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Introductory Message

Message from Mr. Bruce Murray, Country Director
Asian Development Bank People's Republic of China Resident Mission

The technical assistance on the National Guidelines for Urban Wastewater Tariffs and Management reflects another successful partnership between the Ministry of Construction in the People’s Republic of China and the Asian Development Bank (ADB). The outcomes and recommendations of the Study provide incentives to improve urban wastewater management and to generate the funds that are necessary to finance wastewater treatment facilities.

The Study has supported the Government’s objectives to improve the environment in the 9th and 10th Five-Year Plans. Market-based mechanisms will encourage the rational use of scarce water resources and promote long term planning and investment, particularly from the private sector, in water supply and wastewater infrastructure.

The technical assistance is consistent with ADB’s strategy, which emphasizes the protection of the environment, wastewater management and increase water supply. ADB’s support has included more than $1 billion in loans to help finance the supply of 4.0 million m3/day of clean drinking water and 2.1 million m3/day of wastewater treatment capacity. This lending has been complimented by 48 grants for related studies on water and environmental issues.

The Study supports ADB’s overarching objective of reducing poverty as the people most adversely affected by polluted water or water shortages are often poor. The health benefits associated with better sanitation and improved access to safe drinking water benefit the poor. The tariff structure can be designed to ensure the poor can access these services.

ADB has, through two other TAs from 1997 to 2001, supported the development and implementation of the water tariff guidelines. The National Guidelines for Water Tariffs developed under the first study were promulgated as a decree by the National Development and Reform Commission and the Ministry of Construction in October 1998. A second study assisted the Government in implementing the Water Tariff Guidelines in three case study cities. ADB would like to continue our support by helping with the implementation of the National Guidelines for Urban Wastewater Tariffs.