NORTH CHINA WATER QUALITY STUDY PROGRAM COMPONENT E: Water Sector Regulatory & Institutional Study 中国北方城市水管理研究项目第E部分: 监管与体制研究 Water Policy Research Centre, Tsinghua University International Consultants: Mr. Michael Rouse Mr. Keith Stallard 清华大学水业政策研究中心 国际咨询专家：Michael Rouse先生 Keith Stallard 先生 21 June 2005

TOR Scope TOR研究范围 Review and summary of existing regulations and policies of the water sector in China; 中国现有水业政策法规的收集与汇总； Identification of the current situation and challenges of governmental monitoring and enforcement in water sector while introducing the private sector participation; 引入私有部门参与时，政府水业监管的现状与所面临的问题分析

Benchmarking System development: The objectives and important for developing the Benchmarking System, assist to establish the major indicators of the Benchmarking system, make the recommendations for implementing the Benchmarking System including the methods for organizing and implementing the Benchmarking System; 标杆管理系统的推广：推广标杆管理系统的目的和重要性，协助建立标杆管理系统的主要指标，针对标杆管理系统的实际应用和操作提出建议，包括组织和实施方法； Key Issues and Recommendations: Development of policy recommendations for Municipal Water and Wastewater Regulatory and institutional Development. 主要问题及建议：城市供水/污水处理法规体制发展的政策性建议

Structure of delivery documents 成果报告结构 The deliverables of the study are essentially four reports: 本研究成果包括四个分报告： Report 1- Review and Summary of Existing Policies and Regulations 报告1－水业领域政策法规框架 Report 2 - Sector Structure and Case Studies 报告2－行业管理体制与案例研究 Report 3 - Benchmarking System 报告3－绩效管理系统 Report 4 – Regulatory and Institutional Study - Findings and Recommendations 报告4－监管与体制研究－成果与建议

Major activities 主要工作 Literature Study 文献调研 Field surveys 实地调研 Reviewing and collating the existing water-related policies and regulations 现行水业政策法规的收集和整理 International experiences on water service privatization 水业私营化的国际经验 International best practice on benchmarking for water management 水业绩效管理的成功经验 Field surveys 实地调研 City selection: Shenzhen, Jinan, Shenyang, Maanshan, and Taiyuan 城市选择：深圳、济南、沈阳、马鞍山和太原 Making specific question lists for various government sectors and enterprise 针对不同政府部门和企业制定调研问题清单 Interviews and work meetings: totally 26 meetings were organized and over 100 people from local government sectors and water enterprises have participated in the discussions 访谈和工作会议：共组织了26次工作会议，地方政府部门和企业超过100人参加了讨论 Calling interviews 电话访谈 Conference for case study analysis 案例分析会

Major activities 主要工作 Work meetings and seminars 工作会议及内部讨论会 Kick-off meeting 启动会议 Working meetings with other research groups 与各课题组交流的工作会议 Working with international consultants: Mr. Michael Rouse & Mr. Keith Stallard 与国际咨询专家Michael Rouse先生、Keith Stallard先生合作

Key Elements in Achieving Water Sector Reform for Efficient and Sustainable Water Services 实现高效、可持续发展水业改革目标的关键因素 Experience from around the world has shown that there are a number of key elements necessary to achieve efficient and sustainable water services. 国际经验表明，高效、可持续性的水业服务依赖于一些关键性的因素： Separation of policy, regulation and delivery 分离的政策制定，监管与服务职能 Transparency 透明化 Independent Regulation 独立监管 An integrated planning process 统一的规划机制 Performance measures 绩效管理措施 License or contract review 特许协议或合同的定期检查 Strategic planning on the basis of thoroughly understanding科学的战略规划

2. Main Issues for China Water Sector Regulation 中国城市水业监管面临的关键问题 2.1 Lack of integrated planning and decision-making process 缺乏系统的规划和决策机制 2.2 Undeveloped regulatory system 政府监管体系不健全 2.3 Lack of instruments and measures for economic regulation 缺乏经济监管的工具和手段 2.4 Incomplete permission regulation system 　　　准入监管的体系没有完善 2.5 Distortion of service and quality regulation body 服务和产品质量监管的主体存在错位 2.6 Deficient legal framework 缺位的法律法规体系 2.7 Undeveloped public participation scheme 落后的公众监督机制

2.1 Lack of integrated planning and decision-making process 欠缺系统的规划和决策机制 The experiences of visited cities have shown that the planning processes for water sector are high fragmented at all levels in China. As mentioned in Report Two, the fragmented planning processes have brought out many unreasonable decisions in water sector due to the lack of consideration on the integrated water system. 实地调研结果表明我国城市水业的现行规划和决策机制无论在国家层面还是地方决策层面上都缺乏系统规划。研究报告2中提到，由于缺乏对水系统的统一考虑，现行的分散型规划体系已经导致了很多不合理的决策。 Few studies of water sector reform and its regulation 对改革和监管模式的研究薄弱 Neglect of regulation during reform process 在改革实施中，普遍忽略监管

2.2 Undeveloped regulatory system 政府监管体系不健全 Many international experiences have demonstrated that an effective regulatory framework is an essential component of water sector reform, marketization and privatization. 很多的国际经验已经证实了有效的监管体系是水业改革、市场化或私营化顺利实施的重要保障。 Traditional institutional arrangement under a centrally planned economy was weak of regulation. 计划经济体制下的传统水管理体制监管职能薄弱。

2.3 Lack of instruments and measures for economic regulation 缺乏经济监管的工具和手段 Effective economic regulatory arrangements should be in place before government reduces control, particularly in monopolistic activities. 政府在放宽（行业）控制之前，尤其是对于自然垄断性的行业，应先建立有效的经济监管体系。 Lack of financial transparency. 缺乏经济财务的透明性。 Governments have only poor information on the true cost and potential efficiency gains of the service providers they regulate. 政府对于水业真实成本、服务设施潜在效率等信息掌握非常有限。

2.4 Incomplete permission regulation system 准入监管的体系没有完善 Use concession as fund raising method. 特许经营被当作引资手段。 Not utilization of concession for establishing the permission regulation. 没有利用特许经营建立准入监管的关系。 Interlace and confusion of the relation between concession regulation and poverty right. 特许权监管与产权关系交织混淆。

2.5 Distortion of service and quality regulation body 服务的产品质量监管存在主体错位 Undevelopment of the independent water quality regulation system, lack of regulation power. 自来水水质第三方监管体系没有建立,监管缺乏权威性。 Need for improving the independent regulation system in wastewater treatment sector. 污水第三方监管体制需要改进。 Usually neglect of sludge regulation. 污泥监管被普遍忽略。

2.6 Deficient legal system 缺位的法律法规体系 Lack of specific policies and regulations on quasi-public goods 针对准公共物品的政策法规缺位 Fragmented process for policy making and promulgating 政策法规出台缺乏系统性和完整性 Weak feasibility of existing policies and regulations 现行政策法规操作性较差

2.7 Undeveloped Public Participation Scheme 不完善的公众监督机制 Water sector reform and marketization are more likely to be effective if there is sufficient demand for the benefits of these initiatives from customs. 消费者的积极参与对于促进水业改革和市场化改革都有积极的促进作用。 China does not have a tradition of public participation but this is developing. 中国没有“公众参与”的传统，目前正处于发展阶段。 Client complaint 用户投诉机制 Public hearing for setting water tariff 水价调整的听证会

3. Conclusions and Recommendations 结论和建议 3.1 Right understanding of water sector reform 正确认识城市水业改革 3.2 Types of marketization for water sector 水业市场化模式 3.3 The Establishment of Regulatory Body 建立监管机构 3.4 Benchmarking 绩效管理

3.1 Right understanding of water sector reform 正确认识城市水业改革 The marketization for Chinese water sector has come into the third phase 中国城市水业市场化改革进入第三阶段 The first stage: opening to non-government sectors; inviting investment; and breaking monopoly 第一阶段：开放市场、招商引资、打破垄断 The second stage: establishing concession system; facilitating the restructure of traditional SOEs, advancing the term of full cost recovery, introducing competition mechanism, and shifting the governmental functions 第二阶段：建立完善特许经营制度，推进传统国有企业改制、提出全成本价格体系、引入竞争机制，转变政府职能 The third stage: developing regulatory system; improving the investment and financing scheme; incubating the key actors, and strengthening public participation 第三阶段：完善监管体系、理顺投资体制、培养市场主体、加强公众参与

3.2 Types of marketization for water sector 水业市场化模式 3.2.1 Governmental responsibilities in urban water sector 政府在城市水业中的责任 Definition of governmental responsibility in water sector determines the mode for regulation 政府在城市水业中责任范围决定监管的模式 Types of governmental responsibilities in water sector: direct or indirect responsible to water deliverables 政府在水业中责任形式：直接或间接承担 Ownership arrangement is the key to distinguish the marketization types 产权模式是决定市场化模式的关键 Governments should also be responsible to environmental protection and resources management 政府的责任还包括环境保护和资源管理

政府责任形式 市场化模式 共同特征 监管特点 直接承担服务责任 间接承担服务责任 管理/租赁模式 （5－8年） 水厂 BOT/TOT 管理/租赁模式 （5－8年） 政府与企业签署平等的经济协议， 政府与企业间的关系不是行政许可关系 准入监管 服务与质量监管 水厂 BOT/TOT （ 15－20年） 整体特许经营 （20－30年） 间接承担服务责任 私有化模式 不平等的行政许可关系 需要全成本的水价体系 政府核心监管是运营过程 需要独立监管机构 公私合资模式 公有企业模式

Types of marketization features Regulation features Types of Govern. Res. Types of marketization features Regulation features Direct responsibilities Lease/manag. contract （5－8y） The contract is an economic agreement The relations between the government and the enterprise is not the administrative permission Approval regulation Service quality regulation BOT/TOT contract （ 15－20y） Full service contracting operation and management （20－30y） Indirect responsibilities Divesture A relation of administrative permission is built Full cost recovery is required Operation and business is the key of regulation An independent regulatory body is required Public-private joint venture Corporatized public company

Major advocated strategies for water marketization by Chinese governments: lease contract, BOT, TOT and etc. 中国政府主张的水业市场化模式：租赁管理，BOT,TOT等。 In the case of a city with high economic level of performance resulting in full cost recovery, the corporatized public company, joint venture, and full privatization models are good options, but with the need for strict independent regulator bodies to monitor their performance. 对于个别经济水平较高有实施全成本回收能力的城市，公司化运营的公有公司，合作模式以及完全私有化模式是可优先选择的模式。但是应有严格的独立监管机构管理其绩效水平。 Independent of the type of model adopted, performance measurement systems should be introduced to achieve, transparency and efficiency. 不管采取任何模式，都应采用相应的绩效管理措施以提高效率和整个过程的透明性。

3.2.2 International experiences of water management 国际水业管理典型模式 UK 英国 France 法国 USA 美国 Chile 智利 Singapore 新加坡 Macao 澳门 Others 其他

3.2.3 Co-existence of different marketization models 不同的市场化模式可以共存 The report recognizes that different marketization models could be good options for local authorities and co-exist. 本研究认为不同的市场化模式都可以供地方政府选择，而且不同模式可以共存。 The exiting legal framework is consistent with the water service contract, such as lease management, BOT/TOT, and etc. rather than selling out the ownership of water service assets to private sectors, such as the models of divesture, public-private joint venture and etc. 现行的法律法规体系相对适应租赁管理、BOT/TOT等模式的发展需求；而对于涉及到水业产权出售的模式，如合资或完全私有化等，尚不能完全支撑。 It is important for water marketization to acknowledge the co-existence of different models, which can provide more alternatives and make for shifting government functions, inviting investment, making an appropriate asset arrangement for water service, and alleviating the pressure of water tariff reform. 多种模式并存的市场化改革可以提供更多改革选择，有利于完成政府职能的转变、吸引投资、 资产处置、以及缓解水价改革的压力。

3.3 The Establishment of Regulatory Body 建立监管机构 One key recommendation is the establishment of Provincial Water Commissions, which function as an independent regulatory body and are responsible to making integrated planning, managing the implementation of benchmarking system, setting water tariff, and supporting the local authority for water concession management. 建议设立独立的监管机构——省级水业委员会，其责任主要包括：统筹规划，负责绩效管理系统，制定水价，支持当地政府实施水业特许经营管理。 Strengthening regulation. The Municipal Public Utility Bureau or the Municipal Construction Commission should be empowered for regulation. 加强监管，强化公用设施管理局和市政建设委员会的监管职能

3.4 Benchmarking 绩效管理 3.4.1 Classification of benchmarking : Metric benchmarking and process benchmarking 绩效管理系统分类:定量绩效管理和过程绩效管理 Metric benchmarking refers to the measurement and long term monitoring of some key indicators of performance. Through metric benchmarking, target performance levels and development trend information are available. 定量绩效管理指绩效指标的量化及对其核心指标长期监控过程。通过定量绩效管理可以建立绩效的目标水平、获取趋势信息。 Metric benchmarking is not intended for the detailed aspects of operations. 定量绩效管理通常并不专注于运营操作的细节层面。 The World Bank, International Water Association, Ofwat, and VEWIN (Association of Dutch Water Companies) use metric benchmarking. 定量绩效管理体系的主要代表：世界银行，国际水协，Ofwat和VEWIN（荷兰水公司协会）

Process benchmarking is more detailed than metric benchmarking and, as its name implies, measures the performance of each measurable part of an enterprise’s operational processes. 过程绩效管理：相对于定量绩效管理而言是更加细化的绩效管理方法，专注于具体的操作步骤进行比较和改进。 The aim, based on the result of quantified analysis, is to learn from best practice. 其目的是在定量绩效管理的基础上，分析比较得出如何学习最佳的业内外运作实践。 Major water sector associations those are using process benchmarking, including American Water Works Association, Water Environment Federation and Water Industry Research. 采用过程绩效管理系统的主要代表：美国水行业协会（American Water Works Association），水环境联盟（Water Environment Federation）与水工业研究（Water Industry Research）

3.4.2 International practices and experiences 国际实践与经验 OFWAT (UK) 英国水务办公室 AWWA (USA) 美国水事协会 Vewin (NL) 荷兰供水协会 Australia 澳大利亚 Chile 智利 World Bank 世界银行 IWA 国际水协

3.4.3 Getting started 实施方法 Setting specific policies and regulations 制定相关的政策法规 Keep it as simple as possible at starting 初始阶段应尽量简单 The Timescale 时间表

Major ways for implementing metric benchmarking 推行定量绩效管理系统主要方式 Participation encouragement based on a voluntary scheme 自愿参与的前提下鼓励参加 Providing financial incentives 财政上给予一定激励 Establishing it as mandatory 强制性的要求参与

Based on the best international experience, the form of the benchmarking system for China should be studied as a major research program of central government. The implementation plan can be divided into four stages: preliminary indicator design, system exploration, application verification and promulgation. 根据国际经验，绩效管理体系的开发可作为中央政府的重点课题进行研究开发。实施计划可以分为四个步骤：初步指标设计、系统开发、应用示范和推广。

China could consider starting with a voluntary scheme, perhaps with the incentive of an associated reward or medal for participation, and move to a regulatory driven scheme if and when Provincial Water Commissions are established. 目前，中国可以由自愿参与的方案开始，对参与者授予联合奖状或奖章，如果省市水业委员会建立起来之后，可以转为监管过程的一部分。

Implementation Plan of Water Sector Benchmarking System in China

中国城市水业绩效管理体系实施计划