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      the erhai lake, located in dali bai autonomous prefecture, is the mother lake of people in dali. in recent years, due to increasing urbanization and the spurt in tourist arrivals, the protection, management, and ecological civilization of the erhai lake watershed are under tremendous pressure. 
　　given the limited local budget, it is very difficult to intercept wastewater around the lake. the ppp model enables the dali municipal government to put lake management ideas into practice in a situation where both the government and private participant win. at present, aside from the dali erhai lake water environment management ppp project (phase i), the dali municipal government is still preparing other ppp projects for the comprehensive management of the erhai lake. 
　　ppp model starts to take effect in long-term lake management.
    statistics show that in recent years, over 20 million tourists came to dali every year. in 2015 alone, an average of 657 tons of domestic waste was produced by towns and villages around the lake, increasing the environmental pressure. experts have warned that the erhai lake is already in a reversible sensitive period right before the early stage of eutrophication. dali municipal government wants to protect the whole lake through wastewater interception, but is not supported by its finances. dali city’s general public budgets in 2013 and 2014 were rmb 2.56 billion and rmb 2.75 billion respectively. given the limited financial resources of the local government, wastewater interception around the erhai lake was a dream too expensive to be realized. 
　　thanks to the ppp model, dali prefecture and municipal governments, as joint purchasers of the erhai lake ppp project, screened investors through competitive negotiation, and invited 16 private investors for a market test. finally, citicpe and cweg (formerly citic water) were selected as private investors in a market-oriented manner. 
　　following the principle of “terrain-based seamed interception system, area-based wastewater collection, and centralized treatment”, on october 11, 2015, the dali erhai lake water environment management ppp project (phase i) was launched as one of the second batch of ministry of finance demonstration ppp projects, and one of the second batch of projects supported by the yunnan special construction funds.  
　　phase i includes six wwtps, 235.4 km of trunk sewers and channels, and 17 lift stations. according to the agreement, in the process of construction, the private participant shall be responsible for raising funds, and the government shall take the responsibility of coordination, overall planning, and supervision. the wwtps adopt the bot (build-operate-transfer) model, and the cooperation period is 30 years (including a construction period of 3 years). during the operation period, the government pays wastewater treatment service fee to the project company according to the unit price and treatment volume of the wwtps. after the project period expires, the project company shall transfer the wwtps to the government for free. trunk sewers, channels and pumping stations are laid/built in the dbfo (design-build-finance-operate) model. the cooperation period is 18 years (including a construction period of 3 years). the project company is responsible for the operation and maintenance of the trunk sewers (channels). service fees will be paid by the government in equal installments on an annual basis since the day when the payment requirements are met. it is estimated that besides the financial subsidy granted for construction, the local government needs to pay around rmb 340 million service fees per year. with erhai lake resource protection fees and wastewater treatment service fees collected, the municipal government only needs to allocate about roughly 59 million, or 1.4% from its annual budget, which is affordable for the government. 
　　at present, construction of the six new wwtps in shuanglang, shangguan, wanqiao, xizhou and dali ancient town have started. the total designed short-term capacity is 54,000 m3/d, and long-term capacity 118,000 m3/d, with effluent achieving the wwtp discharge standard class ia. as of september this year, rmb 670 million had been invested. the project is estimated to be completed in 2018. 
　　ppp model creates win-win situation for private participant and government
  “the ppp model provides an innovative way of investment, and more importantly, an innovative way of operation and management. pollution control needs urgent action. the ppp model enables the government to spend future money currently, to solve urgent ecological problems.” zhang yong, member of the standing committee of the cpc dali municipal committee, executive deputy mayor of dali, and commander of the erhai lake water environment management ppp project construction command said , “the ppp model has great advantages and has added momentum to the dali lake wastewater interception project.”
　　on the one hand, the ppp model helps the government save money, time and labor. the dali erhai lake water environment management ppp project (phase i) has a total approved investment of rmb 4.5 billion, including rmb 3.49 billion of near-term investment (2016-2020). through field investigations by cweg’s technical team, and expert discussions, the ppp contract price was determined to be rmb 2.98 billion, a 17% decrease compared with the original price. 
　　meng jianwei, cweg yunnan division executive deputy general manager said, “in the ppp model, the earlier we complete the project, the earlier we can make profits from it. cweg will shorten the construction period by six months on the premise of ensuring project safety and quality.” he added, “private participation in the entire project period from planning to construction to operation can effectively avoid the management defect that the government acts as both the referee and player, and solve the problem of overlapping management and unclarified responsibilities, helping the government save time and labor.” 
　　on the other hand, the ppp model “leaves professional fields to experts”, and motivates the enterprise to actively optimize the project. in the ppp model where the enterprise is the project owner and the government pays only when the project is qualified, to reduce investment and operating costs, the enterprise will constantly seek optimal solutions to maximize project benefits. in addition, since the government and enterprise share both benefits and risks, to promote long-term cooperation with the government, the enterprise is motivated to help the government save investment and reduce risks. 
　　according to meng jianwei, the involvement of third-party cost audit, financial audit and quality inspection can effectively improve project quality, control project costs, and promote government supervision. “since there is no ppp experience to draw on, we’ve been constantly discovering and solving problems. third-party supervision helps us discover and solve problems as early as possible, preventing problems from getting serious,” meng said. 
　　dali promotes ppp projects for further erhai lake management 
    according to a source, dali prefecture and municipal governments are currently promoting other ppp projects for the further management of the erhai lake. in addition to the erhai lake wastewater interception project (phase i), more ppp projects will be launched for the comprehensive environmental management of the erhai lake, bringing total investment to rmb 10.568 billion. 
　　erhai lake watershed main river management ppp project will be launched within this year. it is said rmb 902 million will be invested in the comprehensive management of 34 main rivers, and the maintenance of 38 rivers running into the erhai lake. “erhai lake watershed main river management ppp project is an important way to improve the quality of water flowing into the erhai lake, and the ecosystem of the erhai lake watershed. it’s also an effective way to avoid agricultural non-point source pollution for a clean lake,” zhang said. 
　　dali erhai lake water environment management ppp project (phase ii) is currently under construction. zhang yong said: “the second phase of the project mainly aims to collect wastewater around the lake and build a ‘capillary network’ to further improve the lake’s water quality.” at present, the feasibility study for the second phase has completed. since the lake watershed spreads across a large area, experts have been gathered to optimize the construction plan. as long as the second phase of the project is completed, wastewater will be intercepted around the lake. the erhai lake watershed buffer zone ecological renovation and wetland creation ppp project has been approved. 
the above projects have all been included in the third batch of ministry of finance demonstration ppp projects. “in addition, dali city has achieved results in the integrated collection and treatment of urban and rural wastes, and has strengthened the adjustment of agricultural industrial structure. engineering management and social management have been carried out in parallel to systematically control the water quality and ecological environment of the erhai lake.” said zhang.

link:http://www.jjckb.cn/2016-10/24/c_135775886.htm