Urban Infrastructure Expected to Attract Trillions in Investment

　　The document requires accelerating the transformation and upgrading of urban infrastructure and comprehensively improving the level of urban infrastructure, focusing on key areas that improve people's livelihoods, ensure urban safety, and have significant investment-driven effects. At the same time, it promotes the construction of urban rail transit systems such as subways and light rail, giving play to the backbone role of subways and other public transportation, and driving the development of urban public transportation and related industries. Key areas include: strengthening urban road traffic infrastructure construction, increasing the construction and renovation of urban pipeline networks, accelerating the construction of sewage and garbage treatment facilities, and strengthening ecological garden construction.

　　At the same time, the document also states that the government should concentrate financial resources on building non-operational infrastructure projects and attract social capital to participate in the investment, construction, and operation of operational projects. In addition, it is necessary to actively innovate financial products and businesses, establish and improve a multi-level and diversified urban infrastructure investment and financing system; study and introduce supporting fiscal support policies, implement tax incentive policies, and support the reform of the urban infrastructure investment and financing system.

　　Analysts said that urbanization is generating huge demand for infrastructure investment, and how to leverage fiscal funds to drive social capital participation has become a breakthrough for various regions to solve development funding problems. Promoting more public-private partnership (PPP) model projects in the field of infrastructure construction, better leveraging the role of fiscal funds to "move a thousand pounds with four ounces," will attract more social capital to participate in infrastructure construction.

　　From explorations in some localities, public-private partnership models have been introduced in many areas during urbanization, such as affordable housing construction, road construction, sewage and garbage treatment; in addition, education, healthcare, elderly care, and cultural undertakings have become new areas for private capital investment.

　　Beijing Takes the Lead in Introducing 130 Billion Yuan of Private Capital into Municipal Construction

　　According to the policy on the 'Implementation Plan for Pilot Projects to Introduce Social Capital to Promote Construction in the Field of Municipal Infrastructure' published by relevant departments, Beijing has fully opened six municipal infrastructure fields to social capital, including rail transit, urban roads, comprehensive transportation hubs, sewage treatment, and solid waste disposal. It is reported that a total of 126 pilot projects have been launched in the six fields, with a total investment of 338 billion yuan, and it is planned to introduce 130 billion yuan of social capital for projects such as the construction of Metro Line 14, Line 7, the Pingguoyuan transportation hub, and parking facilities in residential areas of the central urban area.

　　As one of the first social capital projects introduced in Beijing for the construction and operation of reclaimed water plants, as early as April this year, OriginWater signed a franchise agreement with the Shunyi District Water Affairs Bureau for the construction and operation of a town-level reclaimed water plant in Shunyi District, with a franchise period of 25 years. Since then, the construction of the reclaimed water plant in Beiwu Town, Shunyi District, will no longer be funded by the government but by a professional sewage treatment company.

　　According to industry insiders, Beijing's municipal infrastructure field is the first to open to social capital, with about 27 market-oriented pilot projects in six fields launched in the first phase, with a total investment of about 162 billion yuan, and it is planned to introduce about 68 billion yuan of social investment. Specifically, these include: 3 rail transit projects such as Metro Line 14, 2 road projects such as National Highway 110 Phase II, 1 Pingguoyuan transportation hub project, 10 sewage treatment projects such as Zhangjiawan Reclaimed Water Plant, 4 solid waste disposal projects such as the first phase of the Southeast Circular Economy Park, and 7 town-level heating projects such as the heating project in Niulanshan Group of Shunyi New City.

　　In addition, in conjunction with the '12th Five-Year Plan', Beijing plans to select another 99 projects for detailed demonstration and key promotion in the later stage, with a total investment of about 176 billion yuan, and it is expected to introduce about 62 billion yuan of social investment, involving rail transit such as Metro Line 7, urban roads such as the eastern section of Jingliang Road, parking facilities in residential areas of the central urban area, and transportation hub projects such as Beiyuan North, Wangjing West, Tongzhou Core Area, Lize, Beiyuan, and the southern Olympic Sports Area.

　　Urban Infrastructure Concept May Spark Speculative Wave

　　According to China Securities Journal, driven by policy efforts, urban infrastructure construction is expected to attract trillions of investment in the future. It is expected that Qinglong Pipe Industry, which focuses on water pipe renovation, Ba'an Water, which focuses on sewage treatment, Capital, which plans to strengthen its water business, and Dinghan Technology, which focuses on urban rail transit, will benefit.

　　Qinglong Pipe Industry: The company has established a controlled subsidiary, Sanhe Jinglong, in Yanjiao, Sanhe, Hebei. Its main products such as RCP and PE pipes have successfully entered the 'Beijing-Tianjin-Tangshan' regional market, among which RCP has reached a leading market share in Beijing. Some PE pipes produced by Sanhe Jinglong have been used in the construction of venues such as 'Capital Airport Terminal 3', 'Airbus A320 China Tianjin Final Assembly Line Project', and the main venues of the Beijing Olympics, including the 'Bird's Nest', 'Water Cube', and 'Wukesong Basketball Arena'.