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Water and Wastewater Treatment-China

Water and Wastewater Treatment

Overview

x	2002	2003	2004	2005	2006
Total Market Size	14,085	16,840	19,377	22,313	22,839
Total Local Production	10,224	11,800	13,565	15,600	17,940
Total Exports	360	523	585	643	707
Total Imports	4,221	5,563	6,397	7,356	5,606
Imports from the U.S.	422	556	639	735	560

* All figures in the above table represent unofficial estimates. In millions of dollars. No accurate figures are available.

* China’s environmental protection industry is growing at approximately 15 percent annually during the past several years.

Best Products/Services

At present, China is encountering a severe water shortage, due to both a large population and water pollution created by rapid economic development with minimal regard for environmental impacts. In recent years, China has seen a significant improvement in its water and wastewater infrastructure, but there is still an annual water shortage of 30 - 40 billion cubic meters. Among the 669 cities in China, nearly 400 cities suffer from inadequate water supply, among which 110 cities including Beijing, Shanghai and Dalian, suffer from severe water shortage. In the wastewater treatment sector, the official municipal wastewater treatment rate was only 52% as of early 2006. According to a report released by the Chinese Ministry of Construction, as of early 2006, there are still 278 cities in China which do not have any wastewater treatment facilities. Statistics released in early 2006 by the State Environmental Protection Administration showed that total COD discharge in 2005 was 14.13 million tons, failing to meet the target set in China’s Tenth five year plan at 11.3 million tons. Another failed target was the number of pollution control projects on key water bodies. As of early 2006, only 65% of the planned projects were completed.

In view of the serious situation, the Chinese government has taken various measures to tackle the problem. China’s water market reform has undoubtedly created many opportunities for foreign enterprises. Significant amounts of new water infrastructures have been, are being and will be built, and the operation and maintenance of all existing and newly built municipal water and wastewater treatment plants have been or will be transferred to authorized enterprises. Many forms of Private Public Partnership (P3) are now accepted by the Chinese Government providing technology and equipment supply, and long-term investment opportunities for foreign enterprises. Water tariff and wastewater treatment fees are rising to a rational level and the public water infrastructure has been opened to foreign and non-state owned capital financing. China’s water market is extraordinarily active.

Aggressive new plans have been unveiled. In early 2006, the Ministry of Construction required that by 2010, the municipal wastewater treatment rate should not be lower than 70%, and all cities and counties should establish or plan to establish centralized wastewater treatment facilities. Water remains one of the major focuses of the “11th Five-Year Plan (2006-2010)” environmental protection plan. Pollution control of the “Three Rivers (Huai, Hai and Liao River) and Three Lakes (Tai, Chao, Dianchi Lake)” will be strengthened, and control of sewage discharge to main rivers and lakes will be stricter. While stepping up efforts to increase and improve municipal wastewater treatment facilities, China will begin to levy sewage treatment fees throughout the country in the coming five years. The new Five-Year Plan urges that total volume of main pollutants including COD be decreased by 10% by 2010. Responding to the severe water shortage in the country, China requires that water usage per industrial added value be decreased by 30% by 2010. In October 2006, the National Development and Reform Commission announced that in the coming five years, China will quicken the pace of sea water utilization including allowing desalinized water to enter the urban water supply pipelines to alleviate the national water shortage.

On the financing side, China is expected to invest 1.3 trillion RMB into environmental protection, accounting for 1.4-1.5% of the country’s GDP.

It is anticipated that the following technology and associated technology transfer needs and product demand will provide the most opportunities:

· Biological denitrification and phosphorus removal technologies,

· Membrane separation and manufacturing technologies and equipment,

· Manufacturing technology of anaerobic biological reactor,

· High concentration organic wastewater treatment technology and equipment,

· Series-standard water and wastewater treatment equipment family with high efficiency

· Water saving technologies and equipment,

· Water treatment agents,

· Water and wastewater treatment facility operation and management service,

· Monitoring instrument,

· Natural water body rehabilitation technology, and

· Sea water desalinization

Opportunities

South-to-North Water Diversion Project

The construction of the South-to-North Water Diversion Project will create a large water supply and wastewater treatment market. In the water destination areas, including Beijing, Tianjin, Hebei, Henan, Shandong and Jiangsu, the construction or expansion of water plants and piping systems will offer market opportunities worth USD6.09 and 5.92 billion respectively. In addition, water pollution control will be a major part of the Eastern Route project. USD1.93 billion is the planned investment for the construction of municipal wastewater treatment plants. These projects are located in Jiangsu, Shandong, Hebei, Tianjin, Anhui and Henan Provinces.

Three Gorges Watershed Area

The Three Gorges Area is located in Yichang, Hubei Province. To maintain water quality at a good level, wastewater treatment projects will be implemented in Hubei, Sichuan, Guizhou, Yunnan Provinces and Chongqing Municipality. From 2006 to 2010, 146 projects with a total budget of USD0.93 billion will be carried out. According to a recent report dated December 30, 2005, China plans to build 20 more sewage disposal plants in the Three Gorges Reservoir area in central Hubei Province on the Yangtze River to further improve water quality in the reservoir. These projects will be built in Zigui, Xingshan, Badong, Yuan'an, Enshi and Lichuan counties in the reservoir area. Meanwhile, the province will build 20 garbage-processing plants in the next five years with an additional daily handling capacity of 1,000 tons.

Beijing 2008 Olympic Games

Beijing, as the host city of 2008 Olympic Games, also has ambitious plans to develop its wastewater treatment infrastructure from now to 2008. According to the Beijing City Planning Department, nine wastewater treatment plants, 1000 km long wastewater main pipelines, nine wastewater reclamation and reuse facilities, and four sludge digesting facilities will be completed. The total investment will be USD 1.45 billion.

Some updated bidding projects can be found at:

www.chinabidding.com.cn

Resources

Major shows:

The 10th China International Environmental Protection Exhibition and Conference CIEPEC 2007 -(U.S. Foreign Commercial Service Beijing will set up a U.S. pavilion)

Date: June 21-24, 2007

Venue: China International Convention Center, Beijing

Embassy contact: Wang Yi Commercial Specialist

Email: yi.wang@N0SPAM.mail.doc.gov

Tel: 86-10-85296655 x 837

Fax: 86-10-85296559

Organizer contact: Mr. Su Fan, Ms. Yang Yan, Ms. Zhang Yeling

Tel: 86-10-51555020, 51555021

Fax: 86-10-51555028

Email: ciepec@N0SPAM.163.net , yang@N0SPAM.chinaenvironment.org

Web: www.chinaenvironment.org

Water, Wastewater & Water Treatment China 2007