:

3. Classification of investment projects:


In our country, investment projects are divided into 3 groups: A, B, C.


Group A :


a. Over 200 billion VND for projects:


- Electricity, mining, metallurgy, machine manufacturing, fuel, cement.


- Transport, irrigation, urban water supply.


b. Over 100 billion VND for the following industries:


- Heavy industry: Electrical engineering, electronics, chemicals, fertilizers, mechanical manufacturing, construction materials.

- Light industry: Porcelain, ceramics, glass, textile shoes, leather, garment...


- Post office.


- Pharmaceuticals, agricultural and food processing, aquatic products, agricultural production, aquaculture.

c. Over 55 billion VND for the remaining industries.

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