Wonderful Moments

Chinese Version

　　On 10 December 2005, “The 10th Advanced Strategic Salon on Water Sector” was held by Department of Environmental Science and Engineering, Tsinghua University allying with h2o-china.com at Tsinghua University Bing Suo building.

　　The theme of this conference was “The Connection of Policy-oriented Fund & Marketization Mechanism of Urban Water Sector”, mainly concerning about how policy-oriented fund works on the situation of national debt project’s fading out from water sector investment market; the connection mechanism between policy-oriented fund & marketization mechanism of urban water sector; and the policy-oriented bank loan mode.

The attendees of this conference came from different sectors, including: representatives from central government and oversea finance organizations: Ministry of Finance P.R. China, the National Development and Reform Commission, World Bank, World Bank International Finance Co., Ltd, Asian Development Bank, National Development Bank; representatives of senior managers from domestic companies like: Beijing Capital Co., Ltd, Beijing Drainage Group, Sound Group, Thunip Holding Group, Tsinghua Tongfang Group, Zhuhai Drainage Co., Ltd, Anhui Guozhen Environmental Protection; and representatives from academic circles and consultant organizations: Tsinghua University, AIEC, Jibang Consulting Co., Ltd., Chinasolidwaste.com.

Dr. Fu Tao (director of Water Sector Strategy Research Center, Tsinghua University) presided at the conference.
Vice-researcher Chang Miao of Water Sector Strategy Research Center, Tsinghua University and Manager Liu Kun of Zhongyi Inviting Tender Co., Ltd made their theme speech. Dr. Chang’s speech mainly concerned about three aspects: policy-oriented fund’s contribution to the water sector construction, latest investment atmosphere & effective connection of policy-oriented fund and marketization project. Manager Liu’s speech was concerned about: open-ended fund should be utilized to help the investors’ marketization project on the situation of government can not supply whole required fund. She pointed out two open-ended fund agreement examples: World Bank’s package load to education project and Deutsch KFW Bank’s package loan to environment project. Finally, she summed up seven mode of project which gained related fund organizations’ loan.

Some attendees considered that the international bank loan brought additional value and set good examples. According to the diversity of domestic water sector’s requirement on fund, the policy innovation from Ministry of Finance P.R.China and National Development and Reform Commission became the spotlight of public concerning. At present, water sector’s fund utilization mode was diversified, advantage and disadvantage exited respectively. And many variables could appeared in the late period of fund utilization. As for these variables, the clarity of state policies’, the operation standard of local government and corporations, the rationality & legitimacy of fund utilization became the issues under discussed.

The conference ended with long and lingering aftertaste. There are so many strategic issues that government and fund organizations should to set policy in the field of marketization in China water sector. And the state-owned corporations, private enterprises and consulting organizations are also waiting for solutions from the policy issues. This conference has a positive effect to the water sector’s development.