In order to ensure the safety of Beijing water source and accelerate the economic development of Huairou, this project began to implement a sewage disposal project with 80,000 tons per day. The project proposal has been given an official approval by Development Planning Committee of Beijing municipality in November, 1994 and the feasibility Research Report has also been given the official approval by the Development Planning Committee of Beijing municipality in October, 1995. The total investment for this project is 147.91 million RMB, where the 4.95 million dollars (equal to 43 million RMB on the current exchange rate, 1:8:7) is loaned from the Austrian government.

I Project Unit Summary
Huairou Sewage Disposal Plant was founded in August, 1997, belonging to the Huairou Construction Committee and locating in the eastern of Miaocheng District of Huairou Town. The predecessor of this plant is the prepare-to-construct department of Huairou sewage disposal plant, covering the area of 11.51 hectares, having 110 employees and owning assets of 30 million RMB. Original prepare-to-construct department began to construct the first-stage sewage disposal plant project with 15000 tons per day, but this project is postponed because the capital problem.

Although this project is suspending now, the staff in this department has accumulated valuable construction experience in such period, therefore, they can decrease the construction cost and fast the construction speed at the same condition. At the same time, such basic conditions as expropriation and removing and the Compositive Building project all are finished after several years' earlier construction, which is the most favorable factor for the construction of this project.

II Project Summary

1. Introduction Part of this Project
Introduce the sewage disposal devices from Austrian Pu A Kuai Company.

2. Project Building Size
Total amount of sewage disposed is designed to 80,000 tons per day, which will be achieved by stages according to the sewage amounts of Huairou and the official approval on the Feasibility Research Report given by Development Planning Committee of Beijing Municipality.

(1) First-stage Project: 15,000 tons per day (under the construction) and to be run in the end of 1998.

(2)Second-stage Project: 50.000 tons per day, to be established in the end of 1999 and run in the first of 2000.

(3)Third-stage project: 80,000 tons per day, to be established in the end of 2005 and run in the end of 2006.

There is a simple sewage disposal station with disposal capability of 40,000 tons per day in Huairou. The living sewage and wastewater from hospital, automobile fittings plant, felt plant, meat packing plant,and machine making factory and others flows into the pipelines without any disposal, then into the Chaobai River system. Current sewage emission formation makes it easy for the contamination to enter the aquifer, which will threaten the wells cluster of Water Source No.8 Plant because the aquifer of this area is filled with sand and gravel and the water line is lower. Water Source No. 8 Plant is the biggest groundwater plant with best-of-breed water quality. But, the water quality of outing water is deteriorating according to the monitoring data, and if such trend cannot be controlled, it is predicted that the wells cluster of No.8 Plant will be polluted before 2008.

4. Constructed Necessity
(1) It is important policy for protecting the safety of drinking-water source of Beijing to implement this project. Huairou is an essential place to provide the drinking water. And the Water Source No.8 Plant is supplying the 40% water amount to Beijing, whose main supply area is the part of Chaoyang district, such as embassy zone. Its water-supplied amount is 48.52 million steres. However, owning to lacking of sewage disposal system, the wells cluster of this plant is possible to be polluted, which will not only influence the living quality of residences and the external image of Beijing. Therefore, it is necessary to construct the Huairou sewage disposal plant.

(2) The implement of this project is able to facilitate the beneficial cycle of water resource and create outstanding economic benefits to some degree.

(3) The construction of Huairou sewage disposal plant will make the water-source wells of No.8 plant avoid to be discarded; Meanwhile, the construction of this plant will avoid potential pollution brought by the adding of traveling service devices and traveling population and increase the benefits of traveling industry because Huairou is an important traveling spot in Beijing.

In general, the construction of sewage disposal plant will bring great environmental benefits, social and economic benefits to Beijing Municipality and Huairou.

5. Project Procedure
(1) 15,000 tons per day (under the construction) , to be run in the end of 1998. Shared compositive office building has finished, the civil engineering has finished, anaerobic spool, testing spool, bio-reaction spool have been constructed, which has been invested for about 15.015 million RMB. Residual capital construction includes the grit chamber and dehydrating machine room, which needs about 3 million RMB for construction. The whole installation project is still under suspending.

(2) Second-stage Project: 50.000 tons per day, to be established in the end of 1999 and run in the first of 2000. The expropriation and removing work has ended but the civil engineering doesn't start up. The capital invested is 2.6 million RMB. Part of imported devices have been installed and operated, the others is sealed up for keeping to be used in the construction of third-stage project.

(3) Third-stage project: the disposal amount of 80,000 tons per day is expected to be established in the end of 2005 according the amount of sewage.

III Total investment and capital financing of project
1. Total Investment: the total investment of this project is 147.91 million RMB (including 4.95 million dollars and 110.61 million RMB). Thereinto, the investment on fixed assets is 145.51 and necessary interest in construction period is 3.4 million RMB.

2. Capital Financing:
(1) It is planned to load the foreign exchange (4.95 million RMB) from Austrian Government, which should be transferred through Beijing Branch of China Bank. The conditions of loan is: the term is 20 years (including 2 years' grace period and the interest of loan is 4.5%.

(2) Allocated Capital is 110.61 million RMB. ? It need to invest 48 million RMB in the first-stage project(15000 tons per day), the capital invested is 30 million RMB and other 18 million RMB has been put into effect.. ? Residual capital ( 60 million RMB) should be resolved by local government.

IV Project Benefits
1. Environmental Benefits
The construction of Huairou sewage disposal plant is a kind of environmental project to improve the entironment, protect the healthy of people and bring happiness to local people, therefore, its environmental benefits are showed as follows:

(1)Avoiding the pollution of wells cluster of Water Source No.8 Plant and protecting the water source of Beijing.

(2) Providing better infrastructure for development park of Huairou town after being constructed of disposal plant and corresponding pipeline project.

2. Social Benefits:
(1) The construction of sewage disposal plant will avoid parts of water source wells in Water Source No.8 Plant being discarded some years later, which can bring the benefits for Beijing about 40 million RMB each year,counted on the net value benefits of 1.3 RMB per steres.

(2) Provide the places for sewage emission for the Huairou Yanxi Lake industrial development park and Huairou branch of Beiqi Futian, facilitating the exploitation of industry and agriculture and the development of town economy.

(3) The construction of sewage disposal plant will eliminate the potential pollution brought by the increasing of traveling service devices and traveling population because Huairou is an important basis for traveling in Beijing.

(4) Add the employment chances

2. Self-benefits of Project
It is evitable for this project to face deficit with lower charge for pollution emission for it is still belong to the municipal infrastructures. The government will give some allowance for such projects on account of current policies. With the development of reform and opening and the acceleration of infrastructure industrialization, the allowances from government will less and less until the project itself can make money.