Actively Implementing the Water-governing Thinking in the New Period in an Effort to Usher in a New Phase of Water Conservation, Governance, Management and Development

Chen Lei

1 Water Conservancy in 2014 Made Significant Achievement, Providing Strong Support for Sustainable and Healthy Socio-economic Development

The year 2014 was a historic year in the course of water sector reform and development in China. President Xi Jinping delivered an important speech on safeguarding national water security; Premier Li Keqiang convened an cabinet meeting of the State Council for planning and accelerating key water saving and water supply projects, and put forward clear requirements on water conservancy during his visit to the Ministry of Water Resources. The achievements were multi-faceted.

First, new success in flood control, drought relief and typhoon disaster prevention. Recurring regional floods of major impact were properly controlled; damage super typhoons like Ramasoon were successfully mitigated; winter and spring droughts in some areas, and wide spread severe summer droughts were effectively dealt with; the barrier lake emergency triggered by Ludian (Yunnan Province) earthquake was properly managed.

Second, new progress in key water projects construction. Among the 172 key water projects, 40 on-going projects were sped up, including the treatment of the 3 rivers (Heilongjiang River, Songhuajiang River and Nenjiang River) in Northeastern China;construction of 17 projects were started, including Datengxia Gorge flood control project on Xijiang River, and Chushandian reservoir on Huaihe River; 27 projects planned for 2015 were all initiated; and the preliminary work for 88 projects planned for the 13th Five-Year Plan period were accelerated.

Third, new success in rural drinking water safety. All the relevant work were assigned and contracted to each district. Regular supervision, interviews and bulletins were implemented and program-specific inspection, special sample examination, and third-party evaluation were executed so as to propel local agencies to speed up preliminary preparation, workload allocation, budget disbursement and construction scheduling, enabling over 66 million of rural population to access safe drinking water.

Fourth, new achievements in building farmland water irrigation and drainage infrastructure. The supplementary facilities in large irrigation districts and large pumping stations were being renovated. The construction of a bunch of new irrigation districts like the Sanjiang Plain (alluvial plain of Heilongjiang River, Ussuri River and Songhuajiang River) in Heilongjiang Province has been accelerated. Large-scale water-efficient irrigation is extended in Northeastern areas for the purpose of water conservation and grain output increase. Newly added water-efficient irrigation districts in 2014 reached 20 million mu (1.33 million hm2). 2,450 counties in six batches were identified for small farmland infrastructure construction, covering mainly agriculture and husbandry dominated counties.

Fifth, new breakthrough in comprehensively deepening water sector reform. The administrative mandates continued to be streamlined and delegated to lower level of government. Water administrative approval items were reduced from 48 to 22. Water investment and finance mechanism was further reformed, with investment in water infrastructure construction reaching RMB 488.1 billion (USD 78.73 billion) in 2014, and outstanding loans to water conservancy reaching RMB 728.6 billion (USD 117.52 billion). Agricultural water price system went through comprehensive reform, and water use right registration, water right trading and water right mechanism were explored in pilot areas. The construction, operation and management of water projects turned increasingly professional, market-oriented and socialized.

Sixth, new steps in promoting water ecological progress. The "Three Red Lines" embodied in the most stringent water resources management system were implemented in all provinces, cities and 90% of counties in accordance with a set of water indicators; and performance review in 2013 was finished and released to the public. 105 pilot of urban ecological progress were promoted. Pilot projects of groundwater over-exploitation treatment were carried out in Hebei Province. 54,000 km2 of area exposed to water and soil erosion was treated; and newly installed rural hydropower capacity reached over 2 million kW.

Seventh, new progress in water governance by rule of law and water utilization by science and technology.The Regulation of South-to-North Water Diversion Project Water Supply and Usage Management was promulgated; and water administration supervision, program-specific law enforcement and water related disputes mediation had been improved. Drafting of the 13th Five-Year Plan of water development was in full swing, and a series of important plans were promulgated and implemented. Sci-tech innovations for water came in abundance. Foreign exchanges and cooperation on water saw further expansion.

2 To Thoroughly Implement the Instructions of President Xi Jinping and Premier Li Keqiang, and Build up the Safeguard System for National Water Security

President Xi Jinping and Premier Li Keqiang have remarked on water governance and utilization on many occasions since the 18th National Congress of CPC, providing scientific guidance to water governance in the new period. The spirit of their speeches should be thoroughly grasped and carried out, and a safeguarding system for China's national water security should be established at an early date.

First, the new perspective on water governance shall be implemented. It is embodied in "Chinese government has put forward the guiding principle of prioritizing water conservation, upholds the principle of balancing population growth, economic development, resources and the environment, adheres to the systematic philosophy that mountains, waters, forests and farmlands constitute one life community, and insists on the basic requirement of jointly promoting development of water sector by both governmental and market forces" in President Xi Jinping's speech, which have introduced new requirements and tasks on water governance. Guided by water governance perspectives in the new period, transformation from extensive water use to intensive water use, from water supply management to water demand management, from single-purpose water management to systematic management, and from an government dominated approach to the synergy between government and market, and innovation-propelled approach shall be realized. Water security issues shall be addressed in a coordinated and systematic way, and people water harmony shall be promoted, so as to achieve a modernized water management paradigm with Chinese characteristics.

Second, a water-saving society centered on sustainable water utilization shall be developed. Water conservation should in every circumstance be given first priority, and the water carrying capacity should be the prerequisite for planning urban development, land use, economic growth and productivity layout. Water conservation should be given the same attention as energy saving and emission reduction. Relevant policies and standards of water conservation shall be improved; planned water use and quota management should be reinforced, and technical standards of water conservation and water efficiency for water-consuming products be optimized. Water conservation in industrial, agricultural, service sectors and urban area shall be advanced, with intensified application of water-saving technologies and upgrading of water-saving products. The metering and monitoring of water resources shall be enhanced, and the systems of water monitoring, usage metering and statistics be improved.

Third, major water projects shall be sped up as a key step to improve the modern water infrastructure system. As far as the major water projects are concerned, it is important that the main responsible party, work schedule, fund raising plan and construction milestones for each item of the work must be clarified. Compensation for land acquisition, and maintaining the equilibrium of farmland acquisition and compensation should be entitled to the same policies benefitting railway and other major national infrastructure projects. Issues on technology, economy, environment, land acquisition, and resettlement should be properly addressed;and project quality, safety, schedule and finance must be strictly managed so that these projects can meet time schedule and generate benefits.

Fourth, rural drinking water safety issues shall be addressed so as to improve the livelihood of people. The speed, quality and benefit of this campaign shall be considered in a balanced way; and the chief administrator of each region be held accountable, so as to guarantee that the 12th Five-Year Plan for rural drinking water safety be fulfilled. Construction of more water source projects shall be accelerated; urban water supply pipelines shall be extended to cover the rural areas and large-scale centralized water supply be promoted. Water source areas and water quality shall be protected; the pricing of supplied water be improved; and a sound operation mechanism be guaranteed. How to acquire better quality and higher efficiency of rural drinking water supply during the 13th Five-Year Plan period shall be considered without any delay, so as to further increase the ratio of centralized water supply, guarantee rate, water quality compliance rate and the ratio of tap water access as well.

Fifth, farmland water conservancy shall be promoted so as to provide a strong basis of food security. The agriculture development mode shall be transformed in such a way that large-scale water-saving irrigation will be extensively applied, fodder grass land in pastoral areas using water-saving irrigation be established, and water-saving irrigation technologies be widely applied. Focusing on securing grain production, the effective irrigation districts shall be expanded; supporting facilities construction, pumping stations renovation and irrigation districts modernization be advanced, so that agricultural productivity can be comprehensively improved. Based on planning of rural water management and construction on county level, financial sources available for farmland water management shall be consolidated and channeled in particular to key counties of small farmland water conservancy, farmland water infrastructure renovation, so that a modernized farmland irrigation system can be established.

Sixth, the most stringent water resources management system should be implemented to boost water ecosystem progress. Water demand management shall be constantly enhanced; water resources assessment and water withdrawal permit be implemented; and the implementation of the "Three Red Lines" be better supervised and reviewed. Water function zones shall be classified and graded for better management; sewage outlets to rivers and lakes be strictly monitored; the water quality of drinking water source areas meet relevant standards; and water ecological progress both in urban and rural areas be vigorously built. River and lake connectivity shall be enhanced on the basin-wide and regional scale, with stronger carrying capacity of water and the water environment. Ground-water protection shall be reinforced, with comprehensive treatment measures taken at regions exposed to excessive groundwater exploitation in Northeastern China, so that an equilibrium of groundwater withdrawal and replenish can be achieved.

3 To Thoroughly Implement the Basic National Policy of Rule of Law, and Advance Water Management and Harnessing by Rule of Law

The 4th Plenary Session of the 18th Central Committee of CPC made important strategic deployment on comprehensively advancing the law-based governance of the country.

First, focusing on the overall objective of the law-based governance, the ways and requirements of water related legal construction shall be sorted out. As China strives to build a socialist legal system with Chinese characteristics and a socialist country that is ruled by law, water related legal system development shall also be promoted, with emphases placed on building a complete legal system, an efficient administrative law enforcement system, a sound law-based administrative operation mechanism and an effective publicity and education mechanism. Legal supervision of the water related construction market shall be enhanced; the management of water resources, rivers and lakes, and water projects be better served with a stringent legal system; water sector reform be always pursued and guided in a legitimate manner; and flood control, drought relief and disaster reduction also be covered in the legal system.

Second, a sound and complete water related legal system shall be built up, by way of raising the capacity of water related scientific legislation. The legislation processes concerning river basin management, river and lake management, water conservancy construction, rural water management and water conservation shall be improved in an coordinated way, so that a water legal system that fits the national conditions and water conditions can be built. Assessment and consultation of water legislation shall also be improved, with the opinions of stakeholders, experts and the public to be adequately solicited. Legislation work shall be done legitimately, scientifically and democratically; the laws and regulations be consistent, and all the water regulations be systematic, purposeful and pragmatic.

Third, the water related administrative law enforcement system shall be managed in an innovative way so that the capability and standard of law enforcement can be improved. The law enforcement team of water governance shall be rationally allocated; between full-time water administrative inspectors and other agencies, their duties and obligations shall be well divided and clarified. The focus of law enforcement shall be delegated to lower levels of authorities so as to boost work efficiency. Law enforcement shall be done in an integrated manner; the authorities on river basin and regional scale, and between water departments and other departments shall work in a united manner. Illegal water withdrawal, sand mining, barrier-setting, and encroachment upon the boundaries of water bodies shall be thoroughly prosecuted.

Fourth, focusing on building a law-based government, law-based governance on water shall also be pursued. The governments shall perform duties legitimately. More specifically, the functions of government shall continue to be streamlined and its power delegated to lower levels; its function of supervision be strengthened, and lists of its mandates and responsibilities be clearly spelled out. A law-based decision making mechanism shall be strengthened with public participation, expert assessment, risk assessment, legitimacy review and collective discussion and decision-making. Government transparency shall be promoted, with higher degree of information publicity and stronger constraint and supervision of power.

Fifth, effectively preventing and resolving water disputes to strengthen social management of water governance. Emergency plans of various kinds shall be improved, and emergency response mechanisms of flood and drought disasters, and water pollution breakouts, etc. be established and refined.

4 To Proceed With Institutional Reform of Water Sector, and Stimulate the Vigor and Vitality of Water Development

Reform in various facets of water shall be continued in a coordinated way so that a system favorable to sound water resource and governance development can be established.

First, government functions shall continue to be shifted, streamlined and delegated. Government examination and approvals of water related affairs shall be transferred to local level. Examination and approvals that do not function as administrative permits should be cleaned and abolished. Remaining examination and approvals shall be merged according to function classification, and the procedures should be optimized and streamlined, and actions should be standardized. Supervision for abolished examination and approvals items should be intensified during and post the events.

Second, a sustainable investment growth mechanism of water affairs shall be guaranteed. The national policy package supporting investment of water affairs shall be implemented to sustain continued increase of public fiscal input to water project and management. Social capital with flexible modes of finance and operation like PPP, BOT and TOT, etc. shall be encouraged. Financial institutions shall be more engaged with water affairs. Policies about mid and long-term credit and loan support and fiscal interest subsidy for loans on water affairs should be formulated and issued. Also, local governments are encouraged to cooperate with water companies in raising credit financing.

Third, a comprehensive reform of agricultural water price shall be stepped up. The total quantity of agricultural water consumption shall be controlled and its quota management be put in place. Agricultural water price for cash crops and grain crops should be defined according to actual use. The water price shall be increased appropriately with a refined subsidy system as well as an incentive mechanism for water saving so as to realize the goal that the financial pressure for water users does not increase although the tariff rises and the output increases while amount of water use decreases. For urban water use, a block pricing system for household water use and incremental pricing (when exceeding the quota) system for non-household water use shall be implemented.

Fourth, the construction and management of water projects shall continue to be reformed. Where the conditions are right, call for project entity tendering, construction commissioning and design-construction contracting shall be encouraged; the market trading and on-line tendering of water construction projects shall also be encouraged; white and black lists for the water construction market be made; using fiscal budget to purchase public water services be explored; and water projects be managed in a professional and socialized way.

Fifth, the system and mechanism of rural water management shall continue to seek innovations. The local administrative chief shall be responsible for rural water management; the property rights system and modes of construction and management of rural water projects shall be established according to their characteristics;the rural water users association and newly emerging professional agricultural businesses shall be encouraged to undertake the construction and management of rural water infrastructure; and the institutional capacity of grass-roots water service shall be enhanced.

Sixth, the institutional and mechanism reform of water ecological progress shall be further explored and promoted. Water resources assessment system, monitor and early-warning of the carrying capacity of water and water environment, as well as national water resources inspection and supervision mechanism shall be improved. Registration of water use right shall be gradually enforced; water right transfer in various forms be actively encouraged; constraint on river and lake planning, and loss compensation for water boundary occupation be enhanced; the space utilization control of river and lake be regulated; and water related ecological compensation be tested.

5 To Scientifically Formulate the 13th Five-Year Plan of Water Development, and Strive for the Modernization of Water Governance System and Capabilities

The 13th Five-Year Plan of water development shall be drafted in such a way that for the next five years, the objectives, priorities, construction pattern, system guarantee and major policies of water sector reform and development are coordinated and coherent. A new chapter of water shall be opened at this new age.

First, the guiding thinking in drafting the plan shall be precisely grasped. The focus is on building a moderately prosperous society in all-round way and conducting comprehensive and in-depth reform;the key is to adapt to the new normal of economic development and emerging features of water development; the standing ground is on fixing vulnerabilities, breaking bottlenecks, sustaining the momentum, improving standards, fostering development and benefiting the livelihood. The system and capacities of water management shall be modernized; and a national water security system that suits a moderately prosperous society be in place.

Second, the objectives of the 13th Five-Year Plan shall be scientifically set. Development and reform shall be coordinated; the building of new projects and the managing of existing projects be given equal attention; short-term and long-term goals be integrated;current needs and future possibilities both be addressed, and guideline objectives and binding targets be put in place at the same time.

Third, strategic highlights of the plan shall be rationally made. The planning of major water projects to be constructed during the 13th Five-Year Plan period shall be wholesome and rational. A bunch of projects need to be built that make use of water for the benefit of livelihood, and that are in line with national investment interests and policy orientation; a package of major policy measures need to be introduced that can spur on water development and reform; and the dividends of water sector reform could be released along with more vigor and vitality for future development.

Fourth, the quality and progress of planning shall be guaranteed.When charting the 13th Five-Year Plan of water development, attention must be paid to the overall plan of national economic and social development, planning of function areas, regional development plan and other forms of water related planning. The plan shall be made with a sound leaders' team, a good work mechanism, clarified job responsibilities and consistent planning. The plan shall come out with supreme quality standard.

6 To Complete the Tasks for 2015 as a Perfect Finishing Touch for the 12th Five-Year Plan Period

2015 is the closing year for the 12th Five-Year Plan period of water development, and is also the leading year to a sound 13th Five-Year Plan period. To complete the tasks for 2015, attention shall be paid to the new normal of economy, seeking progress while maintaining overall stability, striving for innovative development, prioritizing conservation and protection, focusing on key projects, and replying on legal system development. The goal is to successfully conclude the 12th Five-Year Plan period and prepare for fresh progress in people's livelihood and water development.

First, flood control and drought relief. The responsibility of the local administrative chief, of specific government departments and of work positions shall be intensified; disaster-stricken water facilities be repaired without any delay; for very important rivers, flood prevention plans, water quantity regulation and emergency response mechanism be perfected; the institutional guarantee and relief supplies be put in place; and key links such as pre-flood inspection, monitor and early-warning, command and control, evacuation, and disaster relief be improved. Important dikes, hydropower stations and reservoirs, projects under construction and medium and large-sized cities shall be flood-resistant, and water supply to both urban and rural areas be secured.

Second, construction of key water projects. In terms of projects currently being constructed, the responsible entities for the projects shall be monitored to speed up the construction pace, increase the tangible work finished, and use the investment to stimulate overall economic development. In terms of the 27 projects to be started in 2015, including Taohe River water transfer project in Gansu Province, the approval procedures and preparation work shall be finished without any delay. In terms of the 88 projects to be started during the 13th Five-Year Plan period including the Yangtze River-Huaihe River water transfer project in Anhui Province and water transfer from central Yunnan Province, any outstanding issues during the preliminary stage shall be resolved proactively in order to push preparations forward.

Third, rural drinking water safety. The supervisory work shall be enhanced; all the remaining tasks for rural drinking water safety program during the 12th Five-Year Plan period be completed within this year; the issues of rural drinking water safety that have emerged unexpectedly in Gansu Province, Sichuan Province, Yunnan Province and the Tibetan Communities of Qinghai Province, southern Xinjiang Uygur Autonomous Region, the Three Gorges Reservoir area in Chongqing Municipality and Dongting Lake area in Hunan Province be resolved with comprehensive measures;water source protection be enhanced, with better purification and disinfection facilities for supplied water; and for the 13th Five-Year Plan period, rural drinking water safety projects be planned in such a way as to obtain better quality and higher benefits.

Fourth, continued improvement of basic construction for rural water conservancy. The upgrade, renovation, planning and investment shall be realized for 40 large irrigation districts, 200 mid-scale irrigation districts and 40 large irrigation and drainage pumping stations. The overall targets set for water saving and food output increase in Northeastern China shall be realized;water efficient irrigation campaigns like water saving and benefit boosting projects in Northwestern China, scaling down groundwater withdrawal in Northern China and water saving and discharge reduction in Southern China be sped up; the newly added water efficient irrigation area shall reach over 20 million mu (1.33 million hm2). The identified key counties of small rural water conservancy construction shall push forward their work of enhancing water transfer and allocation channels, setting up end-use metering facilities, and resolving the "the last kilometer" conundrum.

Fifth, deepening of the water sector reform. For the introduced reform measures, enforcement supervision, and reviews and inspections shall be in place in order for the measures to take effect; those not to be introduced yet, preparatory work shall be done proactively and properly.Opinions of Advancing the Comprehensive Reform of Water Price shall be drafted without any delay, and Opinions of Encouraging and Guiding Social Capital into the Construction and Operation of Key Water Projects be introduced. Reforms shall be carried out in various fields of water sector including water-related administrative examination and approval, water resources management, national water right system, water projects construction and management, and grass-roots water services system.

Sixth, conservation and management of water resources. The targets embodied in the "Three Red Lines" shall be broken down to each county; performance assessment for 2014 be completed and good results be applied extensively; and a nation-wide water resources monitoring and control system be established gradually. Assessment on water resources shall proceed; early-warning of local water carrying capacity be implemented at county level; and restrictions be imposed on those regions where the water carrying capacity is over-stressed. The pilot urban for water ecological progress shall continue their experiment, and renovation of rural watercourses, weirs and ponds be conducted. Comprehensive treatment measures shall be adopted to remedy the regions in Northern China where groundwater has been over-exploited. There will be another 50,000 km2 of area to be recovered from soil and water erosion within this year. The green small hydropower station development shall be greatly encouraged.

Seventh, rule of law on water and sci-tech development of water. The Opinions of Comprehensively Advancing the Law-Based Water Governance and Management should be issued; amendment of Regulations on Land Requisition Compensation and Resettlement for Construction of Large and Medium-sized Water Conservancy and Hydropower Station should be promoted; strengthen supervision on water related administrative law enforcement; and better check and resolve water conflicts and disputes. The R&D system of water sector shall be reformed, with no efforts spared for key water sci-tech projects and results extension. International exchange and cooperation on water shall be encouraged.

Eighth, integrated river basin management. The functions of river basin authorities in managing and developing water by rule of law shall be strengthened; integrated management at each river basin level be advanced; and the planning, management and regulation of water in the same river basin be conducted in a unified manner. A coordination and execution system featuring all-stakeholder participation, democratic negotiation, shared decision-making and responsibility division be formed; and the relationship between the upstream and the downstream, the left and right banks, and the mainstream and tributaries be harmonized so as to build up a synergy for harnessing water and maintaining the health of rivers and lakes.

(Editor's note: This article is an abstract from the speech by Mr. Chen Lei, Minister of Water Resources, at the National Conference of General-Directors of Water Resources Departments and Bureaus on January 9, 2015)