
Reform of China's Urban Water Sector
Description
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The book will be extremely useful for public utility reform in China and in other countries. It will therefore be of particular value to government departments, policy advisors, consultants, financing bodies, and utility service providers.
The report is part of the Water21 Market Briefing Series. Titles in the series provide more focused insight into aspects of the international water sector.
About the authors: Dr Tao FU is Director of the Water Policy Research Center, Tsinghua University, Beijing, P.R. China. Dr Miao CHANG is Senior Research Fellow at the Water Policy Research Center, Tsinghua University. Dr Lijin ZHONG is with the Department of Environmental Science and Engineering, Tsinghua University.
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Content
- Cover
- Copyright
- Contents
- Abbreviations
- Foreword
- Preface
- Overview and Summary
- Part I: The state of China's market-oriented reform in the urban water sector
- Part II: The case studies - 17 representative case studies in China's urban water sector reform
- Part III: The evaluation and analysis of China's urban water sector reform
- Part I - Reform and the current situation
- Chapter I - Construction and development of urban water sector infrastructure in China
- 1.1 The construction situation for urban water sector infrastructure in China
- 1.1.1 Four phases of development of the water supply in China
- 1.1.2 Analysis of the development of China's urban water supply industry over the past decade
- 1.2 China's wastewater treatment industry: the construction situation
- 1.2.1 The four phases of development in China's wastewater treatment
- 1.2.2 Analysis of the development of China's urban wastewater treatment industry in the past decade
- 1.2.3 Development of the recycled water industry in China
- Chapter II - Background and need for China's urban water sector marketisation
- 2.1 The backdrop of urban water marketisation
- 2.1.1 Political background to the reform of the water industry
- 2.1.2 The international background to water industry reform
- 2.1.3 The policy background to water industry reform
- 2.1.4 The financial background to water industry reform
- 2.1.5 Industrial background of water industry reform
- 2.2 Two motives for China's urban water sector marketisation
- 2.3 The need for China's urban water sector marketisation
- 2.3.1 Urban water sector is the basis for realising the goal of building a prosperous society
- 2.3.2 Marketisation is the direction taken by China's urban water sector reform in the 21st century
- Chapter III - Progress of China's urban water sector marketisation reform
- 3.1 The three phases of China's urban water sector marketisation reform
- 3.1.1 Urban water sector reform is advancing by trial and error
- 3.1.2 Features of the third phase of urban water sector reform
- 3.2 Progress of China's urban water sector marketisation projects
- 3.2.1 Survey description
- 3.2.2 Analysis of water sector marketisation projects across the provinces
- 3.2.3 The situation of wastewater treatment marketisation projects in different provinces
- 3.2.4 Progress in constructing wastewater treatment plant BOT projects
- Part II - Case studies
- Chapter I - Analysis of the framework of reform for China's urban water sector
- 1.1 Case selection
- 1.2 Case analysis framework
- Chapter II - The Chongqing Jiangbei Tap Water Company joint venture project
- 2.1 Project background
- 2.1.1 Project location
- 2.1.2 Main motives for reforming municipal public utilities
- 2.2 Project model and its characteristics
- 2.2.1 Project profile
- 2.2.2 Project company profile
- 2.2.3 Project characteristics
- 2.2.4 Regulation
- 2.3 Project appraisal and lessons learnt
- 2.3.1 Main experiences
- 2.3.2 Lessons learnt
- Chapter III - The Xuzhou Sanba river wastewater treatment BOT project
- 3.1 Project background
- 3.1.1 Project location
- 3.1.2 Main motives for reforming municipal public utilities
- 3.2 The project model and its characteristics
- 3.2.1 Project profile
- 3.2.2 Project characteristics
- 3.2.3 Regulation
- 3.3 Project appraisal and lessons learnt
- 3.3.1 Proper pricing and collection of wastewater treatment fees is a prerequisite of effective wastewater treatment
- 3.3.2 Older-generation environmental protection projects can take off under sound regulation
- 3.3.3 Problems with construction and operational costs in medium and small-size wastewater treatment plants
- 3.3.4 Specific suggestions for the Xuzhou project
- Chapter IV - The Xiamen Water Group ownership trading project
- 4.1 Project background
- 4.1.1 Project location
- 4.1.2 Motives for reforming municipal public utilities
- 4.2 Project model and characteristics
- 4.2.1 Project profile
- 4.2.2 Project company profile
- 4.2.3 Project characteristics
- 4.2.4 Regulation
- 4.3 Project appraisal and lessons learnt
- 4.3.1 Main appraisal and summary
- 4.3.2 Experience and lessons learnt
- Chapter V - Market-oriented reform of the Shenyang water supply industry
- 5.1 Project background
- 5.1.1 Project location
- 5.1.2 Main motives for reforming municipal public utilities
- 5.2 Project model and characteristics
- 5.2.1 No 8 Water Plant joint venture: the Sino-French Water Development Company (1995 to 1999)
- 5.2.2 BOT for No 9 Water Plant: Huijin Water Service (1996)
- 5.2.3 Management contract: Sino-French Water Development
- 5.2.4 Listing in Hong Kong stock market: Shenyang Public Utility Holding Company (0747-HK)
- 5.3 Project appraisal and lessons learnt
- 5.3.1 The urban water sector is different from general competitive industry
- 5.3.2 The lack of democratic decision-making mechanisms causes cursory decisions
- 5.3.3 Systems without a separation of governmental jurisdictions from enterprise operations will seriously hamper the marketisation reform
- 5.3.4 The urge to raise funds led to the signing of unequal agreements
- Chapter VI - Shenzhen Water Group equity transfer project
- 6.1 Project background
- 6.1.1 Project location
- 6.1.2 Main motives for reforming municipal public utilities
- 6.2 Project model and its characteristics
- 6.2.1 Project profile
- 6.2.2 Joint venture profile
- 6.2.3 Project characteristics
- 6.2.4 Regulation
- 6.3 Project appraisal and lessons learnt
- 6.3.1 Main appraisals
- 6.3.2 Lessons learnt
- Chapter VII - Four market-oriented reform projects in the Shanghai water sector
- 7.1 Project background
- 7.1.1 Project locale
- 7.1.2 Main motives for reforming the municipal public utilities
- 7.2 The Shanghai Zhuyuan wastewater treatment plant BOT project
- 7.2.1 Zhuyuan No 1 Wastewater Treatment Plant
- 7.2.2 Shanghai Zhuyuan No 2 wastewater treatment plant
- 7.2.3 Regulation
- 7.2.4 Project appraisal and lessons learnt
- 7.3 The Shanghai Dachang water plant BOT
- 7.3.1 Project profile
- 7.3.2 Project company profile
- 7.3.3 Project characteristics
- 7.3.4 Regulation
- 7.3.5 Project appraisal and lessons learnt
- 7.4 The Shanghai Pudong Tap Water Company equity transfer project
- 7.4.1 Project profile
- 7.4.2 Project company profile
- 7.4.3 Project characteristics
- 7.4.4 Project appraisal and lessons learnt
- Chapter VIII - The Ma'anshan water supply joint venture project
- 8.1 Project background
- 8.1.1 Project locale
- 8.1.2 Main motives for reforming the municipal public utilities
- 8.2 Project model and characteristics
- 8.2.1 Project profile
- 8.2.2 Project company profile
- 8.2.3 Project characteristics
- 8.2.4 Regulation
- 8.3 Project appraisal and lessons learnt
- 8.3.1 Project appraisal
- 8.3.2 Lessons learnt
- Chapter IX - The Macao water supply concession
- 9.1 Project background
- 9.1.1 Project location
- 9.1.2 Background and history of the municipal public utility privatisation
- 9.2 Project model and its characteristics
- 9.2.1 Project profile
- 9.2.2 The Macao Water Supply Company's concession right
- 9.2.3 Service price
- 9.2.4 Enterprise investment components
- 9.2.5 Regulation
- 9.3 Experiences from the project
- Chapter X - The Hefei Wangxiaoying wastewater treatment plant TOT project
- 10.1 Project background
- 10.1.1 Project location
- 10.1.2 Main motives for reforming municipal public utilities
- 10.2 Project model and its characteristics
- 10.2.1 Project profile
- 10.2.2 Project company profile
- 10.2.3 Project characteristics
- 10.2.4 Regulation and related policies
- 10.3 Project appraisal and lessons learnt
- 10.3.1 Main appraisals
- 10.3.2 Lessons learnt
- Chapter XI - The Harbin Pacific wastewater treatment plant BOT project
- 11.1 Project background
- 11.1.1 Project location
- 11.1.2 Main motives for reforming municipal public utilities
- 11.2 Project model and its characteristics
- 11.2.1 Project profile
- 11.2.2 Project company profile
- 11.2.3 Project characteristics
- 11.2.4 Regulation
- 11.3 Project appraisal and lessons learnt
- 11.3.1 A smoothly implemented project
- 11.3.2 Positive impact on the investment environment
- 11.3.3 Effective control of cost and price
- 11.3.4 The company did not choose project financing
- 11.3.5 The long-term success of the project is dependent on the government's credit worthiness
- Chapter XII - Construction and operation of the Guangzhou Xilang wastewater treatment system
- 12.1 Project background
- 12.1.1 Project location
- 12.1.2 Main motives for reforming municipal public utilities
- 12.2 Project model and its characteristics
- 12.2.1 Project profile
- 12.2.2 Project company profile
- 10.2.3 Project characteristics
- 10.2.4 Regulation
- 12.3 Project appraisal and lessons learnt
- 12.3.1 The first operation and management project that was openly bid for
- 12.3.2 Achieved system-wide operation of the water supply system
- 12.3.3 Effective risk control
- 12.3.4 Policy obstacles to the sewer network equity holdings
- Chapter XIII - The Chengdu No 6 water supply plant BOT project
- 13.1 Project background
- 13.1.1 Project location
- 3.1.2 Main motives for reforming the municipal public utilities
- 13.2 Project model and its characteristics
- 13.2.1 Project profile
- 13.2.2 Project company profile
- 13.2.3 Project characteristics
- 13.2.4 Regulation
- 13.3 Project appraisal and lessons learnt
- 13.3.1 Main appraisal
- 13.3.2 Lessons learnt
- Chapter XIV - Changzhou Chengbei wastewater treatment plant TOT project
- 14.1 Project background
- 14.1.1 Project location
- 14.1.2 Main motives for reforming the municipal public utilities
- 14.2 Project model and its characteristics
- 14.2.1 Project profile
- 14.2.2 Project company profile
- 14.2.3 Project characteristics
- 14.2.4 Regulation
- 14.3 Project appraisal and lessons learnt
- 14.3.1 Solely transferring the right to operate was an important characteristic
- 14.3.2 Public investment and standardised operation
- 14.3.3 Those responsible for attracting investment displayed effective organisation, solidarity and excellent cooperation
- 14.3.4 Careful and thorough work in the early stages assured the success of the work in the later stages
- 14.3.5 The project guaranteed a basic balance between the rights and obligations of the investor
- 14.3.6 The project benefited the general public with a fixed price for the transfer of the right to operate and opened the unit service price for public bidding
- 14.3.7 The investor with the best overall service won the bid
- 14.3.8 Investment attraction was a great way to choose investors
- 14.3.9 The lack of property rights ownership influenced the financing of the project to an extent
- Chapter XV - The Beijing Dongba and Fatou wastewater treatment plant BOT projects
- 15.1 Project background
- 15.1.1 Project location
- 15.1.2 Main motives for reforming the municipal public utilities
- 15.2 Project model and its characteristics
- 15.2.1 Project profile
- 15.2.2 Project company profile
- 15.2.3 Project characteristics
- 15.2.4 Regulation
- 15.3 Project appraisal and lessons learnt
- 15.3.1 Main appraisals
- 15.3.2 Lessons learnt
- Part III - Analysis
- Chapter I - Policy analysis of urban water sector market-oriented reform in China
- 1.1 Government policies that promote urban water sector market-oriented reform
- 1.1.1 Open market policies
- 1.1.2 Investment and financing policies
- 1.1.3 Policies relating to enterprise organisation reform, property right transfers and property management
- 1.1.4 Water price policies
- 1.1.5 Concession policies
- 1.1.6 Regulation policies
- 1.1.7 Policies on the use of recycled water
- 1.2 Making and implementation of major local reform policies
- 1.2.1 Promotion of Opinions on accelerating the marketisation of municipal public utility institutions by local governments
- 1.2.2 Local government promotion of Measures for the administration of municipal public utility concessions
- 1.2.3 Local government's promotion of the reform policies for water prices and wastewater treatment fees
- Chapter II - The major reform models in China's urban water sector
- 2.1 Market-oriented reform models in the urban water sector
- 2.1.1 Defining the government's responsibility in the urban water sector is a prerequisite to establishing a model for regulation
- 2.1.2 Reform experiences of other countries
- 2.1.3 Differentiation of market-oriented reform models
- 2.2 Chinese water sector reform model choice
- 2.2.1 Several models co-exist in the Chinese water sector
- 2.2.2 Competitive concession is the current leading mode
- 2.2.3 The Chinese water sector's marketisation system needs a combination of the above two major models
- Chapter III - An analysis of the market-oriented reform of China's urban water sector
- 3.1 The transformation of the government's role
- 3.1.1 The role of transformation in the relevant management departments
- 3.1.2 The responsibilities of major government departments
- 3.1.3 The reorganisation of state-owned enterprises
- 3.2 The rise of social enterprises
- 3.2.1 Investment project analysis of the major enterprises in the industry
- 3.2.2 The investors' main strategies
- Chapter IV - Analysis of key problems in China's urban water sector marketisation reform
- 4.1 Clarification of the problem with understanding urban water sector marketisation
- 4.1.1The problem with understanding the aims of marketisation
- 4.1.2 The problem with the vague positioning and characterisation of the water industry
- 4.1.3 Marketisation does not mean the government no longer invests in the water sector
- 4.1.4 Water sector marketisation is not the same as privatisation and internationalisation
- 4.1.5 Ambiguous understanding of the regulatory function of the government
- 4.2 Issues relating to the modes and operations of marketisation projects
- 4.2.1 Entrance competition and process competition
- 4.2.2 The problem with the relationship between asset transfer and operational rights transfer
- 4.2.3 The problem with determining the value of a concession
- 4.2.4 Overvaluation of water sector assets is harmful to marketisation reform
- 4.2.5 Problems with water asset disposal methods and reasonable returns
- 4.2.6 Partial optimisation is no substitute for holistic optimisation
- 4.2.7 Applicability of bundling small BOT projects
- 4.2.8 Restrictions on shareholding rights will not hinder the acquirement of pipeline and distribution network operating rights
- 4.2.9 Project differences due to varying departure points and focuses
- 4.3 Issues relating to the water sector reform policies and laws and improving the management system
- 4.3.1 Problems with pre-project research, systematic planning and sound decision-making
- 4.3.2 Defects in present policies, laws and regulations
- 4.3.3 Problems related to urban water sector management system reform
- 4.4 Issues in the investment and financing systems in urban water sector marketisation reform
- 4.4.1 Problems in government financing
- 4.4.2 Uneven enterprise investment and financing channels
- 4.4.3 Sources of capital for water infrastructure construction are not connected to the long-term capital markets
- 4.5 Pricing and fee collection policy issues of water sector reform
- 4.5.1 Issues and discussions on water resource fees
- 4.5.2 Pricing of the engineering water supply and its regulation
- 4.5.3 Cost components and regulation of the urban water price
- 4.5.4 Wastewater treatment fee and aquatic environment price
- 4.5.5 Pricing mechanism and full cost recovery accounting
- 4.6 The development problems of other related organisations in urban water sector market-oriented reform
- 4.6.1 Financial organisations
- 4.6.2 Professional service agencies
- 4.7 Main issues in the use of recycled water
- 4.7.1 A lack of policies that encourage wastewater recycling
- 4.7.2 The urban water price system is not fully functional
- 4.7.3 Lack of associated infrastructure
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