The Ministry of Environmental Protection has revealed that the total investment of "Water Ten Measures" is expected to exceed 2 trillion yuan. According to analysis and prediction by CITIC Securities, after the implementation of the "Ten Measures for Water Treatment", from the perspective of eliminating inferior water, the municipal sewage upgrading and renovation that has gradually begun in recent years will be further strengthened. If we only consider the completion of renovation of sewage plants in key areas within 3 years, and estimate the unit investment at an average of about 525 yuan/ton in the 12th Five Year Plan, the annual investment demand may reach 10.8 billion yuan.
Qu Jiuhui, an academician of the CAE Member and a researcher of the Ecological Environment Research Center of the Chinese Academy of Sciences, told our reporter that according to the requirements of the "12th Five Year Plan" National Urban Sewage Treatment and Recycling Facilities Construction Plan, the effluent quality of the sewage treatment plant should be comprehensively improved from Level I B to Level I A.
After the introduction of the "Ten Measures for Water", the water equipment industry will also face a once-in-a-lifetime opportunity. Taking sewage pumps as an example, the pump industry is expected to maintain an average annual growth rate of around 20% in the future. The reporter learned that this year Zhejiang Province has launched the "Five Water Governance" (sewage treatment, flood prevention, drainage, water supply guarantee, and water-saving). In 2014, 125 projects were arranged with a total investment of 468 billion yuan, of which the planned investment for the year exceeded 65 billion yuan, and there is a huge demand for sewage pumps.
CITIC Securities predicts that after the implementation of the "Ten Measures for Water Treatment", sub sectors such as sludge treatment, recycled water utilization, and volatile organic compounds (VOCs) treatment will enter a period of rapid growth.
The water company Sound Group includes two listed companies, Sound Environment (000826. SZ) and Sound International (00967. HK). The chairman of the group, Wen Yibo, recently said, "There is currently a lot of room for improvement, and the investment scale will reach hundreds of billions of yuan."
Wen Yibo stated that small towns will become an important market for sewage treatment, including improving and constructing pipeline networks, adding sewage treatment facilities, upgrading and renovating substandard sewage treatment facilities, constructing centralized sewage treatment plants and decentralized sewage treatment facilities, so that all county towns and key towns have sewage treatment capacity, achieving a sewage treatment capacity of about 85% and key towns reaching about 75%.
It is expected that the sales revenue of Sander Environment's business can reach around 10 billion yuan, achieving the original target one year ahead of schedule. He expects that based on the current business situation, the environmental business of the group will achieve a revenue of 13-15 billion yuan next year.
Our reporter learned from the Asian Development Bank that the upcoming "Ten Measures for Water" issued by the Chinese government has also attracted high attention from international consortia, and some foreign enterprises and consortia have begun to intervene in China's water quality improvement standards.
At the end of last year, the Asian Development Bank and Beikong Water Group (00371. HK) announced in Beijing that they would jointly promote the development of high standard sewage treatment projects in China, so that the treated sewage can be reused as a new water source in industrial cooling and urban environments. It is expected that by 2019, the project will process 600 million tons of wastewater annually, which will be used for industrial cooling and urban landscape irrigation.
It is understood that according to the requirements of the "Ten Measures for Water", China may moderately increase the pollution discharge fee standards and expand the scope of pollution discharge fees, and include sludge treatment and disposal in the cost of sewage treatment.
At the same time, we will accelerate the research and development of key common technologies such as comprehensive treatment of heavily polluted water bodies, treatment of trace toxic substances in drinking water, collaborative prevention and control of surface water and groundwater pollution, and water ecological target management. At that time, water-saving technology transformation, water-saving products, efficient water pollution control and treatment technologies will all benefit.
China will also promote the upgrading and transformation of production and pollution prevention equipment, screen a batch of technologically advanced, stable, effective, and economically applicable environmental protection equipment, and carry out the application of key technologies such as village and town sewage treatment technology, urban sludge treatment and disposal technology, industry clean production and resource utilization technology, clean livestock and poultry breeding and pollution prevention technology, and healthy aquaculture through subsidies to users and procurement services.
"At present, China's industrial pollution control still adopts the concept of 'whoever pollutes, who controls', and the pollution control problems are solved by the polluting enterprises themselves. Luo Jianhua, Secretary General of the Environmental Chamber of Commerce of the All China Federation of Industry and Commerce, believes that internationally, the third-party control model is widely used for industrial emission reduction, where polluting enterprises pay in the form of contracts to entrust the pollution generated to specialized environmental protection companies for treatment.".
Luo Jianhua believes that implementing third-party governance can, on the one hand, reduce the cost of governance and increase the compliance rate of pollutant discharge enterprises due to the use of specialized governance; On the one hand, government law enforcement agencies have reduced law enforcement costs due to the concentration and controllability of regulatory targets; In addition, it has also stimulated the development of environmental protection enterprises and industries. It can be said to kill three birds with one stone. (Translated from the National Environmental Statistics Bulletin)
