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Innovative Rural Wastewater Management
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2.5.2 Summary
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2.5.2 Summary

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 (1) At present, the main source of funds for rural wastewater treatment is local government investment with appropriate rewards and subsidies from the central government. There are two main sources of funds for local governments: one is land transfer fees, and the other is the issuance of local government bonds. It is expected that during the "14th Five-Year Plan" period, the central government will still have continuous special funds for support. At the same time, some local governments have included clearly the cost of rural wastewater treatment into their financial budgets and increased financial investment.

 

 (2) Governments at all levels in China have encouraged actively social capital to participate in rural wastewater treatment. Some local governments have issued clear policies to encourage social capital to participate actively in rural wastewater treatment through the bundling and packaging PPP model. They also encourage and guide financial institutions to provide credit support for rural wastewater treatment. However, due to the lack of a reasonable capital return mechanism, both local governments and social capitals are still in the active exploration stage of piloting the cooperative development of rural wastewater treatment.

 

 (3) The farmer payment mechanism is being piloted in some areas where conditions permit, but considering the actual situation of the vast rural areas in China, it is expected that farmer payment will not become the main source of funding for rural wastewater treatment for a long time.

 

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