The profitability of the sewage treatment industry is still vast

On November 26, 2014, the State Council issued guidelines for investment and financing mechanisms in key innovation areas, encouraged social capital to invest in seven major areas such as water conservancy, and further strengthened support for the agriculture and water conservancy industries. In the areas of public services, resources and environment, ecological construction, and infrastructure, we will further innovate the investment and financing mechanism and give full play to the positive role of social capital, especially private capital.

The "Opinions" pointed out that it is necessary to improve the price formation mechanism and leverage price. In order to guarantee project profitability, stabilize social investment expectations, and create conditions for the entry of social capital, it is necessary to improve the price formation mechanism and implement the upstream and downstream price adjustment linkage mechanism. When the price adjustment is not in place, local governments can arrange fiscal funds for enterprises according to actual conditions. Operational compensation is reasonable. Accelerate the adjustment of the levy charge standards for major pollutants and implement a differentiated pollutant discharge policy.

The new environmental protection law is implemented to escort the city's water-saving and recycled water utilization industries. The new environmental protection law is hailed as one of the best "Environmental Protection Laws" in the world today and is considered as another important milestone in the history of China's environmental legislation. It can be expected that after the implementation of the new environmental protection law, the law enforcement situation will become more severe. The new environmental protection law incorporates environmental protection as a basic national policy into the law. In such a harsh legal background, companies can only strictly control the discharge of sewage. For many third-party environmental pollution control companies provide the golden opportunity for development. And for the uncontrollable sewage, it can only be treated through the water regeneration route, prompting environmental pollution control companies to make progress in areas such as urban water conservation and the use of recycled water.

China’s water resources are extremely scarce, and water conservation is highly valued by the central government. The new environmental protection law is about to enter the implementation stage. The introduction of the “Water Ten Articles” is a policy guide for water conservation in China. However, the realization of water-saving goals requires not only administrative constraints, but also means of marketization. Before the two ministries and commissions issued notices requesting further efforts to strengthen urban water conservation, it is necessary to strengthen planning's leading role in water conservation.

The preparation of the urban master plan shall scientifically evaluate the carrying capacity of urban water resources, and adhere to the principles of setting cities by water, set by water, set people by water, and set production by water, and plan water supply, water conservation, drainage, sewage treatment and recycling, and Water security, water ecology and water environment coordination. Strictly implement the "three simultaneous" water-saving system and intensify efforts to control the leakage of the water supply network. To speed up the recycling of sewage, actively promote the use of water in buildings, and promote the use of desalinated water according to local conditions. In the context of increasingly severe water resources, water conservation becomes a must.

At the drainage end, the recycling of wastewater will become another market-based approach to achieving water conservation goals. The wastewater recycling we are talking about generally refers to urban sewage. There is no technical problem with the use of recycled water in cities, and the water treatment technologies now available can treat wastewater to the water quality standards that people need.

Urban recycled water has certain advantages over other water sources.

First of all, the generation of sewage as the source of water for recycling and the production of sewage can basically take place simultaneously. At the same time, the relative distance between the sewage treatment plant and urban reclaimed water users is relatively short and the water supply is convenient. The scale of wastewater recycling is flexible. It can focus on the construction of large-scale reclaimed water plants on the edge of the city, as well as the construction of small-scale reclaimed water plants in various residential communities and public buildings.

Second, there is also an economic advantage over recycled water for the development of other water sources. 1. Cheaper than long distance water diversion. 2. Under certain circumstances, the economy is desalinated than seawater.

The “2015-2020 China's sewage treatment market panorama assessment and investment strategy report” released by China Industry Information Network shows that the total investment in China's drainage construction projects has increased dramatically in recent years. In 2004, it was only 35.33 billion yuan, and it had grown to 105.5 billion yuan in 2013, which was 298.6% of that in 2004. From the perspective of investment in the construction of drainage projects, there is still a broad growth point in the future.

In the past few years, the number of enterprises engaged in the field of sewage treatment has increased from 180 to 277, and the total assets of enterprises have also been continuously expanding, from 63.14 billion yuan in March 2011 to 127.88 billion yuan in September 2014. The proportion of loss-making enterprises has continued to decline, and profit-making companies have maintained a good rate of increase in sales margins. It is predicted that in the future, the profitability of the sewage treatment industry will remain broad.

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