Portfolio Delivery Approach to Township Sewage Treatment Facilities in China: A Case Study

The wide need for sewage treatment facilities at the township level across China implies an emerging niche market for water and sanitation developers, investors and financiers. However this potential market is difficult to enter with traditional financing and delivery methods, because township sewage features small amount, volatile quantity, geographically scattering, immature fee charging system, weak affordability, and lack of capacities. A group of concession sewage treatment projects collectively implemented by a private company in the Changsha County of Hunan Province under the so called ‘Changsha Model’ provided innovative solutions. This cases study first examined the portfolio approach in terms of multiple delivery method integration, technology, and centralized control system, and evaluated the replicability of the new model. Practices and lessons learned from the case were then presented and summarized that can be applied to the following township sewage treatment facility development. Last, the Changsha Model was compared with similar infrastructure portfolio delivery solutions applied in the US.