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Tuesday, December 12, 2000, updated at 16:53(GMT+8) | |||||||||||||
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Shareholding System to Be Introduced for South-North Water Diversion ProjectIt is learnt from the recently concluded south-north water diversion project early-stage working conference in Wuhan that with the construction of the middle-line works of the whole project, the former "planned water" practice will be done away with and in the future a shareholding system will be instituted for the operation and management. of the project..It is reported that the middle-line works aims mainly to supply water for urban household and industrial use with due consideration given to the use of water for agriculture and other sectors in Beijing, Tianjin, and the regions of north China. The scope of water supply comes within five provinces and municipalities of Beijing, Tianjin, Hebei, Henan and Hubei provinces which cover a total area of 155,000 sq. km. Within the water-supply area, there are 126 million mu (15 mu=1 hectare) of cultivated land, a total population of about 109 million, including 28 million urban residents, and 81 million rural people. In the opinion of the Ministry of Water Resources, the mechanism for the construction, operation and management of the South-North Water Diversion Project will follow the norm of a socialist market economic structure. A water supply Co. Ltd. with share held by the State will be set up, and local water supply companies established in various provinces and cities. According to the project's middle-line plan under revision, the various provinces and cities will, in light of their commitment to the demand for water, undertake an appropriate amount of investment during the project construction period and will obtain an appropriate share. They will also undertake to pay an appropriate amount of water fees during the period of operation; a shareholding Co. Ltd. in regard to operational management will be established in the future, wherein the central government holds share and various provinces and cities buy shares in light of the water volume they promise and the amount of money they contribute. Branch companies will also be set up with province or city as a unit, which will be in charge of the sales of quantity of water they respectively promise. By PD Online Staff Du Minghua
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