Madam Yiqin Pan, Vice Chief of Chongqing Municipal Administration

Commission(Sept.26, 2008)

Dear Mr. Hans Halskov, ladies and gentlemen: 

Welcome to Chongqing! According to the program of Chinese-Danish Water Days, I take the honey to make a brief introduction of water industry in Chongqing.

There are 30 million populations in Chongqing, more than 80,000 square km land and 40 districts and counties in its geographic area. Chongqing is dynamic and full of chance. After it became the 4th municipality directly under the jurisdiction of central government ten years ago, it has been paid a lot of attention by the world with its rapid development in western region. This giant city is gradually becoming a stronger and stronger magnetic field in terms of geography, culture and social environment, and presents to the world its opening, aggression and charming.

Chongqing is a "mountain city". This unique geographic characteristic decides that there must be many water supply companies. There are 559 water supply plants in cities and towns and the production capacity of water is reach to 5.18 million cubic metre each day. Up to now, most of those water supply companies are state-owned. The sources of drinking water are rivers and reservoirs and majorly taken from Yangtze River, Jia Ling Jiang River, Wu Jiang River and their branches.

In the waste water treatment industry, based upon the <Water Protection and Treatment Planning in Three Gorge Reservoir Area and its Upper Reach> set by the central government, we should build 60 plants to treat living waste water. The processing capacity is 2.1365 million tons per day, and its total investment is 8.5 billion RMB. Among these 60 plants, 50 are located in Three Gorge Reservoir Area and 10 are located in influence zone. By the end of 2010, we will newly build and enlarge 10 waste water treatment plants, newly build 74 waste water treatment plants in small towns. And we are undergoing the planning of waste water treatment plants in more than 400 towns.

The water industry in Chongqing is incomplete market oriented model. Chongqing is in the Three Gorge Reservoir Area and its economic condition as a whole is not good. The responsibility of environment protection is heavy. To guarantee a lot of waste water treatment plants running well in a relatively short period of time, we must solve the shortage of fund and technological problems.

In 2000, the municipal authority approved the establishment of Chongqing Water Group Holdings, and transferred the assets which came from the national debts to be used in the waste water treatment in Three Gorge Reservoir Area to it. The company then became the legal body and project investor to be in charge of the investment and routine management of majority waste water treatment plants in Chongqing. In the meantime, Chongqing Water Group Holdings sets many operation branches in Three Gorge Reservoir Area to run waste water processing projects.

Besides Chongqing Water Group, the municipal authority built Chongqing Water Resources Investment Group Co. Ltd. followed by the same model as the investor and runner of water supply and waste water treatment projects in west area of Chongqing and parts of districts and counties. At present, the two water companies are responsible for almost all the water business except tap water companies in parts of districts and counties and minority of waste water treatment plants built and run by local governments.

Chongqing Municipal Administration Commission, as a monitor and inspector in water industry, is no any link with the personnel, fund and operation of water companies. Its duty is to monitor and inspect the water quality, service and waste water treatment fee paid by the public on behalf of general publics.

In the recent ten years, some foreign investors have been entering water industry in Chongqing and benefit from it. Sino-French Water Investment Co. and Chongqing Water Group Holding set up a joint venture Chongqing Sino-French Water Supply Co. with a total investment 1.23 billion RMB. Its operation period is 50 years. The joint venture is granted the license of supplying water to New North Zone by Chongqing municipal government. Its production capacity is expected to 0.35 million cubic meter per day, coverage area 75 square km, coverage population 0.69 million. Through five years’ operation, the water supply achieves its goal. Both sides have been co-operating in a larger scale.

In the waste water treatment sector, Sino-French Water Investment Co. and Chongqing Water Group Holdings co-funded Chongqing Sino-French Tang Jia Tuo Waste Water Treatment Co. Ltd. with a total investment 0.47 billion RMB in 2006. Both sides take equal share. Its waste water treatment plant is one of the large, modern plants equipped with complete technics and sets and advanced technology in southwest China even national wide currently. The present capacity 0.3 million cubic meter per day can supply for 90 square km. The investors of those joint ventures mentioned above are satisfied with the situation.

Chongqing is a developing city. The water industry has a long way to go in its modernization. That means a lot of opportunities for investors. In water supply sector, the government plans to upgrade the traditional water processing technology and outdated pipeline networks in most water plants within next few years, so that the quality of tap water can meet the new national standard for water; In waste water treatment sector, we hope to make some breakthrough in operating and processing of sludge. And we are also considering to build hundreds of waste water treatment plants in towns with a more practical, more effective and lower running cost technology.

With the development of Chongqing, the water market will be more and more open.

We sincerely welcome Danish companies to co-operate with local companies and input your capital and advanced technology into water industry in Chongqing, being a part of shaping a beautiful Chongqing with your capital, advanced technology and management experiences.

Chongqing Municipal Administration Commission will do its best to provide you any convenience and excellent service as the water administration government organization in this city.

I believe, you must benefit from the co-operation between China and Denmark in water industry and it must be a win-win result.

Dear friends, hope your success in Chongqing!

Thank you!