Reuters
August 25, 2006

More investment expected to flow into waste treatment as Beijing boosts return of overseas players

Shanghai: Billions of tonnes of untreated waste water gushing into China’s lakes and rivers is becoming an attractive business proposition for foreign investors as the country’s water prices are set to move higher. China is widely expected to push up water tariffs further to lure more funds needed to treat waste water. But that is unlikely to happen overnight as it also seeks to curb inflation. Water prices in China are heavily subsidised and represent just 25 per cent of the global average. “The government is more and more determined to raise tariffs, but at a gradual pace,” said Goldman Sachs analyst Franklin Chow, echoing views shared by some other analysts.