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No 1 Document for 2011 (full text)

CPC Encyclopedia


5. Establish a Mechanism for Steady Growth of Water Conservancy Investment

(16) Increase public investment in water conservancy. Raise funds through a wide range of channels. Seek to double the annual investment in water conservancy as compared with 2010 in ten years. The government shall play a leading role in water conservancy development and include water conservancy in the priority areas of public finance. The public finance at all levels shall expand water conservancy investment markedly, either by total size by growth rate. Further increase the weight of water conservancy funds in the national investment in fixed assets. Significantly increase public funding of water conservancy at both central and local levels. Allocate 10% of land premium revenues to farmland water conservancy. Revenues from new land parcels granted for construction use and other land management funds shall be unleashed to generate comprehensive benefits. Further improve the policy on the Foundation for Water Works, extend the length of levy years, diversify the avenue of funding and expand the base of revenues. Improve the paid water use system, reasonably adjust the water tariff criteria, expand the scope of levy, and maintain a high level of stringency in collection, use and

management of water tariffs. Cities with a heavy burden of flood control or suffering serious water deficiency shall allocate a reasonable part of urban construction and maintenance tax revenues to urban flood control and water source projects. Effectively enhance supervision and management of water conservancy investments and funds.

(17) Strengthen financial supports for water conservancy development. Utilize financial and monetary policies to encourage financial institutions to lend more to the water conservancy sector. Where conditions permit, the size, duration and rate of discount loans shall be determined in line with the nature and characteristics of water conservancy projects. The Agricultural Development Bank of China is supported to extend medium- to long-term policy loans to water conservancy projects at a controlled risk level. China Development Bank, the Agricultural Bank of China, rural credit cooperatives and the Postal Savings Bank of China are encouraged to lend more to farmland water conservancy projects. Eligible water conservancy enterprises are supported to go public and issue bonds. Explore financial leasing for large-sized water conservancy equipment and facilities. Introduce a variety of financing forms for water conservancy projects, including loans secured by project cash flow. Flood insurance is encouraged and supported. Increase the size and improve the quality of foreign investment in water conservancy.

(18) Attract broad-based private investment in water conservancy. Encourage eligible local government financing vehicles to diversify the avenue of water conservancy investment and financing, directly or indirectly to attract private capital into water conservancy projects. Farmers are encouraged to work hard on a self-reliance basis. Motivate farmers to invest in farmland water conservancy under the principle of granting more subsidies to heavier investment and more labor and through increasing government awards and subsidies on a case-by-case basis. Improve the rural hydropower value added tax (VAT) policy in line with the VAT reform and legislation process. Improve the policy on the farmland use tax in respect of water conservancy projects. Steadily and actively push ahead with market-based financing of for-profit water conservancy projects.

6. Manage Water Resources to the Most Stringent Standard

(19) Establish a system of total water consumption control. Define the control limit of water resource exploitation and utilization, promptly formulate the plan for allocation of major river water resources, and establish a system of control indicators for total water taking. Strengthen water resource assessment over programs and projects. The plan for national economic and social development and the master urban plan shall be formulated and major projects shall be deployed in alignment with local water resources and flood control

requirements. The water resource assessment process must be strictly implemented for construction projects. A stop order must be given to any construction or operation of any project without approval. The water taking permit must be strictly managed. Where the total water taken has reached or exceeded the control limit, any new water taking permit for construction projects shall be suspended. Restriction shall be applied to new water taking permits where the total water taken is close to the control limit. Groundwater management and protection must be strictly carried out. The prohibited and restricted areas of groundwater extraction shall be defined as soon as possible to phase down excess groundwater extraction and reach a balance between extraction and recharge. Strengthen central dispatch of water resources, maintain coordinated use of water for residential, commercial, industrial and ecological purposes and improve the water resource dispatch plan, the emergency dispatch plan and the dispatch schedule. Establish and improve the national water rights system to optimize allocation of water resources using the market mechanisms.

(20) Establish a system of water efficiency control. Establish the control limit of water efficiency, strictly control waste of water and embed water efficiency into the entire process of water-consuming equipment for residential, commercial and industrial purposes. Accelerate the establishment of the water efficiency indicator system by geographical regions, industry sectors and water users. Strengthen management of water quota and plans. Focus on monitoring of water users that reach a certain scale. Apply strict restriction to water-intensive industrial projects in water-deficient areas. Implement simultaneous design, construction and operation of water conservation facilities and main works of a construction project. Accelerate technical revamp for water efficiency, strengthen water efficiency management of enterprises, establish model water-efficient projects and disseminate water-efficient agricultural technologies. Develop compulsory standards on water efficiency, and phase out processes, equipment and products that do not meet water efficiency standards.

(21) Establish a system of controlled pollutant discharge to water function areas. Establish the pollutant-carrying limit of water function areas. Define the pollutant-carrying capacity to stringent standards and strictly control the total pollutant discharges to lakes and rivers. Governments at all levels shall limit the total pollutant discharges as a crucial basis for the work on water pollution control and emission reduction, clarify responsibilities and take actions. Restriction shall be applied to new water intakes and sewage outlets to rivers where the total pollutant discharge has exceeded the limit of water function areas. Create a water quality assessment system for water function areas and improve the system of monitoring, supervision and early warning.

Strengthen protection of water sources, identify the protected drinking water source areas and strengthen management of drinking water source emergencies. Establish the water-related ecological compensation system.

(22) Establish a system of water resource management responsibility and assessment. The chief officers of local governments at the county or higher above shall assume the overall responsibility for managing and protecting water resources within their respective mandate. Strictly implement the water resource management assessment system. The water administration department shall, in conjunction with other relevant departments, conduct an assessment of water resource exploitation, utilization, conservation and protection indicators in local areas and submit the assessment results to the supervisory authority as an important basis for performance assessment of local government leaders. Strengthen capacity building in respect of water quantity and quality monitoring, and provide technical supports for enhanced supervisory assessment.