| Before the 1990 s, China’s water section is basically owned by the state. Due to long monopoly, China’s urban water industry exposed many problems, such as inefficient, single investment channels and miscellaneous personnel. The early 1990 s, China began to urban water industry privatization. Subsequently, the State Council and the Ministry of Construction issued the relevant water sector privatization policy documents. Foreign and domestic private enterprises began to get involved in the field of water supply, drainage and sewage treatment.Since privatization, our urban water industry experienced three phases including private exploration, accelerating privatization and the government adjustment. After 20 years of privatization reform, China’s urban water industry in terms of privatization has also made some progress. Based on the private sector, foreign and state-owned enterprises operating efficiency and tax credits comparative analysis showed that foreign-funded enterprises and private enterprises operating efficiency and tax credits are higher than the state-owned enterprises. Water penetration and Sewage treatment rate shows that privatization reforms promote universal service.Through quantitative analysis, we can examining the impact of privatization of water supply and sewage treatment capacity. Water Privatization can promote the capacity of water supply and sewage treatment. Although the performance evaluation show that the privatization deposit into the development of the water sector, but in the process of China’s urban water industry still exists some problems. Regulation is very important.By drawing on fully privatized model in UK and the franchise model in France, I make some policy recommendations. Firstly, Laws and regulations are needed. Secondly, water sector regulatory agencies are hoped to establish. Finally, improve the entry regulation, price regulation, quality regulation and environment regulation. |
PDF Full Text Request