BEIJING -(July 31, 2002) Yesterday, the U.S. Trade and Development Agency (TDA) awarded two feasibility study grants totaling $493,000 to support infrastructure development projects in China. Assistant Secretary of Commerce William Lash signed the grant agreements on behalf of the U.S. government. Both signings occurred at the U.S. Commercial Service offices in Beijing.

The first grant, signed by Mr. Xin Zhengang, Director of the Tianjin Environmental Protection Bureau, on behalf of the Grantee, provides $223,000 for a hazardous waste study in the municipality of Tianjin, China. The contract to perform the study will be competed among interested U.S. firms. The second grant, signed by Mr. Mao Qiping, Director of the Foreign Affairs Bureau of PetroChina, on behalf of the Grantee, provides $270,000 to partially fund a study on an enhanced oil recovery project. Tradewinds Oil and Gas International Inc., of Houston, Texas, is the U.S. contractor that will perform the study and will contribute $270,235 toward its completion.

The first grant signed yesterday was given to the Tianjin Environmental Protection Bureau for a study on three related projects: a medical waste collection, storage, transportation, treatment, and disposal system; a civilian radioactive waste management, monitoring, and disposal system; and an environmental emergency response system. As industrialization accelerates in this northeastern municipality, increased environmental degradation has resulted in a focus on ways to mitigate these effects.

Tianjin generates approximately 7,500 tons of medical waste annually, which is currently disposed of without safe or effective treatment. Recent legislation and regulations have mandated that by 2004, 100% of medical waste should be safely treated and disposed. To meet this goal, Tianjin plans to establish a medical waste management, treatment, and disposal system to handle waste generated by hospitals, clinics, and research institutions to prevent infection and reduce pollution. In addition to a medical waste management system, Tianjin is also planning to establish a system for civilian radioactive waste containment, as well as developing an emergency response system in the event of a chemical or hazardous material accident.

The second grant awarded yesterday was given to PetroChina Company Limited to support its enhanced oil recovery project. The project is designed to allow for increased oil production from the Liaohe Oilfield, located in Northeast China, at relatively low cost compared to the large investment required for the discovery and development of new oil fields. Under the Ninth (1996-2000) and Tenth (2001-2005) Five Year Plans, Chinese leaders resolved to diversify energy sources, reduce coal combustion, and decrease oil imports. The feasibility study that TDA is helping to fund will prolong the life of the Liaohe Oilfield, China's second largest, by enhancing the rate of oil recovery.

The U.S. Trade and Development Agency promotes American private sector participation in developing and middle-income countries, with special emphasis on economic sectors that represent significant U.S. export potential. By funding various forms of technical assistance, training grants, feasibility studies, orientation visits, and business workshops, TDA helps American businesses compete for infrastructure projects in emerging markets. In addition, the agency promotes capacity building initiatives and supports U.S. government trade, economic policy and development objectives around the world.

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