Data show that China has boosted its water investment budget by 7 per cent this year. In this context, the government has launched its plans to attract private capital to major water projects using financial enticements.
According to the deputy head of the investment division under the National Development and Reform Commission, China will encourage investment allowing private investors to buy special licenses or take stakes in water projects.
The deputy has shown that the government has established a plan to prioritize investment support on projects that have private investors, by injecting capital and offering subsidies or loans with preferential terms. In addition to that, experts have said that China will improve the way in which water project prices are set.
Water represents one of the most challenging issues that Chinese authorities are trying to overcome. Studies reveal the complexity of the current situation.
In this framework, data indicate that China is organizing to start construction of 172 major water projects by 2020. Experts have shown that total investment for the proposed projects could amount to about 600 billion yuan ($98 billion).
Moreover, the spokesman for the NDRC, China’s top economic planning agency, has suggested that the government has planned an investment budget of 76.7 billion yuan for water projects this year.
In relation to that, encouraging private investments in water projects represents one of the main priorities of the Chinese political agenda.
The gLAWcal Team
Friday, 7 November 2014