水利产业政策 WATER CONSERVANCY INDUSTRIAL POLICY

l be attached to the utilization of funds of agricultural production management organizations and agricultural labourers and input of their services.

　　Article 13 People's governments at all levels shall gradually increase input into water conservancy construction in accordance with the growth of finance at the corresponding levels and study and formulate preferential policies of promoting water conservancy industrialization. There shall be an appropriate increase for water conservancy construction in policy loans from the State Development Bank and the Agricultural Development Bank and loans from foreign governments and international financial institutions held by the State for use.

　　Article 14 For the purpose of expanding the sources of water conservancy construction funds, central and local water conservancy construction funds shall be established and measures for fund utilization management shall be perfected pursuant to the relevant provisions of the Circular of the State Council Concerning the Transmission of Interim Measures for Water Conservancy Construction Fund Raising and Utilization Administration (Guo Fa [1997] No. 7).

　　Article 15 People's governments at the prefectural (municipal) level of the localities of flood prevention and waterlogged land drainage and harnessing works of important rivers where flood disasters frequently occur may raise funds per project. The fund-raising proposal shall be subject to the examination and approval of people's governments at the provincial level and submitted to the competent departments of planning and finance under the State Council for the record. Relevant laws and relevant provisions of the State Council shall be strictly adhered to in raising funds from peasants. Vouchers Used for fund-raising shall be uniformly printed by the competent departments of finance at or above the provincial level. Departments of audit and supervision shall exercise strict supervision over fund utilization.

　　Article 16 The pace of renewal and transformation of water conservancy works shall be accelerated. People's

governments at all levels shall integrate renewal and transformation of water conservancy works into plans and arrange corresponding funds; water conservancy works depreciation fee shall only be used for renewal and transformation of water conservancy works and shall not be used for other purposes.

　　Chapter III Price, Fee Collection and Administration

　　Article 17 The State practises the system of utilization with payment of water resources, levies and collects water resources fee in accordance with law from units drawing water directly from underground or rivers and lakes. Measures for the levying and collection of water resources fee and its utilization administration shall be formulated by the State Council. Pending its official promulgation by the State Council, relevant provisions of provinces (autonomous regions and municipalities directly under the Central Government) shall be observed provisionally. The water resources fee collected shall be included in budget management as a special-purpose fund for special use.

　　Article 18 The State practises the licence system for drawing water. The competent department of water administration under the State Council shall be responsible for the organization for implementation and supervision and management of the license system for drawing water nationwide. Specifically the provisions of the Measures for the Implementation of the Licence System for Drawing Water (Decree No. 119 of the State Council) promulgated by the State Council shall be observed.

　　Article 19 Collection of administrative fees prescribed by relevant provisions of laws, administrative regulations and relevant state policies such as waterway works construction and maintenance management fee, water and soil erosion prevention and treatment fee, waterway sand collection management fee, compensation fee for occupying water sources for agricultural irrigation and irrigation and draining works shall be effected in full amount by the competent departments of water administration at all levels within two years; measures for fee collection of water conservancy works under the direct management of valley authorities shall be formulated by the departments of finance and planning under the State Council in conjunction with the competent department of water administration. The above-mentioned fees collected must be used for the maintenance, construction and operational management of water conservancy works.

　　Article 20 The price of water supply, hydro-electricity and other water conservancy products and services shall be determined rationally to promote water conservancy industrialization. The price of water supply of newly-constructed water conservancy works shall be determined in accordance with the principle of meeting the operating cost and expenses, tax payment, loan reimbursement and gaining reasonable profit. The price of water supply of previously-built water conservancy works shall, in accordance with the principle of the state water pricing policy, cost compensation and reasonable profit and in the light of different uses, be gradually adjusted to be in place within three years, and timely readjustments made thereafter in the light of change in water supply cost. The competent departments of price control of people's governments at or above the county level shall, in conjunction with the competent department of water administration, determine and adjust water rate.

　　Article 21 The competent departments of water administration at or above the provincial level shall, in conjunction with the departments concerned, carry out category A or category B classification with respect to existing water conservancy construction projects. Specific measures for classification shall be formulated separately. The maintenance and operations management fee of category A projects shall be paid from financial budget at various levels and the maintenance and operations management fee o

f category B projects shall be paid from enterprise business revenues.

　　Article 22 Upon water rate raise and collection in full amount of water conservancy administrative charges relating to category B projects, the managing units of category B water conservancy construction projects shall be transformed into enterprises.

　　Article 23 The department of water administration under the State Council takes charge of supervision and management of value preservation and value increment of state-owned water conservancy assets. A state-owned assets management, supervision and operations system with clearly defined powers and responsibilities shall be established in accordance with the principle of uniform state ownership, government supervision and management at different levels and autonomous operations by enterprises. Measures for the management of value preservation and value increment of water conservancy assets of collective ownership shall be formulated separately in accordance with relevant state provisions.

　　Article 24 The State encourages treatment of collectively-owned barren mountains, barren valleys, barren hills, barren shoals and other areas of water and soil erosion in such diverse forms as leasing, auction, cooperative shares system and contracting and the 50-year duration for use shall in principle be deemed as appropriate. The areas managed or treated in the form of contracting, leasing or cooperative shares system may be inherited or transferred in accordance with law within the prescribed duration for use; whoever purchases the right to use has the right of inheritance, transfer, mortgage and joint operations through equity participation. Construction and management of small-size water conservancy works in various forms shall be encouraged.

　　Chapter IV Water Conservation, Water Resources Protection and Water Conservancy Technology

　　Article 25 Planned water use shall be stepped up, economy in water use shall be strictly practised and water resources shall be allocated rationally. All trades of national economy and all regions must implement various rules For the management of water use prescribed by the State, make great efforts to popularize water-saving technology and economize in various types of water use.

　　Article 26 Water-saving irrigation in agriculture shall be pushed in a big way. Dry agricultural cropping technology and such water-saving technologies as lining and brick laying of canals, pipeline water transmission, spray irrigation, drip irrigation and seepage irrigation shall be researched and extended and such mode of irrigation of waste of water resources as flooding irrigation shall be changed as soon as possible. Project examination and approval units at all levels shall give priority to project listing and increase input in water-saving projects in agriculture. The State Development Bank and the Agricultural Development Bank shall give priority to arrange loans for water-saving projects which meet the terms for loans and have the ability to pay back the loans. People's governments at all levels shall, in the light of circumstances, arrange discount interest from finance for loans for water-saving projects in agriculture.

　　Article 27 Provisions relating to economy in water use and quota management of water consumption shall be strictly observed. Water user units shall adopt such water-saving measures as water recycling and multiple uses of water and make big efforts to develop and extend water-saving technology. Regions short of water resources shall strictly restrict the development of industries of heavy water consumption. Proposal for the new construction of projects of heavy water consumption must include special-purpose authenti

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