Core view
Event: in order to further strengthen the leakage control of public water supply network and improve the utilization efficiency of water resources, the general office of the Ministry of housing and urban rural development and the general office of the national development and Reform Commission recently issued the notice on strengthening the leakage control of public water supply network. The notice clearly states that “by 2025, the water supply network facilities in cities and counties will be further improved, the pressure regulation level of the network will be further improved, the incentive mechanism, construction and transformation, operation and maintenance management mechanism will be further improved, the leakage control level of the water supply network will be further improved, and the long-term mechanism will be basically formed. The leakage rate of the national urban public water supply network will strive to be controlled within 9% The funds in the central budget will also give appropriate support to the leakage control projects of public water supply networks in the pilot areas.
Smart water industry ushered in positive:
1) the notice points out that it is necessary to implement the reconstruction project of water supply pipe network and promote the zoning measurement project and pressure regulation project of water supply pipe network: the old water supply pipe network shall be updated and reconstructed in combination with the urban renewal, the transformation of old residential areas, the transformation of secondary water supply facilities and the transformation of one meter for one household. In the process of construction, the use of advanced flow metering equipment, valves Water pressure and water quality monitoring equipment and data acquisition and transmission devices, and gradually realize the grid and fine management of water supply network. Implement the transformation of “one household, one meter” and improve the water metering system for municipal administration, greening, fire control and sanitation; 2) The notice specifies to carry out the intelligent construction project of water supply pipe network: the relevant sensors shall be laid synchronously during the construction and transformation of water supply pipe network, and an intelligent water supply management platform based on the Internet of things shall be established. Conduct real-time monitoring on the operation status of water supply facilities, water volume, water pressure, water quality and other information, accurately identify the leakage points of pipe network, carry out intelligent regulation of pipe network pressure area, and gradually improve the information and intelligent management level of urban water supply pipe network leakage.
The contract water-saving model is expected to be popularized with the simultaneous development of rights, responsibilities and incentives. The notice points out that it is necessary to urge the city (county) people’s government to earnestly implement the main responsibility for leakage control of water supply network, and the competent department of urban water supply should formulate medium and long-term objectives for leakage control and determine the annual construction tasks and timing arrangements. Formulate and implement the leakage control objectives in conjunction with the relevant national development and Reform Commission and the Ministry of housing and urban rural development. In terms of incentive mechanism, first of all, we should establish and improve the urban water supply price formation mechanism that fully reflects the water supply cost, encourages the improvement of water supply quality and promotes water conservation. At the same time, all localities should further formulate incentive policies to reward and support the effective water supply network leakage control projects. The notice encourages water-saving service institutions and water supply enterprises to innovate and develop a new contract water-saving management model on the basis of water-saving effect guarantee model, water cost trusteeship model and water-saving benefit sharing model, and will improve preferential policies such as tax and credit for enterprises engaged in leakage control, and support the use of contract water-saving business model to control pipe network leakage.
Relevant construction funds are expected to be guaranteed in multiple dimensions, and leakage control is expected to receive central financial support for the first time. On the one hand, water supply enterprises should increase investment and strengthen the capital guarantee for the construction, transformation, operation and maintenance of water supply network. Local governments can increase investment subsidies for water supply network leakage control projects. On the other hand, the national development and Reform Commission and the Ministry of housing and urban rural development will select a number of cities and counties with high enthusiasm, good demonstration effect and good expected results to carry out the pilot of leakage control of public water supply pipe network, implement the leakage control project of public water supply pipe network, and summarize and promote typical experience. The funds in the central budget give appropriate support to the leakage control projects of public water supply networks in the pilot areas. This is the first time that the central government has given financial support to the leakage control projects of public water supply networks, which reflects the continuous improvement of the state’s attention to the leakage control of urban public water supply networks.
Investment proposal and investment object
We believe that the smart water industry will directly benefit from the implementation of the notice, and the construction funds are expected to be guaranteed by the central and local governments. Smart water meter manufacturers, secondary water supply equipment providers and smart water overall solution providers will benefit directly. We recommend Zhejiang Heda Technology Co.Ltd(688296) (688296,), pay attention to Wpg (Shanghai) Smart Water Public Co.Ltd(603956) (603956, not rated) Meter Instruments Co.Ltd(301006) (301006, not rated).
Risk tips
The implementation of the notice was not as expected.
