Israelis Covet China’s Water Banquet

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The new project of water pollution prevention and control in china， which has the total investment of over 2 trillion yuan， is a huge magnet for foreign enterprises. Several Israeli enterprises which have special technologies in water saving and disposal have already settled in Dongguan， Guangdong to assist in building the“Water Valley of China”.

The Israeli water treatment technologies take 30% of the global market. With eyes on the Chinese water treatment market， Israeli enterprises want to use Dongguan as a springboard to get into the entire water treatment market of China.

According to the plan， the Chinese government is going to invest 430 billion yuan in the facilities of water treatment and recycling in cities and towns in the 12th “Five-Year Plan” （2011-2015）.

Apart from israelis， the enterprises from Hungary and so on also contact the government of Dongguan， hoping to bring their water treatment technologies into this southern city of China.

It is known that the State Council is likely to issue the Plan for the Actions of Preventing and Controlling Water Pollution（“Water Plan” for short）. As estimated by the environmentalists， the Chinese government needs to reduce the total volume of water pollutants by 30%-50% to see the apparent improvement in the water environment.

Swarm of Israeli Enterprises in Dongguan

The water environment has been an issue for Dongguan for a long time， last year， there was a citizen offering 100 thousand yuan to invite the environmental protection department’s head of this city to go swimming in Hanxi River， a river flowing through the city.

According to the Bulletin of Guangdong Province on Environmental Conditions 2013， Longgang River， Pinggang River， Shenzhen River， Lian River and Little Eastern River （the section in Zhanjiang） have their water seriously polluted by ammonia nitrogen， total phosphorus and organicdemanding substance. The Review of Environmental Creditability of Key Sources of Pollution 2013 also showed that Dongguan， Jiangmen and Huizhou have the largest number of enterprises that can cause pollutions. Dongguan was the champion in the number of enterprises （44） highlighted and monitored by the Guangdong Provincial Department of Environmental Protection.

The statistical data from Dongguan revealed a worse situation. From January 2012 to January 2014， the routine tests of water quality in this city showed that there were 58 villagebased water plants failing to provide qualified water and 20 of them had failed to qualify five times.

In 2012， The Research Report about Setting Up a Security System for the Water Safety issued by the Dongguan Municipal Department of Water Resources revealed that the traditional water pro-cessing technologies cannot dissolve or remove the extra ammonia nitrogen， pesticide and fertilizer and could not efficiently handle the pollution problems brought by the emerging water pollution cases （such as the salt tide）. The organic substances in the water could generate some chlorination side effect which could cause cancer if they meet the dissolved chlorine.

As a city with intensive manufacturing industry， Dongguan is under great pressure in the water treatment and thus has a huge demand. As required by the central government about building a city with good water environment， the most urgent task for Dongguan is to build a systematical and reasonable water safety setup.

Presently， the daily water treatment volume in Guangdong has been over 10 million tons， taking one eighth of the total volume in China. “There are more than 100 major watercourses in the Pearl River Delta and 35.4% of them have the water rated as the worst polluted as the national government. In addition， 90% of the lesser watercourses have the worst polluted water，”says Cui Shubing， a senior engineer with the Pearl River Hydro Science Institute at the Ministry of Water Resources. The rivers and watercourses in the Pearl River Delta are interconnected with each other and could easily spread the pollutants. It is hard to solve the complicated problem in a short while.

According to Cui Shubing， the Guangdong Provincial Government has invested massively into the prevention and control of water pollution. However， the behindhand technologies have led to new problems in the process， such as the secondary pollution， hard-won effect and damages to waterbased landscape.

Pan Huageng， board chairman of Guangdong China-Israel Water treatment Environmental Technologies Innovative Park （China-Israel Industrial Park）， says that there will be at least 10 Israeli enterprises stationed in the Park and starting their operation this year.

By now， the Dongguan government has never revealed the list of Israeli enterprises that plan to settle or have settled in this Park. The other sources have revealed that seven Israeli enterprises have finished the registration in the Park， including Ofra， Rechter， Treatec， Arrow， AMI and so on. IDE and Merokot also signed the international settlement agreement.

Among these enterprises， Rechter is the most established one. It is mainly engaged in the business of green buildings. Arrow has the only garbage classification technology in the word. Ofra has already begun to take the manmade wetland project. AMI is devoted to the renewable energy.

According to the schedule of China-Israel Industrial Park this， it plans to recruit 40 Israeli water treatment and environmental protection enterprises in 2014， including two ore three Fortune 500 enterprises to co-develop the water treatment projects. It is expected that the Industrial park is going to be completely constructed in 2020 and by then there would be over 80 water treatment enterprises or projects recruited with the total output of 15 billion yuan. A new industrial cluster is formed covering all the links of the water treatment industry.

The project of quality improvement of tail water in the water treat- ment plant in Songshan Lake Hi-Tech Zone of Dongguan made use of the multistage biometrics and manmade wetland technologies developed by Israelis to improve the quality of discharged water dramatically： the content of total nitrogen dropped from 20mg/L to 1.5mg/L. Such a high standard is the first case in China and also quite rate in the world.

The project of tackling the landfill leachate with manmade wetland technologies is located in a refuse landfill in Guangzhou. It makes use of the ecological methods to deal with the landfill leachate with the strong points of being clean， free of condensed water， easy to manage， highly resistant to impact and cheap in operation. This garbage landfill is also using the photonic catalyst technologies of China for the repeated exploitation based on the features of China.

In addition， the China-Israel Industrial Park is planning the demonstrative cooperation project which has involved several other projects.

The Springboard to Chinese Market

Dongguan is just the springboard for the Israel enterprises to get into the Chinese market. After gaining a foothold in this city， Israeli enterprises are going to expand themselves to the whole territory of Guangdong and then choose some places for new projects.

Israelis are confident to have a vic- tory in the Chinese market. Apart from the 30% market share in the global water treatment technology market， Israeli technologies in the agricultural irrigation， desalination of seawater， recycling of industrial and residential waste water.

On February 4， David Loffler， the director general of Israeli Ministry of Environmental Protection said：“Israel used to be infested with dirty water and extremely short of water resources. We were forced to develop the state-of-art water treatment technologies and increased the agricultural output by five times without any increase in the water usage. In our whole country， all waste water is recycled， bringing no pollutants to the soils. One third of the drinking water comes from the desalinated seawater and the proportion is going to be improved by 70% by 2050.”

Hungary is another country that eyes on the water treatment projects in China. Last November， Kovach， president of the Hungarian Association of Environmental Protection， came to Dongguan to seek the opportunities of cooperation. According to him， Hungarian enterprises also have advanced technologies in the control of underground water pollution and dealing with landfill leachate. Meanwhile， as the European electric product center， Hungary is very experienced in dealing with the treatment of electroplating effluent.

According to the public file， the solutions for important and difficult problems and the cooperation projects in the China-Israel Industrial Park share one common feature： they need leading technologies， good price-performance ratio， high duplicability and grand market outlook. The completion of these demonstration projects will greatly promote the buildup of water treatment technologies， the formation of industrial cluster and the construction of the industrial park.

“Presently， the water treatment industry in China is facing three important opportunities： technological innovation， industrial reform and business development. China needs to find a right path and supportive measures to combine the foreign water treatment technologies with the status quo of the Chinese market，” says Xie Hongchang， President of the Construction Department at the China Council for the Promotion of International Trade. In that sector， Dongguan will be a frontrunner.

The Three Opportunities

In 2012， the State Council published the requirements about water treatment and recycling in the 12th Five-Year Plan. All cities and towns in China are required to have the capability to deal with the waste water by 2015 and 85% of the waste water should be refined before being discharged by then. In counties and towns， the required proportion is 70%.

“The water treatment plants are going to play an important role in that part，” says Liu Zan， deputy director of Total Water Volume Office of the Department of Controlling Total Discharge Volume at the Ministry of Environmental Protection. “The cities and towns need to improve their water treatment levels systematically.”

By the end of 2013， the treatment rate of domestic sewage in cities had reached 89.21%. In the Pearl River Delta and Yangtze River Delta， the rate was respectively 90.4% and 92.1%. However， there is much progress to be made in the harmless treatment of pollution and the recycling of water.

Cao Jianjin， an engineer with China’s Ministry of Housing and Urban& Rural Construction says that China now owns 5300 water treatment plants which could hand 163 million cubic meters of waste water on a daily basis or 45 billion cubic meters yearly.

According to Cao， the study held by foreign institutes show that the investment into the construction， relocation， operation and maintenance of urban water supply， water discharge， flood prevention and water treatment should take 1.5% of the GDP. “Based on this， China needs to invest at least 800 billion yuan in these aspects，” she says. “However， the total investment of China in these areas is 110-130 billion yuan in a year. There is still a great space for the investment increase.”

With the huge investment looming， the water treatment industry in China is eliciting a great appeal for the investors and practitioners.

Luo Jianhua， secretary-general of the Environmental Chamber of Commerce of All-China Federation of Industry and Commerce， says that the National Development and Reform Commission is leading a group in studying the possibility of introducing the thirdparty-driven environmental protection.

The introduction of this pattern， according to Luo Jianhua， turns the original pattern“who deals with the pollution he/she has caused” to “paying professionals to do the pollution control”. This is widely used in developed countries since it could improve the efficiency of pollutant treatment and easier to be regulated by the government.