PPP pattern helps environmental water treatment market

        Core tip: in addition to financial subsidies, the government and social capital cooperation (PPP) model may be the "main beam", and social capital will become an important channel for investment and financing of environmental infrastructure construction. The environmental protection industry strives for the upper reaches. The government calls on the water treatment market to expand the development space of environmental protection. Time goes by, aiming at international environmental protection.

        2015 is the year of environmental protection development. After the promulgation of the "new environmental protection law" and the "ten water rules", the environmental protection industry has become the focus of public opinion. It's people talking about after dinner. In addition to financial subsidies, the government and social capital cooperation (PPP) model may bring up "the beam", and social capital will become an important channel for investment and financing of environmental infrastructure construction. The environmental protection industry strives for the upper reaches. The government calls on the water treatment market to expand the development space of environmental protection. Time goes by, aiming at international environmental protection.

        Can PPP model create the future of environmental protection industry? We will wait with you Since 2013, the PPP model has been promoted by the state and local governments. In the relevant policies issued, the support attitude for environmental protection and other public services is clear, and almost without exception, environmental infrastructure construction and services are listed as the main areas of PPP mode promotion. However, in the face of the huge cake of PPP projects, the signing rate is relatively low. With the gradual implementation of policies and the accumulation of experience in demonstration projects, it is expected that PPP projects will enter into a rapid signing period. In the field of water treatment with relatively mature operation mode, under the dual driving force of the "water ten" new policy and PPP policy, enterprises with the advantages of brand and capital will fully benefit from the layout of PPP market in advance.

        PPP mode?

        Since 2014, the national policy has continued to increase the code of PPP. The practice of developing PPP model in China has existed for a long time, but it has been heated up and attracted the attention of decision-makers since 2013. The Third Plenary Session of the Eleventh Central Committee of the Communist Party of China proposed "to accelerate the promotion of social capital into the field of infrastructure, allowing social capital to participate in urban infrastructure investment and operation through franchising and other means".

        Development of water treatment market

        As a heavy asset industry of the current government, water treatment industry will fully benefit the enterprises that have the advantages of brand and capital and have the PPP market in advance. Based on the current characteristics of heavy assets in the water treatment industry, the listed companies involved in the "ten water" new deal and PPP policy usher in a new market space. After all, the water treatment industry has formed a relatively mature profit model, so it is likely to have large orders. With the cooperation diversification of PPP mode, the transformation from small projects to large projects is obvious. While obtaining large orders, the company is easy to transform from a simple general contractor to a platform company. In this movement of horse racing and land grabbing and resource grabbing, those enterprises that have the advantages of brand and capital (it is possible to arrange PPP projects in the future) will have more opportunities and greater advantages to participate in and share the dividends of PPP projects in the water sector.

        Now the new environmental protection law has been promulgated, which is in parallel with the PPP model. The water treatment market needs to dig gold. With the support of the government, the new era of environmental protection is coming.