Methodology for assessing the economic efficiency of investment projects in petrochemical companies

Plekhanov Russian University of Economics, Russia, 117997, Moscow, Stremyanny per. 36

^* Corresponding author: t.g.bondarenko@gmail.com

Abstract

The article focuses on the issues of investment potential of petrochemical companies and the need to develop a unified approach transparent for all the participants, to assess the efficiency of investment projects in petrochemical companies. The proposed methodology is to be applied to scheduling project costs and in fact, to ground the establishment of annual financing limits for a project. Additionally, the methodology is expected to reflect the possibility of updating the main indicators, both for financing the purchase of domestic and imported equipment. The methodology also takes into account the mechanism of contract pricing, recalculation of the cost of works and services is performed according to the rules and regulations approved for the estimates in any petrochemical company, inclusive of the indices of changes in current estimated cost to base period prices. The proposed methodology for assessing the performance indicators of investment projects is one of the most multi-faceted and optimal tools for petrochemical companies for attracting additional funding from both their own and other sources. In the conditions of growing business volumes, and in case of complying with the recommendations of the state strategy for the industry growth until 2030, the proposed methodology is transparent and relevant to all the investment participants in terms of cash flow generation for the project.