| China's
huge market potentials Water Statistics
show China is among the world's 13 thirstiest countries. Its annual average per
capita water supply, which now stands at 430 cubic meters, is only a quarter of
the world's average. About 400 out of its 699 cities are short of water, threatening
the daily water consumption of more than 30 million urban citizens and causing
economic losses of more than US$14.5 billion annually. Water resources are unevenly
distributed in China, with northern parts of the country deficient in water, and
southern parts rich in hydrogen dioxide. The areas north of the Yangtze River,
which make up around 65 per cent of the country's territory and hold 40 per cent
of its total population, only possess around 19.1 per cent of the nation's water
resources. China's shortage of water resources could become a menace to the future
of sustainable development in this century with its rapid economic growth and
increasing population. China's population is expected to reach 1.6 billion by
2030. By that time, per-capita water resources will drop from the current 2,220
cubic meters to 1,760 cubic meters, perilously close to the internationally recognized
water-shortage benchmark of 1,700 cubic meters.
Among all the pressing
issues China is facing, maintaining a continuous supply of water is one of the
most important. China's annual water supply will remain stable at 560 billion
cubic meters over the next two decades. No possibility of any major increase can
be seen in water supply during that time. Excluding natural consumption, the actual
annual volume of water resources in China is estimated at between 800 billion
and 950 billion cubic meters. Ground-water reserves are estimated at about 130
billion cubic meters, but 103 billion cubic meters of that amount have been extracted
for use. Over-exploitation of underground water has led to subsidence and cracks
in the ground in some areas.A series of government measures are being planned
to increase China's water capacity, optimizing current water resources, reforming
the water pricing system, and coordinating water administrations across regions.
Meanwhile, work began in the end of 2002 on a massive project to divert water
from the Yangtze River to drought-plagued northern areas. The scheme, which is
expected to cost US$59 billion, will provide water to Beijing, Tianjin and the
provinces of Jiangsu and Shandong.
Experts have also suggested that the amount of water for consumption can be boosted
through water storage, water diversion and water-pumping projects. Wastewater
China
will spend more money on wastewater treatment than water supply systems by 2010.
Experts say investors could make profit from wastewater treatment plants, pipelines
and other sewage treatment sectors. By 2005, about 45 percent of the urban sewage
water is expected to be treated, and 60 percent of industrial wastewater recycled.
The Ninth Five-Year Plan (1996-2000) period saw central and local governments
investing US$7.5 billion in the disposal of urban wastewater - 2.8 times more
than in the previous five years. The
market for wastewater treatment is really attractive. Take sewage treatment for
instance. About 3.7 billion tons of sewage is produced in cities across the country
each day. Even if 50 per cent of wastewater were treated, then 10,000 sewage treatment
plants would be needed, representing a market value of US$48.4 billion.
| China's
key water-related projects and investment during 2001-2005
| Project
Description | Investment* |
| 82
urban wastewater treatment plants for the Huaihe, Haihe & Liaohe rivers |
US
$1.582 billion | |
39
wastewater treatment plants for the Taihu, Chaohu and Dianchi lakes |
US
$1.546 billion | |
43
urban wastewater treatment plants in the Three Gorges reservoir |
US
$761 million | |
16
urban wastewater treatment plants Xiaolangdi reservoir area and the middle reaches
of Yellow River | |
| 9
urban wastewater treatment plants the Songhua River and the upper Fengman Reservoir |
|
| 42
urban wastewater treatment plants along the east line of the South-North water
diversion project | |
| 22
urban wastewater treatment plants in the 13 cities around Bohai Sea region |
US
$882 million | |
Increaing
the capacity of wastewater treatment of 40 million tons/day with estimated total
investment of US $12.1 billion (excluding construction cost for pipelines); US
$18.1 for industrial waste water treatment. |
US
$30.266 billion | |
*
Converted from the local currency of RMB at the rate of US $1=RMB 8.28 |
International
cooperation China
is opening its environmental protection industry to overseas investors and expects
the sector to grow at an annual rate of 14 to 17 percent in the next 10 to 15
years. China will continue to absorb overseas funds for water projects in the
years ahead. Its economy will be facilitated with its entrance to the World Trade
Organization (WTO). WTO membership has provided China with more opportunities
for international co-operation in global water affairs. China will seize the chance
to introduce more advanced technology, equipment and managerial experience on
the administration of water resources, while improving water supplies and the
treatment of wastewater. To stay in line with WTO's rules, China will also reform
its water management to further optimize, protect and save its existing resources.
Beijing The
political and business center of China, Beijing
serves as a gateway to the Chinese market for overseas investors and exporters
of equipment and technology. Moreover, the city itself offers you remarkable business
opportunities. Beijing is one of the most populous regions in China. Its annual
water consumption reached 4 billion cubic meters. With economic development and
continuous drought, Beijing is now facing a severe water shortage. The
Olympic Organizing Committee has urged Beijing to develop into a "green city"
for the 2008 Games. The city has committed itself to investing US $12 billion
in the protection of the ecological environment between 1998-2007. Beijing will
also improve the quality of drinking water to meet World Health Organization standards.
By 2008, Beijing will be able to treat an estimated 2.8 million tons of sewage
daily, and 50 per cent of the treated wastewater will be reused. Beijing will
also require rainwater collection and recycling facilities and will consider using
eco-toilets that require little or no water for flushing. Beijing
is determined to ease its water shortage and make the water cleaner with increasing
investment. In the next 4 to 5 years, US $2.89 billion will be invested in a number
of projects to solve the water shortage in Beijing and its surrounding areas.
The Beijing municipal government will also inject US $2.04 billion into the projects
for water saving, pollution control and water recycle. Beijing also plans to build
16 sewage treatment plants to make 86 percent of sewage be treated by 2005, while
currently about 45 percent of the sewage is able to be treated.
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