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Tianjin Eco-City: Another Green Ghost Town?
Prepared by: Jenna Allen, Yiran Lu, Simon Paroutzoglou
May 2015
Disclaimer: This is one of a series of case studies prepared for the class, Case Studies in
Sustainable Development: Smart Cities and Urban Innovation. The information presented here is
not intended to propose solutions or make recommendations. Instead it provides a framework for
examining issues affecting urban centers globally through the lens of sustainable development.
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Introduction
Mr. Ho Tong Yen, the Chief Executive Officer of Sino-Singapore Tianjin Eco-City Investment
and Development Co. Ltd (SSTEC), at the World Cities Summit in 2012. His mind was still
abuzz with the conversations that had transpired that morning around the Tianjin Eco-city project
he was leading. The CEO had concluded his speech by remarking on the revolutionary nature of
the project.
“Until today all the cities that were ever developed grew organically out of evolving human
activity and the needs associated with that growth. Cities have always been the centers of
human activity, as they were the platform where individuals and communities co-existed,
built wealth through business and trade, and generally thrived.
However, this is changing. It is the first time in history where humans are in the process of
developing cities from zero with strategic mandates on economy, environment and society,
in hopes of creating urban environments that will be one step ahead of addressing major
issues that are bound to plague future generations. As we move forward in a global
environment characterized by complex environmental, economic and societal issues, we
must attempt to reverse-engineer the whole process of city development. City development
needs to be flipped on its head”
SSTEC is the Chinese-Singapore investment company that acts as the main developer for the
Eco-city. Ho was appointed CEO of SSTEC on January 1st, 2011. A seasoned Singapore
diplomat, he took the job because he relished the challenge of working in a project with strong
international relations aspects. An LSE Economics undergrad with graduate degrees in public
policy from the National University of Singapore and Harvard, Ho was in a prime position to
understand the initiative’s dizziness-inducing complexity. Developing a city from scratch that is
destined to be a model of sustainable development required sound decisions that had as much to
do with values and creativity as with solid business acumen.
As he walks into his office at the organization’s Singapore headquarters, Ho looks up at the large
map that frames the greater Binhai area where the Eco-city is under development — the map is
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full with red dots signaling points of concern (See Figure 1). Next to that map, Mr. Chua Kay
Chuan, the CEO’s right hand and responsible for Business & Strategic Planning is waiting. Now
that the initial startup area is complete, shareholders and government actors are demanding a
more comprehensive strategy for the next phase of development.
Background: China
The rapid rise of China as a major economic power within the span of four decades is often
described in literature as one of the greatest economic success stories in modern history. From
1979, when economic reforms were first initiated, to 2014, China’s real Gross Domestic Product
(GDP) grew at an average annual rate of around 10%. Thanks to the recent decades’ double-digit
growth, it is believed that 500 million Chinese people have risen out of extreme poverty. China is
perceived today as an economic powerhouse. A leader in manufacturing globally, China exports
the vast majority of its domestic production, rendering the country the world’s largest
merchandise exporter. Furthermore, China’s economic prowess cannot be denied. China is the
world’s second largest economy after the United States and holds the largest foreign exchange
reserves. A testament to the country’s stunning growth is the prediction that China is poised to
become the world’s biggest economy within the next five years.
Prior to 1979, China was a centrally planned economy. Under the leadership of Mao Zedong, a
large share of the economy’s output was planned, directed, and controlled by the state. During
the 1960s and 1970s, the central government embarked on major investments in physical and
human capital to instigate rapid industrialization. As a result, by 1978, around 75% of industrial
production was produced by centrally controlled, state-owned enterprises (SOEs) and private
companies or firms that were products of foreign investment were generally prohibited. A central
goal of the Chinese government was to render China’s economy self-sufficient. As such, foreign
trade was limited to obtaining only the goods that could not be made domestically.
Government policies kept the Chinese economy relatively stagnant and inefficient with
nonexistent competition and weak foreign trade and investment flows. Chinese living standards
were substantially lower than those of many other developing countries. Hence in 1979, the
Chinese government decided to reform the economy according to free market principles by
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opening up trade and investment with the West, in hopes of sparking economic growth and
raising living standards. The government established four special economic zones along the coast
for the purpose of attracting foreign investment, boosting exports, and importing high technology
products into China. In addition, state price controls on a wide range of products were gradually
eliminated. Trade liberalization was also a major key to China’s economic success, as removing
trade barriers encouraged greater competition and attracted foreign direct investment (FDI)
inflows.
China’s booming economy and its extraordinary growth is directly affecting how the Chinese
populate their city centers. The recent urban development in China has been unprecedented in
global scale. For instance, Shanghai in approximately two decades has been altered into a city of
breathtaking skyscrapers and luxurious apartment complexes that can put the ones punctuating
the New York skyline into shame. While the US currently has ten cities with more than one
million inhabitants, China has 170. There are more than 400 million subscribers to wireless
service in China, and in five years the number is expected to exceed 600 million.
II. Tianjin Eco-City Overview
Project Description: A Sustainable City by Design
As a city “reverse-engineered” in its track of development, much discussion went into the Eco-
city’s planning to ensure that it adds the least strain to the original situation, and that it follows a
sustainable route in its long-term environmental, economic and social development. This is
demonstrated by how the final location of the city was selected and by the goals presented in the
Master Plan.
The Tianjin Eco-city is situated 15km from Tianjin BinHai New Area (TBNA), 45km from
Tianjin downtown and 150km from Beijing (See Figure 2). There are several reasons behind the
location of the Tianjin Eco-city. From an environmental perspective, the city is built on an
environmentally vulnerable wasteland, in order to avoid taking up farmland and to facilitate
innovations for restoration.1 From an economic/social perspective, the developers chose the
Beijing-Tianjin cluster for its rapid economic and population growth. The majority of China’s
1 SSTEC. “Eco-city Overview.” Accessed May 8, 2015. http://www.tjeco-city.com/cn/about_2.asp
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urbanization is happening in the east coastal area, and Tianjin is no exception. The GDP of
Tianjin Binhai New Area exceeded US$130 billion last year and has recorded an annual growth
rate of 21.6% since 2009.2 Demographically, the population in Tianjin has reached 14.72 million
in 2013, a 4.18% increase from 2012. However, the natural growth rate is only 2.28%, indicating
that there is a large inflow of people to Tianjin.3 Located within the Beijing-Tianjin cluster, the
Eco-city can take advantage of the industrial and infrastructure conditions, as well as act as a
potential solution for the growing population problem.
In light of international concern about the environmental impact of rapid urbanization, the
Tianjin Eco-city project is meant to provide a model for sustainable urbanization. The design of
the city is centered around the concept of 400m by 400m “eco-cells”, i.e. walkable areas fully-
equipped as live-work-play-learn environments. Each eco-cell is intended to contain 2,500 units,
or 8,000 residents—with a total final population of 350,000 people.4 The “Master Plan”, laid out
by experts from both Singapore and China, includes 22 quantitative and 4 qualitative Key
Performance Indicators (KPI) (See Annex 1).5 Selected goals include:
1. 100% of buildings must comply with the Green Building Evaluation Standard
(GBES) developed by China and Singapore.
2. 90% of trips should be via public and non-motorized transport such as walking
and biking.
3. Develop a dynamic and efficient economy focused on environment-related
service industries, with the overall population comprising of 50 R&D scientists
per 10,000 workers by 2020.
4. Utilization of renewable energy for 20% of energy by 2020.
2 Ministry of National Development. “Speech of Deputy Secretary Tay Kim Poh at the ‘Tianjin Eco-city, Gateway to North China Market’ Investment Promotion Seminar.” Accessed May 8, 2015. http://app.mnd.gov.sg/Newsroom/NewsPage.aspx?ID=5339 3 National Bureau of Statistics of China. Accessed May 8, 2015. http://www.stats.gov.cn/tjsj/ndsj/2014/indexch.htm. 4 Abi Grogan, “Tianjin Eco-City - blueprint for the future,” E&T Magazine. March 11, 2013, accessed May 8, 2015, http://eandt.theiet.org/magazine/2013/03/blueprint-for-a-new-utopia.cfm. 5 Tianjin Eco-city. “KPIs.” Accessed May 8, 2015. http://www.tianjinecocity.gov.sg/bg_kpis.htm#GoodNatural.
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5. At least 20% of housing should be in the form of subsidized public housing by
2013.
6. Implement an effective waste management and recycling system with recycling
stations within the Eco-City. (60% of waste should be recycled by 2013).
7. Develop a Light Rail Transit System as well as trams and buses.
8. Develop a 12 km Eco-Valley for pedestrians and cycling, which connects all
major centers of the city.
9. At least 50% of the city’s water should be sourced by desalination and recycling
by 2020.
Overall, the Eco-City is estimated to take around 10-15 years to complete. The execution of the
goals above is supported by a series of government policies on the national and local level.
Favorable tax and administration policies are offered to potential investors, with a strong
preference for high-tech, environmental and cultural industries. The city also tries to attract
professional talents through preferential housing, tax refund and grants.
Partnership Framework: Shared Responsibilities
Implementation of the project is overseen by the high-level government partners: Singapore’s
Ministry of National Development and China’s Ministry of Housing and Urban Development.
Furthermore, the Eco-City has its own local government known as the Sino-Singapore Tianjin
Eco-City Administrative Committee (ECAC).
Partnership for the Eco-city goes beyond the meeting of Chinese and Singapore government.
Development of the city is commercially driven by the Sino-Singapore Tianjin Eco-City
Investment and Development Co. Ltd (SSTEC). SSTEC is the 50-50 joint venture between a
Chinese company, TEDA Holding, and a Singapore company known as the Keppel Corporation.
(See Figure 3). SSTEC is assigned as the “master developer” of the Eco-city meaning that
SSTEC has a contract to buy the land from the Chinese government and is responsible for
developing the land itself or contracting development out to third parties. This puts the bulk of
financial risk on SSTEC because it is obligated to buy the land and find companies that will want
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to lease it. SSTEC was established with 4 billion CNY provided by the Keppel Corporation and
through land contributions from TEDA Holding.
While the responsibilities of SSTEC are high, the Chinese government also bears a fair amount
of risk in the project. From a public perspective, the Chinese government faces reputational risk
and thus has a stake in the project’s economic viability and sustainability. While the Singapore
government also faces this same reputational risk, Singapore seeks to develop the city as a hub
from which Singaporean companies can launch a global strategy.
Current Status: Goals and Reality
Construction of the Eco-City began in 2008/2009, and SSTEC has achieved the goal of
developing a 4 km2 startup area by 2013. In the first year of production, construction began on an
Eco-Business Park, Eco-Industrial Park, and the first residential project. SSTEC also began a
joint venture with GEMS education to set up the state of the art, K-12 “GEMS World
Academy.”6 As of 2014, the Eco-city has attracted 1400 businesses with over CNY 80 billion,
including big names such as Siemens, Philips, GM, and Samsung. 7 Overall infrastructure
investment in the city has amounted to over CNY 40 billion (USD 6.5 billion).8
In January 2015, Hilton Hotels announced a new resort opening up in the Eco-city. Hilton has
launched a website complete with tourist information on “things to do” and a map of the area. 9
Additional developments in the Eco-city include an 18-hole international golf and country club
and a food market. As of January 2015, over 10,000 residential units have been sold, with plans
for the build of a full service hospital, a shopping mall, and the eco-information park underway.
Despite these successes, there remains a list of incomplete goals that are plaguing the reputation
of the project in the media. Criticisms have questioned the validity of building sustainable cities
6 Tianjin Bang.“GEMS World Academy.” Accessed February 21, 2015. http://www.tianjinbang.com/blog/2014/02/21/gems-world-academy/. 7 SSTEC. “SSTEC In the News.” Accessed May 8, 2015 http://www.tianjineco-city.com/en/nkcont.aspx?news_id=13771&column_id=10414. 8 MIT Technology Review. “China’s Future City.” Accessed May 8, 2015. http://www.technologyreview.com/news/532476/chinas-future-city/. 9 Hospitality Net. “Hilton Hotels & Resorts Announces Opening of Hilton Tianjin Eco-City.” Accessed January 26, 2015. http://www.hospitalitynet.org/news/4068779.html.
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from scratch rather than retrofitting current cities. Pointing to shortcomings in the ability of these
projects to meet their stated goals, many have deemed the “new eco-city approach” as a fad.
Regardless, Ho sticks to his belief that the eco-city idea is “not a passing fad” and that “if it is a
fad, it is a good fad.” With the startup area complete, he must now consider how these stated
issues with transportation, lacking residential amenities, social development, and public relations
should be addressed.
Chart I below shows the progress of the Eco-city to date. As most of the goals were set for
2020, incompleteness is expected. However, with just 5 years ahead there are some worrying
gaps. Although the Eco-city is carrying out its environmental and industrial plan mostly in the
intended direction, the social aspect seems to be lagging behind – people are moving in at a
much lower rate than they are supposed to.
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Chart I: Goals and Reality
Sustainable Development Goals and Reality
Aspect Goal Reality
EN
VIR
ON
ME
NT
AL
Renewable Energy 20% renewable energy by 2020 Achievement of this goal is
expected to face challenges
due to low renewable
resource availability; current
share is unknown.
Eco-cells &
Pedestrian
infrastructure
400m by 400m live-walk-live-
learn environment; build a
pedestrian valley to enhance
walkability
Eco-cells lack full amenities;
construction for a pedestrian
valley has not yet been
announced.
Public Transport 90% of trips via walking, biking,
or public transport by 2020
Currently, there is no rail
system.
Buildings All buildings must meet green
standards
To date, all buildings in the
eco-city meet this
requirement.
EC
ON
OM
IC
Population 350,000 or 10,294 people/km2
by 2020.
20,000 people or 6,667
people/km2.
Area 34 km2 of developed city Completion of 4 km2 start-up
area.
Business Create R&D hub for eco-tech and
attract enough businesses needed
for a city
Presence of 1,400 businesses
(a number of large eco-tech
companies) but few
businesses for day to day
activities, i.e. markets,
healthcare, etc.
Real Estate Over 100,000 units to house
350,000 people.
10,000 residential units have
been sold.
9
SO
CIA
L
Public Housing
20% of housing stock in the form
of low-cost public housing
569 public housing units are
available.10 This represents
about 5.69% of total housing
units sold or 6.8% of units
built.
Recreation and
Sports
All residents should have access
to recreational amenities within
500m by 2013
Insufficient recreational
amenities exist. One gym is
now open in the Eco-
Business Park.
Services Network
Infrastructure
Entire eco-city to have access to
key infrastructure services
(water, gas, electricity) by 2013
Services network completed
for the start-up area.
III. Eco-Tech & Business Development Strategy
In 2008, SSTEC looked to develop a strategy to put the Eco-City on the map as quickly and
efficiently as possible. With this goal in mind, SSTEC centered its focus on making the Eco-City
an international hub for eco-technology that will host R&D centers for big name tech companies.
Through a series of high-profile business deals, SSTEC sought to attract media attention and
boost population by bringing in workers who would reside in the city. To achieve this, SSTEC
collaborated with the government to develop an attractive incentives structure for businesses.
There are two distinct avenues for administering support: (1) for Singapore-based companies,
ECAC has developed the Tianjin Eco-City Assistance Program (TAP); and, for non-Singapore
companies, (2) the use of contract-specific incentives and subsidies.
The TAP program encourages Singapore-based companies to open marketing offices in the Eco-
City for the purpose of promoting their products and services within China and internationally.
The application process for TAP has been streamlined to reduce paperwork and time delays; and,
10 Tianjin Eco-city. “Groundbreaking Ceremony of Public Housing Development in Sino-Singapore Tianjin Eco-city.” Last modified October 14, 2009. Accessed May 8, 2015. http://www.tianjinecocity.gov.sg/press/2009/20091014.htm.
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the ECAC claims that the application process runs with a 15 day turnaround time. Incentives are
tailor-made to individual investors, with the following options11:
1. Flexible foreign exchange policies: Singapore companies have the option to convert
their funds into renminbi deposits as well as have access to tools to manage the risk of
unfavorable exchange rate fluctuations.
2. Tax rebate schemes: TAP offers two tax rebate schemes. Corporate entities can benefit
from the Corporate Income Tax rebate of 40% while other businesses can claim the
Business Tax Rebate equal to 100%.
3. Operational subsidies: Investors have the opportunity to apply for support to cover the
costs of setting up in the Eco-city. Participants can receive up to $150,000 in funding.
Singapore companies are eligible for up to 80% rental subsidy. Additionally, companies
considering conducting business within the Eco-city may be able to gain support from the
TAP’s set-aside fund of $9.5 million for conducting test-bedding and market feasibility
studies.
4. HR support: Employees of Singapore companies are given first priority when applying
for public housing. Furthermore, they are eligible to receive up to 40% rebate on the local
portion of their Individual Income Tax if they purchase commercial residential property.
SSTEC’s central website for the Eco-City project includes an entire section on “Investing in the
Eco-City”, complete with brochures on all of these incentives and a guide to investing that
outlines approval processes for setting up offices in the city.
For non-Singapore based companies, a lower corporate tax rate may be negotiated. While the
standard tax rate is 25%, new and high-tech industries may receive a preferential rate of 15%.
Furthermore, small-scale and low-profit enterprises may be eligible for a 20% tax rate.12
11 Ministry of National Development. “Speech of Deputy Secretary Tay Kim Poh at the ‘Tianjin Eco-city, Gateway to North China Market’ Investment Promotion Seminar.” Accessed May 8, 2015. http://app.mnd.gov.sg/Newsroom/NewsPage.aspx?ID=5339 12 SSTEC. “Corporate Income Tax Law of the People’s Republic of China.” Last modified March 16, 2007. Accessed May 8, 2015. http://www.tianjineco-city.com/UploadFile/xiazai/qysdsf.pdf
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IV. The Population Problem
In contrast to the stated goal of developing a model for sustainable development, the Tianjin
Eco-city has been criticized about becoming a “ghost city”. Even if the city adhered to all
environmental standards for sustainable development, if it fails to support a population of people
that carry out the objective of the city’s growth, then it could not be considered a successful
project.
In fact, the world still does not have a clear idea of the number of current residents occupying the
Tianjin Eco-city. MIT Technology Review, for example, cited in November 2014 that the eco-
city had 20,000 residents,13 while BBC reported that number to be 12,000 just 2 months earlier.14
In December 2013, Ho said in an interview with Xinhua that the eco-city has around 6,000
residents and 4,000 employees. He also cited the “350,000 people by 2020” figure as a capacity
limit rather than a goal or estimation as it has been reported by various news outlets.15
Ho spoke of those numbers in a positive light, emphasizing that the place is becoming more and
more lively, even “started to see long queues at the canteen at lunch time in the eco-city”. A
residential interview also received remarks about starting to see other people taking a walk in the
evening.16
However, while it is good news that people are moving in, it is hard to determine whether the
growth is at a speed suggested by the different population numbers reported. The concern is
based on several factors. First of all, there is no information indicating how the numbers are
calculated. If they are based on the number of registered households sold, then they may not be
accurate depictions of the current situation in the eco-city. According to Ho, 5000 homes have
been sold by the end of 2013. 17 Another real estate statistic indicates that the number of
13 MIT Technology Review. “China’s Future City”. Last modified November 18, 2014. Accessed May 8, 2015. http://www.technologyreview.com/news/532476/chinas-future-city/ 14 BBC News. “China’s Eco-city Looks for Residents”. Last modified September 24, 2014. Accessed May 8, 2015. http://www.bbc.com/news/business-29336170 15 SSTEC. “Tianjin Eco-city now has 6,000 Residents”. Last modified December 3, 2013. Accessed May 8, 2015. http://www.tianjineco-city.com/en/newscontent.aspx?news_id=13598&column_id=10350 16 Ibid. 17 Ho, Tongyen. “The Making of an Eco-city”. Speech at the World Cities Summit. Singapore. July 3, 2012. Accessed May 8, 2015. https://www.youtube.com/watch?v=5lfjPRuUWE8
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households sold in 2014 is 4,187, an increase from 3,857 in 2013. This is supposed to be 60% of
commercial residents built.18 It is repeatedly pointed out though that the actual move-in rate is
much lower than that, on average as low as 20%. People purchase the houses as an investment or
weekend home while continuing to live where there is more employment and supporting
facilities. Additionally, while residents have commented on the increase of neighbors, they
commented more on the lack of them.19 There are often only a handful of rooms occupied in a
tall apartment building. This creates many problems for community building and has greatly
reduced the efficiency of the city due to the lack of scale of demands.
While it is expected that growth would be relatively slow in the earliest periods of a city
developing from scratch, the Eco-city is still not moving along at the expected rate.
According to the SSTEC master plan, the development of the eco-city can be divided into three
phases. By the end of Phase I (2008-2010), there is estimated to be 4 km2 of developed area, with
a projected population of 85,000. Estimates for Phase II (2011-2015) and Phase III (2016-2020)
were not stated specifically at the time, but by 2020 there should be 34 km2 of developed land
and somewhere near 350,000 people. This implies an expected population density of 10,294
people/km2, or 14,000 people/km2 if the 9 km2 of open space is kept.20
Another research prediction puts the population at 30,000 by 2010, 200,000 by 2015 and 350,000
by 2020.21 Taking the more optimistic 20,000 as the population in 2014, and with a developed
area of 4 km2, the current density is 6,667 people/km2. This is quite empty considering it is half
the density of Tianjin.
Housing Market 18 EcoDreamers Forums. “Eco-city Housing Market 2014”. Last modified January 8, 2015. Accessed May 8, 2015. http://www.ecodreamers.com/thread-234743-1-1.html 19 Comments on forums including EcoDreamers, and under real estate advertisements. Last modified July 11, 2014. Accessed May 8, 2015. http://ecodreamers.com/thread-86331-1-1.html 20 Baeumler, Axel, et al. "Sino-Singapore Tianjin eco-city: A case study of an emerging eco-city in China." Technical Assistance Report, World Bank, Washington DC, 2009. Accessed May 8, 2015. http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2011/01/17/000333037_20110117011432/Rendered/PDF/590120WP0P114811REPORT0FINAL1EN1WEB.pdf 21 “Tianjin Eco-city Master Plan Topic Research”. Accessed May 8, 2015. wenku.baidu.com/view/4f908313227916888486d751.html?re=view
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40% of the land in the Eco-city is reserved for residential development. Housing prices provide
an idea of the targeted income group, as well as a measure to gauge the attractiveness of the Eco-
city.
The housing market for the Eco-city has gone through some ups and downs. The average price
for commercial residence started out at CNY 8,000/m2, and early developers such as Keppel
Seasons Park, JiaMing Mangrove Bay, WanTong Eco-city New Homes and ShiMao Eco-city
enjoyed a period of outstanding sales. The average price shot up to CNY 14,000/m2 in three
months, which is significantly higher than other properties in the Binhai New Economic Area.
However, after the initial trend, and especially after the government issued the housing
restriction policy banning local citizens from owning more than two houses, the sales slowed
down. Price fell to somewhere around CNY 6,800/m2 for quite a while. In the past two years
there has been some rebound, the average price returning to around CNY 8,500/m2.22 In 2014
there are 22 real estate projects in the eco-city, with unit prices ranging from CNY 7204/m2 to
CNY 19360/m2.23 This is largely believed to be due to improved facilities and the policy of
issuing permanent residence to homeowners with property values of over CNY 600,000.24
Affordable housing aimed at lower income groups are reported to have gone into sales in April
2014. The price is significantly lower at somewhere above CNY 4,600/m2.25 However, so far no
reliable data has been found on the exact number of houses sold. For office buildings, the price is
usually a little lower. There has been however little data found on the total number of office
buildings exchanged, making it even harder to determine the scale of some businesses currently
in the area.
22 Sohu Focus. “Tianjin Eco-city: Housing Price Back to Square One”. Last modified November 11, 2013. Accessed May 8, 2015. http://tj.focus.cn/news/2013-11-13/4306537_all.html 23 EcoDreamers Forums. “Eco-city Housing Market 2014”. Last modified January 8, 2015. Accessed May 8, 2015. http://www.ecodreamers.com/thread-234743-1-1.html 24 Sohu Focus. “Tianjin Household Register”. Accessed May 8, 2015. http://tj.focus.cn/zhuanti13/tjlyf/ 25 Guo, Wei. “Six Years in Tianjin Eco-city: Dream Rising on Wasteland”. China CRB. Last modified August 25, 2014. Accessed May 8, 2015. http://www.china-crb.cn/resource.jsp?id=23351
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In comparison, the average price of residential housing in Tianjin is around CNY 5872/m2 in
May 2007, which rose to CNY 7342/m2 in May 2008.26 In December 2014, the average price is a
little over CNY 15,400/m2.27 We could see that the initial housing price in the Eco-city reflected
a higher than average income level. The price fell after that and eventually ended up close to or a
little lower than the Tianjin average price. This seems to indicate that demand may be lower than
expected.
It remains to be seen whether a reviving housing market would bring in more residents or create
more sold but empty homes. There are conflicting views on the prospect of the housing market in
the Eco-city, but they mostly have a centered focus on government policies, employment,
transportation, services and facilities in the area.
Employment and Population
Local employment is important in both the traditional and sustainable aspects of urban
development. It is a crucial factor in attracting residence, as there is a limit to the range of
commuting people are willing to do. Businesses and industries are mutually stimulating with the
development of services in the area, and can turn into virtuous or vicious cycles in regard to
employment. Local employment is also conducive to building a sustainable city, as long-distance
commuting encourages the use of private vehicles, which would increase energy consumption
and emissions, more so due to possible congestion during peak hours.
The Eco-city’s stated goals indicate that 50% to 70% of local residents should also be local
employees to keep a healthy balance and to maintain long-term sustainability. Which means that
there needs to be around 114,000 local jobs available by 2020.28 Currently, only around 4,000
people are reported to be employed within the Eco-city. The Eco-city also seems to have a
relatively higher ratio of senior people and children as some people who could not or would not
find employment in the city choose to make it a retirement or education hub for their parents and
children.
26 Housing News. “Housing Price Rebounds in May”. Last modified August 28, 2008. Accessed May 8, 2015. http://news.tj.fang.com/2008-08-29/2045328.htm 27 Jiwu Housing. “Price Trend” Accessed May 8, 2015. http://tj.jiwu.com/fangjia/ 28 ”Tianjin Eco-city Master Plan Topic Research,” Accessed May 8, 2015. wenku.baidu.com/view/4f908313227916888486d751.html?re=view.
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Despite having over 1000 registered companies, the number of jobs provided is not yet large
enough. There are several reasons. First, a lot of these companies are micro-companies that do
not require a lot of labor. Second, the companies are still in their earlier stages of development,
and are mostly in the high-tech industries. They have yet to expand beyond research and product
development. Third, the service chain that comes with urban growth is not fully in place; there
are vacuums in many areas such as food and entertainment that are yet to be filled.
Services and Infrastructure
Transportation, commercial, health and education needs are closely linked with industrial
development and with attracting residents. Currently these sectors are not well matured.
For transportation, the master plan set a goal of making public transportation 90% of all travels,
to encourage non-motorization and to use clean fuel. While contracting companies have made
some progress in designing more energy-efficient vehicles, the other aspects are not working out
ideally. Within the city the main public transportation mode is by bus, yet without enough
residents to create economies of scale the bus cannot run in an environmentally or financially
sustainable way. Also due to the lack of other services, residents often need to travel to Tianjin
or even Beijing. The light rail connecting the regional centers have yet to be constructed, further
encouraging the use of private vehicles.
For commercial and health services, residents still need to travel out of the eco-city in order to go
to bigger malls and hospitals. The situation is improving as the Tianjin Medical University
Affiliated Hospital is due to open later in 2015,29 and more stores are appearing, but again it falls
into a “chicken or egg” issue with the population in regard to supply and demand.
It is a slightly different issue with education. Education is one of the pulling factors for the eco-
city. Students can have up to 10 years of free education from kindergarten to high school, with
free school bus and lunch provided. There are currently three kindergartens, three primary
schools, a foreign language school and an international school. 30 Recently there are some
29 Tj.people.cn. “New Hospital in Ecocity Finishes Main Body Construction,” last modified January 16, 2015. http://www.022net.com/2015/1-6/446355162298583.html. 30 TianjinWe.com. “Eco-city Forms Education Cooperations,” last modified May 6, 2015. http://www.tianjinwe.com/tianjin/bh/rdxw/201405/t20140506_617618.html.
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problems with dealing with the fluctuation in enrollment. The kindergartens especially are
unable to meet the raise in demand, and some parents and grandparents had to drive their
children to Tianjin for the purpose.
Marketing and Public Relations
Ho reflects on the strategy of the first stage, noting that SSTEC has focused more on the
“hardware” of the city. He knows that increasing attention will need to be Eco-city has a
convoluted reputation, with widespread misrepresentations in the media about the total project
costs. Meanwhile, a number of sources have been using the “Tianjin Eco-city” name to describe
unrelated projects. SSTEC has begun to respond to such problems, launching a clarification pop-
up on their website to educate website viewers (See Figure 4).
But SSTEC’s marketing presence lacks in other ways as well. The real estate section of SSTEC’s
website is listed under the “Investing in the Eco-City” section and includes a list of current real
estate developers. However, information regarding the features or availability of housing units
are nowhere to be found. Furthermore, incentives for residents of the city cannot be found at all
on the website and there are no links to direct potential residents to property listings. In response
to shareholder concerns regarding SSTEC’s insufficient communication strategy, SSTEC began
to use a pop-up on their website to direct visitors to learn about “incentives". While this serves as
a useful tool to direct traffic, this page only includes information regarding incentives for
businesses rather than targeting potential residents directly.
V. Changing Strategy: What to do next?
Ho and Chua Kay Chuan concluded their meeting, both men remembered words from Xi
Jinping, China’s General Secretary, “We need to take care of the good nature, while securing the
harmonious co-existence between man and environment.” With that in mind, they needed to do
tackle a series of problems. They spoke about getting to the bottom of discrepancies in
population numbers from various media outlets and understanding the reasons behind low
numbers. Furthermore, they need figure out whether the Eco-city is catering only to high-income
households, and to study whether the current strategy for attracting business is suitable for
addressing the population problem. These are all tricky topics and they wondered if there was
17
some information they had overlooked. Moreover, they know that they need to engage with all
the different stakeholders with diverse sets of interests to find out ways of attracting more
residents.
As a result of the 6th Joint Working Committee Meeting on April 2, 2014, SSTEC and
government stakeholders endorsed a “Refreshed Vision” for the next 5 years of the project. The
strategy outlines 3 key focuses: (1) to continue efforts to develop the Eco-city as a leader in eco-
development, (2) to solidify the concept of the eco-city as a satellite city, i.e. a largely
independent city nearby a metropolitan center, and (3) to create a harmonious city with an
innovative social management framework.31 To that last point, Ho says that he recognizes that
the next phase of development must put more focus on the “softer” factors of the city. The call
for an innovative social management framework, which covers areas like education, healthcare,
sports, safety, and culture, reflects this need. The city has launched a number of new amenities in
line with this framework. For example, a large neighborhood center as large as two soccer fields
was opened in 2014. But there are still significant choices to be made regarding the specific
provisions for a social management framework as well as questions regarding the sequencing of
infrastructure and other projects in the city.
More specifically, what can SSTEC do now to attract residents? Is the problem one of
insufficient amenities and infrastructure for comfortable residential life or is the problem rooted
in poor public relations and marketing? Finally, as a public-private partnership of immense
proportions, this project is bound to be filled with conflicts. Ho needs to have a clear idea of how
some of the social, environmental and economic goals of this project might conflict.
Consequently, he must be able to articulate the possible trade-offs that might exist to the diverse
stakeholders of the Tianjin eco-city.
Ho needs to clarify this not only for the current time being, but also as crucial information for his
successor. In July 2015, Mr Liew Choon Boon will be taking over his position as CEO of
31 Singapore Ministry of National Development. “Speech of Deputy Secretary Tay Kim Poh at the ‘Tianjin Eco-city, Gateway to North China Market’ Investment Promotion Seminar,” last modified May 21, 2014. http://app.mnd.gov.sg/Newsroom/NewsPage.aspx?ID=5339.
18
SSTEC.32 Ho hopes that he shall leave the eco-city with positive changes taking shape, and that
Liew, experienced in community development, communication and arts, shall be able to further
enhance its social and cultural attractiveness.
32 Channel NewsAsia. "New CEO Named for Sino-Singapore Tianjin Eco-City Developer." Last modified April 6, 2015. Accessed June 27, 2015. http://www.channelnewsasia.com/news/business/singapore/new-ceo-named-for-sino/1768766.html.
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BOX 1:
Compare: Tampines New Town in Singapore
Mr. Ho Tong Yen has remarked in an interview that the Tianjin Eco-city is closest to the
Tampines new town in Singapore. Tampines is situated in the East Region of Singapore main
island. It used to be a wasteland covered by forests, swamps and sand quarries, and has been a
military training area and then a plantation during the 19th century. The new town started in
1978 and expanded quickly. Today Tampines covers an area of 20.61km2, with a population of
around 258,810 in 152,000 dwelling units. This translates to a large density of around 11,538
people/km2. The town is still growing, and is projected to ultimately hold 200,000 dwelling
units, which would place its population at somewhere around 300,000.33
The new town is similar to the Tianjin Eco-city in regard to size, estimated population and
density. It is less than 20 kilometers away from the downtown area in the Central District. The
planning of Tampines also involved a lot of innovations in building and public space design.
The town has maintained ample greenery with three main parks and “green fingers” in the
form of community parks. It is also a high-profile project, which received the World Habitat
Award for Excellence in Housing Design in 1992. The Singaporean government supported the
development through loans and grants.
Although Tampines has had much more time to develop, there is still a sharp contrast between
its success in attracting business and residents and that of Tianjin Eco-city. The earliest census
statistics shows that in 2000 Tampines already had a population of 252,448. 2015 marks the
seventh year since the Tianjin Eco-city started in 2008, but a population of less than 20,000
shows a great difference that cannot be only attributed to time.
Tampines new town is the one of the largest commercial hubs in Singapore, with three main
shopping malls and a wide array of businesses including food, grocery, entertainment, etc. This
serves to draw traffic inwards and to provide local employment opportunities. The town itself
33 Ni, Shichun and Xing Qi Ang. “Singapore’s new towns as models of sustainable built environment for China,” Cornell. Accessed May 8, 2015. https://courses.cit.cornell.edu/crp384/2008reports/10Singapore_China.pdf.
20
is divided into 9 neighborhoods, with a wide selection of housing styles from high-rise
compact apartments to single dwellings. The buildings are designed to be more attractive,
different from the uniform public townhouses usually seen elsewhere. Transportation is easy
within the town and linking to other regions. The Pan-island Expressway and Tampines
Expressway allows for fast road travel, and public transportation in the form of MRT, buses
and taxis are frequent and easy to access. SBS Townlink bus services link the three MRT
stations and two bus interchanges to the neighborhoods. Town Councils involving the residents
are largely responsible for the management of neighborhoods after 1991.
21
BOX 2:
Compare: Chongqing’s mega growth
Not all cities are built the way the Tianjin Eco-city is developed. Whereas the Eco-city’s
development has been well-though out and carefully implemented, Chongqing’s growth has
been unsystematic and organic as a result of extreme urbanization.
Chongqing covers a large area crisscrossed by rivers and mountain. The city is situated in
Southwest China at the transitional area between the Qinghai-Tibet Plateau and the Yangtze.
Unlike cities like Beijing or Shenzhen, who are flat and vast, Chongqing is a city of high
density. Squeezed between mountains and rivers, there’s no room to expand but to go up and
pack high rises in every available space. According to the Economist Intelligence Unit,
Chongqing is expected to be one of China’s thirteen mega-cities34.
Chongqing, however, was not always a large city. Until 1997, it was a neglected city in the
poor Sichuan province. Due to its geography and proximity to better-known cities like Beijing,
Shanghai, or Shenzhen, the city was left alone. Since 1997, though, it has benefited from the
government’s elevation to the rank of municipality, enjoying extra investment opportunities
and special status among other Chinese cities.
Since then, its expansion has been nothing short of staggering. Just for 2014, the city attracted
4,000 people each week until it reached 29.9 million. Officially, Chongqing’s urban population
is around 8 million, but unregistered laborers push the official figure up substantially. Many of
Chongqing’s residents were resettled in the city after their villages and towns were flooded by
the creation of the Three Gorges Dam, which displaced over a million people. Additionally,
last year, Chongqing’s local economy grew by 12.3%, which is 66.2% above China’s national
average of 7.4%. The municipality’s economy is estimated to be 1.3 trillion yuan ($204
billion), or roughly the size of Qatar’s.
34 EIU Media. “13 megalopolises to emerge in China by 2020,” last modified July 9, 2012. http://www.eiumedia.com/index.php/daily-comment/item/627-13-megalopolises-to-emerge-in-china-by-2020.
22
Chongqing is a prime case of China’s booming growth. At the same time, it remains an
example of unsustainable development in a part of the globe experiencing unprecedented
urbanization.
23
Annex 1: Key Performance Indicators35
The following KPIs are broken up into four broad categories: good natural environment, healthy
balance in the man-made environment, good lifestyle habits, and developing a dynamic and
efficient economy. There are 22 quantitative and 4 qualitative KPIs.
Good Natural Environment
● Ambient Air Quality
The air quality in the Eco-city should meet at least China's National Ambient Air Quality
Grade II Standard for at least 310 days. The SO2 and NOx content in the ambient air
should not exceed the limits stipulated for China's National Ambient Air Quality Grade 1
standard for at least 155 days.
● Quality of water bodies within the Eco-city
Water bodies in the Eco-city should meet Grade IV of China's latest national standards by
2020.
● Quality of Water from Taps
Water from all taps should be potable.
● Noise Pollution Levels
Noise pollution levels must satisfy the stipulated standards for different functional zones.
● Carbon Emission Per Unit GDP
Description: The carbon emission per unit GDP in the Eco-city should not exceed 150
tonne-C per US$1 million.
● Net Loss of Natural Wetlands
Description: There should be no net loss of natural wetlands in the Eco-city.
Healthy Balance in the Man-made Environment
● Proportion of Green Buildings
Description: All buildings in the Eco-city should meet green building standards.
35 Tianjinecocity.gov.sg. “KPI,” Accessed May 8, 2015. http://www.tianjinecocity.gov.sg/bg_kpis.htm.
24
● Native Vegetation Index
Description: At least 70% of the plant varieties in the Eco-city should be native
plants/vegetation.
● Per Capita Public Green Space
Description: The public green space should be at least 12 square metres per person by
2013.
Good Lifestyle Habits
● Per Capita Daily Water Consumption
Description: The daily water consumption per day each person should not exceed 120
litres by 2013.
● Per Capita Daily Domestic Waste Generation
Description: The amount of domestic waste generated by each person should not exceed
0.8 kg by 2013.
● Proportion of Green Trips
Description: At least 90% of trips within the Eco-city should be in the form of green trips
by 2020. Green trips refer to non-motorised transport, i.e. cycling and walking, as well as
trips on public transport.
● Overall Recycling Rate
Description: At least 60% of total waste should be recycled by 2013.
● Access to Free Recreational and Sports Amenities
Description: All residential areas in the Eco-city should have access to free recreational
and sports amenities within a walking distance of 500m by 2013.
● Waste Treatment
Description: All hazardous and domestic waste in the Eco-city should be rendered non-
toxic through treatment.
● Barrier-Free Accessibility
Description: The Eco-city should have 100% barrier-free access.
25
● Services Network Coverage
Description: The entire Eco-city will have access to key infrastructure services, such as
recycled water, gas, broadband, electricity and heating by 2013.
● Proportion of Affordable Public Housing
Description: At least 20% of housing in the Eco-city will be in the form of subsidized
public housing by 2013.
Developing a Dynamic and Efficient Economy
● Usage of Renewable Energy
Description: The proportion of energy utilised in the Eco-city which will be in the form
of renewable energy, such as solar and geothermal energy, should be at least 20% by
2020.
● Usage of Water from Non-Traditional Sources
Description: At least 50% of the Eco-city's water supply will be from non-traditional
sources such as desalination and recycled water by 2020.
● Proportion of R&D Scientists and Engineers in the Eco-city Workforce
Description: There should be at least 50 R&D scientists and engineers per 10,000
workforce in the Eco-city by 2020.
● Employment-Housing Equilibrium Index
Description: At least 50% of the employable residents in the Eco-city should be
employed in the Eco-city by 2013.
Qualitative KPIs
● Maintain a safe and healthy ecology through green consumption and low-carbon
operations.
● Adopt innovative policies that will promote regional collaboration and improve the
environment of the surrounding regions.
● Give prominence to the river estuarine culture to preserve history and cultural heritage,
and manifest its uniqueness.
26
● Complement the development of recycling industries and promote the orderly
development of the surrounding regions.
27
Figure 1: Design of the Eco-
city36
Figure 2: Location of the Eco-city in
Relation with Surrounding Areas37
36 “Master Plan,” Tianjin Eco-city. Accessed May 8 2015. http://www.tianjinecocity.gov.sg/bg_masterplan.htm. 37 “Project Overview”, Tianjin Eco-city. Accessed May 8, 2015. http://www.tianjinecocity.gov.sg/chinese/bg_intro.htm.
28
Figure 3: Partnership Structure38
38 Baeumler, Axel, et al. "Sino-Singapore Tianjin eco-city: A case study of an emerging eco-city in China." Technical Assistance Report, World Bank, Washington DC, 2009. Accessed May 8, 2015. http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2011/01/17/000333037_20110117011432/Rendered/PDF/590120WP0P114811REPORT0FINAL1EN1WEB.pdf
29
Figure 4
30
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