Eclectic Investment

The Meaning

  • Eclectic: (1) Selecting what appears to be best in various doctrines, methods, or styles. (2) Composed of elements drawn from various sources.
  • Investment: the outlay of money usually for income or profit.

Wednesday, August 23, 2006

China's Urban Growth Overwhelms Water Supply

China's Urban Growth Overwhelms Water Supply
By SHAI OSTER
WSJ, August 23, 2006

China's water pollution and its shortage of clean water are hindering the country's economic development as rapid urbanization overwhelms the system, a top official warned.

"Generally speaking, the situation is deteriorating," Qiu Baoxing, vice minister of construction, said yesterday in Beijing. The problems are worsening despite a strong push by the central government and a pledge to spend one trillion yuan, or about $125 billion, to clean up the water supply.

China's urbanization is straining water resources. "We're adding about the equivalent of a New York each year," Mr. Qiu said, noting that 13 million to 15 million people move into urban areas annually. "During this stage, China will suffer from the most severe water pollution," he said. "This stage is a critical point."

Most of China's cities have waste-water treatment plants. But the ministry said many cities either aren't using them at all or are running them at only 30% of capacity because of lack of funds. By the end of last year, about 52% of the waste water from cities was being treated, up from 34% in 2000.

China plans to invest 330 billion yuan on sewage treatment in cities from this year to 2010, Mr. Qiu said. Beijing is courting foreign companies that can provide technology for waste-water treatment and recycling, and has been working with the International Finance Corp. and other multinational organizations on attracting foreign investors to the sector. The country next month will host the fifth World Water Congress.


Most of the country's rivers, lakes and canals are polluted by discharges of untreated industrial and domestic waste water as well as water runoff from farms that is laden with pesticides. The government says some 300 million people don't have access to clean drinking water. A drought this summer in the western province of Sichuan has exacerbated the problem, while cities in the northeast such as Beijing face perennial water shortages.

The water shortage in China's north is so severe that the government is revamping the ancient Grand Canal that is used to transport goods from the commercial city of Hangzhou. Construction also has begun on an entirely new canal, costing billions of yuan, that will carry water north from a tributary of the Yangtze River. At one point, the planned canal will move water underneath China's Yellow River, through a tunnel in the riverbed.

Mr. Qiu said water-conservation efforts and better recycling of just one-third of the water currently used in China's cities could make available a supply equal to the total volume of water that will flow on the new canal.

Leakage remains a problem. About 20% of a typical Chinese city's water supply is lost because aging pipes leak badly -- more than double the rate of losses for a city in the West, Mr. Qiu said.

China is gradually increasing charges for water use to encourage conservation and cover the cost of treatment. Mr. Qiu said the government will implement higher rates for industrial users and give discounts to enterprises that treat their water before discharging. He said new rates could be in place later this year or in early 2007.

Despite the grim picture, some major cities have managed to cut their water use. Another Chinese official said that Beijing, which is working to improve its image ahead of the 2008 Olympics, consumed 3.5 billion metric tons last year, compared with between four billion to five billion tons earlier.

The capital still has water issues. Recently, residents in parts of Beijing have complained about the quality of their water, and are resorting to bottled water for cooking and drinking. Mr. Qiu said that while he uses tap water for cooking, he uses bottled water for making tea.

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