How does PPP become a recipe for rural sewage treatment?

Many people questioned that the rural sewage treatment market is nothing but false lively. But more industry insiders believe that any market before entering the mature period, there is a process of exploration, it is difficult to break through the obstacles, rather than escape the problem. Tsinghua University School of Environment Professor Wang Kaijun that, before the industry in the field of rural sewage treatment to do less, the future of China's main battlefield of sewage treatment must be in rural areas. With the gradual opening of the rural sewage treatment market, many companies are thinking and exploring how the rural sewage treatment market this cake to eat the mouth?

Talking about rural sewage governance topics, often someone "happy" was "worry". "Joy" is that the urban sewage treatment market tends to saturation, rural sewage treatment market has gradually become the enterprise Nuggets. "Worry" is how the hundreds of billions of market profits into reality. "Rich construction, no money operation" or the prevalence of rural sewage treatment phenomenon, "sun" rural sewage treatment equipment is still a minority. Wang Hongchen, vice president of the School of Environment of Renmin University of China, told the Chinese water network that from the situation of the rural sewage treatment project he was involved in, several counties were often turned down and could not see a normal operation.

Status and strong contrast to the market, but also so many people questioned the rural sewage treatment market is only false lively. But more industry insiders believe that any market before entering the mature period, there is a process of exploration, it is difficult to break through the obstacles, rather than escape the problem. Tsinghua University School of Environment Professor Wang Kaijun that, before the industry in the field of rural sewage treatment to do less, the future of China's main battlefield of sewage treatment must be in rural areas. With the gradual opening of the rural sewage treatment market, many companies are thinking and exploring how the rural sewage treatment market this cake to eat the mouth?

Exploring Business Model - the Top priority of Rural Sewage Treatment

Wang Kaijun that rural sewage treatment regardless of which technology route, should rely on the mode of operation and business model choice. E20 Environmental Platform Senior Partner, E20 Research Institute Executive Director Xue Tao has also said that the rural sewage treatment has not been for enterprises do not want to do, because there is no business model.

E20 Institute of more than 1,300 rural sewage treatment project research and found that the current rural sewage treatment projects in the more common business model BT + O, BOT, EPC + O, PPP mode.

"With the further release of the rural sewage treatment market, the business model has gradually shifted from selling equipment, engineering contracting, EPC or segmentation to PPP mode, BOT mode, or mixed mode." The E20 Research Institute believes that, in recent years, The state is also advocating the local conditions to carry out rural environmental governance, to encourage qualified areas to implement the overall package, environmental management PPP project, the main body of the region through the development of rural integrated overall solution, the government is to purchase a single environmental management services to the purchase of the overall environment Quality improvement service change.

In this context, companies are also actively exploring. "Rural sewage treatment projects than urban sewage treatment is difficult to several times, or even several times." Sande international village company water technical director Wang Junan in the last year's environmental treatment forum has been introduced, Sander from 2009 to do the village sewage treatment project , After years of exploration, Wang Junan that the model for rural projects are mainly three, EPC + OM mode, BOT mode, and PPP mode, of course, not all rural sewage projects are suitable for the use of PPP mode, PPP mode is the first two Model based on the resulting, mainly to solve the problem of funding sources. These three models are suitable for rural sewage management, because they have a similar point: "property rights clear", all reflect the "who is who to control", model innovation is to solve the problem of rural sewage governance a golden key, only So as to really do a good job in rural sewage treatment projects.

North Water Management is also considered one of the earlier enterprises to enter the rural sewage treatment market. As early as 2008 to carry out the study of village sewage treatment research reserves. Taking into account the rural sewage market a single project of small size, strong dispersion, the company finally developed a "watershed town" governance model. First, clear water sources are also in recent years to increase investment in the rural sewage treatment market. Not only the water giants in the exploration, such as China in the car and many other industries are also optimistic about this blue ocean, the rural sewage treatment market as a breakthrough in the field of environmental protection, and began to explore the model. 2015, the car signed the first PPP orders - Changshu rural sewage treatment projects.

Vigorously implement PPP, how to cross the risk?

In recent years, in the Ministry of Finance, Development and Reform Commission vigorously promoted, PPP mode of concern. "Thirteen five" period, the Government to encourage the use of PPP model for rural sewage treatment, on the one hand can absorb social capital, to solve the government budget deficit, stimulating domestic demand. On the other hand can reduce government responsibility. This year, many local governments have also begun to explore the PPP model in the field of rural environmental governance applications. Such as the introduction of Fujian Province, "nurturing the development of rural sewage waste disposal market main program", proposed to attract social capital to PPP project package or purchase service model into rural sewage, garbage control.

Xue Tao that, PPP this fire burning more prosperous, more and more wide range But related to the rural sewage treatment is very complex, and the original mature sewage plant BOT is very different projects, the Government will come up with more complex trading interface and demand to talk with the business.

Money to be implemented

Many business people told the Chinese water network, not all rural sewage projects are suitable for the use of PPP model, in the field of rural sewage treatment, to local conditions to adopt the PPP model, to be very cautious. Do the rural sewage treatment to ground gas, the Government is not to allow enterprises to do in the form of contractors can do, but the need for enterprises to provide the overall solution. "The PPP mode of government purchase services must be clear to the responsibility of the professional staff to do professional things, operation and construction must be packaged integration."....

Even if the implementation of PPP mode, but also to think about a question, how effective money to the hands of social capital? KPMG Consulting, Director of Financial Advisory and Infrastructure (PPP), pointed out that many people have proposed to set up a charging mechanism to solve this problem. This is certainly a trend or an ideal. But from the status quo, really want to do the user to pay, really can farmers in rural areas to collect money, it is difficult. Jiangsu, Zhejiang and Shanghai region can be considered a better regional economic region, and now can not do this. To solve this problem, need to be incorporated into the current PPP system, doing value for money, so that financial affordability, especially the financial affordability to strengthen, value for money because of the lack of current data, qualitative can do, real quantitative Often will flow in the situation, not very accurate. Now the Ministry of Finance, Development and Reform Commission to vigorously promote, brought great hope, if the mechanism is perfect, may be to some extent, the payment mechanism on the smooth.

Project tender to bypass the black hole

Rural sewage treatment is different from the municipal sewage project, which involves the problem of concentration and dispersion, the choice of process route, the management mode problem, and the performance appraisal problem. The formal PPP project, have to go through the tender, it involves the design of the program. The industry also has some views on the simple bidding, the first easily lead to low-quality low-cost, second PPP project has the process of competition is very complicated. This is one of the many problems facing enterprises.

Wang Jian, deputy general manager of Beijing Construction Engineering Environmental Development Co., Ltd., believes that in the comprehensive management of water environment and large PPP projects, especially including the rural border more complex projects, or the provisions of the action of the project, must participate in the previous program discussion, The company's programs and ideas to talk with the government, only the government's approval of the company's program, it is possible to make the project perfect.

The government must have the legal compliance needs, no matter how to take the project, the program is very critical. Li Wei believes that the first to meet the needs of the Government, from the procedural point of view, there are two main programs: First, open tender, open tender in the past model is two-stage bidding, tactics and business comparison. Second, competitive consultations. This stage is more cruel, Li Wei believes that the bidding system is too rigid, may not be able to meet the diversification of PPP services procurement, especially in rural decentralized sewage treatment, a lot of boundary conditions can not be determined first, need to gradually resolve, this time competition Sexual consultations should be the main way in this field. In this regard, there are business people believe that PPP projects, the Government can use competitive consultations, but the threshold set to be reasonable, not too low, not too high, to a comprehensive assessment.

"A healthy PPP should be rational first." In the field of rural sewage treatment to implement the PPP model, must be in the early accounting and clear, to find a reasonable return mechanism. "Wang Hongchen said that many projects in the early consideration is not comprehensive, in order to sign the contract And sign the contract. As the contents of the contract is too idealistic, and ultimately the phenomenon of passing, resulting in both sides of the PPP contract trouble is also a minority.

Therefore, the strong implementation of the PPP model at the same time, both sides of the contract, must ensure that fair and reasonable cooperation under the premise of their own reality, both within the scope of the ability to develop reasonable cooperation content, otherwise it is irresponsible, it is difficult to really solve Rural sewage problem.

At present, the rural sewage treatment market is not yet mature, many problems have been gradually exposed, the government and enterprises will be a huge challenge. But one thing is certain, the future of rural sewage treatment market is bound to look good, but there is still a long way to go.