Progress in Deepening of Water Sector Reform in 2014

Department of Planning and Programming of the Ministry of Water Resources

In 2014, the Ministry of Water Resources strengthened the top-level design of water sector reform, issued Guiding Opinions of the Ministry of Water Resources on Deepening Water Sector Reform and Focuses of Water Sector Reform in 2014,making overall deployment for deepening water sector reform.

First, reform of the water administrative examination and approval system accelerated. In accordance with national requirements for quickening the transformation of governmental functions, streamlining administration, and delegating powers to lower levels, all the items subject to water administrative examination and approval were sorted out comprehensively and large of them were sharply reduced; items subject to examination and approval in advance were also examined and merged according to classification. Since 2013, the number of the items subject to water administrative examination and approval has been reduced from 48 to 22, down by 54%. Meanwhile, implementing plans and deployed organizations were formulated to orderly implement the matters related to the certification of water sector qualification.

Second, reform of the water resources management system promoted. The most stringent water resources management was fully implemented, and control indicator system of water resources management basically covering province, city, and county levels was also established, the first annual examination of the most stringent water resources management was completed. River basin comprehensive management was actively promoted. River basin planning management, flood control and integrated water resources dispatching, river and lake protection management, and comprehensive law enforcement of river basin were enhanced. Management system of water affairs was accelerated. Integrated management of urban and rural water affairs was implemented in over 80% of the administrative areas above the county level in the whole country.

Third, water right system and water pricing mechanism were established and improved. Experimental registration of water resources use right, water right trading, and water right system were carried out in 7 provinces (autonomous regions) namely Ningxia Hui Autonomous Regions, Jiangxi Province, Hubei Province, Inner Mongolia Autonomous Regions, Henan Province, Gansu Province, and Guangdong Province. National water right trading platform was actively prepared so as to push forward the building of the national water right system. Comprehensive reform of agricultural water price was conducted in 80 counties of 27 provinces working with the National Development and Reform Commission, Ministry of Finance, and Ministry of Agriculture. Scientific and rational agricultural water pricing mechanism and the precise subsidy system for agricultural water use were built to form distinctive modes of agricultural water pricing reform.

Fourth, water ecological progress was promoted. System of water resources compensable utilization was improved and adjustment of water resources fee collection standards was urged to speed up and 10 provinces (autonomous regions) have completed the adjustment ahead of schedule. The establishment of the water ecological compensation mechanism was also promoted;Management Regulations on Collection and Use of Compensation Fee of Soil and Water Conservation and Charge Standard on Collection of Compensation Fee of Soil and Water Conservation were issued. 105 pilot cities of water ecological progress were launched with exploring the mode based on local conditions; 38 of the pilot cities were included in the first group of national ecological civilization pioneer demonstration areas.

Fifth, strict river and lake management and protection system was established. Targeting the outstanding problems with river and lake management and protection,Guidelines for Strengthening River and Lake Management was issued. Demarcation of river and lake jurisdiction and pilot innovating projects of river and lake management and protection system and mechanism were initiated. The institutional systems for planning restraint, river and lake management and protection and occupation compensation were established and improved.

Sixth, mechanism for stable growth of water finance was improved. Implementing advices for encouraging and guiding social capital to involve in the construction and operation of major water projects was formulated with the National Development and Reform Commission and Ministry of Finance. By granting favorable policy measures on investment subsidy, financial discount, pricing mechanism, and preferential taxes and fees, social capital was encouraged to involve in the construction and operation of major water projects in various forms.

Seventh, reform of the water project construction and management system were deepened. Upon consideration,Guidelines for Establishing Water Project Commissioned Building System was formulated;Guidelines for Further Defining Construction Quality and Safety Supervision Responsibility of Water Projects and Implementing Advices for Accelerating the Construction of the Credit System in Water Construction Market were promulgated. Safety of water projects Quality and market supervision were strengthened. It continued deepening the reform of the state-owned water project administrative units and promoted the separation of management of water projects from its maintenance and the service purchase by the government.

Eighth, mechanism for rural water infrastructure development was innovated. Reform pilot of small water project management system in 55 counties, pilot of the property right system of farmland irrigation and drainage facility and innovating on the operation management and maintenance mechanism in 100 counties were in progress.

Ninth, building of the grass-roots water service system was pushed forward.Guidelines for Strengthening Capacity Building by Grass-roots Water Sector Service Organizations and Guidelines for Encouraging and Supporting the Innovative Development of Farmers' Water Use Cooperative Organizations was promulgated. Some supporting policies were to encourage and guide university graduates to seek employment in grass-roots water sector units.

Tenth, rules of water laws and the scientific and technological innovation for water sector were strengthened.Regulations on Water Supply Management of the South-to-North Water Diversion Project was promulgated. Legislation on farmland irrigation and drainage works, water conservation, water right system, and management and protection of groundwater was promoted. In accordance with the state's requirements for reforming the science and technology system, it promoted the building of the credit system for water scientific research and enhanced the management of scientific and technological projects.