China Faces Water Crisis

Cai Qihua, director of the Yangtze Water Resources Commission, announced the projects during the commission's annual work meeting in Wuhan, the official state news agency Xinhua reports.

The largest river in Asia, the Yangtze originates on the Tibetan Plateau and flows to the East China Sea near Shanghai.

Bridges across the Yangtze River at Wanzhou City were built to surmount rising water levels upstream of the Three Gorges Dam. Riverbank erosion is a problem. (Photo by Ray Devlin)

Not all of the conservation projects are new, some are already in progress, Cai said. They include strengthening embankments on the middle and lower reaches of the river, building flood control projects at major tributaries and lakes, and "controlling minor rivers and mountain torrents that pose threats to life."

Other planned projects include reservoir and flood-control facilities and hydropower plants. One of the two dams on the river, the Three Gorges Dam, is the largest hydroelectric power station in the world. A third dam is under construction and half a dozen more are in various stages of planning.

Cai said soil erosion prevention schemes, water-quality monitoring networks and environmental protection facilities are also in the works.

The Yangtze water conservation projects are needed but they will not be enough to address a stern warning from the World Bank this week that China is facing a "severe water-shortage crisis."

A World Bank report published Monday says China needs to carry out widespread reforms to tackle the crisis.

The study says water shortages have been created in part by increased demand for water due to industrialization and population growth, as well as by pollution reducing the amount of available clean water.

The village that depends on this drying well is short of water. (Photo by Gin-e)

Written in response to requests from Chinese government agencies, the report commends China's leadership for its awareness of the worsening water situation, and its commitment to transforming China into a water-saving society.

"The objective of this report is to provide an overview of China’s water scarcity situation, assess the policy and institutional requirements for addressing it, and recommend key areas for strengthening and reform," said James Adams, World Bank vice president, East Asia and Pacific Region.

The report, "Addressing China's Water Scarcity: From Analysis to Action," is based on studies bank personnel carried out from 2006 through 2008.

Based on government priorities, the report focuses on water governance, water rights, water pricing and affordability, watershed ecological compensation mechanisms, water pollution control, and emergency prevention.

The report recommends that China needs to move from a traditional water management system with the government as the main decision-maker towards a modern approach to water governance that relies on a sound legal framework, effective institutional arrangements, transparent decision making and information disclosure, and active public participation.

"Some of the recommendations, such as the reforms of river basin commissions and the water resource fee management as well as water quality monitoring and disclosure, may not be in line with sectoral or local interests but we believe that they are essential for the nation to effectively address the emerging water scarcity crisis." says Jian Xie, World Bank senior environmental specialist and the report's principal author.

To allow greater scope for market-based approaches, China needs to establish clear property rights for water, the report advises.

Basin-level water resource allocation plans that give "first priority to ecological needs" should be developed and traditional water allocation entitlements should be converted into tradable water rights, according to the report.

To provide incentives for water saving technologies and behaviors, "water prices need to be allowed to rise to reflect its full scarcity value," the bank's report states.

"The first step is for water and sewerage prices to at least cover the financial needs of the water supply and sewerage enterprises," it states. "The social impact of the price increases, especially those affecting the poor, can be addressed by implementing an increasing block tariff approach and other social protection measures for residential consumers."

"There is no doubt that China is facing a major challenge in managing its scarce water resources to sustain economic growth in the years ahead," said David Dollar, World Bank country director for China.

"But there are grounds for optimism," he said. "The Chinese, who have demonstrated immense innovative capacity in their successful program of economic reform, can and should take another bold move in reforming the institutional and policy framework to make it become a world leader in water resource management."

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