Environmental Technologies Industries
||Environmental Technologies Industries
|Wastewater Treatment Technologies in China|
China's wastewater treatment market is expanding rapidly. This is the result of rapid industrialization, a strained infrastructure, serious environmental pollution and the consequent increased awareness and attention to water quality issues. The wastewater treatment market in China has many different end-users, including: municipal wastewater treatment, industrial wastewater treatment, and smaller treatment units for hotels/hospitals and new housing additions. The main areas of focus are the "three lakes, three rivers" areas: Tai Lake, Chao Lake, Di the Huai River, Hai River and Liao River.
As of 1996, among China's largest 670 cities only 153 had wastewater treatment plants. The total amount of wastewater discharged in 1996 was 20.9 billion tons, of which only 2.4 billion tons were treated. This constitutes only an 11% treatment rate. Industrial effluents represented 70% of these. Municipal wastewater comprised the rest. By the year 2000, the Ministry of Construction estimates the total amount of wastewater discharged in China will be 48 billion tons/year.
As a result, 82% of China's rivers are polluted, only 20% reach the minimum quality standard level five for irrigation, and 5% support no fish. In China's urban areas 80% of the surface water is contaminated and 78% of the drinking water is below Chinese standards. Improper disposal of hazardous waste and leaking underground storage tanks have led to the pollution of underground water as well, 85% of which is below Chinese standards.
The 9th five-year Plan (1996-2000) allocates almost $89 billion for wastewater treatment plants and technology updates for polluting companies. The bulk of this funding is directed at cleaning up the "three lakes, three rivers" areas. These are the Huai, Liao and Hai rivers and the Tai, Chao and DianChi lakes. Increased enforcement of current environmental standards has prompted many companies to begin to invest in wastewater treatment technology or face closure. It has been estimated that 60% of the government's spending on the environment, and a large part of private spending, will be on wastewater treatment. This offers tremendous opportunities for U.S. companies.
MARKET HIGHLIGHTS AND BEST PROSPECTS
Changes in the market are due in part to a 1996 revision of the PRC's clean water law and increased enforcement of existing laws. The majority of funding is focused on the three rivers and three lakes areas, with the Huai river being the top priority. Industries targeted by these programs are food processing, paper mills, dye, paint and varnish, pharmaceutical, chemical and fertilizer. Hotels, new housing additions and even the aquiculture industry are potential end-users.
Environmental Regulation Developments
In 1996, China's clean water law was updated. One of the additions was a requirement that all cities with a population greater than 250,000 build a wastewater treatment plant. Currently, treatment of waste in cities is less than 20%. According to the State Environmental Protection Agency (SEPA), there is still no enforcement of this requirement and no time-line for enforcement has been issued. The requirement is to be implemented by local governments themselves. One SEPA official contacted indicated this stipulation limited their control.
Local and municipal governments now have the right to set up fee structures for municipal wastewater treatment. This change may eventually lay the groundwork for market pricing of wastewater services. However, no detailed regulations or price scales were issued with this. The World Bank estimates the actual cost of municipal primary treatment of wastewater in China to be ~0.5 RMB. The cost for secondary treatment is ~0.77 RMB. In order to meet the most recent wastewater standards in China, secondary treatment is necessary.
Sample Municipal Wastewater Treatment Surcharge Rates
Sources: World Bank-Clear Water, Blue Skies
|CITY ||RATE RMB/ton ||NOTE|
|New as of 1998 |
|Huai river area|
|New proposal is to raise this to 0.5|
The government still bears most of the burden for wastewater treatment costs. This renders municipal wastewater treatment projects not financially feasible for most foreign and domestic firms. The government has made other funds available. According to the Ministry of Construction, cities are now able to use part of their city's construction taxes to fund wastewater treatment plants. The State Council has authorized the Bank of Construction and the Bank of Development to provide 1.9 billion RMB ($230 million) for the construction of wastewater treatment plants during 1998-2000. Also earmarked for municipal wastewater by the State Council is 60 million RMB ($7 million) of the annual 300 million RMB ($36 million) for city construction to construct wastewater treatment plants.
However, while enforcement has increased there are still few market incentives to install high quality wastewater treatment equipment. There are also conflicts of interest present in the regulation process. Often local governments are reluctant to shutdown or fine industries from which they earn a profit. One municipal official stated that it was hard to get the local governments to do anything about the increasing number of township village enterprises. A manager of a small industry that was contacted provides a good example of this problem. The venture is a profitable one and the manager was aware of the effluent standard regulations. They expressed concern about the environment and stated that while they reused water five times in their industrial process, they wouldn't install treatment technology unless they were threatened with a shutdown because it was expensive.
STATISTICAL DATA $MILLIONS
1997 Market Share: U.S.=12% Japan=40% Germany=30%
|1997||1998(est) ||1999(est) ||Growth-next 2 yrs|
|Import Market||704.21||1035.6|| 1294.5 ||25%|
|Imports from U.S.||12||15||15|
*exact import values for environmental technologies are not available
**estimates for projected Chinese export and local production growth have not been confirmed since they were only available from Chinese sources
Sources: State Environmental Protection Agency, Ministry of Construction, World Bank
Best Sales Prospects
Equipment with the best sales prospects utilizes both new and advanced technology. Treatment facilities that target pollutants for certain industries are also needed. These include:
-aerating brushes for oxidation ditches
-shaftless screw conveyors
-methane generators and meters
-adjustable outlet wires
-sludge scrapers, suction devices and aerators
-computerized monitoring systems
Industry Specific Treatment Methods include:
"FINANCING, PRICE, PROMOTION"
All of the offices that were contacted for this study expressed an interest in U.S. products and recognized their quality. However, the consistent message was that financing and price were most important. Financing had to be creative, flexible and in many cases provided, especially for municipal wastewater treatment. The importance of product promotion and technical assistance should not be underestimated.
Many European countries are still supporting their domestic producers with low interest loans and grants for environmental technologies. However sources contacted commented that while funding helped them win the first contract it didn't necessarily lead to another contract. France and Britain are in the process of curtailing their low interest loan programs in China. However, other countries are just launching them.
In light of this, companies must seek other ways to enhance their entry into the market and increase visibility. Many of the companies that are doing well have found their China "niche." In wastewater treatment recognizing and being able to provide technology tailored to specific industry or housing needs will be crucial. Also important to recognize that each area of the country represents a different challenge and entry into the market in one area of China may require a different strategy than in another area.
Adaptability is important. Many medium to small size cities will build wastewater treatment facilities. It is important that the supplier adapt their technology to the different end-users and specifically to the China market. Many successful companies have participated in pilot projects, demonstration projects and collaborations with research institutes and consulting firms that are aligned with the local environmental protection agencies or local government. Many companies find that once they have made initial contacts it is easier to proceed.
While entering the market as a joint-venture partner seems to be the favored choice of the government, it is not necessary to be successful. In some instances, partial manufacturing is also an option. There are many advantages to doing this, but there are also drawbacks. These include inability to control quality of produced equipment due to inconsistencies in materials and/or workmanship, distribution bottlenecks and also the possibility of your production partner producing your technology somewhere else and becoming your competition. Due diligence in finding your joint venture partner is essential. As with any business consideration and certainly in China, it takes time to understand the differences in any given region.
Domestic production should not be underestimated. Currently domestic wastewater suppliers handle approximately 2/3 of the market. Domestic production will continue to increase for a number of reasons. One of those is China's desire to become self-sufficient in the area of environmental technology. Another is that many township and village enterprises are moving into the market because of the opportunities presented by increased funding. Many of the domestic producers contacted were very interested in the industrial wastewater market because of the financial incentives. Many stated that they preferred to deal with joint-venture or foreign owned industry because these projects were the most financially viable. A number of the bigger companies didn't deal with SOE's at all. One of the largest environmental firms in Beijing currently is involved with 50% of the wastewater market in the city and their branch office in Shenzhen covers 90% of the market there.
Domestic production is increasing, but much of what is produced are low-end technologies. These also suffer from both material quality and engineering quality problems and cannot compete with foreign producers on high-end equipment such as pumps, valves, and aerators. Monitoring devices and computer systems are only produced in limited numbers. Domestic producers have the advantage of local distribution networks, and being linked with the local governments. YiXing Industrial Park near Shanghai produces approximately 80% of China's environmental technology. Some foreign firms have been successful in setting up joint ventures with firms in this area.
THIRD COUNTRY COMPETITION
Foreign companies most active in the wastewater treatment market are Japanese, German, French and Australian. Many new companies are entering the market backed by low-interest "soft" loans by their governments. Japanese firms currently represent approximately 40% of the market. The majority of pumps imported to China are German. The government of Norway recently provided a 10 year no interest loan for 3-4 projects updating outdated technology in paper mills. The Canadian government recently provided financing as well. These countries' products are regarded as having high quality.
U.S. MARKET POSITION
The current estimated U.S. market share is approximately 12% of the import market. While financing is mentioned as a major factor in entering the market and winning contracts, creative approaches are also important. As mentioned previously these include pilot projects, demonstrations, training courses, and/or alignment with a research institute. Equally important is identifying new end-users. The current water situation has prompted many new housing addition and five-star hotels to purchase their own water treatment facilities. These offer opportunities for small to medium sized firms.
A 1996 government report identified the main end-users of environmental equipment in China. They are public authorities (60%), state firms (20%), joint venture industries (10%), and foreign aid recipients. The "three lakes, three rivers" areas, Huai, Hai and Liao rivers and the Tai, Chao and DianChi lakes are the main focus. Most of the priority projects in China's "Trans-Century Green Report" are in these areas. These projects include both municipal projects and also industrial projects. However, a comprehensive list of approved and funded projects was unavailable at this time.
The most growth in this area will be in those cities with a population of greater than 500,000 and the three rivers, three lakes areas. Since the government still bears the majority of cost for municipal financing, projects will be dependant on government and foreign funding. Areas of growth also include China's large coastal cities. These cities suffer from increasing water pollution and have populations and governments that are more willing to invest in environmental projects. The Ministry of Construction stated that China's municipal wastewater treatment industry is still in its infancy.
The stricter enforcement of environmental statutes and the subsequent closure of factories along the Huai river has made industrial wastewater treatment in China the fastest growing part of the wastewater treatment market. According to SEPA, in 1996 there were more than 2858 companies that installed wastewater treatment technology. The industries to focus on are paper mills, dye and paint factories, chemical factories and food processing, especially beer. Many companies are looking for pollutant specific technology. It is important to be flexible. Please refer to regional opportunities section for more information.
Beginning October 1, 1997, China sharply reduced its average tariff rate from 23% to 17%. The Chinese government realizes that they need to import high-tech equipment such as computer monitoring devices, pumps and special aerators. The Chinese government strongly encourages companies to enter into joint ventures.
The market for water treatment equipment should continue to grow. Even though water protection has been made a priority by the Chinese government, the lack of funding is the major factor influencing imports. Soft loans and grants from foreign governments strongly affect Chinese end-users' purchasing decisions. How the current Asian financial crisis and current move to reform state owned enterprises affects China will also influence how much money is actually earmarked for water treatment in the future.
Distribution Channels/Business Practices
When setting up your business strategy in China, the following are important to consider (taken from the FCS Country Commercial Guide, China 1998).
Foreign companies are not permitted to directly engage in trade in China, with the exception of the direct marketing of a portion of the goods that they manufacture in China. Accordingly, U.S. exporters need to use a domestic Chinese agent for both importing into China and marketing within China. Only those trading companies authorized by the central government to handle exports and imports are permitted to sign import and export trade contracts. More than 10,000 Chinese firms have that authority. Some trading firms have begun to represent foreign manufacturers, in arrangements similar to a "manufacturers representative," but these are still in the minority.
With careful selection, training and constant contact, a U.S. exporter can obtain good market representation from a Chinese trading company, many of which are authorized to deal in a wide range of commodities. Some of the larger companies have offices in the U.S. and other countries around the world, as well as multiple branches in China. However, given transportation and communication difficulties, as well as regional peculiarities, most of these trading companies cannot give diversified coverage throughout China.
In addition to the trading companies, China is witnessing an explosion in local sales agents who handle internal distribution and marketing. These firms do not necessarily have import/export authority. They may be representative offices of Hong Kong or other foreign trading companies, or domestic Chinese firms with regional or partial national networks, under supervision of the Ministry of Internal Trade.
Given China's size and diversity, as well as the lack of agents with wide-reaching abilities, it makes sense to hire several agents to cover different areas, and to be cautious when giving exclusive territories. China can be divided roughly into at least five major regions: the South (Guangzhou), the East (Shanghai), the Beijing-Tianjin region, Central China and the Northeast.
The U.S. and Foreign Commercial Service's (USFCS) Agent/Distributor Service (ADS) program can help U.S. exporters find appropriate sales agents in China. This service may be ordered through any U.S. Department of Commerce district office or U.S. Export Assistance Center. For a fee of $250, USFCS searches for potential agents or distributors for your product in a specific geographical area. Regional ADSs are available from the USFCS offices in Beijing, Shanghai, Guangzhou, Shenyang, and Chengdu, but nation-wide searches are not available. An ADS is an excellent way to gauge interest in your product and begin the process of finding a suitable representative.
ESTABLISHING A REPRESENTATIVE OFFICE
Representative offices are the easiest type of offices for foreign firms to set up in China, but these offices are limited by Chinese law to performing "liaison" activities. As such, they cannot sign sales contracts, directly bill customers, or supply parts and after-sales services for a fee, although they may perform after-sales activities that are covered by warranty as part of the original purchase. Despite these limitations, this form of business has proved very successful for many U.S. companies as it allows the business to remain foreign-controlled.
China's Company Law, effective July 1, 1994, permits the opening of branches by foreign companies but, as a policy matter, China still restricts this entry approach to selected banks, insurance companies, accounting and law firms. While representative offices are given a registration certificate, branch offices obtain an actual operating or business license and can engage in profit-making activities.
Establishing a representative office gives a company increased control over a dedicated sales force and permits greater utilization of its specialized technical expertise. The cost of supporting a modest representative office ranges from $250,000 to $500,000 per year, depending on its size and how it is staffed. The largest expenses are rent for office space and housing, and expatriate salaries and benefits.
ESTABLISHING A CHINESE SUBSIDIARY
A locally incorporated equity or cooperative joint venture with one or more Chinese partners, or a wholly foreign-owned enterprise (WFOE), may be the final step in developing markets for a company's products. Domestic production avoids import restrictions -- including relatively high tariffs -- and provides U.S. firms with greater control over both intellectual property and marketing.
The role of the Chinese partner in the success or failure of a joint venture cannot be over-emphasized. A good Chinese partner will have the connections to help smooth over red tape and obstructive bureaucrats; a bad partner, on the other hand, can make even the most promising venture fail. Common investor complaints concern conflicts of interest (e.g., the partner setting up competing businesses), bureaucracy and violations of confidentiality. American companies should bear in mind that joint ventures are time-consuming and resource-demanding, and will involve constant and prudent regulation of critical areas such as finance, personnel and basic operations in order for them to be a success.
Some companies prefer to establish a WFOE rather than a joint venture, with a view to retaining greater management control, due to concerns over intellectual property rights (IPR) protection, desire for simplicity, or for other reasons of corporate policy. The law on WFOEs requires that they either provide advanced technology or be primarily export-oriented, and restricts or prohibits them in a number of service and public utility sectors. However, an increasing number of U.S. companies find WFOEs, which now account for roughly 20% of all foreign-invested enterprises (FIEs), to be a viable entry vehicle to the China market, taking much less time and money to set up than a joint venture.
Technology transfer is another initial market entry approach used by many companies. It offers short-term profits but runs the risk of creating long-term competitors. Due to this concern, as well as intellectual property considerations and the lower technical level prevailing in the China market, some firms attempt to license older technology, promising higher-level access at some future date or in the context of a future joint venture arrangement.
Licensing contracts must be approved by and registered with the Ministry of Foreign Trade and Economic Cooperation (MOFTEC). A tax of 10-20% (depending on the technology involved and the existence of an applicable bilateral tax treaty) is withheld on royalty payments.
The best methods for entering the wastewater sector include:
1) Partnership or joint venture. As stated previously it is very important to find a firm research institute that has links to the government. There are many such firms that are set up as consulting firms by members of the local SEPA bureau.
2) Arrange to produce part or some of your products in local factories. By doing this you can cheaply produce lower-end parts of your technology, import the high-tech equipment, and use your partners distribution networks.
3) Set up a demonstration of your product or test your product(s) and method(s) in China. Many times local end-users want to see how products and methods work before they invest in them. As more and more projects are approved and the possibility of more BOT's come online, companies with well-known products and services will be well-poised to expand into the market.
4)The three rivers, three lakes areas and the coastal cities will probably have the most potential for foreign technology and market growth.
Companies should thoroughly explore all possible funding avenues including government (both Chinese and U.S.) and multilateral sources.
After finding appropriate projects, payment schedules differ according to specific project conditions. Two of the most frequent include: 1)payments in installments, normally scheduled into the production plan, such as the Sichuan power plants. 2)arranging to receive payment after meeting promised results regarding the performance of the equipment.
China has proposed to raise its environmental investment to 1.5% of GDP by 2000. Water and wastewater treatment investment during the 5 year plan (1996-2000) is projected to reach $22.7 billion. If the BOT legal framework is solidified and water price reforms are implemented this will create more financing options for foreign firms.
The Multilateral and Bilateral Lending Programs are very important, they include:
1)Asian Development Bank (ADB): The ADB plans to invest more than $2 billion in environmental projects in China over the next 3 years. A major priority of the ADB is water. An area of entry into this competitive market could be participation in technical assistance projects. This participation can often lead to involvement in loan projects that call for significant purchases of equipment.
2)The World Bank (WB): China is the World Bank's largest borrower. The WB lends from two different funds: the International Bank for Reconstruction (IBR) and the International Development Association (IDA).
3)United Nations: The UNEDP currently is conducting two studies of China's environmental management infrastructure and also water pricing schemes. While they usually do not fund the purchase of equipment they do attain research and technical consulting services.
4)Japan's Overseas Economic Cooperation Fund (OECF): The OECF's Fourth Yen Loan will fund more than $1 billion in environmental projects. OECF awards projects through international competitive bidding. Currently, only 40% of the loans go to Japanese firms, bids are welcome from all firms.
5) Other bilateral loans: many other countries, including Germany, Australia, Canada, the UK, Denmark, Norway, and Sweden provide loans and grants to China for water and wastewater treatment projects. This aid however is intended to help their domestic firms enter the China market and is not accessible.
U.S. firms can use the following U.S. government sources:
1)Export-Import Bank of the United States (Eximbank): Facilitates the export of U.S. goods and services by providing loans, guarantees, and insurance for export sales. The major features of the program include: a)a new short-term environmental export insurance policy to provide enhanced short-term support for small business exporters, and b) enhanced medium and long- term support for environmental projects, products, and services. The Eximbank now accepts guarantees from three Chinese financial institutions: the Bank of China, the People's Construction Bank of China, and the Industrial and Commercial Bank of China.
2)Small Business Administration: The program encourages private lenders to make loans of up to $750,000 to borrowers who could not borrow on reasonable terms without government help.
Anhui Environmental Protection Bureau
Department of Environmental Pollution Control
No. 8 Changjiang West Rd.
Hefei, Anhui 230061 China
Tel: 551- 2823102
Fax: 551- 2822745
Contact: Zhang Changying, Deputy Director
Anhui Environmental Protection Bureau
The Department of Management and Administration
85 Changjiang Road
Hefei, Anhui 230061 China
Tel: 551- 265 7677
Contact: Xiang Lei, Engineer-Secretary
Anhui Institute of Environmental Protection Science
10 West Changjiang Road
Hefei, Anhui 230061 China
Tel: 551- 282 6304
Fax: 551-282 6767
Contact: Zhang Zhiyuan, Senior Engineer
Anhui Province Environmental Protection Bureau
Pollution Administrative Department
85 Chang Jiang Road
Hefei, Anhui 230001
Tel: 551-265 7677
Contact: Jin Chuan Sheng, Senior Engineer
Association of China Water Supply (under the Ministry of Construction)
9 Sanlihe Road
Tel: 010 6839 3160
Contact: Secretary General Mr. Xiao Shaoyong
Asian Development Bank (ADB)Lisa Lumbao, ADB Liaison Manila
Add: P.O. Box 789, Manilla, Phillippines 1099
Tel: 00632-890-9364, 895-3020
Chengdu Construction Commission
Foreign Investment Division
3/f Jianshe Daxia, Dongchenggeng Jie
Chengdu, Sichuan 610015
Tel: 028 669 3867
Fax: 028 663 4684
Contact: Ms. Yin Xuefang, Director
China Bridge of Trust Infrastructure Investment Consulting Company
(BOT projects under the State Planning Commission)
Rm. 564, Poli Plaza Beijing
Tel: 010 65958496
Fax: 010 65958495
Contact: Ms. Liu Yanwen
Mr. Frank Chong
GNT International Inc.
88 Anwaida Rd. #709
Beijing, China 100011
CITIC Taifu Group (Hong Kong)
Tel: 00852 28202111
Fax: 00852 28772771
Contact: Lester Kong/ Simon Lee
Export-Import Bank of the United States
811 Vermont Avenue, NW Washington, D.C. 20571
U.S. Toll Free: (800) 565-EXIM
World-wide: (202) 565-3946
Fax: (202) 565-3380
Environmental Protection Bureau of Zhuhai City
1 Xin Guang Li, Xiangzhou District
Tel: (86-756) 221-8741, 221-8748
Fax: (86-756) 221-8745
Contact: Mr. Wu Jintian, Deputy General Director
Environmental Protection Bureau of Foshan City
12 Dong Xia Rd., Foshan 528000
Tel:(86-757) 335-1056, 335-1562
Contact: Mr. He Xingteng, General Director
Environmental Protection Bureau of Yunfu City
He Di Rd., Yunfu City
Tel:(86-766) 886-1928, 882-2643
Contact: Mr. Ye Guiwen, General Director
Environmental Protection Agency of Shunde City
9 Yun Liang Rd., Daliang Town, Shunde City
Contact: Ms. Mo Xiurong, Deputy General Director
Environmental Protection Bureau of Nanhai City
Nan Xin San Rd., Guicheng Town, Nanhai City
Tel:(86-757) 633-7370, 632-0128
Contact: Mr. Xu Zhiwen, General Director
Environmental Protection Bureau of Gaozhou City
38 Dong Sheng Lane, Gaozhou City
Tel:(86-668) 666-3400, 666-3116
Contact: Mr. Che Guode, General Director
Environmental Protection Bureau of Yuexiu District Municipal Government
2/F, 321 Dong Feng Rd., C., Guangzhou 510030
Contact: Ms. He Shaozhen, General Director
Mr. Liu Nianhe, Inspector
Environmental Protection Bureau of Dongshan District Municipal Government
17 Xin Nan Rd., Zhusigang, Dongshan District, Guangzhou 510080
Contact: Mr. Rong Baocheng, Deputy Director
Environmental Protection Bureau of Fangcun District Municipal Government
92 Fang Cun Da Dao, Guangzhou 510360
Tel:(86-20) 8189-9337, 8189-3670
Contact: Mr. Jiang Yuanwang, Director
Environmental Protection Bureau of Huangpu District Municipal Government
69 Da Sha Rd., E., Huangpu, Guangzhou 510700
Contact: Mr. Zhan Zhugen, Director
Environmental Protection Bureau of Tianhe District Municipal Government
77 Shi Pai Rd., E.,Tianhe District, Guangzhou 510620
Contact: Ms. Fu Xiaofang, Deputy Director
Environmental Protection Bureau of Baiyun District Municipal Government
37 Zheng Tong Rd., Guang Yuan Rd., C., Guangzhou 510405
Contact: Mr. Mo Guoxian, Deputy Director
Environmental Protection Bureau of Zengcheng District Municipal Government
61 Ji Nan No. 1 Lane, Licheng Town, Zengcheng City, Guangdong
Tel:(86-20) 8275-2836, 8275-4899
Contact: Mr. Zhang Jinkai, General Director
Environmental Protection Bureau of Conghua District Municipal Government
1 Qing Yun Rd., Jiekou Town, Conghua City, Guangdong 510900
Contact: Mr. Zeng Fanzhou, Director
Environmental Protection Bureau of Panyu District Municipal Government
7 DeSheng Rd., Shiqiao Town, Guangdong 511400
Contact: Mr. Wu Zhiying, General Director
Environmental Trade Specialist International Trade Administration
Environmental Technologies Exports
U.S. Department of Commerce HCHB Room 1003
Washington, D.C. 20230
Contact: Eric Fredell
No.1 Andingmen Dongdajie
Beijing China 100007
Tel: 010-6405 2281, 6402-6986
Mr. Fan Maogong
China Aviation Environmental Protective Facilities Engineering
12 Dewai St.
Beijing, China 100011
Guangdong Provincial Environmental Protection Bureau
8/F, 335 Dong Feng Rd., C., Guangzhou 510045
Tel:(86-20) 8313-4669, 8334-8381, 8313-4657
Contact: Mr. Wang Yingkun, General Director
Mr. Zhou Quan, Vice Director
Ms. Liang Huirong, Section Chief
Guangdong Province Environmental Protection Monitoring Center
335 Dong Feng Rd., Guangzhou 510030
Tel:(86-20) 8334-5342, 8334-5739
Contact: Mr. Lu Zhenbang, Deputy General Director
Guangzhou Municipal Environmental Protection Bureau
Fu Qian Rd., Guangzhou 510032
Tel:(86-20) 8312-5181, 8312-5087, 8312-5088
Contact: Mr. Gan Haizhang, General Director
Mr. Xiao Hanchi, Director & Engineer
Ms. Hu Shanyu, Deputy Section Chief
Guangzhou Environmental Protection Technology & Equipment Company
301 De Zheng Rd., C., Guangzhou 510030
Tel:(86-20) 8333-8884, 8331-5411 ext. 8811
Contact: Mr. Gao Yulin, Manager & Engineer
Mr. Peng Lianyao, Vice Manager
Guanxi Light Industry General Commission
49 Jian Zheng Rd.
Nanning 530023, Guanxi PRC
Contact: Mr. GUI Laiwang, Vice President
Mr. Li Yang, President
China International Trust & Investment Corp.
No. A-1. Dongbinhelu, Youanmenwai, Beijing 100054
Tel: 0086-10-6353 7212
Fax: 0086-10-6353 8963
Asia America Consultants Inc.
Ministry of Water Resources
Department of International Cooperation
2 Baiguanglu Ertiao
Contact: Mme Meng Zhimin, Deputy Director General
Overseas Economic Cooperation Fund (OECF)
Nahiro Kitano/Tsutomo Uchida
OECF Beijing Office
China World Trade Center, 12F #15, 1 Jianguomen Wai,Beijing,
Mr QUI Hanzhang
Former Senior Engineer of Guanxi EPB
Director of China Environmental Protection Industry, Assn.
Ms. Sun Chong Wu
Environmental Specialist, World Bank
Add: 8 Zhaoyang Beidajie, Dongcheng District, 9th floor Building
A, Fuha Mansion, Beijing, China 100027
Tel: 0086-10-6502 3361
Fax: 0086-10-6502 1686
Shanghai Waterworks Co.
Tel: 021 63215577
Fax: 021 63217725
President: Mr. Xu Yinpin
Tianjin Municiple Public Utilities Bureau
Foreign Economic Division
Tel: 022 3730 1574
Fax: 022 3731 6766
Contact: Mme Cui Yujin
United Nations Development Programme
Yannick Glemarec / Goerild Heggelund
Add: 2 Liangmahe Nanlu, Beijing 100600, China
Mr. Wang Yining, Vice President
China National Environmental Protection Corp.
No. 33, Qihelou Street, Dongcheng District, Beijing 100006
Tel: 0086-10-6512 0099 / 6512 0123
Fax: 0086-10-6512 0033
China and Mongolia Department
Environmental and Urban Development Operations Unit (EA2EU)
1818 H Street, N.W., Washington, D.C. 20433
Mr. Wu Sanjiang, Deputy Director
International Cooperation Department
China Association of Environmental Protection Industry(CAEPI)
9 Sanlihe Road, Beijing 100835
Tel: 0086-10-6839 3827
Fax: 0086-10-6839 3748
Senior Engineer, Vice General Manager
Rm. 121, no. 2 Tianxiangyuan
Tianzhu Garden Shunyixian
Tel: 6456 9067
Fax: 6456 9077
Xinhui County Environmental Protection Bureau
Xinhui, Guangdong 529100
Contact: Mr. Mai Zhaoqi, General Director
Yingde County Environmental Protection Bureau
Yingde County, Guangdong 513000
Contact: Mr. Lin Jiaju, Director
Ms. Zhang Shuqin, Engineer
China Aviation Environmental Protective Facilities Engineering Co., Ltd.
12, Dewai St., Beijing 100011
Tel: 0086-10-6201 6633 x 633
Fax: 0086-10-6203 3006
Mr. Zhong Xiaodong, Program Officer
Department of International Cooperation
National Environmental Protection Agency (NEPA)
115 Xizhimennei Nanxiaojie, Beijing, China 100035
Tel: 0086-10-6615 3366 Ext. 5056
Fax: 0086-10-6615 1762
The Huai river spans Henan, Anhui, Shandong and Jiangsu provinces. It is one of the most heavily polluted water bodies in China with 2/3 of the river falling into Class 5 or lower on the Chinese water standards. Industrial discharges account for 75% of point source COD pollution and municipal sources make up the remaining 25. Officials at SEPA stated that 15 types of companies were to close. These included 1,100 paper mills and 4,700 other companies.
In the Huai river area 282 projects are planned of which 225 are industrial wastewater treatment projects and represent 56% of total investment. Urban municipal wastewater projects represent the remaining 44% of the funding with 54 projects planned. Of the total projects planned, 64 are seeking foreign investment. The total required investment for the region is $82 million.
According to the Ministry of Construction 16 projects were started in 1997. In 1998 36 additional projects are planned, bringing the total to 52 in 1998. These represent an investment of 5.5 billion RMB.
The Liao river is in the southwest part of China and passes through Inner Mongolia, Jilin and Lioning provinces. It empties into the Bohai sea. The main focus of pollution control along the Liao river is organic compounds with the main industries being metallurgical, chemical and paper mills. Projects in this area are still in the approval stages but there may be opportunities in the near future for specialized treatment aimed at these specific industries. According to the ninth five-year plan, 30 projects have been planned, with 80% of the investment for 6 WWT plants and 5 projects having WB funding.
The Hai River is in northern China passing through most of Hebei, NE Shanxi, Shandong, northern Henan, some parts of Inner Mongolia-Beijing and Tianjin. The major types of pollution are ammonia, nitrogen, permanganate, BOD and oil. These come from municipal wastewater and effluents from chemical, metallurgical, pharmaceuticals and paper mills.
The main focus in this area is municipal wastewater treatment plants. 84% of the planned investment is centered on 27 municipal wastewater projects, 28 projects are for industrial wastewater treatment.
The Tai lake receives 29% of all funding allocated for lakes in China. The major pollutants are nitrogen, phosphorous and organics. The largest project in the history of Hangzhou, the Hangzhou Sibao Sewage Treatment Plant has recently begun construction. It represents a total investment of 710 mill RMB or $85.5 million. The completion goal is 1999. The facility will treat between 400,000 tons -600,000 tons of wastewater per day. However, according to an article in the March 24 1998 China Daily, projects in the Tai lake area still have a long way to go to meet standards.
Both the Zhejing and Jiangsu governments have made a list of 1035 industrial pollution sources that are around the lake. On the list were hotels, restaurants, chicken farms, and township village enterprises. Of these only 20% in compliance with current Chinese effluent standards. They also found that of 1,100 manufacturers around lake only 1/3 have ability to treat, leaving 2/3 having to find a way or face closure.
State Council has approved the plan for the 33 wastewater treatment plants planned to be set up or expanded. However, at this time only 14 had begun.
The Chao lake area has received Asian Development Bank funding for projects involving two municipal wastewater treatment plants to be built in Hefei as well as updating the manufacturing technology of some of the worst polluters in the area.
The "Trans-Century Green Plan" priority projects in the area include 7 projects, 5 which are for municipal wastewater treatment and 2 which are industrial projects. Six of these projects seek FDI of ~$107 million.
This area has proposed 13 projects, all seeking foreign investment totaling $116 million. These include three wastewater treatment plants. However, of the three lakes, three rivers areas, Dianchi Lake is the slowest to begin construction and to receive funding.
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