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Asian Development Bank’s $700,000 technical assistance study on "National Guidelines for Urban Wastewater Tariffs and Wastewater Management"
Asian Development Bank’s $700,000 technical assistance study on

"National Guidelines for Urban Wastewater Tariffs and Wastewater Management"

The ADB is fast approaching the point where it will begin selecting consultants for a $700,000 technical assistance study on "National Guidelines for Urban Wastewater Tariffs and Wastewater Management" (Ref: AOTA PRC 33456-01) in China. The ADB expects to receive funding of this study shortly from the French and Italian governments. U.S. consultants have a fair chance of winning this consulting contract, however, because consultant selection will be handled according to ADB (untied) international competitive bidding procedures.

This study will shape ADB and Chinese government thinking about how future private sector wastewater treatment projects are planned and implemented in China. This study will specifically address the important topics of tariff calculations, tariff collections and tariff adjustments. This study also will likely have a number of implications for developers of such projects, investors in such projects, and, consequently, U.S. suppliers to such projects. To help U.S. developers and suppliers compete seriously for a share of this large market in China, as laid out in the recent Tenth Five Year Plan, U.S. consulting firms should complete or update their DACON database entries now on the ADB website (www.adb.org) and submit their Expressions of Interest (EoI) now (also on_line via the ADB website "Business Opportunities" section) for this important ADB consulting contract. (A hard copy of the EoI should go to the executing agency listed below.) The ADB plans to have consultants on the ground to begin work in January 2002. Will a U.S. environmental consulting firm be leading the way?

Here are the details of this opportunity:

Project Name:
National Guidelines for Urban Wastewater Tariffs and Wastewater Management Study

Executing Agency:
Ministry of Construction
Address: No. 9 Sanlihe Road
Beijing 100835
Contact: Li Zhe, Deputy Director
Fax No.: (86-010) 683-13669
E_mail: lizhe@mail.cin.gov.cn
Tel. No.: (86-010) 683-94053 or 683-93833

ADB Project Officer:
Ms. Nancy S. Convard
Urban Environmental Specialist
Water Supply, Urban Development and
Housing Division
Asian Development Bank
Room 6159 North Core
6 ADB Avenue, Mandaluyong City 0401 MM
0980 Metro Manila, Philippines
Telephone: (632) 632-6812
Facsimile: (632) 636-2444

Please remember that the Expression of Interest must be submitted to ADB's Consulting Services Division via the ADB website (www.adb.org), not via the ADB project officer. The ADB project officer, however, will answer inquiries about the objective and scope of the Technical Assistance.

Objectives and Scope:

The main objective of the Technical Assistance is to improve urban wastewater management and enable further investment in wastewater infrastructure through the development of national guidelines for wastewater tariffs, including tariff calculation methodologies. The guidelines will identify management systems and tariff calculation methods that will allow for full cost recovery, including capital investment, operations and maintenance, and administration needs. The review will also identify constraints and opportunities for multi_channel investment, e.g., private sector participation, and make recommendations to encourage such investment and participation. (The ADB believes that all wastewater treatment projects, whether public or private, must be financially viable.)

The scope of the Technical Assistance includes:

(i) an assessment of wastewater management issues and an assessment of existing practices internationally and within the PRC, with a specific focus on wastewater tariff systems; (One issue will be linkage of wastewater treatment billing to billing for water supply.)

(ii) development of national urban wastewater tariff guidelines;

(iii) specific review and assessment of three case study cities, which will represent a range of population size and economic development; (The Chinese government, not the ADB, will be selecting the three cities.)

(iv) preparation of a report on urban wastewater management and tariff system assessment;

(v) an assessment of constraints and opportunities for multi_channel investment, and provision of recommendations to encourage such investment. ("multi_channel" here equals "private".) Poverty Reduction Aspects: Particular attention will be paid to poverty issues. The Government's strategy for poverty reduction will be reviewed, the impact of the proposed tariff guidelines on the poor will be assessed, and specific measures will be proposed to ensure the poor's access to sanitation. (One method of poverty reduction that may be considered in the study is to have industrial polluters (through higher wastewater treatment bills) subsidize the treatment of wastewater from poor residential polluters. The ADB expects this study to address problems of tariff collections in poor areas, and especially to analyze not just the affordability of tariffs, but also the willingness of poor (or other) residents to pay for wastewater treatment.)

Public Policy Aspects: The assessment and guidelines will be prepared with consideration of policies, laws, and regulations for wastewater management and environmental protection. The assessment and guidelines will promote environmental protection through various means, including integrated management of urban and industrial wastewater, reduction of wastewater
generation and wastewater reuse.


(1) Please bring this opportunity to the attention of U.S. environmental consulting firms right away.

While firms with strong engineering background are, of course, welcome; the aspects of this study that relate to tariff calculation, collection and adjustment as well as the public policy and poverty reduction aspects suggest that the strongest competitor will have a broader range of
expertise on which to draw than just project-specific engineering and economics.

(2) Please bring this opportunity to the attention of U.S. environmental consulting firms specializing in solid waste treatment because the ADB plans to announce a similar Technical Assistance opportunity in that area shortly.

For additional information, contact:
Stewart J. Ballard
Senior Commercial Officer
U.S. Commercial Liaison Office for the
Asian Development Bank
25th Floor, American Business Center
6811 Ayala Avenue, Makati City 1226
Metro Manila, Philippines
Telephone: (632) 887-1345
Facsimile: (632) 887-1164
Email: manila.adb.office.box@mail.doc.gov

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