THE PROBLEM OF DETERMINATION OF TECHNICAL AND ECONOMIC INDICATORS OF INDUSTRIAL DEVELOPMENT OF DRINKING SUBSURFACE WATER

Abstract

The article analyzes the impact of changes to the Tax Code of Ukraine and the NBU discount rate on extraction, and profitability of enterprises for the use of groundwater for the period 2015-2017. Examples of inaccuracies in the formulation of domestic legislation on rent for the use of groundwater are given. The European experience of similar legislative norms is presented. The author summarized the table of changes in the rate for special use during 2015-2017, a trend was observed on the basis of which a trend line was constructed with the forecast of this rate for 25 years. The trend line equation will help calculate the rate for any period that will better predict the risks of the project when calculating the feasibility study for groundwater extraction. It is revealed that in the national practice of the feasibility study for underground mining, the calculation of net discounted profit (NPV) is based on the method of the weighted average cost of capital of the enterprise. The discount rate (E) is taken in accordance with the discount rate of the NBU. An analysis of changes in the discount rate for the period 2015-2017 was conducted, histogram was constructed for clarity. The histogram analysis showed that the NBU discount rate often changes and, besides, its change is difficult to predict – this situation restricts the use of the method of weighted average cost of capital for the calculation of net discounted profit in the feasibility study of groundwater extraction.