Research On The Operation Challenges Of Chunfeng Water Supply Corporation

During the comprehensive development of the market economy, market-oriented reform has become the major direction of the municipal water supply and more and more capital has been invested into this business. It helped broaden the financing channels for infrastructure construction and improved the operation efficiency. However, it also faces the conflicts between the market and the public welfare.As a private holding company, Chunfeng Water Supply Corporation has gone through the property right reform and adopted the modern enterprise management model. However, because of the conflict between maximizing the enterprise profit and maximizing the public welfare, and the conflict between the restricted responsibility of the enterprise and the comprehensive responsibility of the government during the market-oriented operation, there are many internal and external challenges for the enterprise, which impacts the business growth. This paper investigates and analyzes the existing market-oriented operation issues of Chunfeng Water Supply Corporation. It proposes that the market-oriented operation for water supply should build on the foundation of the water pricing model reform, focus on the property right reform, use the comprehensive regulation system as an important guarantee, and leverage the government investment in the water supply infrastructure to support public welfare. The conflict between the market-orientation and public welfare can only be resolved through the establishment of effective operation mechanism and coordination mechanism, with the close interaction and cooperation between the government and the enterprise.