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In the “Notice on the Implementation of the Demonstration Project of the Government and Social Capital Cooperation Demonstration Project†published in mid-2014, among the 30 PPP demonstration projects announced, there were nine sewage treatment projects and three water supply projects. The combined water projects accounted for the demonstration projects. As many as 40%. In the list of provincial-level PPP demonstrations or pilot projects that have already been announced, the proportion of water projects is also generally high. This shows that the implementation of PPP in the water industry has significant advantages: first, the source of income is clear and the cash flow is stable; second, the price increase mechanism is gradually streamlined and the return on capital will be guaranteed.
In terms of major water conservancy, the National Development and Reform Commission, the Ministry of Finance, and the Ministry of Water Resources have also specifically issued implementation opinions and pilot work programs. The policy framework has basically taken shape. It is necessary to pay close attention to substantively launching the pilot work and promote the achievement of results as soon as possible. Replicating and promoting experience will help push more PPP projects. Relevant state departments will intensify their guidance and support, incorporate the pilot work into the work of the inter-ministerial coordination mechanism for the examination and approval of major water conservancy projects, strengthen the vertical and horizontal linkages between departments and localities, conduct timely consultations and coordinate the resolution of major issues, and give priority to examination and approval.
Although the penetration rate of China's urban water supply pipe network and sewage treatment facilities has been relatively high, a significant part of it has not achieved market-oriented operation. The industry generally believes that there are still about 70% of the water supply assets and about 30% of the sewage treatment assets are owned by the local governments at all levels, and there are problems with low levels of operational efficiency. With the gradual promotion of the PPP model, this part of assets is likely to be concentrated in the market in the next few years, providing professional water companies with new expansion opportunities.
In the implementation of water projects, it is necessary to push forward the work in a down-to-earth manner and insist on the following points: First, fully understand the importance of social capital participating in the construction and operation of major water conservancy projects; Second, accurately grasp the core concept of social capital participating in the construction and operation of major water conservancy projects; The third is to actively innovate the way in which social capital participates in the construction and operation of major water conservancy projects. The fourth is to correctly handle several key issues in which social capital is invested in the construction and operation of major water conservancy projects. The fifth is to do a good job of investing social capital in major water conservancy project construction and operation pilot projects. Organization and implementation.
Social capital has entered the field of water conservancy, it sounds beautiful and it is difficult to achieve! This requires all departments to work together to actively change concepts, speed up the implementation of various policies, formulate the implementation rules of various policies, and jointly promote the PPP project of the water conservancy industry. successfully launch.
Implementation of PPP mode in water industry is expected to accelerate new opportunities for water companies
[China Instrument Network Policy and Regulations] After the Subsidiary Development and Reform Commission introduced the second batch of PPP projects, the Ministry of Finance promulgated the "Circular on Regulating the Operation of the Comprehensive Information Platform for Government and Social Capital Cooperation" and vigorously promoted green industry projects. The most benefit is to cover PPP projects such as rural sewage treatment, integrated river management, pipeline network construction, and sludge treatment.