WATER SUPPLY & TREATMENT IN CHINA: AN INDUSTRY ANALYSIS

CHINA CONTACT I

CONTENTS II

INTRODUCTION

2 THE STRUCTURE OF CHINA’S WATER INDUSTRY

2.1 The Importance of Water in China

Table 2.1 BASIC STATISTICS FOR CHINA’S WATER INDUSTRY 1995-2001

2.2 China's Broad Strategy for Water Supply

2.3 The Tenth Five-Year Plan for Water (2001-2005)

2.4 The Water Utility Market

2.5 Water Demand in China

2.5.1 Water Demand in China: Total Water Supply in China

Table 2.2 TOTAL WATER SUPPLY STATISTICS FOR CHINA 1999

2.5.2 Water Demand in China: Water Supply in Northern China

Table 2.3 DEMAND FOR WATER IN NORTHERN CHINA 1980-2000

2.5.3 Water Demand in China: Water Supply in Southern China

Table 2.4 DEMAND FOR WATER IN SOUTHERN CHINA 1980-2000

Table 2.5 TOTAL ANNUAL VOLUME OF WATER SUPPLY IN CHINA BY PROVINCE 1997-2001

2.6 Local Water Supply

Table2.6 PRODUCTION CAPACITY OF TAP WATER IN CHINA BY PROVINCE 1997-2001

Table 2.7 TOTAL LENGTH OF WATER SUPPLY PIPELINES IN CHINA BY PROVINCE 1997-2001

2.7 Connection to Tap Water

Table 2.8 NUMBER OF RESIDENTS WITH ACCESS TO TAP WATER BY PROVINCE 1997-2001

2.8 Urban Water Supply

2.9 Water Consumption

Table 2.9 PER CAPITA DAILY CONSUMPTION OF TAP WATER FOR RESIDENTIAL USE IN CHINA BY PROVINCE 1997-2001

2.10 China's National Water Policy & Relevant Ministries

2.11 Deregulation or Centralisation?

2.12 China's Water Treatment Policy

2.12.1 China's Water Treatment Policy: Water Treatment Facilities

Table 2.10 DISCHARGE AND TREATMENT OF RESIDENTIAL WASTE WATER 1995

2.12.2 China's Water Treatment Policy: Treatment Facilities Demand

Table 2.11 LENGTH OF SEWER PIPELINES 1985/1990/1995/1999

Table 2.12 TOTAL NUMBER OF WATER CLOSETS, WATER CLOSET UNITS & DISPOSAL OF URINE & EXCREMENT IN CHINA BY PROVINCE 1999

2.13 Recent Government Directives on Water

3 FINANCING

3.1 Overview of Investment Models

3.2 Concession Agreements

3.3 Guaranteed Return

3.4 The Escalation Model

3.5 Build-Operate-Transfer Schemes

3.6 Revenues from Subsidies

3.7 Water-Use Rights Deals

3.8 Foreign Currency Exchange Situation

3.9 Foreign Investment in China's Water Industry

4 WATER PRICING IN CHINA

5 CURRENT ISSUES

5.1 Legislation

Item National standard

5.2 Water Tariffs

5.3 Sewage Treatment Fees

5.4 Major New Water Resource Located

5.5 Pollution & Environmental Protection

Table 5.1 TOTAL MARKET FOR ENVIRONEMNTAL PROTECTION IN CHINA 2000-2005

5.6 Growth of Water Cooler Use

5.7 Future Central Funding for Water Projects

5.8 China's Major Rivers

Table 5.2 CHINA’S MAJOR RIVERS 2003

5.9 Public Toilets

Table 5.3 TOTAL NUMBER OF PUBLIC LAVATORIES IN CHINA BY PROVINCE 1998-2001

6 DEVELOPMENTS BY REGION

6.1 Anhui Province

6.1.1 Anhui Province: Background

6.1.2 Anhui Province: Local Water Situation

6.1.3 Anhui Province: Future Developments

6.2 Beijing Municipality

6.2.1 Beijing Municipality: Background

6.2.2 Beijing Municipality: Local Water Situation

6.2.3 Beijing Municipality: Recent Developments

6.2.4 Beijing Municipality: Charges

6.3 Chongqing Municipality

6.3.1 Chongqing Municipality: Background

6.3.2 Chongqing Municipality: The Local Water Situation

6.3.3 Chongqing Municipality: New & Existing Facilities

6.3.4 Chongqing Municipality: Future Developments

6.4 Fujian Province

6.4.1 Fujian Province: Background

6.4.2 Fujian Province: The Local Water Situation

6.4.3 Fujian Province: Recent Developments

6.4.4 Fujian Province: Future Developments

6.5 Gansu Province

6.5.1 Gansu Province: Background

6.5.2 Gansu Province: Future Developments

6.6 Guangdong Province

6.6.1 Guangdong Province: Background

6.6.2 Guangdong Province: The Local Water Situation

6.6.3 Guangdong Province: Recent Developments

6.6.4 Guangdong Province: Water Charges

6.6.5 Guangdong Province: New & Existing Facilities

6.6.6 Guangdong Province: Future Developments

6.7 Guangxi Zhuang Autonomous Region

6.7.1 Guangxi Zhuang AR: Background

6.7.3 Guangxi Zhuang AR: Recent Developments

6.8 Hainan Island

6.8.1 Hainan Island: Background

6.8.2 Hainan Island: The Local Water Situation

6.8.3 Hainan Island: Recent Developments

6.9 Hebei Province

6.9.1 Hebei Province: Background

6.9.2 Hebei Province: New & Existing Facilities

6.9.3 Hebei Province: Future Developments

6.10 Heilongjiang Province

6.10.1 Heilongjiang Province: Background

6.10.2 Heilongjiang Province: The Local Water Situation

6.10.3 Heilongjiang Province: Recent Developments

6.10.4 Heilongjiang Province: New & Existing Facilities

6.10.5 Heilongjiang Province: Future Developments

6.11 Henan Province

6.11.1 Henan Province: Background

6.11.2 Henan Province: New & Existing Facilities

6.12 Hong Kong SAR

6.12.1 Hong Kong SAR: Background

6.12.2 Hong Kong SAR: The Local Water Situation

Table 6.1 TOTAL WATER CONSUMPTION IN HONG KONG 1995-1999

6.12.3 Hong Kong SAR: Recent Developments

6.12.4 Hong Kong SAR: Future Developments

6.13 Hubei Province

6.13.1 Hubei Province: Background

6.13.2 Hubei Province: The Local Water Situation

6.13.3 Hubei Province: New & Existing Facilities

6.14 Hunan Province

6.14.1 Hunan Province: Background

6.14.2 Hunan Province: The Local Water Situation

6.15 Jiangsu Province

6.15.1 Jiangsu Province: Background

6.15.2 Jiangsu Province: The Local Water Situation

6.15.3 Jiangsu Province: New & Existing Facilities

6.16 Jiangxi Province

6.16.1 Jiangxi Province: Background

6.16.2 Jiangxi Province: Local Water Situation

6.17 Liaoning Province

6.17.1 Liaoning Province: Background

6.17.2 Liaoning Province: Local Water Situation

6.17.3 Liaoning Province: Recent Developments

6.17.4 Liaoning Province: New & Existing Facilities

6.18 Shandong Province

6.18.1 Shandong Province: Background

6.18.2 Shandong Province: Local Water Situation

6.18.3 Shandong Province: Recent Developments

6.19 Shanghai Municipality

6.19.1 Shanghai Municipality: Background

6.19.2 Shanghai Municipality: Local Water Situation

6.19.3 Shanghai Municipality: Sewage

6.19.4 Shanghai Municipality: Water Pricing

6.19.5 Shanghai Municipality: New & Existing Facilities

6.19.6 Shanghai Municipality: Future Developments

6.20 Shanxi Province

6.21 Sichuan Province

6.21.1 Sichuan Province: Background

6.21.2 Sichuan Province: Recent Developments

6.21.3 Sichuan Province: New & Existing Facilities

6.22 Tianjin Municipality

6.22.1 Tianjin Municipality: Background

6.22.2 Tianjin Municipality: Recent Developments

6.23 Tibet Autonomous Region

6.24 Yunnan Province

6.24.1 Yunnan Province: Background

6.24.2 Yunnan Province: Recent Developments

6.25 Xinjiang Uyger Autonomous Region

6.25.1 Xinjiang Uyger AR: Background

6.25.2 Xinjiang Uyger AR: Future Developments

6.26 Zhejiang Province

6.26.1 Zhejiang Province: Background

6.26.2 Zhejiang Province: Local Water Situation

6.26.3 Zhejiang Province: Recent Developments

6.26.4 Zhejiang Province: Future Developments

7 SWOT ANALYSIS

7.1 Strengths

7.2 Weaknesses

7.3 Opportunities

7.4 Threats

8 COMPANY PROFILES

8.1 Anglian Water/Purac Group

8.1.1 Anglian Water: Company Details

8.1.2 Anglian Water: Company Background

8.1.3 Anglian Water: Water-Related Activities

8.1.4 Anglian Water: Financial Results

Table 8.1 ANGLIAN WATER: FINANCIAL RESULTS 2002/2003*

8.2 BetzDearborn

8.2.1 BetzDearborn: Company Details & Background

8.3 Cheung Kong Infrastructure Holdings

8.3.1 Cheung Kong Infrastructure Holdings: Company Details

8.3.2 Cheung Kong: Company Background

8.3.3 Cheung Kong: Water-Related Activities

8.3.4 Cheung Kong: Financial Results

Table 8.2 CHEUNG KONG: FINANCIAL RESULTS 2001/2002*

8.4 China International Water and Electric Corporation (CWE)

8.4.1 CWE: Company Details

8.4.2 CWE: Company Background & Activities in China

8.4.3 CWE: Financial Results

8.5 The China Water Company Limited

8.5.1 China Water: Company Details

8.5.2 China Water: Company Background

8.5.3 China Water: China Based Activities

8.6 De’an Group

8.6.1 De’an Group: Company Details

8.6.2 De’an Group: Company Background

8.6.3 De’an Group: China Water-Related Activities

8.7 General Electric

8.7.1 General Electric: Company Details

8.7.2 General Electric: Company Background

8.7.4 General Electric: Financial Results

Table 8.3 GENERAL ELECTRIC: FINANCIAL RESULTS 2001/2002*

8.8 Guangdong Enterprises Holdings/Dongshen Water Supply

8.9 Haida

8.10 Lemna Corporation

8.10.1 Lemna: Company Details

8.10.2 Lemna: Company Background

8.10.3 Lemna: China-based Activities

8.11 New World Infrastructure (NWI)

8.11.1 NWI: Company Details

8.11.2 NWI: Company Background

8.11.3 NWI: Financial Results

Table 8.4 NWI: FINANCIAL RESULTS 2001/2002

8.12 Raw Water Supply Company

8.13 Severn Trent PLC

8.13.1 Severn Trent: Company Details

8.13.2 Severn Trent: Company Background

8.13.3 Severn Trent: Financial Results

Table 8.5 SEVERN TRENT: FINANCIAL RESULTS 2002/2003*

8.14 Suez Lyonnaise des Eaux

8.14.1 Suez Lyonnaise des Eaux: Company Details

8.14.2 Suez Lyonnaise des Eaux: Company Background

8.14.3 Suez Lyonnaise des Eaux: Water-Related Activities in China

8.14.4 Suez Lyonnaise des Eaux: Financial Results

Table 8.6 SUEZ LYONNAISE DES EAUX: FINANCIAL RESULTS 2001/2002*

8.15 Thames Water PLC

8.15.1 Thames Water: Company Details

8.15.2 Thames Water: Company Background

8.15.3 Thames Water: Water-Related Activities in China

8.15.4 Thames Water: Financial Results

Table 8.7 THAMES WATER: FINANCIAL RESULTS 2001/2002*

8.16 Vivendi

8.16.1 Vivendi: Company Details

8.16.2 Vivendi: Company Background

8.16.3 Vivendi: Water-Related Activities in China

8.16.4 Vivendi: Financial Results

8.17.5 Vivendi: Future Strategy

9 CHINA & HONG KONG CONTACTS

9.1 Ministry of Water Resources

9.2 The China Research Center for Water Pollution and Water Reuse (China Water)

9.3 State Environmental Protection Administration �EUnited Research Centre for

Water Problems

9.4 Shanghai Water Conservation Bureau

9.5 Hong Kong Advisory Committee on the Quality of Water Supplies

9.6 HKSAR Water Supplies Department

9.7 Hong Kong Drainage Services Department

10 INTERNATIONAL WATER ORGANISATIONS

10.1 International Water Resources Association

10.2 Global Water

10.3 Global Water Partnership

10.4 The Global Water Unit of the World Bank

10.5 The International Association on Water Quality

10.6 International Water & Sanitation Centre

10.7 International Water Services Association

11 EXHIBITIONS & TRADE FAIRS

11.1 Irrigation Expo China

11.2 China International Water Exhibition �EGuangzhou

11.3 Chengdu International Environmental Products & New Technology Exhibition

11.4 China Waste & Resources

11.5 Membrane and Water China 2001 Exhibition

11.6 Water Expo China 2001

11.7 China International Environmental Protection Water Supply, Drainage and Treatment Technology and Equipment Exhibition

11.8 Northeast Region International Exhibition on Wastewater Engineering, Drinking Water, Water Treatment Technology & Equipment

11.9 Liaoning Province International Environment Protection Exhibition

11.10 China International Water Technology & Equipment Exhibition & Symposium

11.11 International Environmental Technology & Water Treatment Expo

11.12 International Water Technology China

11.13 International Exhibition on Water Industry

11.14 China International Water Treatment Technology & Equipment Exhibition & Symposium

11.15 International Conference & Exhibition on Developing Strategy of Urban Waste Water Treatment and Reuse

APPENDIX 1: CHINA MARKET BACKGROUND

1.1 Fast Facts

1.2 Regions of China

Map 1.1 CHINA: PROVINCES AND MUNICIPALITIES

1.3 Demographics

1.3.1 Demographics: Total Population

Table 1.1 TOTAL POPULATION, 1996�E002

1.3.2 Demographics: Population by Location

Table 1.2 POPULATION BY URBAN-RURAL DIVIDE, 1996�E002

1.3.3 Demographics: Population Breakdown by Location

Table 1.3 POPULATION BREAKDOWN BY URBAN-RURAL DIVIDE, 1996�E002

1.3.4 Demographics: Population by Province

Table 1.4 POPULATION BY PROVINCE, 1999-2002

1.3.5 Demographics: Population Density by Province

Table 1.5 POPULATION DENSITY BY PROVINCE, 1999-2002

1.3.6 Demographics: Population Concentration

Map 1.2 POPULATION CONCENTRATIONS BY PROVINCE, 2002

1.3.7 Demographics: Population by Gender

Table 1.6 TOTAL POPULATION BREAKDOWN BY GENDER, 1996�E002

1.3.8 Demographics: Population by Age Group

Table 1.7 POPULATION BY AGE GROUP, 1996�E002

Table 1.8 POPULATION BY AGE GROUP (PERCENTAGE), 1996�E002

1.4 Consumer Wealth

1.4.1 Consumer Wealth: GDP and Cost of Living

- Dealing with WTO

- Confident Shoppers

Table 1.9 GDP AND COST OF LIVING INDEX, 1996�E002*

1.4.2 Consumer Wealth: Provincial Differences in GDP

Table 1.10 GDP RANKED BY PROVINCE, 1996�E002*

1.4.3 Consumer Wealth: GDP Growth by Province

Table 1.11 GDP GROWTH RANKED BY PROVINCE, 1996�E002*

1.4.4 Consumer Wealth: GDP Per Capita by Province

Table 1.12 PER CAPITA GDP RANKED BY PROVINCE, 1999-2002

1.4.5 Consumer Wealth: Concentration of Wealth by Province

Map 1.3 VALUE OF GDP PER CAPITA BY PROVINCE, 2002

1.4.6 Consumer Wealth: The Major Cities

Table 1.13 LEADING CITIES KEY ECONOMIC INDICATORS, 2002

1.5 Households

1.5.1 Households: Overview of Household Conditions

1.5.2 Households: Total Households by Size

Table 1.14 NUMBER OF HOUSEHOLDS BY SIZE, 1996�E002

1.5.3 Households: Total households by Urban/Rural Split

Table 1.15 NUMBER AND SIZE OF HOUSEHOLDS BY LOCATION, 1996�E002

1.5.4 Households: Income Earners Per Household

Table 1.16 AVERAGE NUMBER OF INCOME EARNERS PER HOUSEHOLD, 1996�E002

APPENDIX 2: EXCHANGE RATES

2.1 Exchange Rates: China

Table 2.1 AVERAGE ANNUAL EXCHANGE RATES, 1997�E002

2.2 Exchange Rates: Hong Kong

Table 2.2 AVERAGE ANNUAL EXCHANGE RATES, 1997�E002