Water Quality Control of the South-to-North Water Diversion (SNWD) Middle Route Project (MRP)
This is a
| Geolocation: | 32° 36' 0", 111° 35' 60" |
|---|---|
| Total Watershed Population: | 11.98 million |
| Total Watershed Area: | 95000 km236,679.5 mi² |
| Climate Descriptors: | temperate |
| Predominant Land Use Descriptors: | agricultural- cropland and pasture, industrial use, urban |
| Important Uses of Water: | Agriculture or Irrigation, Domestic/Urban Supply, Industry - consumptive use, Industry - non-consumptive use |
| Water Features: | Han River, Danjiangkou Reservoir |
| Water Projects: | South-North Water Transfer Project |
Contents
Summary
Abstract
This case study addresses the issues of cost-benefit sharing between Water Source Area (WSA) and Water Receiving Area (WRA) in a large-scale water transfer project in China. The proposed water quality control projects in the WSA of China’s South-to-North Water Diversion (SNWD) Middle Route Project (MRP) affects industrial and agricultural sectors in the relatively poor WSA, but also benefits residential users in both the WSA and WRA in terms of water quality and ecosystem improvements. Since the unemployed industrial workers, farmers, and the general population of the WSA have made sacrifices to provide clean water to the WRA, we propose a mechanism to redistribute the expenses of water quality services among the stakeholders in an equitable and effective manner. The mechanism is termed “Payment for Water Quality Services (PWQS)”. Possible means to implement it within the current governance structure is also discussed.
Questions Addressed and Wisdom Gained Central to this case are questions of water quality: 1) how can stakeholders place economic value on efforts to enhance water quality and, most importantly, 2) how can stakeholders distribute the costs of water quality projects amongst polluters and beneficiaries? Here we find that hierarchical structures and limited stakeholder involvement in water projects can lead to unbalanced distribution of costs and benefits. The issues in the SNWD MRP demonstrate the need for cost-sharing mechanisms as part of an institutional governance structure in water quality projects. When stakeholders have disproportionate costs and benefits associated with enhancing water quality, a financing instrument can help to place economic value on environmental and social factors.
Natural, Historic, Economic, Regional, and Political Framework
Introduction
China’s water resources are extremely unevenly distributed. While the South China Plain is relatively water abundant, the Huang-Huai-Hai (3H) river basins in the North are rather dry. The North China Plain has half of China’s total national area, 45% of total cultivated land and 36% of the total population, but possesses less than 12% of the total water resources1. Per capita annual water availability in the North is about 500 m3 and can fall below 400 m3 in Beijing and Tianjin2. This is much lower than the 1000 m3 per capita threshold of water scarcity defined by the UN. In 1952, the late Chairman Mao first came up with the idea of “borrowing” water from the South to meet the demands of the North. Over the next several decades, scientists and engineers debated about the technical and economic feasibility of Mao’s vision. In 2002, the plan of the magnificent South-to-North Water Division Project (SNWDP), which will divert 44.8 billion cubic meters of water from the Yangtze River Basin to the northern river basins, was approved. It consists of three water division routes that connect the Yangtze River Basin to the other three major river basins: Huang River (Yellow River), Huai River and Hai River. Up to now, the Eastern and Middle Routes are under construction and the Western Route is under planning.
As the construction of the projects proceeds, one question appears on the agenda: will the water delivered to the north be of good quality? If the water quality were too bad, it would increase treatment cost and reduce its economic value. The return on the huge investment made on the planning and construction of the projects would be uncertain. Therefore, “assuring water quality is essential to the success of the SNWDP”, as quoted in many of the recent official Chinese media reports today. This case study will focus on the water quality control on Middle Route, though the analysis and policy recommendations will also apply to the other two routes.
The middle route will be completed by the end of 2014. It is designed to supply 9.7 billion cubic meters of water annually along a 1,432 km canal to Beijing and 20 other municipalities and cities along the route (Figure 1). The route starts from the Danjiangkou Reservoir, which is formed by the impoundment of the convergence of the Han River and the Dan River (Figure 2).
Figure 1: Map of the Middle Route Project and Han River Watershed. See file for source information.
Figure 2: Satellite Image of Danjiangkou Reservoir
Governance Framework
To understand the political framework of the topic of interest, we need to first take a look at the political framework of Chinese government system, as shown in Figure 3. The top administrative organization is called the State Council, followed hierarchically by provinces and Municipalities, cities, counties or districts, and villages. There are also Autonomous Regions (e.g. Xinjiang and Tibet), as well as Special Administrative Regions (e.g. Hongkong and Macau), which are at the same level as provinces. Ministries, such as Ministry of Environmental Protection, Ministry of Finance, and Ministry of Water Resources, etc., are executive bodies under the direct lead of the State Council. Departments of similar functions (environmental protection, water resources, etc.) take responsibility at the provincial, city, and even district level; they report to their superior organizations up to ministry level.
As an inter-basin water transfer project, SNWDP involves a number of provinces and municipalities. To coordinate among different provinces, an institutional body – the South-to-North Water Diversion Project Office (SNWD Project Office) was created in 1979 to oversee the planning, design, construction and operation of the SNWDP. A committee led by the Vice Prime Minister sets the goals and policy of the Project Office. The board members of the committee include all relevant ministers, provincial governors, and municipality mayors. There are also sub-offices at the provincial and municipal levels in charge of the construction projects within their jurisdictional boundaries. In short, the central government endorses SNWD Project Office to perform a coordinative role in all issues related to the South-to-North Water Diversion Project.
Water Quality Related Regulation
To assure good water quality the SNWD Project Office created the Reservoir, the Water Pollution Control & Soil and Water Conservation Plan (hereafter referred to as “the Plan”) in 2005. According to the Plan, the Danjiangkou Reservoir and main Han River should achieve water quality of Category II, and the tributaries flowing into Danjiangkou Reservoir should be better than Category III [1]. Eighteen control zones were created at the watershed of the reservoir (Figure 4). These control zones span across Shaanxi, Hubei and Henan Provinces. Three of the eighteen zones are within 5km of the Reservoir peripheral and are therefore defined as the Water Source Area Security Zone. Three zones on the far left side are the sources of Han River. The soil and water conservation in these zones are essential to the water quality in the Reservoir, so together these zones are defined as the Ecological Conservation Zone. The other eleven zones in between are collectively called the Water Quality Impact Zone (Figure 5). The Plan computed the environmental capacity of each control zone, based on the water quality condition of the river stretch in that particular zone. By comparing the current pollution loadings with the environmental capacity of the control zones, the Plan computed the amount of loading reduction needed for each control zone.
Issues and Stakeholders
Government expenditure on water quality related infrastructure projects. How will the required water quality standard be met in an equitable way?
NSPD: Water Quantity, Water Quality, Assets
Stakeholder Types: Federated state/territorial/provincial government, Non-legislative governmental agency
The cost to finance this project both in terms of short term construction and long term maintenance is very large. The economic reality for the counties in the water source country varies significantly and in some locations the tax revenue is not sufficient to cover infrastructure project costs associated with the Plan.
Stakeholders
- SNWD Project Office (ministerial level government)
- Ministry of Environmental Protection, Ministry of Water Resources, Ministry of Finance
- Water Source Area governments and their levels
- Henan Province (河南省)
- Nanyang City (南阳市):Xixia County (西峡县), Xichuan County (淅川县)
- Luoyang City (洛阳市): Luanchuan County (栾川县), Sanmenxia City (三门峡市), Lushi County (卢氏县)
- Hubei Province (湖北省provincial government)
- Shiyan City (十堰市): Zhangwan District Bailin Town (张湾区,柏林镇), Zhuxi County (竹溪县), Zhushan County (竹山县), Yun County (郧县), Fang County (房县), Yunxi County (郧西县)
- Xiangyang City (襄阳市): Xiangzhou District Huanglong Town (襄州区,黄龙镇)
- Danjiangkou City (丹江口市)
- Shaanxi Province (陕西省, provincial government)
- Ankang City (安康市, city government): Shiquan County (石泉县), Hanyin County (汉阴县), Ziyang County (紫阳县), Langao County (岚皋县), Xunyang County (旬阳县), Pingli County (平利县), Zhenping County (镇坪县), Baihe County (白河县), Ningxia County (宁峡县)
- Shangluo City (商洛市): Shangzhou District (商周区), Zhen’an County (镇安县), Zuoshui County (柞水县), Danfeng County (丹凤县), Shangnan County (商南县), Shanyang County (山阳县)
- Hanzhong City (汉中市): Hantai District (汉台区), Ningqiang County (宁强县), Lueyang County (略阳县), Mian County (勉县), Liuba County (留坝县), Nanzheng County (南郑县), Chenggu County (城固县), Yang County (洋县), Xixiang County (西乡县), Foping County (佛坪县), Zhenba County (镇巴县)
- Baoji City (宝鸡市): Taibai County (太白县)
- Hebei Province (河北省)
- Henan Province (河南省)
- Water Receiving Area
Population affected by water quality control in the water source area
NSPD: Water Quantity, Water Quality, Governance, Values and Norms
Stakeholder Types: Federated state/territorial/provincial government, Non-legislative governmental agency, Development/humanitarian interest, Environmental interest, Industry/Corporate Interest, Community or organized citizens
Certain farmers will be required to cease farming their land upstream from the reservoir to preserve water quality (mitigation of runoff). A rough estimation is in the hundreds of thousands. Manufacturing plants in the area will also be displaced.
Stakeholders
- Yellow Ginger Industry
- Paper manufacturing industry
- Chemical production industry
- Metal smelting industry
- Ecological migration of farmers
- General population in water source area
Costs and benefits sharing between WRA and WSA
NSPD: Governance, Assets, Values and Norms
Stakeholder Types: Federated state/territorial/provincial government, Non-legislative governmental agency, Industry/Corporate Interest, Community or organized citizens
Due to forced ecological migration of farmers and the shut-down of factories in the Water Source Area, the WSA will be bearing the greatest social and economic burden of the Plan. The Water Receiving Area will enjoy the benefit of water delivery, without the burdens borne by the WSA.
Stakeholders
- Water Receiving Area (WRA)
- Water Source Area (WSA)
- SNWD Project Office
Involving stakeholders in decision making process
NSPD: Water Quality, Assets, Values and Norms
Stakeholder Types: Federated state/territorial/provincial government, Sovereign state/national/federal government, Community or organized citizens
Template:Analysis and Synthesis
Alternative Analysis/Synthesis Sections
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Key Questions
How can costs for water quality projects be distributed between polluters and beneficiaries?
The Payment for Water Quality Services (PWQS) scheme discussed in the case synthesis provides background and information for investigation of ways that Water Source Area and Water Receiving Area can value and share the costs associated with the project.
- ^ Water Pollution Control & Soild and Water Conservation Plan Drafting Committee Water Pollution Control & Soil and Water Conservation Plan of Danjiangkou Reservoir and Upstream. (2005).
Danjiangjou Reservoir/Dam
| Area | 95,000 km² (36,679.5 mi²) + |
| Climate | temperate + |
| Geolocation | 32° 36' 0", 111° 35' 60"Latitude: 32.6 Longitude: 111.6 + |
| Issue | Government expenditure on water quality related infrastructure projects. How will the required water quality standard be met in an equitable way? +, Population affected by water quality control in the water source area +, Costs and benefits sharing between WRA and WSA + and Involving stakeholders in decision making process + |
| Key Question | How can costs for water quality projects be distributed between polluters and beneficiaries? + |
| Land Use | agricultural- cropland and pasture +, industrial use + and urban + |
| NSPD | Water Quantity +, Water Quality +, Assets +, Governance + and Values and Norms + |
| Population | 11.98 million + |
| Stakeholder Type | Federated state/territorial/provincial government +, Non-legislative governmental agency +, Development/humanitarian interest +, Environmental interest +, Industry/Corporate Interest +, Community or organized citizens + and Sovereign state/national/federal government + |
| Water Feature | Han River + and Danjiangkou Reservoir + |
| Water Project | South-North Water Transfer Project + |
| Water Use | Agriculture or Irrigation +, Domestic/Urban Supply +, Industry - consumptive use + and Industry - non-consumptive use + |
