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Over the past two years, the balance of private sector investment in China has shifted towards wastewater projects, which now account for 55% of the water PSP contracts signed.

From 1992 to 2005, wastewater accounted for only 34% of private sector participation contracts signed in the water market, with water supply taking precedence. Attracting new sources of capital to fund wastewater facilities is now a priority for municipalities, and Chinese firms are offering the most competitive solutions: they have taken a majority of wastewater projects in the sector, in contrast to water supply where international players still prevail. Further data on water and wastewater deals in China and the whole of Asia in GWI’s Asia Water Market report, to be published next month (see ad on back cover).