Press Release from hkc22.com (Helmut Kaiser Consultancy) Beijing and Tuebingen

www.hkc22.com and http://www.hkc22.com/chinawater.html

 

Water and wastewater investment in China over US$200 billion in government’s 
Five-year Plan. Experts warn water crisis impending.

China’s market for water and wastewater treatment will increase to US$22,7 
billion in 2005 from US$18,7 billion in 2004 and is expected to reach US$33.2 
billion by 2010. Residential water market reached US$1.46 billion in 2004 and 
will increase to US$3.3 billion by 2010,  US$5.48 billion by 2015. (hkc22.com)


China, with the polulation of 1.3 billion, is now confronted with severe 
problems of water shortage as well as water pollution. As a price for economic 
growth in recent ten years, 77% of effluent is currently untreated, 70 percent 
of the population has no access to safe drinking water and 400 in 600 cities 
face water shortage. Contamination and lack of supply capacity are leading 
factors for water shortage.

The government vows to solve water problems by 2015 and has constituted and 
improved a series of laws and regulations such as opening water industry to 
civil and foreign investors under certain conditions. The Tenth Five-year plan 
of the Ministry of Construction determines that sewage treatment facilities 
must be built in all cities by 2005, and sewage treatment rate should increase 
to 45% by 2005 and up to 90% by 2010. Massive investment (over US$ 200 billion) 
over the next ten years is needed in both water supplies and wastewater 
treatment.  The wastewater treatment of “Three Lakes and Rivers” scheme alone 
is a US$150 billion project. 

 

Thanks to large market volume and increasing growth rate, the market for water 
treatment and water treatment equipment presents high profit margin and profit 
potential, although relatively low drinking water price hinders some investors 
from entering water industry. More than 350 medium and large sized  companies 
are currently active in the field of water, wastewater treatment and drinking 
water. Since 1990s, more than 50 international water giantshave entered China’s 
water industry and capital market since the 1990s. More than 70 percent of 
large or medium sized water and wastewater treatment equipment is imported. 
Foreign companies are now active in every facet of China’s water market, among 
which two French companies, Suez and Véolia Water, and a UK company, Thames 
Water, are the best-know and most successful foreign companies in this growing 
market. Companies such as Nestlé is establishing its leading position in the 
highly competitive but also highly lucrative bottled water
 market in China. 

With opening up of the water market for private and foreign capital, 5000 more 
water companies are predicted to emerge in several years. Innovations and new 
technologies will be of special interest and profit-promising. China’s 
membership in WTO opens further opportunities for international co-operation in 
global water affairs and attract more foreign companies to participate in the 
dramatically expanding market. 

 

China Water, a comprehensive study of water market, technology and projects in 
34 Provinces in China 2003-2015, is just released and can be purchased. For 
more information please see

http://www.hkc22.com/chinawater.html China will be soon the biggest single 
market in water worldwide pls see 
http://www.hkc22.com/watermarketsworldwide.html



Responsible for this:

www.hkc22.com, Helmut Kaiser Consultancy, 72076 Tuebingen, Germany

Tel: +49 7071 67001, Fax: +49 7071 68086






                
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