“财政部PPP中心”及“道PPP”公众号

　　PPP Practice on Watershed Management in China
　　中国水环境 董事会秘书、副总裁 房勇

　　2016年10月7日 华盛顿

　　Slide 1

　　Ladies and gentlemen,Good afternoon,

　　I’m very honored today, standing here to share withyou our experience on watershed management by PPP mode in China. I’m Yong Fang,Vice President of China Water Environment Group.

　　Slide 2

　　As we know, China is still facing severe waterenvironmental challenges. More than 5000 rivers and channels are “Black &Odorous”. Chinese Water Act,sets the goal to eliminate the “Black &Odorous” in major cities in 2017, and nationwide in 2020.

　　Slide 3

　　China Water Environment Group, a professional watercompany under CITIC Group, has now become one of the industrial leader inwatershed management and pioneer in PPP practice in China. Our six majorprojects are awarded as the national PPP demonstration projects, typical for Comprehensivemanagement in the whole area and the whole basin.

　　Slide 4

　　Our typical project is Nanming River WatershedManagement in Guizhouprovince , which is located in the upper catchment ofYangtze River.It’s the first PPP project implemented with the whole basin designingin China for the recent years.The local government has devoted into theprotection for the past 30 years since former Chinese President Hu Jintaoworked in Nanming River dredging project in 1986.

　　Slide 5

　　The whole project was in three phases from 2012 to2025 with a total investmentsof 450million USD. It consists of sevensub-projects with the concession period 30 years.Using TOT+BOT+PPP mode.

　　The river water quality had an essentialimprovement within 3 years, and the river basin bio-diversity was restored to70%.Black and odorouswere eliminated. Thepicture showthecomparison before andafter the treatment.

　　Slide6

　　the citizens in Guiyang City now come back to the riversideto enjoy andentertainment.

　　Slide7

　　On November of last year, during the Sino-US WaterForum held at Wilson Center, CWEG was invited as the only private sector togive speech introducing Nanming River project. Compliments were received fromUS EPA, UN EP, and other third-party organizations.

　　Slide8

　　Another project is Erhai Lake watershed management.Erhai is the 7th largest plateau freshwater lake in China, and anational naturaland cultural heritage. Theenvironmental capacity isoverloaded 2.5 times, algae bloomed for the past 3 years. President Xi Jinpinginvestigated Erhaiproject last year, and it becomes a major nationalenvironmental project.

　　Slide9

　　CWEG win the bid, using DBFO model with investmentsof 450 million USD, the concession period is 15years. We save 1 million USD and6 months construction period, and Value for Money of PPP is initiallyrealized.“Sponge Farmland” concept proposed saves 85% clean water extractionfrom Erhai Lake for irrigation.

　　Slide 10

　　wehave the flowing experience on PPP :

　　Systematic and scientific pollutingsurvey was the key point. It was essential to establish the environmentalcapacity model on the whole basin, planning overall and implement by stages.

　　PPP provide solutions to government’s lack offunding, technology and professionals.

　　PPP encourages the innovation of technology and businessmodel.

　　PPP can also help establish a long-term management andsupervisonmechanism.

　　Slide 11

　　Considering the huge environmental protectionindustry in China, CWEG is willing to cooperate with US and world companies andinstitutes to develop top technology and Chinese marketing together, and also willingto cooperate with different countries to jointly improve the reform of China’sPPP practice.

　　Slide 12

　　Thank you!