On March 18th, the Ministry of Housing and Urban Rural Development, the Ministry of Ecology and Environment, and other five departments jointly issued a notice on strengthening the construction and operation maintenance of urban domestic sewage pipe networks (hereinafter referred to as the document). The document requires that by 2027, the direct discharge outlets and facility gaps of urban built-up areas for domestic sewage should be basically eliminated, and the centralized collection rate of urban domestic sewage should reach over 73%. The comprehensive efficiency of urban domestic sewage collection and treatment should be significantly improved.
The E20 Research Institute analyzed that the release of this document has a significant guiding effect on the construction and operation market of urban domestic sewage pipe networks. It not only establishes clear and quantified construction and operation goals, but also clarifies key development directions for the construction of facility systems. At the same time, the document also systematically covers multi-dimensional content such as control strategies, maintenance mechanisms, and supporting guarantee measures, comprehensively outlining the development positioning and overall framework of the urban sewage pipeline network market.
The core of this document is to focus on improving efficiency and addressing the shortcomings of the pipeline network, and to promote the establishment of a specialized operation and maintenance management model for urban domestic sewage that integrates factories and networks. It is explicitly stated that by 2027, the direct discharge outlets and blank areas of urban domestic sewage in built-up areas will be basically eliminated, and the centralized collection rate of urban domestic sewage will reach over 73%. According to data from the Ministry of Housing and Urban Rural Development, the centralized collection rate of urban domestic sewage in 2022 was 70.06%, which is still about 3 percentage points behind the expected target. Calculated at an annual increase of 0.6 percentage points, the theoretical goal for 2027 can be achieved as scheduled. However, from the perspective of growth exceeding 1 percentage point in the past two years, the target setting is very reasonable. As is well known, in order to meet the standard requirements for sewage collection rate, it is necessary to deeply explore the fundamental reasons that affect collection efficiency. Among them, untreated discharge of domestic sewage and problems such as leakage and damage in the pipeline system are the key factors leading to low collection rate.
In terms of facility system construction strategy, the document clearly proposes several specific measures, with the main focus on the following:
Complete a round of urban domestic sewage pipe network inspection within 5-10 years. According to data from the Ministry of Housing and Urban Rural Development, the total length of urban sewage pipe networks in China reached 420000 kilometers in 2022. If a round of urban sewage pipe network inspection is completed every 10 years, the market volume for pipe network inspection will be at least 40000 kilometers per year, and there is still a lot of repair space.
2. Encourage the construction of "rapid purification facilities for rainy season overflow sewage" on the premise of completing pipeline network renovation, and clarify control requirements based on local conditions. For the first time, the document clearly stated "encouraging the construction of rapid purification facilities for overflow sewage during the rainy season". In previous market-oriented projects, due to the lack of clear document support, many projects required that the discharge outlet facilities must have a water quality of Grade A or Grade B before discharge, which limited the effective implementation of many market-oriented projects. Therefore, the release of this document effectively supplemented the policy support gap for the control of such facilities. In fact, for the scenario of rainy season overflow, it requires facilities to quickly start automatically, stay for a short time, operate intermittently, maintain simply and conveniently, occupy a small area, and achieve rapid purification effects, making it difficult to meet all indicators. Therefore, the release of the document is undoubtedly a positive benefit for the treatment of rainy season overflow pollution.
3. Accelerate the renovation of sewage pipelines and fill the gaps in facilities. In terms of pipeline network renovation, the main proposals include updating and renovating drainage facilities that have exceeded their service life, outdated materials, and prominent problems, as well as renovating and repairing inspection wells. In terms of filling the gaps in construction, consistent with previous policies, it is proposed to encourage the moderate and advanced construction of sewage treatment facilities and large-scale sludge centralized disposal facilities in large and medium-sized cities with conditions. It is also suggested that for old urban areas, urban villages, and urban-rural fringe areas, centralized management and decentralized collection and treatment methods can be adopted according to local conditions, taking into account regional differences in demand and the sustainability of operation.
In terms of facility management, the linkage and lifelong responsibility system among multiple departments, as well as the prerequisite for operation and maintenance management, are crucial. Due to the separation of management systems among the management of drainage households, operation and maintenance of pipeline networks, and supervision of sewage treatment plants, it is difficult for the sewage treatment industry to establish a true "plant network coordinated control" and "pay according to efficiency". Therefore, it is an inevitable trend for local drainage authorities to collaborate with relevant departments for joint supervision and law enforcement linkage. In addition, the lifelong responsibility system for engineering quality and the encouragement of pipeline operation and maintenance units to participate in acceptance are both guarantees for the effective implementation of pipeline operation and maintenance, avoiding the separation of construction and management. Operation and maintenance participation is a prerequisite, forming a multidimensional supervision of engineering quality.
In terms of the operation and maintenance mechanism of the pipeline network, it is proposed that "various regions should establish specialized operation dimension teams for urban domestic sewage pipeline networks", and in particular, it is proposed to actively promote the maintenance of "residential community" rainwater and sewage pipeline networks by entrusting specialized operation and maintenance units for urban domestic sewage pipeline networks. This reflects the high attention that the country attaches to the operation and maintenance of the pipeline network. As mentioned earlier, the existing pipeline network has seriously affected the original treatment efficiency of sewage treatment facilities and has an impact on groundwater due to historical omissions such as leakage and leakage. However, the current calculation system for the operation and maintenance costs of pipeline networks in China is still based on the quota under the traditional operation and maintenance model. Under the professional operation and maintenance of "plant network integration" and the linkage of sewage treatment plants and pipeline networks based on efficiency payment, a market-oriented calculation system for the operation dimension costs of pipeline networks needs to be re established.
In terms of security measures, it has been proposed to strengthen the construction and operation maintenance of sewage pipe networks, and local people's governments can provide operational subsidies according to the situation. This is undoubtedly beneficial for the professional and efficient operation of the pipe network. However, since the current municipal sewage pipe network is still a government paid project, it will also increase the pressure on the government's finances to a certain extent. The proposed "reasonable adjustment of sewage treatment fee standards" in the document may have limited support for the construction and operation of pipeline networks under the current pricing mechanism. The reason for this is that the "Opinions on Innovating and Improving the Price Mechanism for Promoting Green Development" issued by the National Development and Reform Commission in 2018 clearly stated that "sewage treatment fee standards should be formulated based on the principle of compensating for the operating costs of sewage treatment and sludge disposal facilities (excluding the construction and operation costs of sewage collection and transportation pipelines) and reasonable profits.". Therefore, the sewage treatment fee does not include the construction and operation costs of the pipeline network. Due to the pricing mechanism, it is relatively difficult to promote market-oriented financing for pipeline networks.
In terms of participation methods, the document proposes to encourage social capital to participate through franchising and other means, and to study and explore the standardization of pledge financing guarantees such as project income rights and franchising rights. In the notice issued by the National Development and Reform Commission in 2023 (State Council Letter [2023] No. 115), it is proposed to focus on user paid projects and clearly list "sewage pipe network projects" in the project list. However, due to the above-mentioned pricing mechanism issues, the specific mode of project implementation still needs to be observed.
The full text of the document is as follows:
Notice of the Ministry of Housing and Urban Rural Development and 5 Other Departments on Strengthening the Construction and Operation Maintenance of Urban Domestic Sewage Pipeline Networks
Housing and Urban Rural Development Department, Ecological Environment Department, Development and Reform Commission, Finance Department, and Market Supervision Bureau (Department) of each province and autonomous region, Housing and Urban Rural Construction (Management) Committee, Ecological Environment Bureau, Development and Reform Commission, Finance Bureau, Water Affairs Bureau, and Market Supervision Bureau (Committee) of municipalities directly under the central government, Water Affairs Department of Hainan Province, Housing and Urban Rural Development Bureau, Ecological Environment Bureau, Development and Reform Commission, Finance Bureau, and Market Supervision Bureau of Xinjiang Production and Construction Corps:
In order to implement the deployment of the Central Committee of the Communist Party of China and the State Council on comprehensively promoting the construction of a beautiful China, accelerate the filling of shortcomings in urban domestic sewage pipelines, establish a long-term mechanism for operation and maintenance, and effectively improve the efficiency of urban domestic sewage collection, the relevant matters are hereby notified as follows.
1、 Work objectives
Taking efficiency improvement as the core, focusing on filling the gaps in the pipeline network, adhering to problem orientation, key breakthroughs, simultaneous construction and management, systematic rectification, and precise implementation of policies, we will promote the establishment of a specialized operation and maintenance management model for urban domestic sewage that coordinates the power plant and network. By 2027, the direct discharge outlets and facility gaps of urban built-up areas for domestic sewage will be basically eliminated, and the centralized collection rate of urban domestic sewage will reach over 73%. The comprehensive efficiency of urban domestic sewage collection and treatment will be significantly improved.
2、 Promote the construction of facility system
（1） Carry out troubleshooting of sewage collection system issues. Each region should meet the requirement of completing a round of urban domestic sewage pipeline network inspection and rolling testing every 5-10 years, continuously promote the assessment and repair of the current situation of the pipeline network, and establish a long-term management and assessment mechanism for the pipeline network. In areas where the concentration of pollutants in the influent of sewage treatment plants is low, the focus is on conducting investigations into issues such as construction precipitation discharge, urban water backflow, and groundwater infiltration into the urban domestic sewage pipeline network.
（2） Accelerate the implementation of sewage pipeline network renovation. Various regions should carry out anti backflow renovation of rainwater discharge outlets and combined overflow outlets along water bodies, and strictly prevent river and lake water from backflowing into domestic sewage pipelines. Accelerate the renovation and repair of damaged inspection wells, gradually eliminate brick sewage inspection wells, and promote the use of cast-in-place concrete or finished inspection wells in the construction of new sewage inspection wells. We will comprehensively carry out the renovation and renovation of drainage facilities that exceed their service life, have outdated materials, and have prominent problems. Promote the transformation of rainwater and sewage diversion according to local conditions. Strengthen the transformation of industrial parks and industrial enterprises to mix and mix rainwater and sewage, as well as to separate rainwater and sewage. By 2025, the proportion of urban sewage treatment plants with influent biochemical oxygen demand (BOD) concentrations higher than 100 milligrams per liter will reach 90% or increase by 5 percentage points compared to 2022, indicating a significant improvement in sewage collection efficiency.
（3） Promote the filling of gaps in sewage collection and treatment facilities. The planning and construction of domestic sewage pipe networks in urban new areas should be promoted synchronously with urban construction. Old urban areas, urban villages, and urban-rural fringe areas can adopt centralized collection and decentralized collection and treatment methods to treat domestic sewage according to local conditions. Encourage large and medium-sized cities with conditions to moderately advance the construction of sewage treatment facilities and large-scale sludge centralized treatment and disposal facilities.
（4） Promote the reduction of the total amount of overflow pollution during the rainy season. Various regions should adopt measures tailored to local conditions, such as lowering the operating water level of the pipeline network before rain, renovating rainwater discharge outlets and interception wells, and reducing the amount of rainwater runoff at the source, to reduce the amount of overflow pollution entering the river during the rainy season. If the overflow exceeds the carrying capacity of the drainage system, measures should be taken to minimize pollution into the river while ensuring the safety of urban drainage and flood prevention. Encourage all regions to build rapid purification facilities for overflow sewage during the rainy season on the premise of completing pipeline network construction and renovation, and clarify discharge control requirements based on local conditions. Strengthen the supervision of rainwater discharge outlets in industrial parks and industrial enterprises, and reduce the environmental impact of rainy season pollution discharge.
3、 Strengthen the management of pipeline network facilities
（5） Strengthen the management of drainage permits. The local drainage authorities should strictly implement the permit system for sewage discharge into the drainage network, combine with the local actual situation, implement graded and classified management for drainage households, and determine the list of key drainage households. By 2025, key drainage households in various cities will fully implement drainage permit requirements.
（6） Strengthen law enforcement supervision. Local drainage authorities should work together with relevant departments to strengthen the joint supervision and law enforcement linkage of the construction and operation of urban domestic sewage pipe networks, as well as drainage behavior, to form a joint law enforcement force and strengthen traceability law enforcement. Rectify the behavior of "small scattered" drainage households discharging sewage into rain grates and rainwater pipelines, and prevent industrial enterprises from illegally discharging sewage through rainwater pipelines. Gradually improve the drainage supervision system for drainage households, strengthen the supervision of sewage discharge by drainage households, and punish illegal drainage behaviors in accordance with the law.
（7） Strict quality control. Various regions should strengthen the quality management of domestic sewage pipe network construction, strictly implement the lifelong responsibility system for engineering quality, supervise the construction, survey, design, construction, and supervision units to be responsible for the quality of pipe network engineering in accordance with laws and regulations, and ensure that the pipe network meets the standards. Relevant units should strictly implement standard specifications, organize pipeline engineering acceptance strictly, and encourage the invitation of pipeline operation and maintenance units to participate in the acceptance. Market supervision departments in various regions should make good use of the "double random, one open" supervision method to strengthen the quality and safety supervision of drainage pipes.
4、 Improve the operation and maintenance mechanism of the pipeline network
（8） Clarify the main body of pipeline operation and maintenance, and establish a normalized long-term operation and maintenance mechanism. Various regions should establish specialized operation and maintenance teams for urban domestic sewage pipelines, strictly standardize safety operation procedures, and ensure the operation and maintenance costs of urban domestic sewage pipelines. The drainage authorities should actively promote the maintenance of rainwater and sewage pipelines within residential communities by entrusting specialized operation and maintenance units for urban domestic sewage pipelines.
（9） Continuously promote the professional operation and maintenance of "factory network integration". Various regions should improve the construction and management system and mechanism of urban domestic sewage pipe networks, encourage the establishment of professional enterprises for urban domestic sewage pipe networks, and implement specialized operation and maintenance of "plant network integration". The drainage department should establish a performance evaluation system and payment system for the operation and maintenance of the pipeline network guided by the efficiency of pollutant collection, and pay for the linkage between the sewage treatment plant and the pipeline network based on efficiency. With the goal of improving the efficiency of sewage collection and treatment, we will build a fully covered model area for urban sewage pipelines.
5、 Safeguard measures
（10） Strengthen organizational leadership. Provincial housing and urban-rural development departments should work together with ecological environment, development and reform departments to inspect and evaluate the overall progress and implementation effect of the construction and renovation of domestic sewage pipelines, timely report relevant situations, summarize experience, encourage advanced, and supervise backward. Establish and improve the joint review and approval system for the construction and renovation of domestic sewage collection and treatment facilities, optimize the approval process, improve approval efficiency, and accelerate project implementation.
（11） Establish a sound system for ensuring the construction and operation maintenance costs of sewage pipelines. Various regions should establish and improve cost guarantee mechanisms, adjust sewage treatment fee standards reasonably, strengthen the construction and operation maintenance of sewage pipe networks, and local people's governments may provide operational subsidies according to the situation to ensure the normal and sustainable operation of sewage pipe network facilities.
（12） Improve the mechanism for raising funds. Allow local governments to arrange special bonds to support eligible sewage pipe network construction and renovation projects. Encourage financial institutions to provide financing support for sewage pipeline construction and renovation projects in accordance with market-oriented principles. Encourage social capital to participate through franchising and other means, and research and explore the standardization of pledge financing guarantees such as project income rights and franchise rights.
Ministry of Housing and Urban Rural Development
Ministry of Ecology and Environment
National Development and Reform Commission
Ministry of Finance
the State Administration for Market Regulation
March 8, 2024