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	OFFICIAL REPLY OF THE STATE COUNCIL ON THE MASTER PLAN FOR THE PROJECT OF DIVERTING WATER FROM THE SOUTH TO THE NORTH

	(Docket No.117 [2002] of the State Council promulgated on December 23, 2002)


SUBJECT : PROJECT OF DIVERTING WATER FROM THE SOUTH TO THE NORTH
ISSUING DEPARTMENT : THE STATE COUNCIL OF THE PEOPLE'S REPUBLIC OF CHINA
ISSUE DATE : 12/23/2002
IMPLEMENT DATE : 12/23/2002
LENGTH : 676 words
TEXT :

Regarding Request for Instructions on Examination and Approval of the Master Planning for the Project of Diverting Water from the South to the North (Docket No.2506 [2002] of the State Development Planning Commission), this official reply is hereby rendered:

I. The Master Planning for the Project of Diverting Water from the South to the North (hereinafter referred to Planning) shall be approved in principle. According to the depth of the preparation work, the first phase project of the east and middle lines shall be carried out first, and preparations shall be made for the project of the west line. The construction projects involved in the Planning shall be examined and approved pursuant to the procedures for infrastructures.

II. The principle of "saving water before diverting, treating pollution before connecting, and protecting environment before using the water" shall be adhered to in further implementation of the policies and measures concerning water saving, pollution treatment and environment protection, and in realization of the objectives of water saving, pollution treatment and environment protection. The provinces and municipalities directly under the Central government along the east line of the diverting project shall especially exert more efforts in pollution treatment to guarantee the water quality and ensure the safety of water supply.

III. Scientific determination of the scale of water diverting is the basis for implementation of the project of diverting water from the south to the north (hereinafter referred to the diverting project). The supply and need of water and the requirements of environment construction of the north areas receiving water shall be given a comprehensive consideration, and on the basis of the scale of water diverting presented by the Planning and according to the principle of combination of responsibility and right, the factors of water price, right to use of water, and schemes on raising of fund shall be earnestly studied, and the scale of water diverting shall be further verified in the determination phase.

IV. The diverting project is a super large water infrastructure across the rivers and provinces and cities, it has a double function of public welfare and business benefits, and the construction fund shall be raised through various kinds of channels. With respect to the major part of the diverting project, a project fund shall be established by raising the present urban water price, while the capital in state finance budget and bank loans are used. The fund schemes shall take into consideration not only the needs for investment of the project construction, but also the bearing capacity of the water users. The Sate Development Planning Commission, the Ministry of Finance and the Ministry of Water Resources shall study and propose the specific schemes and submit them to the State Council for examination and approval.

V. We have approved to form a leader group of the diverting project, under which an office shall be set up to be responsible for the daily work. The office shall be affiliated to the Ministry of Water Resources, its organization establishment and work fund shall be separately arranged, and it shall be directly responsible to the leader group. At the same time, according to the principles of separation of government functions and enterprises management, and separation of government functions and public institution management, a legal person of the diverting project shall be established pursuant to the modern enterprise system. The specific organization structure and personnel composition shall be provided for separately.

VI. The diverting project is a major strategic infrastructure to relieve the serious short of water of the north areas of China, and it has a earing on the sustainable development of the economy and society in the future and on the benefits of our offspring. The relevant departments under the State Council and the people's governments of the relevant provinces, autonomous regions and municipalities directly under the Central Government shall lay great stress on the project, strengthen the collaboration, cooperate with each other closely, and take care of every work earnestly, to implement the diverting project and bring into play the benefits thereof as soon as possible.