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In 2018, water conservancy investment is set to exceed 1 trillion yuan, with PPPs driving rapid growth in the sector.
Release date:
2018-06-08
Source:
This year, the State Council's "Opinions on the Division of Key Tasks for Implementing the Government Work Report" clearly emphasizes leveraging investment as a critical driver for optimizing the supply structure, with an ambitious goal to bring the scale of ongoing water infrastructure investments to 1 trillion yuan this year. Although currently the PPP model accounts for only a small portion of total water infrastructure investment, it’s undeniable that, amid the nation’s growing focus on agricultural development and its strong push to shift the PPP sector from mere volume expansion to quality improvement, water infrastructure—being the foundational support system for agriculture—will undoubtedly see a significant surge in demand.
This year, the State Council's "Opinions on the Division of Key Tasks for Implementing the Government Work Report" clearly emphasizes leveraging investment as a critical driver for optimizing the supply structure, with an ambitious goal to bring the scale of ongoing water infrastructure investments to 1 trillion yuan this year. Although currently the PPP model accounts for only a small portion of total water infrastructure investment, it’s undeniable that, amid the nation’s growing focus on agricultural development and its strong push to shift the PPP sector from mere volume expansion to quality improvement, water infrastructure—being the foundational support system for agriculture—will undoubtedly see a significant surge in demand.
The market anticipates that 2011–2030 will be a golden period of accelerated development for China’s water conservancy projects. According to the "Key Work Priorities for Rural Water Conservancy in 2018," recently issued by the Ministry of Water Resources, the government is committed to ensuring the completion of an additional 20 million mu of highly efficient, water-saving irrigation infrastructure. This includes breaking down and implementing annual construction targets, building a number of major, high-efficiency water-saving irrigation projects, and addressing drinking water safety issues for 4 million registered impoverished individuals. Additionally, the ministry aims to reform and upgrade irrigation systems across more than 30 million mu of farmland throughout the year.
Analysts believe that although the PPP model currently accounts for a relatively small share of total investment in water infrastructure projects, it is undeniable that, amid the nation’s growing emphasis on agricultural development and its strong push to shift the PPP sector from mere quantity-driven growth to quality-focused improvement, water infrastructure—being the foundational support system for agriculture—will undoubtedly see a significant surge in demand. Meanwhile, as PPP continues to serve as an effective mechanism for delivering infrastructure projects, the market still holds substantial potential for future investment growth.
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