China Water Report Q1 2015
BMI View: This quarter we have extended our forecasts and revised our existing projections in order toinclude new historical data and take the additional figures into account. We now include extraction bysource, non mains consumption, discharged wastewater and treated wastewater. Overall we have a positiveoutlook for the Chinese water services sector as the combination of vast domestic and soaring industrialwater demands, in addition to government programmes to expand the sanitation sector and reducepollution, ensure strong growth. Furthermore, given that infrastructure still lags behind demand, we viewChina as offering good potential for infrastructure companies.
The abrupt rise in population and urbanisation has not only stretched the energy infrastructure to its limits,but also put a strain on water resources. Domestic urbanisation, rapid industrialisation and the widespreadconstruction of hydropower plants for electricity generation are using up China's water resources at a fasterrate than could be replenished, aggravating droughts that have taken place throughout China.
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