Wastewater treatment Transfer-Operate-Transfer (TOT) projects in China: The case of Hefei Wangxiaoying Wastewater treatment TOT project

• Published in: KSCE journal of civil engineering Vol. 19; no. 4; pp. 831 - 840
• Main Authors: Lee, Seungho, Choi, Jae-ho
• Format: Journal Article
• Language: English
• Published: Heidelberg Korean Society of Civil Engineers 01.05.2015; Springer Nature B.V; 대한토목학회
• Subjects: Adjustment; China; Civil Engineering; Construction Management; Engineering; Geotechnical Engineering & Applied Earth Sciences; Governments; Human resources; Industrial Pollution Prevention; Markets; Mitigation; Risk; Risk reduction; Wastewater treatment; Working conditions; 토목공학; China, People's Rep; Hefei Wangxiaoying wastewater treatment TOT project; asset transfer; Chinese wastewater market; risks; Transfer-Operate-Transfer (TOT)
• ISSN: 1226-7988; 1976-3808
• DOI: 10.1007/s12205-013-0095-5

This paper analyzes wastewater treatment Transfer-Operate-Transfer (TOT) projects in China since the early 2000s, addressing both risks and risk mitigation efforts. Special attention is paid to the Hefei Wangxiaoying Wastewater Treatment TOT Project as a case study. The project unveils various risks, i.e., institutional and regulatory, financial, and human resource risks. To mitigate the risks, the government established relevant institutions alongside the organizational reform and adjusted the wastewater tariff. Berlinwasser secured long-term revenue through the service fee increase agreement and guaranteed job security for plant employees. The TOT model seems to become increasingly popular in the Chinese wastewater treatment market despite diverse risks involved.