COUNTRY | China
REGION | Asia
SECTOR | water and waste
QII Principles | Principle 1 Sustainable Growth & Development, Principle 2 Economic Efficiency, Principle 3 Environmental Considerations, Principle 4 Building Resilience, Principle 5 Social Considerations, Principle 6 Infrastructure Governance
QII Sub-Principles | 1: SDGs, 1: Wider economic benefits, 2: Value for money analysis, 2: Life-cycle costing, 2: Operation and maintenance, 2: Technological innovation, 2: Risk management, 3: Environmental Impact Assessment, 3: Disclosure of environmental aspects, 3: Ecosystems, 3: Biodiversity, 4: Resilience, 4: Disaster risk management, 5: Social Impact Assessment, 5: Job creation, 5: Capacity and institutional building, 5: Occupational health and safety, 5: Universal access to services, 6: Procurement transparency, 6: Financial & debt sustainability, 6: Access to information and data, 6: Legal and Regulatory Frameworks, 6: Institutional Framework of infrastructure investment, 6: Enabling Environment, 6: Policy
Cost: 435 million USD
Size: The project includes 6 plants with the sewage treatment of 54,400 cubic meters per day. It also includes building a 235.38-kilometer-long sewage pipeline (drainage) along the eastern, northern and western lakeshores, a 21.97-kilometer-long water delivery pipeline, and 17 new pump stations.
Parties involved (public and private) :
Dali Housing and Urban-Rural Development Bureau (public)
CITIC Water Industry Fund Management Co., Ltd. (private)
Relevant contractual details (type, length etc.)
30 years cooperation period;
BOT and DBFO;
Payment mechanism includes availability payment, performance payment, and user fee.
Context: Erhai Lake, whose basin area is 2,565 square kilometers with 117 rivers flowing into the lake, is the main drinking water source of the City of Dali, covering 16 villages and towns of Dali with a population of 833,000 people.
Aim(s) of the project: In recent years, the pollution of the water source has become increasingly severe and the water quality has been declining. In order to control the pollution and protect the water quality, Dali decided to carry out this project via PPP model.
Key dates including procurement, construction, operations Date of procurement: June-August, 2015 Date of signing PPP contract_September 23, 2015 Date of starting construction: October 9, 2015 Date of starting operation: January 1, 2019
Relevance to QII
The project successfully reduces the pollution of Erhai Lake and improves the water quality. It becomesa water ecological complex that combines science education, ecological landscape, recreation, culture and tourism together, which will greatly improve the tourism quality along the lake and promote the sustainable growth of the economy.
The successful bidder has the independent intellectual property of the fifth-generation subsidence-type renewed water technology that is particularly environment-friendly. This technology has been applied to the project. All six sewage treatment plants along the lake are underground, which cuts off noise and odor. On the ground of the plant, it will build high-quality flowing water parks, tourist service centers, hotels, electricity charging piles and other tourist facilities. The tourism service revenue can be the supplementary income to effectively reduce the fiscal pressure, improve investment efficiency, and achieve Value for Money. The project saves 75 million USD investment.
A comprehensive business case of water ecological environmental management has been made considering the development plan, tourism plan and ecological plan of Dali.
The capacity of resisting natural disasters such as flood, geologic hazard has been considered in the project design.
The project has improved the environment, enhance the tourism along the lake and thus created jobs for local people. During the construction and operation of the project, the SPV pay attention to the issue such as occupational health and safety, capacity building, etc.
China has established a comprehensive legal framework for PPP, including PPP regulations, policies, guidelines, standard contract etc. PPP units have been set up both at central and local level. PPP project information have been disclosed on the national PPP platform to ensure transparency.
Conduct performance monitoring report, mid-term performance evaluation and post-value-for-money evaluation to ensure the project outputs meet the standards agreed in the PPP contract.
Name of Institution
China Public Private Partnerships Center, Ministry of Finance, China "Based on the project information input by local government, private partners and SPV onto the National Comprehensive PPP Information System."