PRECIOUS WATER: Due to a severe drought last March in Guangxi Zhuang Autonomous Region, farmers have to trek to a special supply station for drinking water (HUANG XIAOBANG)

In spite of these achievements, however, many water-related problems still exist. For example, about 70 percent of Chinese cities and 50 percent of major dikes fall below national flood-prevention standards. Severe flooding has long been a major problem in China. At the same time, water resources in China are not distributed evenly. The south has ample water but is short of land, while the north has the opposite problem. Therefore, distributing water resources rationally remains an urgent task for the country.

Chen Lei, Minister of Water Resources, said the Central Government's new policy is based on several considerations.

First, China is facing a severe water shortage. Due to the country's weak irrigation and conservation infrastructure, water has become a major bottleneck for social and economic development. Water-related problems must be immediately resolved in order to maintain long-term and steady economic development and social harmony.

Second, backward irrigation systems in rural areas are the biggest threat to steady agricultural development and to the nation's food security. To raise agricultural production capacity, farmland irrigation must be improved.

Third, frequent floods and drought have been a grave problem. In recent years, especially in 2010, China's southwest was plagued with severe drought, while other provinces suffered devastating floods and landslides. The heavy losses point up the pressing need to improve water conservation systems.

Fourth, since 2004, the Central Government has made rural reform and development the focus of its first major policy document each year. As a result, a framework has been established to support the development of agriculture and rural areas and increase the income of farmers. Therefore, in the future, it is of vital importance to improve irrigation and water conservation in order to better develop rural areas.

Fifth, the reform and development of irrigation and water conservation systems is a complicated and hard task that requires coordinated effort. Government entities at all levels must follow the Central Government's decree and make concerted efforts to improve national water security.

Jiao Yong, Vice Minister of Water Resources, listed the five weakest links in China's irrigation and water conservation projects: First, farmland irrigation; second, management of small and medium-sized rivers, and reinforcement of small and dilapidated reservoirs; third, water shortage in southwest China due to a lack of water supply facilities; fourth, inadequate flood- and drought-control systems; and fifth, drinking water security in rural areas. "Those five links are closely related to people's livelihood," said Jiao.

Private investment

Providing financial resources to solve these water-related problems is very important. The recent policy document says, while the Central Government increases government investment in irrigation and water conservation, local governments at all levels should also create mechanisms for financing irrigation and water conservation projects. Chen said the government will subsidize and support rural residents in order to increase their enthusiasm for investing in and building water-related projects.

The winter and spring of each year are time for constructing rural irrigation projects. Chen said the government will mobilize farmers to invest in and work on water-related projects. The policy document stipulates that each year the government will invest 10 percent of land revenues in irrigation projects. Based on figures for 2010, 10 percent of this revenue would be equivalent to about 60-80 billion yuan ($9.09 billion-$12.12 billion).

The Chinese Government is also encouraging foreign investment. For example, some projects for harnessing the Huaihe River have utilized loans from the World Bank. Chen revealed more foreign capital will be used in the future.

Despite the government's plan to attract outside investment, analysts have their concerns. Shen Jian, agriculture and irrigation analyst at China Securities Co. Ltd., said, "Irrigation and water-conservation projects are an aspect of public welfare. Most water-related infrastructure, except for hydropower projects, cannot generate profits. Thus, it is nearly impossible to attract private investment."

Main Water Resource Development Goals for The Next Five Years

- The system for flood control and disaster relief should be upgraded. Flood-control systems for major rivers and lakes should be built. Broken dikes for water reservoirs should be repaired. An early warning and monitoring system for landslides and floods should be developed. The proportion of annual direct economic losses from flooding should be reduced to less than 0.7 percent of the GDP.

- The water supply guarantee system in urban and rural areas should be optimized. China will add 40 billion cubic meters of water supply each year. The proportion of direct economic losses resulting from drought should be reduced to less than 1.1 percent of the GDP.

- Irrigation in rural areas should be improved significantly. Repair work will be carried out in 70 percent of large irrigation areas and 50 percent of medium-sized irrigated areas. About 2.7 million hectares of irrigated farmland will be added, and newly added rural hydropower capacity will reach 10 million kw.

- The utilization efficiency of water resources will be greatly improved. The rate of water consumption will be reduced to less than 140 cubic meters per 10,000 yuan ($1,580) of the GDP and less than 80 cubic meters per 10,000 yuan of the industrial value added.

- Progress must be made in the aquatic environment protection. The government will guarantee that 60 percent of major rivers, lakes and reservoirs meet national water quality standards. About 250,000 square km of soil erosion areas will be properly managed. The over-exploitation of underground water will be stopped.

- Laws and rules must be established to guide water management. Water-related natural disasters should be properly prevented.

- China will set up a strict water resources management system, and establish a framework of water resources investment with public financing as the major channel. A water pricing mechanism will be set up.

- Scientific innovation in the irrigation and water conservation sector will be promoted, the ranks of irrigation and water conservancy workers will be expanded, and related public service capacity will be significantly increased.

(Source: Ministry of Water Resources)