Self-supply groundwater wells have not been closed completely as envisaged at appraisal and still exist in Qingfeng and Puyang counties. As a result, the actual operational capacity of three water supply plant (WSP) subprojects is lower than designed. The self-supply groundwater wells also caused difficulties in collecting the wastewater tariff. Although the local and provincial governments subsidize water companies to guarantee operation of wastewater treatment plants and WSPs, the existence of self-supply groundwater wells has become a major constraint for water companies in achieving better financial performance and a viable water supply service in the longer term. Henan Provincial Government has considered the issues and will push ahead closure of groundwater wells effectively. [Main text, para. 58]
Henan Wastewater Management and Water Supply Sector Project