Policy and Market Analysis on Municipal Wastewater Treatment in China Sheng Guangfan, Professor Member of the Standing Committee, China Association of Environmental Protection Industry Because of historical and other reasons, water pollution is still serious in China. Traditional pollutants (COD and BOD) have not been controlled, while, pollution caused by toxic compounds and eutrophication increases. Because of wastewater discharge without efficient purification, more than one third rivers in China have been polluted, water in 90% cities is polluted seriously and water source in about 50% key cities and towns can not meet standards for drinking water. The unreasonable development and utilization of water resource and the continuous water pollution cause shortage of water in a wide scope and ecological disaster. To a great extent, the development of environmental protection industry depends on the policy and guidance of the governments, such as water treatment for the "Three Rivers" (the Huaihe River, the Liaohe River and the Haihe River) and for the "Three Lakes" (the Dianchi Lake, the Taihu Lake and the Chaohu Lake), and the requirement of the State Council that industrial wastewater quality must satisfy discharge standards in 2000. lately, NEPA pointed out that emphasis of pollution prevention and control is: water pollution treatment in the "Three Rivers" and the "Three Lakes", acid rain control, sulfur dioxide control, gas pollution treatment in Beijing and pollution prevention and control in the Bohai Gulf. In the five key projects, three are related to water pollution treatment, which is helpful to promote water environmental treatment. With respect to water pollution treatment, at present, the construction of municipal wastewater (MWW) treatment plants is the most prudent. In many cities, domestic wastewater takes about 40% of municipal wastewater, and in some advanced cities, wastewater takes more than 50% of municipal wastewater. Furthermore, domestic wastewater is increasing. Hence, if MWW pollution is not controlled effectively, although industrial wastewater quality attains discharge standards, water pollution status is still serious. It is estimated that in 668 cities, only 123 cities have constructed 307 MWW treatment plants, and secondary treatment ratio is only 9%. In 17000 towns, most of them don‘t have drainage system and wastewater treatment facilities. Now , central and local governments have issued 75 acts and regulations related to municipal drainage system and wastewater treatment. In recent years, China has paid more attention to urban environmental protection and pollution treatment. For example, in 1997, 65000 small pollution enterprises were ordered to be closed. Policies and funds are given to support water pollution treatment. Leaders of the State Council have given advice on environmental protection, homemade set MWW treatment facilities and MWW treatment. In the later part of June, 1998, the General Office of the State Council proposed "Preliminary Suggestion on How to Promote the Construction of Municipal Wastewater Treatment Plants" to the Central Committee of Community Party of China(CPC). The Central Committee replies quickly and entrusted the State Planning Commission to put it into practice. The ideas is "Preliminary Suggestion on How to Promote the Construction of Municipal Wastewater Treatment Plants" are : to fasten production of homemade set facilities for MWW treatment through the manufactory of equipment; to push local governments to set up MWW treatment plant by way of encouragement and compulsion; to draw up the program on R&D and production of homemade set facilities for wastewater treatment plants, at the same time, to promote structure rearrangement of engineering industry by import of some capital, policy loan and discount loan; to forbid to build common processing projects and entertainment facilities, such as restaurant and hotel, where wastewater treatment plants have not been built or wastewater treatment ratio is below the given standards; to fasten the construction of MWW treatment plants through levying wastewater treatment charge that is now being practiced in the Huaihe Basin. So, from the summer in 1998, the Central Committee of CPC strengthens investment on infrastructure. In 1998, local governments applied for 237 projects about MWW treatment plants, which needed about 60 billion RMB yuan. To push the internal demands, the Central Government approved 117 projects about MWW treatment plants, which were given financial support with unprecedented investment of 30 billion yuan. As for the treatment in the "Three Rivers" and the "Three Lakes", there will locate 52,63,42,62 MWW treatment plants in the Huaihe Basin, the Taihu Basin, the Liaohe Basin and the Haihe Basin respectively. Some of these projects have been built up, and most of them are only in the beginning step. Existing problems include unsatisfactory preparatory work, shortage of money and lack of homemade facilities. With increase of investment, the Central Committee requires every related Ministry or Commission to support and guide wastewater treatment. In August 1998, the State Planning Commission entrusted China International Engineering Consulting Company (CIECC) to draw up "Schedule on How to Push Production and Utilization of Homemade Set Facilities For Municipal Wastewater Treatment Plant". In the Schedule, the first step is manufacturing and utilization of specific mechanical facilities, mainly including: 1) drain grating, 2) sand removal facilities, 3) sludge discharge facilities, 4) aeration facilities, 5) sludge dewatering facilities, 6) sludge digestion facilities and methane utilization facilities. In respect to common mechanic facilities, efficiency and life of pump, draught fan, valve and relative electrical facilities should be improved. meters and automation facilities would be made in China step by step through import of foreign facilities. The Schedule hopes that in the coming 3-5 years, 80% of common facilities and 50% of specific facilities will be homemade and hopes that all of common facilities and 80% of specific facilities must be homemade around 2010. In order to reach these goals, specific office and expert team should be established. In the latter part of September 1998, the Ministry of Construction and the Bureau of Machinery held a conference on homemade facilities for MWW treatment in Guangzhou. On the conference, some measures were put forward, such as : for MWW treatment projects supported by fund in budget in 1998, priority should be put to which have design capacity and can take charge of assembly and technical service for MWW treatment, and to urge them to participate the market competition; to regulate domestic market strictly, so as to prohibit unprofessional enterprises and bad-grade products to enter the market; to confirm the positive influence of foreign fund on construction of infrastructure, and to import more foreign capital to build MWW treatment plants, especially the loan from the World Bank, the Asia Development Bank and the Japanese Foundation; to manage the qualification of manufacturers strictly so as to guarantee engineering quality. Form October to November 1998, NEPA held an expertmeeting on demonstration of MWW treatment plant with the scale of 0.1 million tons per day. In this meeting, NEPA hoped to reduce construction and operation cost, and experts discussed the oxidation ditch process, SBR process and acidification oxidation process. Because facilities are dependent on treatment Department of Technological Development and Equipment of the State Economy and Trade Commission entrusted China Mechanical and Electrical Equipment Bid Company to hold a bid for tens of facilities, such as sludge scraper and dehydrator, so as to select capable enterprises to take on R&D according to the Schedule, In the latter part of November 1998, entrusted by the State Planning Commission, CIECC held a discussion on control standards for wastewater treatment projects. Because of lack of national and industrial standards, according to experts‘ suggestion, based on Association of environmental Protection Industry has drawn up or modified a certain technical certificate standards of environmental protection products. Based on the standards, China Association of Environmental Protection Industry has certified some products. The purposes are to standardize product quality in aspects of classification, nomination, test and fuction, and to protect the rights of users. In 1998, executive vice-premier pointed out that "with the change of investment system, with respect to infrastructure construction, emphasis should be put on cities; the main duty of the Central Committee of CPC is to guide the construction through policies; the Central Committee invests projects related to environmental protection and sustainable development. wastewater treatment and solid waste disposal are important parts of urban infrastructure. " The Governmental Report in 1999 says that 25 billion yuan will be invested on infrastructure construction. It is estimated that more than 10 billion yuan will be invested on MWW treatment. According to the Program of National Economy and Society in 2010, popular ratio of discharge duct and treatment ration of municipal wastewater will be 90% and 50% respectively, as needs about 180 billion yuan at present price. If secondary treatment ratio increases to 40% , the investment will increase by 72 billion yuan. It is hard for China to invest so large amount of money on environmental protection under the condition of financial strait. it should be noted that evaluation before construction should be paid more attention to, namely projects study before planning, study on feasible reports, measures to obtain enough capital and operation plan. Construction scale (including reasonable definition of water quality and water quantity) and set pipe nets should be studies carefully. If the pollution charge system would not be performed, MWW treatment plants would not be operated well. Cost benefit analysis must be implemented so that limited fund can be used well. When we put forth goals and demand for environmental pollution treatment, we must understand the relationships between requirement and possibility, between the long term and the short term. The goals and demand should be based on facts and should be practical. The general level of technologies and facilities for MWW treatment in China equals to that in 1970s in the international market, and a part of products can compete with foreign ones in 1980s. The gap between foreign and domestic products should be known and complete application of homemade facilities needs waiting for. We should learn from imported products and develop domestic ones. The leaders of the State Council pointed out to import the technologies in June 1998. Environmental protection industry is one of industries opened early in GATT negotiation. So, technologies and fund should be imported to accelerated development and application of homemade wastewater treatment facilities (just as automobile and domestic check and acceptance should be resolved according to construction program. To environmental protection industry, engineering enterprises capable of process, facilities, technologies and construction should combine research institutes, manufacturers or group enterprises. This kind of combination has been started in Shanghai, Tianjin and Shenyang. The large gap between supply and demand and the strict regulations on product quality will change the backward status and promote the development and striving of homemade facilities for wastewater treatment and finally push them into international markets. To implement the guidance of leaders of the State Council, the State Planning Commission drew up the project "Comprehensive Demonstration of Municipal Environmental Protection and Industrial Development" and entrusted CIECC to propose an implementation plan. The Ministry of Construction, NEPA and the Bureau of Machinery proposed suggestion and opinions. A negotiation office and expert team will be set up. The important part of the project is to demonstrate wastewater treatment projects in selected middle or small cities. Demonstrated projects will be defined by means of bid. These projects include soft issues and hard issues, as means that they include the combination of beneficial technologies and facilities, include demonstration of system program, policies and set management, and include the demonstration of operation system. The Government will give some support to demonstrated projects (Certainly, money given to one project must only be used for the project). At the same time, some preferential policies will be given to enterprises manufacturing demonstrated facilities and to products containing advanced technologies. Summed up, from now to 2010, it is an opportunity to develop municipal drainage system and wastewater treatment. |