Bishuiyan Water Treatment Technology Company

Water Treatment Technology Company is an important high technology firm of Hebei region. The organization is situated in Langfang City, Hebei region of Ping Shu Engineering Park. Since its formation, the company depends on high-quality employees, technological and scientific progress, cutting-edge manufacturing technology, sophisticated manufacturing equipment, and detection means to create the highest quality “green water, ”high-performance brand sequences of products.[1]

Some of the categories of products include some of the boiler additives, reverse special osmosis sterilization as well as a reverse osmosis cleaning agent.[2]

The product series are majorly used for sewage and water treatment, the anti-penetration system to stop the refinement of device clambering, purify quality of water, improve the exploitation rate of water and eliminate pollution ensuring a stable and safe function of the water machinery.[3] Also, the research and development, the technical service, production as well as the application of skills in this water treatment have created yearly production of fifty thousand tons of production scale. The advantages of this technology company include: stability and security of operation, low expenses, protection of environment, make the system of water treatment to realize saving of energy, help the consumers exceed or meet the needs of customer, experts offer regular services, specialists participate in the water treatment, autonomous research and development and introduction of global cutting-edge water treatment technology.[4]

1.2 Industry overview: Describe critical trends in the water supply industry, Plans in China

According to (Sun and Zhang), with nearly 22% of the globe’s populace but just 5% of the globe’s renewable supply of fresh water, it is simple to understand the reason why the government of China has made water resource management a high priority hence making some improvement on it.[5] Sun and Zhang explain that The water resources ministry notes that about 400 out of 663 municipalities in China are suffering from shortages of water. The move of China to advance its water infrastructure emerges as the country faces many challenges from 2 different directions.[6] First one is that the quality of water is still an issue, and the second is that the demand for water is expected to keep increasing.

For several organizations, water signifies a substantial risk in case such businesses find themselves caught between narrowing intense competition and quality controls oversupply. For the others, water means a viable opportunity as China shifts to address these same challenges.[7]

In this publication, the study analyzes how technology has transformed the water treatment industry, using the case of Bishuiyuan Water Company and the possibilities of investing. The situation will involve a discussion of different technological input in the company that can help to solve the water war in China.

Markedly, over the past four years, income for the supply of the water industry in China upsurged at an annualized rate of 8 percent to about $24.5 billion.[8]

According to Burnett & Bachmann, (2012), recently, the government of China has been encouraging the commercialization of the supply of water business, which has led to an increase in revenue. Several firms in the industry currently have foreign and private capital.[9]

Several enterprises have been transformed from public companies into solely state-funded companies, which signifies the companies are capable of operating more autonomously and make more cooperative ventures. The industry has only two export markets: Macau and Hong Kong. Shi, Chertow & Song (2010) explain that the exports from the sector were projected to total $799.6 million in the year 2017 and account for 3.3 percent income from the industry.[10]

The 12th Five Year Plan set a target of decreasing water usage per unit of business productivity by 30%. A similar objective was attained in the 11th Financial Year Plan (2006-10), and it is projected that China shall repeat that achievement in the present planning time.[11]

However, as in the energy segment, domestic workers are not at pace with manufacturing ones. Consumption of water per unit of GDP and capita is increasing in numerous metropolises across China, in spite of declining provisions in the northern third of the nation. Usage of water is projected to increase in 2018 to about 670 billion cubic meters by 2020.[12] Being able to meet this demand is driving suppliers of water beyond afield, pumping a lot of water overstretched distances to workers, and towards energy-expansive wastewater treatment technology.[13]

Wastewater treatment is one of China’s contemporary urban infrastructure successes. PRC Housing and Urban-Rural Development ministry report that between 2000 and 2010, the amount of wastewater treatment plants increased to about 1700, whereas total capacity treatment up-surged five times to 10665 cubic meters per day.[14] The scenario mirrors the central government’s solid dedication to preserve the quality of water. Burnett & Bachmann (2012) explain that this significant contribution is not sufficient: China’s lakes together with rivers- not able to grip the pollution materials released into them day-to-day- are gradually polluted.[15]

The ecological interruption caused by the transfer of water schemes, escalating energy force of treatment of water, as well as decreasing water reserves progressively, shall continue to destabilize the sustainability of water systems of China.[16]

Future attempts to upsurge the performance of water segment must espouse a more incorporated method. The different components of storm water, wastewater, and water- are usually handled by different government firms with disparate, at some point rivaling programs.[17]

Incorporated water resource managing in most cases can help to match the quality of water to uses of water, increase the quality of water released to ecologically safer levels, and improve treatment cost-efficacy.[18]

The water industry of China shall open up for reverse membranes, osmosis as well as other unconventional technologies for treatment that streamline operations through minimalizing energy contributions.[19]

The reason being, local governments have a responsibility to fund more significant portions of their foreign companies, water infrastructure that is ready to invest equity and debt in treatment plants shall be sufficient.[20]

Water extraction- This segment is majorly controlled by public companies with the assistance of private and foreign players.[21]

Nevertheless, overseas and private firms are very active in providing equipment, services, and technologies to extractors of water.[22] Examples include measuring the source of water, extraction technologies as well as underground source identification services. The business is hugely disjointed, which is because of the geographically based management apportionment of rights of water to market contributors in China.[23]

Furthermore, more focus is found in the services and components markets, like high-pressure pump manufacturing. The discussion shall as well be viewed in businesses providing desalination equipment and technologies as China continues to improve seawater exploitation at a bigger manufacturing scale.[24]

Water treatment- In this disjointed business, numerous municipalities have their central water treatment plant, explicitly associated with the domestic régime. Even though the market has many public-sector entities, countless foreign and private players participate in the process as suppliers and operators of technology, constructors and designers.[25] Ten years ago, the government of China banned the restriction on proprietorship of treatment of water plants, that led to the upsurge of business involvement by private and overseas companies.[26]

Stated-owned-private partnerships for treatment of water are becoming gradually familiar in some cities.

Water distribution - With China’s current high growth rate, the water pipeline demand, and growth shall positively continue.[27]

Nevertheless, the water distribution systems of China are frequently insolvent, due to old distribution systems (high outflow), erroneous water meters as well as no payment for distribution of water.[28]

Systems of water supply in China are operated by public companies, which similarly dominate construction and system design. Thus far, overseas firms barely take part in water distribution networks. Even though rules permit overseas investment as minority interest in joint undertakings with public utility firms, low revenue potential limits the influx of foreign and private capital.[29] The unlimited opportunities for overseas players in the water supply market are in unconventional expertise or technologies, like integrated monitoring systems, advanced water measurement technologies, and network leakage.

As of now, the market for China wastewater and water treatment (WWT) technology is projected to experience a CAGR of 9.45% during the prediction time.[30] The growth is majorly propelled by widespread usage of WWT technologies in public wastewater and water treatment.[31]

The eastern side of China accounts about 33 percent of the entire WWT plants, on the other hand, Northern-West China estimates for the smallest number of WT plants of 17 percent of the whole WWT plants. Some of the recent include: In December 2017, Jacobs finalized the procurement of CH2M generating USD 15 billion specialized services leadership engrossed on providing advanced resolutions for more linked and maintainable globe.[32] In April this year, Beikong Water signed an intent letter for collaboration with Heshan Public Government.[33]

In May 2018: SUEZ together with its partners earned a new agreement in China for EUR 436 million.[34]

1.3 Snapshot of the current situation regarding the leading players in the market, the technologies used and possible future technologies from abroad

1.3.1 Leading companies in China’s water industry

As of now, the overall volume of water supply projects for the six dominant overseas water service firms is about 10 percent of total countrywide water supply, which outlines the scale of the challenges and opportunities for foreign players.[35]

These market circumstances do not have materially changed in the past five years based on trends and discussions.[36]

Currently, TOT and BOT pacts are common for wastewater treatment projects and water treatment projects, although many plants are still constructed on Build and Design or an Engineering, Construction, and Procurement basis.[37] There are many private companies’ participants in the market and a varied range of firms involved in the segment or trying to enter it.[38] These include: Domestic investors (for example, Tianjin Capital Environmental Protection as well as Beijing Capital), Domestic operators (for example, Shanghai Municipal Raw Water, Sound Group and Golden State Environmental Group), Big corporations (for example, Veolia Suez), Other specialized operators (for example Asian Environmental Holding, Kardan, Hyflux, Ranhill), Infrastructure coffers (for example, Macquarie Everbright China Infrastructure Fund, Challenger Financial Group and Mitsui & Co.’s Developing Market Infrastructure Fund as well as Morgan Stanley Infrastructure Fund).[39] With several marketplace players, bidding on tenders is considered to be extremely competitive for BOT plant ventures amongst the small players, and circulation network investments amongst the main players.[40]

An appropriate design of this rivalry was the speedily growing payments provided in the year 2007 to secure ideal dealer status for circulation system joint ventures with public establishments.[41]

In just 2007, the payments from successful tenders by workers on numerous properties were regularly 3 to 5 times the stated net property values of the projects.[42]

Recently, significant bids have been less frequent, and dealings have tended to involve small-scale projects.[43]

In 2011, the China National Development and Reform Commission published a new kind of its Overseas Venture Industrial Control Directory, last reviewed in the year 2007.[44]

The latest catalog has an effective date of January 30th, 2012 and informs the position of the building and process of water reprocessing plants from ‘legalized’ to the ‘reinvigorated’ list in conjunction with the wastewater treatment services business and the creation and operation of municipal water works.[45]

1.3.2 Technologies used in water treatment

In 2000, the Chinese regime commenced cooperating with financiers and private firms comprising overseas players, to get water technology. Officials from the water department have openly encouraged foreign involvement in China’s water marketplaces, particularly in WWT projects.[46]

The current ideals for drinking water are believed to be a real problem for the entire business due to present low levels of technology and will, therefore, help to drive the need for advanced water treatment equipment and techniques, which epitomizes a substantial opportunity for foreign firms.[47] It is approximated that about 1500 plants of water treatment shall have to capitalize on technology advancement.[48]

Chinese water is majorly extracted from groundwater 18 percent and surface water 81 percent.[49]

Faced with an extreme scarcity of water surface and the groundwater overdraft challenge, the Chinese government has indicated more significant interest in encouraging exploitation of seawater and rainwater, leading to pilot projects in the nation.[50]

For instance, many distillation surveys have SAn in seaside places like Zhejiang and Tianjin.[51]

In the wastewater treatment field, a full range of machinery is being used in China. It is noted that physical wastewater treatment machinery is inexpensive, but do not eradicate the most harmful contaminants whereas biological technologies can significantly reduce waste pollution.[52]

Chemical treatment procedures are essential for the Chinese government to meet water contamination decrease targets but similarly contribute to contamination.[53]

1.4 Background of the Study

In the last three decades, China has perceived its local populace increase at an astounding scale and rate. In the 1980s, nearly 20 percent of the populace stayed in municipalities, compared to 53 percent currently.[54] As a strategy of the Chinese régime’s struggle to encourage economic development and consumption, suburbanization is expected to continue to expand, with urban populace accounting for 70 percent of China’s total people in the next fifteen years.[55]

The picture signifies that by 2025, China shall have approximately 221 municipalities with about 1 million populations, equated with thirty-five towns of the similar magnitude in Europe nowadays meaning the local demand for water is anticipated to upsurge by 70–100% from 2005-2025, contingent on the suburbanization model.[56]

Fast economic growth of China, as well as suburbanization, have undoubtedly put increasing pressure on its environment and natural resources.[57] The unmaintainable usage of water has exhausted groundwater and produced severe contamination.[58] Even though China is inhabited by 20% of the globe’s populace, it has only 7% of the globe’s fresh-water resources.[59]

The per capita water resource for China are amongst the lowest at 2093 m3 as compared to the global mean of 6,123m3 per individual. Furthermore, the current Chinese government report discloses that around 30 percent of rivers from China and 60 percent of its surface water resources are contaminated, and together with suburbanization, comes a lot of wastewater.[60] Since the beginning of 2000, the total quantity of wastewater realized has increased by 65 percent from 41.5 billion tonnes to around 68.5 billion tonnes and is anticipated to upsurge further as suburbanization continues.[61]

All of this signifies that other water supply systems, public health systems as well as wastewater treatment amenities must be constructed and connected.[62]

Nevertheless, existing investments in wastewater and water treatment set-up have not matched with rates of suburbanization.[63]

Therefore, the increasing demand is driving providers of water further afield, pumping a large volume of water over lengthier distances to customers, as well as using more urbane water treatment technology permitting water reprocessing.[64]

But China has acknowledged the nation’s water problems and has also prioritized on water projects. In its twelfth Five Year Plan, it projects to use USD 615 billion on wastewater treatment, water effectiveness enhancements, and circulation. Additionally, it has presented severe contamination release tighter water monitoring structures to safeguard water resources.[65] The situation signifies a massive opportunity for wastewater and water providers treatment technologies like advanced purification, UV decontamination technologies, and inverse osmosis. Corporations providing water circulation and wastewater treatment explanations in China like Veolia, China Everbright, and Beijing Enterprises Water are projected to benefit from rising demand for treatment of wastewater and water.[66]

1.5 Problem Statement

There are several challenges facing water systems and technologies in China. In the core of these incredible problems, China is experiencing hastily growing demand. Almost 60 percent of the municipalities in China suffer from shortages of water and the magnitude of China’s local populace continue to increase day by day.[67]

Gaps of demand occur in China’s general accessible water distribution along with water supply. The northern area of China is highly inhabited but has only a smaller percentage of total available water resources. Furthermore, overall China’s quantity of water resources has dropped by 13 percent since the year 2000.[68]

In these gaps lie opportunities for corporations to assist China in meeting the rising demand. The research reviews how Bishuiyuan

Water Treatment Technology company in partnership with the government and other stakeholders can address the water challenges in China, thus improve the standards of living for the citizens.

1.6 Aim/Purpose of Research

The research aims at discussing how the technology Bishuiyuan is solving the water problem in China. The research will explore the current technology and how Bishuiyuan can partner with other stakeholders to achieve efficiency and effectiveness in water treatment in China.

1.7 Research Objectives

§ To discuss the availability of adequent water in China and explain the importance of water infrastructure in China

§ To explain the technology that Bishuiyuan uses in wastewater treatment and if it is addressing the current water shortage in China

§ To address financial analyses of Bishuiyuan and how partners can help the company achieve its mandate

1.8 Research Question

i. What is the current situation of availability of clean water in China and how could modern technology transform the condition?

ii. What technology does Bishuiyuan use in waste water management in China?

iii. What is the financial status of Bishuiyuan and how can the government and other players in the water industry help Bishuiyuan meet its objective?

1.9 Conceptual Framework of Investment Feasibility

The theoretical framework describes the situation facing investors in the water treatment industry. Wastewater recycling requires understanding cross-cutting issues in technology and efficiency to be able to provide the population with adequate clean water in a cost effective manner. The most important aspects for the water treatment companies is the wastewater generation, collection, treatment and recycling, as shown in the figure 1 below.

Cost Sharing Mechanism

Wastewater generation is when the communities are supplied with water for use, after which the water is disposed as waste. Most urban areas in China are have sewage networks. However, about 10% urban areas are not served, resulting in significant volumes of wastewater being exposed to the environment.[69] The investing companies must identify the most effective and efficient wastewater collection technology. The wastewater is then transported through the sewage network for treatment. What follows is the wastewater treatment, where the water can be treated to either primary, secondary or tertiary levels. Wastewater treatment is expensive in terms of energy and land. Finally, after the water is treated, it is discharged for reuse by being channeled to natural water sources like lakes, or for domestic and commercial use. Bishuiyuan Water Company can focus on acquiring the cutting-edge technology in one of the four phases of wastewater management and partner with other companies that have cutting-edge technology in the other phases. As a result, the companies will achieve both efficiency and effectiveness in wastewater management.

1.10 The significance of the Study

The research will help to analyze how technology has transformed Bishuiyuan Water Company and the possibilities of investing to expand the company’s production and overall water industry, to meet the rising demand in China. The process will involve a discussion of different technological input in the company that can help to solve the water war in China.[70]

The use of water and wastage treatment plan is one of the strategies that Bishuiyuan has taken to ensure that there is proper water sanitation in the city. The paper will also help in understanding the challenges that China is undergoing due to water shortages. It will address some of the mitigations taken by Bishuiyuan and the government to solve the problem and investment possibilities of building more water treatment plants throughout the nation (Mekonnen & Hoekstra, 2016). In China, there is a full project being undertaken after analyzing the water challenges. One of them is the WWT and LCC (Lifecycle costing) which aims at reducing the inefficiency by 50%. Thus, the research will help readers to have more details about the planned treatment plan in China, their implications on water war, the benefits to the citizens and the government, among other positive impacts associated with these water infrastructures. The reader will understand how Bishuiyuan Water Company is using technology to address the water problem in China. Also, the study will help the researcher to explore more in the area of study and learn technological mechanisms that can be used to solve water shortage in a community (Wang et al., 2007).

1.11 Summary of Chapters

The research has five chapters. The first chapter outlines the background of the study, Executive Summary, Industry overview: Describe critical trends in the water supply industry, Future plans in China, Snapshot of current situation regarding the leading players in the market, the technologies used and possible future techniques from abroad, research queries, research aims, significance of the study, and study assumptions. Chapter two is the literature review where previous researches are developed empirically around issues water treatment and wastewater treatment technologies. It covers an overview of prior partnership, a summary of last technology transfers as well as a strategy for cross-border technology transfer. Chapter three has the methodology used in work; the suggestion is that the study settled for mixed methods which include the use of both quantitative and qualitative research approaches. The chapter also covers Development of the Questionnaire for the American and Chinese members and Modeling the simulation based on the results from the conducted study (software: powers). Chapter four contains the findings of the research especially comparing different technologies being used in China and abroad. The chapter concludes with Findings and assumptions of model approach and recommendations based on the outcome of the research for Bishuiyuan and a possible partner. Chapter five is the part where the findings are connected back to the review literature with attempts to address the gaps in knowledge. The section covers comments on the conduction of the study and the study put into perspective: the bigger picture of the results and prospects.

2.0 CHAPTER TWO: LITERATURE REVIEW

2.1 Theoretical framework of Waste Water Management

The purpose of waste water treatment is to eradicate pollutants and waste from domestic and industrial effluent through technological and engineering means to protect the environment and to provide adequate clean water for reuse in compliance with the political, social, economic and public health concerns.[71] Waste water collection and treatment is regulated by law in most developed countries and industries are required to treat their waste water before disposing it to the environment.[72]

2.1.1 Holistic approach

Sustainable wastewater management incorporates various stakeholders during the decision-making phase of formulating policies and legislations that in establishing effective water associations.[73]

The stakeholders discuss and agree on the sanitation system to adopt, develop low water usage policies, technology to use in collecting rain water and waste water from industries and homes and the reuse technique for waste water.[74] The holistic approach views wastewater as a useful resource and its management is a critical resource recovery process which by making the water useful again firms get financial incentives to cover a portion of the water treatment cost.[75] The holistic approach theory the emphasizes benefits of reducing the consumption of water as much as possible in order to minimize the wastewater output, and reusing and recycling it near its production point to increase efficiency.[76]

2.1.2 Ecosystem-Based Management and Wastewater

The philosophy of ecosystem-based management proposes an integrated method to wastewater management which is considerate of the nature, including humanity.[77] The objective of the approach is to maintain a sustainable ecosystem in a resilient, productive and healthy state so that it can offer the resources that humanity needs for livelihood and development.[78]

The approach holds that nature is interconnected and strongly interdependent on each other.[79]

For instance systems like air, water and land integrates institutional, economic, social and ecological perspectives. Thus, managing the cross-sectional and broad nature of wastewater requires sustainable ecosystem-based management perspective integrating natural resources.

After industrialization in the 1960’s, huge environmental changes were experienced which lead to the growing concern for conservation by the world leaders.[80] As a result, international policies and agreements were made to highlight the effects that industrialization and the growing population has on the environment. The philosophers warned that if humanity did not practice sustainability, the development and lifestyle demands would exceed the capacity of the ecosystem to sustain itself, which would lead to negative effects like global warming and the future generations would not have resources to use for livelihood and industrial growth.[81]

The ecosystem-based management theory proposed the environmental 3R’s; reduce, reuse and recycle to allow sustainable development.[82]

The lack of well protected and managed ecosystems can lead to lack of adequate clean water for domestic and industrial use.[83]

Some of the harmful effects of discharge of wastewater in the environment are linked to eutrophication and production of wastewater beyond the natural purification capacity can lead to accumulation of organic matter which cannot be absorbed by the ecosystem.[84]

Thus, there is need for wastewater collection and treatment before releasing it back to the environment.[85]

The water shortage and sanitation problem is associated with the dense population in China and the increase in industrialization.[86]

Therefore, there is need for planning for wastewater management to handle the waste generated and to provide the populations with adequate water for use.[87]

Communities and corporates organize themselves to plan for collection of wastewater by laying sewer pipes and financing the agenda.[88] The arrangements depend on different countries and the legal, technological and cultural changes.[89]

2.2 The Water Situation in China

Water is essential for life, health and development and has been classified as a basic human right. China is the most populated country globally; according to the World Bank, only 83% of the China’s population has access to clean water.[90] About a quarter of the population is not served with piped water and approximately 48 million people in China lack enough drinking water.[91] China’s population is about a fifth of the world’s population but has about 7% of the global fresh water.[92]

Estimates show that China needs to increase its water supply by five times to be able to meet the demand for both domestic and industrial use.[93] Currently, the amount of water available for each individual is approximately a quarter of the global average and is decreasing as the population increases. China has about the same amount of water ad America but a population five times bigger.[94]

The water crisis is China is also contributed by the large industrial and agricultural sectors.[