1. Project Summary and Relationship to China's Agenda 21 This project aims to seek international co-operation in some key aspects of China's affluent housing industry, the aspects including funding mechanisms for housing construction, planning and designing of affluent house, and property management for residential district. It also intends to attract both domestic and overseas investment to establish some affluent housing demonstration communities in Beijing, Guangzhou, Jiangsu, Sichuan, Zhejiang and Shandong province in order to promote the development of China's housing industry. This project is based on programme area 10E of China's Agenda 21, and is related to programme areas 10B, 10C, 10D, 10F and 12A.

2. Background

Affluent houses are specially designed and constructed for those people with higher incomes enabling to meet the requirements for modern family lives. This type of housing seeks to maximise the total utility of land, and to provide comfort and practicality while minimising material consumption. The construction of affluent housing will be a major part of China's housing industry development in the 21st century. China will witness the crucial transition to affluent life in the coming several years and will be confronted with great challenges to meet the desire of the people for better living conditions. Among the present urban population in China, 4.14 million families with the living area per capita are less than 4 square meters. The urban population will increase continuously in the future. In light of this situation, the Chinese government has integrated the development of human settlements into the Ninth Five-Year Plan for National Economic and Social Development and the Long-term Targets for the Year 2010. The Programme for China's Urban Housing Development which is now being formulated shows that by 2000, the urban population will reach 430 million and the rate of urbanisation will reach 33 %. 1.2 billion square meter houses will be built and every family will have their own dwelling with living area per capita rising to 9 square meters. Housing conditions in rural areas will also be improved. Urban piped water and gas supply will increase to 98.5 % and 75 % respectively. Both the rate of municipal waste water treatment and urban green land coverage will also increase. So the unprecedented scale of house construction, the large consumption of materials, equipment and residential products, and the promising market are imminent in future of China. However, China's obsolete housing industry is not capable to meet this huge demand for construction. Problems in technology, management and financing need to be solved. These problems include insufficient technology, squandering building materials and resources in poorly planned projects, the poor quality of residential products along with poor planning and designing of residential district. In addition, the imperfect investment mechanism and the low commercialisation rate in housing construction do not comply with China's current transition from the planning economic system to the socialist market system. All those factors seriously hamper the development of housing industry and restrict the achievement of affluent living by the beginning of the 21st century. It is highly necessary and feasible to carry out researches on investment and financing policies, developing property management mode, and key techniques for the affluent housing construction, and constructing demonstrative affluent housing communities in order to meet the future demands for residential construction in China. This project is an important component of the Scientific and Technological Industrial Project for the Affluent Housing in Urban and Rural Area in 2000, which is organised and implemented jointly by 8 ministries and commissions including the State Science and Technology Commission and the Ministry of Construction. The affluent housing demonstration projects will incorporate with modern science and technology as the guidance for development of housing industry in China. These projects are currently implemented in 50 towns and cities throughout the country, together with the initial studies on affluent housing development strategy and housing industry policy. This progress provides solid base for the implementation of this project.

3. Objectives

3.1 Long-term Objective To develop and apply modern technology in housing construction; to provide civilised and a clean living environment; to improve the quality of lives in residential areas; and to construct several model communities which can play a demonstrative role in the application of modern technology for the affluent housing industry.

3.2 Immediate Objectives * To put forward standards and specifications for housing investment and financing mechanism adapted to develop affluent housing construction, to improve the property management level of affluent housing communities and to develop operational mechanism for the property management market; * To develop and introduce crucial technologies and products for affluent housing construction, set up some joint ventures or investment enterprises for the production of housing accessories, and promote the development of scientific and technological affluent housing industry; * To construct 5 or 6 demonstration communities to investigate and demonstrate these policies, technologies, products and management mechanisms.

4. Output and Activities

4.1 Study the investment and financing policies in China's affluent housing construction, and put forward a plan and feasibility study on the transition of affluent housing investment and purchase mechanism. * To collect and sort out foreign housing investment and financing policies, cases and operation models; * To analyse and evaluate the existing domestic housing investment policies and reforming policies; * To study the investment and financing policies for affluent housing construction in China, and complete the feasibility study report; * To study and formulate the system and plan of long-term mortgage loan for purchase of private housing. Monitoring Indicators: feasibility report and plan on the transition of affluent housing investment and purchasing mechanisms, system and plan of long-term mortgage for private house purchases. Implementing Agencies: the State Science and Technology Commission, the Ministry of Construction, the Peopleís Bank of China and the Construction Bank of China

Time Schedule: December 1996 - December 1998

4.2 Development of a guideline of planning and designing for China's affluent house in 2000 * To introduce advanced concepts and methods of house planning and designing by studying foreign economic and practical residential communities, especially ones with high efficient land use, material saving and room spatial utilisation; * To evaluate current house planning and designing in China to identify existing problems; * To formulate a guideline of planning and designing for China's affluent houses on the basis of evaluating different schemes of affluent residential demonstration communities which are currently being implemented throughout the country. Monitoring Indicators: a guideline of planning and designing for China's affluent housing in 2000 Implementing Agencies: National Engineering and Technical Research Center of Human Settlements and China Construction Science & Technology Industrial Corporation Ltd..

Time Schedule: December 1996 - December 2000

4.3 Development and introdution of crucial technologies and products for the construction of affluent housing * To investigate the current techniques and products of China's housing industry, understand the present situation and anticipate future requirements; * To develop and introduce key technologies for affluent housing construction, such as pollution control technologies, conservation technologies, cleaner technologies for the housing construction in villages and towns; * To establish demonstration enterprises for the production of residential products, including kitchen utensils, sanitary facilities, energy saving doors and windows, partition and internal wall products, pipe and accessories, transmission system and the products of sound, light, electricity and information, insulation and energy conservation materials, water proof materials, and finishing materials. Monitoring Indicators: key technologies and products for China's affluent housing construction Implementing Agencies: the National Engineering and Technical Research Center of Human Settlements, China Construction Science & Technology Industrial Corporation Ltd. and other enterprises organised by the State Science and Technology Commission and the Ministry of Construction.

Time Schedule: December 1996 - December 2000

4.4 Studies and establishment of the property management model for China's affluent houses in 2000 * To collect characteristic foreign property management model of residential communities and understand their contents and methods; * To evaluate and offer solutions for the property management of residential communities; * To establish a property management model for China's affluent houses in 2000. Monitoring Indicators: report on property management model of China's affluent houses in 2000. Implementing Agencies: China Construction Science & Technology Industrial Corporation Ltd. and other enterprises organised by the State Science and Technology Commission and the Ministry of Construction.

Time Schedule: December 1996 - December 2000

4.5 Construction of affluent housing demonstration communities * To construct 5 or 6 affluent housing demonstration communities selected from Beijing, Guangzhou, Jiangsu, Sichuan, Shandong, Zhejiang and Liaoning Provinces. They are the Li Lake Taide District at Wuxi, Jiangsu province, Jinchengyuan District at Chengdu, Sichuan province, Xiangyang Jiayuan District at Guanhan and Ecological Village of Affluent Houses at Hengdian, Zhejiang province. These communities will be developed jointly by both domestic and overseas partners, local governments and other domestic funding agencies; * To develop new investment and financing models, plan and design affluent houses in accordance with the guideline for China's affluent house in 2000, try new property management models, and utilise new materials, technologies and products; * To investigate and demonstrate policies, technologies, products and management systems related to affluent housing construction in China, and propose summary reports. Monitoring Indicators: 5 or 6 affluent housing demonstration communities, produce a summary report on the policies and management systems of China's affluent housing construction Implementing Agencies: State Science and Technology Commission, Ministry of Construction and related local governments and enterprises

Time Schedule: December 1996 - December 2000

5. Inputs

5.1 Chinese Inputs Chinese inputs will be mainly used for fundamental researches, office room rent, investment in joint-venture or co-operative enterprise, and technology transfer.

5.2 International Inputs International inputs will include investment in a joint-venture or co-operative enterprise, equipment procurement for a training center, expenses for market investigation and study, and other related expenses.

5.3 Budget The total capital needed for this project is US$ 47.2 million. US$ 23.7 million will be provided from domestic sources, while foreign aid and investment will cover the other US$ 23.5 million.

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Table 1. Budget by Item (in million US dollars)

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Table 2. Budget by Output (in million US dollars)

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6. Benefits This project will provide a number of constructed affluent houses in China with modern technologies and material products. The pay-back of the housing construction will come from by selling the houses to the families. It will also promote development of housing industry and greatly improve the quality of peopleís lives.

7. Risks The challenge of this project is to incorporate modern technology in the construction of affluent housing suitable for conditions of China. These technologies are energy efficient and consume less building materials. In addition, too many participants involved in this project will face a great difficulty for joint implementation. Consequently, the owner will be responsible for the implementation of each sub-project, the State Science and Technology Commission and the Ministry of Construction will be responsible for the organisation, coordination and supervision of this project.

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