1. Shandong IBNET IWA conference

2. Shandong economic status Shandong is one of the richest provinces of China: The nominal GDP is second in the country (behind Guangdong) Guangdong Shandong benefits from South Korean and Japanese investment due to its geographical proximity to those countries. Economic development focuses on large enterprises with well-known brand names.South KoreanJapanese Shandong exploits extensive petroleum deposits: its Shengli Oilfield is the major oilfield of the country.petroleum Shengli Oilfield The richest part of the province is the Shandong PeninsulaShandong Peninsula The extreme inland west of Shandong is much poorer than the rest of the province.

3. Shandong water services Basic Characteristics Water and wastewater services are provided by separate utilities Universal coverage, 24 hour supply Very high population density (more than 10,000 people per km of the distribution network; in Brazil it is 1,200-2,000 in largest cities) Universal metering in all large and medium cities Domestic consumption is below 40% of the total

4. Shandong water sector financial performance (2005) Average revenue $0.22 per m3 –from population$0.15 per m3 –from industries $0.26 per m3 Tariffs for industrial users are 40% higher than for population on average Average operating cost coverage: 1.21 –if population tariffs for all users employed: below 1.0 Collection rate average: 95% –Collection rate average from domestic consumers: 74%

5. Shandong vs. Brazil ShandongBrazil Density of services (population per km of the distribution network) 10,0001,000 Coverage in municipal areas (%)100%94% Domestic consumption in % of total42%>70% Average operation and maintenance cost ($US per m3) $0.19$0.43 Average revenue ($US per m3)$0.22$0.63

6. Shandong vs. Brazil Unaccounted losses in %

7. Shandong

8. Shandong vs. Brazil Unaccounted losses in m3 per km of network

9. Shandong vs. Brazil Collection ratio

10. Shandong vs. Brazil Staff per 1000 population customers

11. Shandong vs. Brazil Operating cost coverage