Historical and Geographical Disparities between levels of development of Each Region Source: Year Book of China Statistics 2008 Total Water Resource Population covered with water and wastewater treatment facilities, (2007) 22% Year 100 million m 3 /year
Water Resource Distribution and Utilization History in China Note: All figures are rounded; the base year is 2009. Source: Year Book of China Statistics 2009 Total Water and Wastewater Treatment Market: Water Resource Distribution by Regions (China), 2009 Total Water and Wastewater Treatment Market: Water Usage Distribution by Regions (China), 2009 Regions Regions Note: Others include seawater, brackish water, etc. The municipal drinking water supply rate has been reached to 97% till 2009. The drinking water supply rate for counties/towns will reach 75% by 2010.
Trends of wastewater discharge and rate of treatment Source: National Bureau of Statistics of China, Ministry of Housing and Urban-Rural development of China; Frost & Sullivan, 2009 Urban Wastewater Discharge and treatment rate in China, 2005-2009 Forecasted
Water Investments to be Doubled in 12 th Five Year Plan (2011-2015) Source: Ministry of Housing and Urban-Rural Development of China, China National Environment Protection Plan in the11 th Five Year (2006-2010) Environmental Protection Investment (China), 2006-2015E Timeline 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 11 th Five Year Plan 12 th Five Year Plan $224 billion in Environmental Protection About $11.2 billion in Water sector $454 billion in Environmental Protection About $48.5 billion in Water sector Accounted for 1.5% of GDP Accounted for 1.35% of GDP
Top Industrial Challenges Source: Frost & Sullivan Total Water and Wastewater treatment market: Impact of Top 7 challenges in China, 2010-2016 Rank Industry Challenges Impact Over Forecast Period 1 - 2 Years 3 - 4 Years 5 - 7 Years 1 Water scarcity and ever-polluted natural water resources. High High High 2 Government emphasis on Zero wastewater discharge in water intensive industries. High High High 3 Privatization for water and wastewater industry . High High High 4 Conflict between increasing wastewater discharge standards and the cost of treatment and operation. High High High-to-Medium 5 Relatively low water tariff affect the investment motivation. High High High-to-Medium 6 End users regional preference and fierce competition with domestic organizations pose a barrier for new entrants. High High High-to-Medium 7 Old infrastructure and facilities for existing water and wastewater treatment plants. High High High-to-Medium
Total Market Revenue Forecasts Water and Wastewater Treatment Market: Total Market Revenue Forecasts (China), 2006-2016 Note: All figures are rounded; the base year is 2009; Source: Frost & Sullivan
Water and Wastewater Treatment Market: Priority Investment in Municipal Sector (China), 2009
Wastewater Treatment Coverage in China, 2009 Source: Ministry of Housing and Urban-Rural Development of China Total forecasted investment (2010-2015): U$ 38 billion
Stakeholders Analysis – Municipal water and wastewater Decision Making Process among Key Stakeholders in Chinese Water & Wastewater Treatment Market Evaluation of Decision Making Criteria among Key Industrial Customers Scenario 2 Retrofit project EPC Design Institute End User Water/Wastewater Companies Technology Suppliers/Manufacturer/Distributor Scenario 1 New project 1 2 3 1’ 3’ 4 Construction Companies Engineering Supervision Companies Investor
As tenders in the municipal sector are launched for turnkey projects, success in the market, particularly for equipment suppliers requires establishing good relationships with the remaining market participants. Understanding the market structure and relationships form the key success factors.
General EPC contractors and Specialized Water and Wastewater EPC companies Equipment suppliers and Distributors Source: Frost & Sullivan Total Water and Wastewater Treatment Market: Sample of Representative Companies (China), 2009