CHENGDU, Aug. 7 (NBD) -- Enterprises engaging in infrastructure construction are more active than traditional environmental companies in the environmental protection PPP area.

In this regard, Jin Yongxiang, General Manager of Dayue Consulting, explained to NBD that as compared to the past, environmental protection PPP projects nowadays are comprehensive environment renovation projects featuring huge investment. For example, investment in the improvement of a river can reach up to tens of billions of yuan.

Large infrastructure enterprises can easily make foray into the environmental protection industry equipped with their strong financing and engineering construction capabilities, Jin said.

When asked whether it is normal that environment protection PPP projects include infrastructure construction and even real estate development, Luo Jianhua, Vice Chairman of the China Environment Chamber of Commerce, gave a positive answer.

He told NBD that environmental protection projects, in the future, will transform from single factor pollution abatement to multiple factor pollution control, from end-of-pipe control to source management, and from pure pollution regulation to ecological rehabilitation. Environmental companies should promote transformation and establish combos with real estate developers or other companies to cope with the market changes, he noted. Meanwhile, companies should be aware of financial risks brought by PPP projects.

According to Jin, financing is key to the kick-off of PPP projects. If required fund cannot be put in place, projects will likely be taken back by governments.

He underscored that enterprises should be well prepared before bidding for environmental protection PPP projects, and also hold in-depth talks with financial institutions if the latter are involved.

Email: lansuying@nbd.com.cn