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Urban Utility Sectors Open to Investors
The Chinese government will open the national urban utility market to domestic and overseas investors in 2003, divesting itself of managing the massive water, gas, heat supply and waste disposal sectors.

Minister of Construction Wang Guangtao said at a national construction conference which ended Tuesday that his ministry would take steps this year to accelerate the commercialization of the urban utility sector.

This would be another breaking of monopolies in China after the opening of industries like electricity generation, aviation and telecommunication, he said.

The supply of water, gas, and heat, the sewage and refuse treatment as well as public transport would all be involved, said Wang.

Domestic and foreign investors would be allowed to invest alone or cooperate with local authorities or enterprises, and would also be allowed to invest in different utility sectors in different geographical areas, said the minister.

Chen Xiaoli, chief planner of the Ministry of Construction, said the ministry would regulate utility charges and services, so as to secure the interests of urban residents as well as the safety of facilities.

The ministry would offer more guidance this year to all local governments in opening their markets by preparing detailed operating rules, said Chen.

The ministry would further promote charges for sewage and refuse treatment in 2003, and deepen the price reform of water supply, so as to establish a price system adapted to the market economy.

(People's Daily January 8, 2003)


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