Peixian Water Supply Project in Jiangsu

Pei County, situated in Xuzhou City, Jiangsu Province, borders Weishan Lake to the east, Feng County to the west, Tongshan District to the south, and Yutai County in Shandong Province to the north. Positioned at the southeastern edge of the North China Plain and the northwestern bit of the Huaihai Economic Zone, Jiangsu Peixian Water Supply Project was initiated in October 2015.

The project comprises two parts: stock and new construction. The stock part includes a 100,000m3/d surface water plant (Phase I project), 13 established town sewage treatment plants, and pipe networks with a total scale of 83,000m3/d. The new construction part encompasses a 100,000m3/d surface water plant (Phase II project), a regional water supply pipeline network project, a regional water supply and rural Drinking Water Branch Network Docking Project, and a Rural Drinking Water Safety Project. The total investment for the project amounts to approximately 1.5 billion RMB.

Implemented under a concession mode, the project company assumes responsibility for investment, construction, and operation. It delivers water supply and wastewater treatment services meeting set standards, garnering corresponding income and investment returns during the concession period. The social capital party was introduced through bidding in August 2016, leading to the establishment of the project company in September of the same year.

For the surface water plant project, the project company invests in renovation and expansion, with residents and enterprises paying according to government-set water supply prices. The government supplements any "feasibility gap subsidy" not covered by these prices. Regarding sewage treatment plants, the project company operates based on a "capacity water price + water quantity water price" design concept, with the government covering fixed and variable costs. For municipal pipeline networks and rural safe drinking water projects, social capital invests in and finances new construction, while the government entrusts operation responsibilities to social capital for both stock and new pipeline networks.

As the government-side consultant for this project, Ktrue provided comprehensive consulting services, including due diligence research, program mechanism design, financial calculation, program preparation, and contract negotiation, ensuring the project's smooth implementation.

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