BEIJING, China (Reuters) — China will give foreign companies more access to invest in large water projects as the government looks for ways to finance a massive infrastructure program aimed at tackling chronic shortages.
The country, which is desperate to maintain basic self-sufficiency in food and energy, is trying to make better use of its scarce and heavily polluted water. To do so it needs to recruit private capital to finance several multibillion-yuan spending plans to clean up lakes and rivers and improve pipeline infrastructure.
It will allow foreign participation in projects but will favour Chinese private investors as partners when it comes to running joint projects with local governments. Urban water supply projects will be limited to majority-owned Chinese enterprises.
China also plans to make local water prices more market-oriented in a bid to improve profitability in the sector. Prices have long been low, encouraging waste and deterring investment.
