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OPINIONS OF THE MINISTRY OF WATER RESOURCES ON THE TRANSFER OF WATER RIGHTS |
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(No.11 [2005] of the Ministry of Water Resources promulgated on January 11, 2005) |
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SUBJECT : WATER; TRANSFER OF WATER RIGHTS |
ISSUING DEPARTMENT : MINISTRY OF WATER RESOURCES OF THE PEOPLE'S REPUBLIC OF CHINA |
ISSUE DATE : 01/11/2005 |
IMPLEMENT DATE : 01/11/2005 |
LENGTH : 1,685 words |
TEXT : |
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The improvement of policies and regulations on the transfer of water rights (referring to the transfer of the use right to water resources, similarly hereinafter) and the promotion of effective utilization and optimal allocation of water resources are important links for the scientific development and sustainable utilization of water resources. Under the guidance of the work policies of the Central Government concerning water resources and the water-control ideas in the new age, the practice of transferring water rights in some areas has been carried out in recent years, which has promoted the reasonable transfer of the use right to water resources and the optimal allocation, effective utilization, saving and protection of water resources. In order to push forward the institutional construction of water rights and regulate the transfer of water rights, the following opinions on transferring water rights are given as follows.
I. EARNESTLY PROMOTING THE TRANSFER OF WATER RIGHTS
1. Water is a kind of fundamental natural resource and strategic economic resource, and the lifeline of human existence as well as an important material base for the sustainable development of the economic society. The frequent occurrence of floods and droughts, serious water loss and soil erosion, aggravated water pollution and the shortage of water resources have become important factors that have checked the economic and social development of our country. The basic solution to the conflict of shortage of water resources of our country is to build a society featuring water saving and pollution preventing, to realize the optimal allocation of water resources and to improve the efficiency and benefits of utilizing water resources.
2. The basic role of the market mechanism in allocating resources shall be brought into full play so as to promote the reasonable allocation of water resources. All regions shall make bold explorations and innovations, and earnestly carry into effect the transfer of water rights so as to accumulate more experiences for establishing a perfect system of water rights.
II. BASIC PRINCIPLES FOR THE TRANSFER OF WATER RIGHTS
3. The principle of sustainable utilization of water resources. In the transfer of water rights one shall respect both natural property and objective principles as well as the commodity property and law of value in regard to water, be adapted to the demands of economic and social development for water, concurrently make overall planning for and give attention to living, production and ecological needs for water, taking a river basin as a unit, comprehensively coordinate the relationship between surface water and ground water, the upstream and downstream areas, the left and right banks, the mainstreams and branches, water quantities and water quality, and the development and utilization as well as the saving and protection, bring into full play the comprehensive functions of water resources and realize the sustainable utilization of the water resources.
4. The principle of combining governmental regulation with market mechanism. The ownership of water resources belongs to the State and shall be exercised by the State Council in the name of the State, and the State shall carry out unified administration and macro regulation to water resources, and the governments at all levels and the competent administrative department of water shall administer the water resources according to law. The market's role in allocating water resources shall be fully exerted so as to establish a water resource allocation mechanism featuring both governmental regulation and market adjustment.
5. The principle of combining fairness with efficiency. In order to accommodate to requirements of national economic distribution and industrial restructuring, the water resources shall be shifted to industries of low pollution and high efficiency on the premise of grain safety guaranty and steady agricultural development. The transfer of water rights shall first satisfy the needs of urban and rural inhabitants in their domestic use of water and give overall consideration to the ecological environment's need for water, and the basic requirements of agricultural use of water shall be safeguarded when transferring water rights from agriculture to other industries. The transfer of water rights shall be able to contribute to the establishment of a society featuring water saving and pollution preventing and avoid the lopsided pursuit of economic benefits.
6. The principle of well-defined property rights. The water rights shall be transferred on the premise of well-defined use right to water resources, and the water rights to be transferred shall have been lawfully obtained. The transfer of water rights shall include the transfer of rights and obligations, and the transferee shall assume corresponding obligations when obtaining rights.
7. The principle of fairness, equity and openness. The will of both parties to the transfer of water rights shall be respected, and it is necessary to carry out friendly negotiations on the basis of willingness, take into full consideration all parties' interests and promptly announce the matters relating to the transfer of water rights to the general public.
8. The principal of paid transfer and reasonable compensation. Both parties to the transfer of water rights shall be equal and follow the basic rules on marketing to reasonably determine their economic interests. The third party's losses and impacts incurred from the transfer shall be given reasonable economic compensations.
III. RESTRICTIVE SCOPE FOR THE TRANSFER OF WATER RIGHTS
9. Where the total amount of gathered water goes beyond the usable amount of water resources within its own river basin or jurisdiction, water rights may not be transferred to any water user other than those within its own river basin or jurisdiction, but with the exception of special state provisions.
10. Those ground water gatherers within prohibitive areas shall not transfer water rights.
11. No water right allocated for ecological environment may be transferred.
12. No water right that may cause important impacts to public interests, ecological environment or any third party's interests may be transferred.
13. No water right may be transferred to an industry whose development is restricted by the State.
IV. ROYALTY OF WATER RIGHTS
14. The basis for transferring water rights is to reasonably determine the royalties of water rights by using the market mechanism. The royalty of water rights shall be decided through all parties' equal consultation and under the guidance of the competent administrative department of the water or the administrative organ in charge of the river basin.
15. The royalty of water rights refer to the price of transferred water rights and relevant compensations thereto. When determining the royalty of water rights, it is necessary to take into consideration the cost recovery for building relevant projects, improvement and rebuilding, operation and maintenance and the increase of coverage ratio of water supply, the compensations to the ecological environment and the third party's benefits, the term of transfer, the water price of water supply projects and relevant charges, with the minimum amount being the fees for equivalently substituting equal water sources and relevant project facilities occupied. The royalty of water rights shall be borne by the transferee.
V. THE TERM OF TRANSFER OF WATER RIGHTS
16. The competent administrative department of water or the administrative department in charge of the river basin shall, pursuant to requirements for administering and allocating water resources, take into comprehensive consideration the service life of a water project and that of a project in need of water relating to the transfer of water rights, concurrently give attention to the interests of both parties to the transfer, set a limit on the term of transfer of water rights, and conduct examination and reexamination in accordance with the provisions relating to the water collection licensing administration.
VI. SUPERVISION OVER AND ADMINISTRATION OF THE TRANSFER OF WATER RIGHTS
17. The competent administrative departments of water or the administrative departments in charge of the river basin shall guide, offer service to, administer and supervise the transfer of water rights, energetically provide information to the general public, organize feasibility research and relevant argumentation and make public in a timely manner any agreement reached by both parties to the transfer. In the case of a transfer involving public interests, ecological environment or any third party's interests, the competent administrative department of water or the administrative department in charge of the river basin shall announce it to the general public and hold a hearing. For a transfer with several applications for assignment, the competent administrative department of water or the administrative department in charge of the river basin may conduct it by way of bidding or auction.
18. The water deals between grassroots organizations, farmer water user associations and farmer water user associations within an irrigation area may be carried on through simplified procedures after obtaining the consent of the next higher management organization.
VII. VIGOROUSLY EXPLORING AND PROGRESSIVELY IMPROVING THE WATER RIGHT TRANSFER SYSTEM
19. The competent administrative department of water and the administrative department in charge of the river basin at all levels shall seriously conduct research on the requirements to develop local economy and society and the situations on developing and utilizing water resources, formulate plans on water resources, determine the carrying capacity of water resources and of water environment, strengthen water gathering licenses administration in accordance with the requirements of total amount control and management norm, and faithfully give impetus to the optimal allocation and efficient utilization of water resources.
20. Encouraging exploration so as to vigorously and reliably promote the transfer of water rights. The transfer of water rights involves many subjects and fields like law, economics, society, environment, water conservancy etc. Therefore all regions shall earnestly organize to tackle the key problems involving several subjects and settle theoretical issues, earnestly develop the pilot work, seriously sum up experiences on transferring water rights and speed up the building of a perfect water right transfer system.
21. It is imperative for relevant departments to improve the policies and regulations on the transfer of water rights, strengthen the guidance, service, supervision and administration to the transfer of water rights, pay attention to the coordination of the interest of all parties, especially giving priority to the protection of public interests and interests of the third party involved in the transfer, attach importance to the protection of water ecology and water environment and give impetus to the sound and orderly development of water rights' institutional construction.
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