-
Technical Assistance Consultants Report
This consultants report does not necessarily reflect the views
of ADB or the Government concerned, and ADB and the Government
cannot be held liable for its contents. (For project preparatory
technical assistance: All the views expressed herein may not be
incorporated into the proposed projects design.
Project Number: 40687 September 2010
Peoples Republic of China: River Basin Water Resources
Allocation and Management Policy (Cofinanced by the Multi-Donor
Trust Fund for the Water Financing Partnership Facility )
Prepared by
GHD Pty Ltd
Australia
For the Ministry of Water Resources, Peoples Republic of
China
-
GOVERNMENT OF THE PEOPLES REPUBLIC OF CHINA Ministry of Water
Resources
Asian Development Bank
GHD Pty Ltd, Australia
General Institute for Water Resources and Hydropower Planning
& Design [GIWP]
RIVER BASIN WATER RESOURCES ALLOCATION AND MANAGEMENT POLICY
Final Report
VOLUME 1:
MAIN REPORT RIVER BASIN WATER RESOURCES ALLOCATION AND
MANAGEMENT
September 2010
TA 7127-PRC
-
River Basin Water Resources Allocation and Management Policy i
GHD Pty Ltd / GIWP September 2010
CONTENTS
EXECUTIVE SUMMARY
....................................................... ix
1. INTRODUCTION
...........................................................1 1.1
Objectives
............................................................................1
1.2 Background to the
Study.....................................................1 1.3
Methodology
........................................................................2
1.4 Activities to Date
.................................................................3
1.4.1 Inception
Phase......................................................................3
1.4.2 Interim
Phase.........................................................................3
1.4.3 Completion Phase
...................................................................4
1.5 Report Structure
..................................................................5
1.6 Definition of Terms
..............................................................6
1.6.1 Terminology
...........................................................................6
1.6.1.1 Surface Water Resources, Groundwater Resources and
Total Water
Resources.................................................. 6
1.6.1.2 Water Resources Management Plans, Water Allocation
Schemes and Water Allocation and Regulation Plans ........ 8
1.6.1.3 Water Scarcity, Water Stress and Water
Shortage............. 9
1.6.2 Classification of Water Use
......................................................9
2. REVIEW OF DOMESTIC PRACTICE .............................12
2.1 Purpose
..............................................................................12
2.2 Institutional Foundation
...................................................12
2.2.1 Legal
Provisions....................................................................12
2.2.2 Government Administration
...................................................15 2.2.3
Institutional Issues
...............................................................16
2.3 Water Resources Allocation
..............................................17 2.3.1 Background
to Water Resources Planning in the PRC ..............17 2.3.2 Pilot
Trial Projects for Water Resources Allocation...................18
2.3.3 Current Status
......................................................................19
2.3.4 Summary
.............................................................................26
2.4 Environmental/Ecological Water Management................26
2.4.1 Water
Pollution.....................................................................26
2.4.2 Research on Environmental Water Requirements in the PRC ...30
2.4.3 Ecology and Instream
Environment........................................31
2.5 Economic Evaluation
.........................................................33 2.5.1
The Economic Value of
Water................................................33 2.5.2
Approaches to Economic Assessments of Value
......................34 2.5.3 Water
Markets......................................................................35
2.5.4 Water
Pricing........................................................................36
2.5.5 Payment for Ecosystem
Services............................................36
-
River Basin Water Resources Allocation and Management Policy ii
GHD Pty Ltd / GIWP September 2010
3. REVIEW OF INTERNATIONAL PRACTICE ...................38 3.1
Purpose
..............................................................................38
3.2 Institutional Organization for Water Resources
Management
......................................................................38
3.2.1 General
Trends.....................................................................38
3.2.2 Europe
..............................................................................39
3.2.1 United
States........................................................................41
3.2.2 Australia
..............................................................................42
3.2.3 Chile
..............................................................................42
3.2.4 Other Countries
....................................................................43
3.3 Water Resources Allocation and Water Sharing
..............44 3.3.1 Role and Function of Water Resources
Allocation....................44 3.3.2 UN Convention
.....................................................................45
3.3.3 Water Sharing in International Treaties
..................................45 3.3.4 Water Sharing Between
States/Provinces ...............................46
3.3.4.1 Murray-Darling Basin, Australia
....................................... 46 3.3.4.2 USA River Basin
Compacts.............................................. 48 3.3.4.3
Water Reform in South Africa
......................................... 50 3.3.4.4 Pakistans
Indus Water Accord ........................................ 51
3.4 Provision for Environmental Flows
...................................51 3.4.1 Methods for
Determination of Environmental Water
Requirements
.......................................................................52
3.4.2 Policy Level Case Studies
......................................................54
3.4.2.1 European Union Water Framework
Directive.................. 54 3.4.2.2 South Africa National Water
Resource Strategy.............. 55 3.4.2.3 Australia National Water
Initiative ................................ 56
3.4.3 River Basin Case Studies
.......................................................57 3.4.3.1
Murray-Darling Basin, Australia
....................................... 57 3.4.3.2 Guadalquivir
River Basin, Spain ....................................... 58
3.4.4 Concluding Remarks
.............................................................60 3.5
Economic Evaluation and Management Measures ...........60
3.5.1 Water Resources Economics
..................................................60 3.5.2 Role of
Economic Evaluation in Water Resources Allocation
Planning
..............................................................................61
3.5.3 Principal Evaluation Methods
.................................................63
3.5.3.1 Benefit Cost
Analysis...................................................... 63
3.5.3.2 Economic Modeling and Contingency
Valuation................. 63
3.5.4 Economic Measures in Water Resources
Management.............64 3.5.4.1 Cost Recovery
............................................................... 64
3.5.4.2 Tariff
Structure..............................................................
65 3.5.4.3 Marginal
Pricing.............................................................
65 3.5.4.4 Shadow
Pricing..............................................................
66 3.5.4.5 Payment for Environmental
Services................................ 67 3.5.4.6 Water Trading
...............................................................
68
3.5.5 Discussion
............................................................................69
4. ANALYSIS AND RECOMMENDATIONS FROM THE REVIEWS 71 4.1 Lessons
Learned
................................................................71
4.1.1 Trans-boundary Water Agreements
.......................................71 4.1.2 Relevance of
Political Institutions and Traditions.....................72 4.1.3
River Basin Water Resources Management Planning
...............73
-
River Basin Water Resources Allocation and Management Policy iii
GHD Pty Ltd / GIWP September 2010
4.1.4 Accommodating Development Objectives with Environmental
Sustainability
........................................................................75
4.1.5 Accommodating Market Forces with Government Regulation
...77 4.1.6 Different Needs and
Requirements.........................................79 4.1.7
Future Needs and
Requirements............................................80 4.1.8
Coping with Hydrological Variability
.......................................81 4.1.9 Water Resources
Assessments...............................................83
4.1.9.1 Surface Water
Resources................................................ 83
4.1.9.2 Groundwater Resources
................................................. 84
4.1.10 Basis for Allocating Water
Shares...........................................85 4.2 Statement
of Best
Practice................................................86
4.2.1 Introduction
.........................................................................86
4.2.2 Strategies And Principles Of Water Allocation
.........................89 4.2.3 Key Determining Factors When
Formulating Water Allocation
Schemes
..............................................................................92
4.2.4 Technical Procedures For Implementing Water Allocation
Schemes
..............................................................................96
4.2.5 Enabling Environment
...........................................................98
4.3 Policy Recommendations
................................................ 100
5. DEFINITION OF PRINCIPLES FOR RIVER BASIN WATER RESOURCES
ALLOCATION ...........................103 5.1 Background
......................................................................
103 5.2 Basic Principles
................................................................
103
5.2.1 Basic Human Needs
............................................................ 103
5.2.2 Equity
............................................................................104
5.2.3 Efficiency
...........................................................................
104 5.2.4 Sustainability
......................................................................
105 5.2.5 Coordination and Balance (or
Harmony)............................... 106
5.3 Roles and
Responsibilities............................................... 106
5.3.1 Transboundary Waters Convention
...................................... 106 5.3.2 Chinese
Legislation and Administration.................................
107
5.4 Other Guiding Principles
................................................. 108
6. CATEGORIZATION OF RIVER BASINS ......................109 6.1
Objectives
........................................................................
109 6.2 Criteria for Categorization
.............................................. 109
6.2.1 Principles of Selection of Indicators for
Categorization........... 109 6.2.2 Selection of Indicators
........................................................ 110 6.2.3
Criteria for Categorization of River
Basins............................. 112
6.3 Selection of River Basins for Categorization
.................. 114 6.4 Data Collection
................................................................
115 6.5 Analysis
............................................................................
115 6.6 Application of the System for Categorization of River
Basins
...............................................................................
121
7. GUIDING STRATEGIC FRAMEWORK FOR RIVER BASIN WATER RESOURCES
ALLOCATION ...........................123 7.1 Approach to
Development of the Framework ................ 123
-
River Basin Water Resources Allocation and Management Policy iv
GHD Pty Ltd / GIWP September 2010
7.1.1 Purpose and
Objectives.......................................................
123 7.1.2 Methodology
......................................................................
123 7.1.3 Institutional Context
........................................................... 124
7.1.4 Functions and Responsibilities
............................................. 126
7.2 Technical Issues of Availability and Sharing of Water
Resources.........................................................................
127 7.2.1 Availability of Water Resources
............................................ 127
7.2.1.1 Water Resources Unavailable for Allocation and Use
......... 127 7.2.1.2 Environmental Water
Requirements................................. 129 7.2.1.3
Distinction between Abstractions and Water Use .............. 129
7.2.1.4 Consideration of
Groundwater......................................... 131 7.2.1.5
Consideration of Water
Quality........................................ 134 7.2.1.6
Non-Consumptive Water Uses.........................................
135 7.2.1.7 Exploitable Water Resources in the NWRIP
...................... 136
7.2.2 Quantification of Water Resources Available
......................... 136 7.2.2.1 Introduction
..................................................................
136 7.2.2.2 Scientific Approach of River Basin Model Application
......... 138 7.2.2.3 Alternative Method for Water Resources
Allocation ........... 140
7.2.3 Basis for Sharing of Water
Resources................................... 141 7.2.3.1 Criteria
for Water Sharing...............................................
141 7.2.3.2 Cutting Water Allocations During Water
Shortages............ 142 7.2.3.3
Reserves.......................................................................
145 7.2.3.4 Basis for Cuts in Water Allocations during Periods of
Water
Shortage
......................................................................
145 7.3 Formulation of a River Basin Water Allocation Scheme
146
7.3.1 Process for Scheme Formulation and Implementation
........... 146 7.3.2 Preliminary Investigations
................................................... 146
7.3.2.1 Preparation of River Basin Water Accounting Model
.......... 148 7.3.2.2 Assessment of Water Resources
Available........................ 149 7.3.2.3 Forecasts of Future
Development and Water Demands ..... 149 7.3.2.4 Identification of
Key Ecosystems and Environmental Assets151 7.3.2.5 Assessment of
Eco-Environmental Water Requirements..... 151 7.3.2.6
Identification of Social Equity and Efficiency Objectives.....
152
7.3.3 Initial Stakeholder
Consultations.......................................... 153 7.3.4
Investigation and Evaluation of Water Management Options .153
7.3.4.1 Technical Analysis of Water Resources Management Options
........................................................................
153
7.3.4.2 Evaluations of Socio-Economic and Eco-Environmental
Impacts........................................................................
155
7.3.5 Executive Review and Stakeholder
Consultation.................... 156 7.3.6 Documentation of a River
Basin Water Allocation Scheme ..... 157
7.4 Operation of a Water Allocation
Scheme........................ 158 7.4.1 Process for Scheme
Operation ............................................. 158 7.4.2
Annual Water Allocation and Regulation Plan........................
160 7.4.3 Regular Seasonal Updates
................................................... 160 7.4.4
Monitoring and Evaluation
................................................... 161 7.4.5
Reporting and Accountability
............................................... 162 7.4.6 Appeals
and Dispute Resolution...........................................
163
7.4.6.1 Annual Water Allocation and Regulation
Plan.................... 163 7.4.6.2 Seasonal Updates to the
Allocation Plan........................... 163 7.4.6.3 Two-Monthly
Updated Analysis Reports ........................... 163 7.4.6.4
Annual Review
Reports................................................... 163
7.5 Review and Revision of Water Allocation Schemes ....... 164
7.5.1 Reviews of Water Allocation Schemes
.................................. 164
-
River Basin Water Resources Allocation and Management Policy v
GHD Pty Ltd / GIWP September 2010
7.5.2 Amendments to Water Allocation
Schemes........................... 164 7.5.3 Revisions of Water
Allocation Schemes................................. 165
7.6 Summary of the Guiding Framework for River Basin Water
Allocation
.............................................................. 166
7.6.1 Formulation of Water Allocation Scheme
.............................. 166 7.6.2 Operation of a Water
Allocation Scheme .............................. 167 7.6.3 Scheme
Review and Revision ..............................................
167
7.7 Recommendations for Implementation..........................
167
8. APPLICATION OF STRATEGIC FRAMEWORK TO RIVER
BASINS..........................................................170
8.1 Objective
..........................................................................
170 8.2 Methods for Application of the Guiding Strategic
Framework.......................................................................
170 8.2.1 Application of River Basin Water Accounting Model
............... 170 8.2.2 Application of the Method Using
Percentiles of Water Resources
Availability..........................................................................
171 8.3 Proposed Linkage of River Basin Category to Framework
Application
.......................................................................
172 8.3.1 Linkage to River Basin Categories
........................................ 172 8.3.2 Category 3 River
Basins ...................................................... 173
8.3.3 Category 2 River Basins
...................................................... 175 8.3.4
Category 1 River Basins
...................................................... 176 8.3.5
Summary
...........................................................................
178
9. RECOMMENDATIONS
...............................................180 9.1 Guiding
Strategic Framework ......................................... 180
9.2 Supporting
Recommendations........................................ 182
REFERENCES
.....................................................................187
APPENDIX A: WATER RESOURCES IN THE PRC
-
River Basin Water Resources Allocation and Management Policy vi
GHD Pty Ltd / GIWP September 2010
LIST OF FIGURES Figure 1-1: Water Resources 6 Figure 1-2:
Concept of Water Resources Availability in the PRC 7 Figure 1-3:
Water Resources Available for Exploitation and Allocation 8
Figure 2-1: Chinas System for Water Resources Administration 16
Figure 2-2: Location of Water Resources Allocation Pilot Projects
in the PRC 18 Figure 2-3: Information on Water Resources Allocation
Schemes 20
Figure 3-1: Illustration of Marginal Pricing 65 Figure 3-2:
Comparison of Cost Basis and Effect on Pricing 66 Figure 3-3:
Economic Flow Diagrams 68
Figure 4-1: Factors in International Transboundary Water Sharing
Agreements 72 Figure 4-2: Water Resources Planning Hierarchy 74
Figure 4-3: Operational Context and Institutional Framework of
Water Resources
Management 87 Figure 4-4: Scheme for Water Resources Allocation
and Management Planning 99
Figure 6-1: Matrix Approach to Categorization 118 Figure 6-2:
Preliminary Tests of Categorization Method 120
Figure 7-1: General Framework for Water Allocation 125 Figure
7-2: Exploitable Water Resources 128 Figure 7-3: Estimation of
Water Use 130 Figure 7-4: An Approach to Cap Groundwater Use 133
Figure 7-5: General Approach for Water Allocation and Licensing 134
Figure 7-6: Environmental Water Requirements and Water Quality
Concept 135 Figure 7-7: Proposed Scheme for Prioritization of Water
Use 144 Figure 7-8: Process for Formulation of River Basin Water
Allocation Scheme 147 Figure 7-9: Generic Forecasting Procedure 150
Figure 7-10: Proposed Approach to Water Resources Allocation and
Management 159
Figure 9-1: Three-Phase Framework Implementation 180 Figure 9-2:
Illustration of Capacity Sharing 185
-
River Basin Water Resources Allocation and Management Policy vii
GHD Pty Ltd / GIWP September 2010
LIST OF TABLES Table 1-1: Tours Organized for Review of River
Basin Water Resources Management
Overseas 4
Table 2-1: Laws and Regulations for Water Resources Management
in the PRC 13 Table 2-2: Main Rivers in Jiangxi Province 25 Table
2-3: Summary of Domestic Water Allocation Schemes 27 Table 2-4:
Environmental Monitoring Sites in the PRC 30
Table 3-1: Summary of Environmental Flow Assessment
Methodologies 52
Table 6-1: Criteria of Indicators for Categorization of River
Basins 113 Table 6-2: Significance of Criteria System 113 Table
6-3: Preliminary Selection of Representative River Basins 115 Table
6-4: Data and Indicator Values for Selected River Basins 116 Table
6-5: Classification of River Basins 117 Table 6-6: River Basin
Categorization 121
Table 7-1: Summary of Contents of Scheme Documentation 157
Table 8-1: Method of Application Proposed for River Basin
Categories 172 Table 8-2: Different Approaches for Different River
Basin Categories 178
-
River Basin Water Resources Allocation and Management Policy
viii GHD Pty Ltd / GIWP September 2010
ABBREVIATIONS 2G Grain for Green program ACT Australian Capital
Territory ADB Asian Development Bank AEP annual exceedance
probability BP best practice CGE Computable General Equilibrium
(economic models) CHG Confederacin Hidrogrfica del Guadalquivir
(Guadalquivir River Basin Authority,
Spain) DMC Developing Member Country (member of ADB) DWAF
Department of Water Affairs and Forestry (South Africa) EA
Executing Agency (for this TA, the MWR) ECM Ecological Compensation
Mechanism ELOHA Ecological Limits of Hydrological Alteration method
EU European Union EWR Environmental (or eco-environmental) Water
Requirement GDP Gross Domestic Product GHD GHD Pty Ltd
(consultants) GIWP General Institute for Water Resources and
Hydropower Planning & Design IFIM Instream Flow Incremental
Methodology IRSA Indus River System Authority (Pakistan) IWHR China
Institute for Water Resources and Hydropower Research IWRM
Integrated Water Resources Management MDBA Murray-Darling Basin
Authority (Australia) MDBC Murray-Darling Basin Commission
(predecessor of MDBA) MEP Ministry of Environmental Protection
MHURC Ministry of Housing and Urban & Rural Construction MLR
Ministry for Land and Resources MoA Ministry of Agriculture MoT
Ministry of Transport MWR Ministry of Water Resources NCFPP
Non-Commercial Forest Payment Program NDRC National Development and
Reform Commission NFA National Forestry Administration NFCP
National Forest Conservation Project NPC National Peoples Congress
NWI National Water Initiative (Australia) NWRIP National Water
Resources Integrated Plan NWRS National Water Resource Strategy
(South Africa) ORASECOM Orange-Senqu River Basin Commission
(southern Africa) O&M operations and maintenance
-
River Basin Water Resources Allocation and Management Policy ix
GHD Pty Ltd / GIWP September 2010
PES Payment for Environmental (or ecological, or ecosystem)
Services PRC Peoples Republic of China RB river basin RBC River
Basin Commission RB-WAS River Basin Water Allocation Scheme SLCP
Sloping Land Conversion Programs TA Technical Assistance ToR Terms
of Reference TPM TriPartite Meeting (ADB, MWR, consultant) UK
United Kingdom (Great Britain) UN United Nations UNICEF United
Nations International Childrens Emergency Fund USA United States of
America VMP value marginal product WARP Water Allocation &
Regulation Plan (annual or seasonal) WAR Water Allocation Reform
(in South Africa) WFD Water Framework Directive (of the European
Union) WHO World Health Organization WMA Water Management Area WQ
water quality WR water resources WRMP Water Resources Management
Plan WUA Water User Association
-
River Basin Water Resources Allocation and Management Policy x
GHD Pty Ltd / GIWP September 2010
EXECUTIVESUMMARY The objective of TA7127-PRC River Basin Water
Resources Allocation and Management Policy is improved and
sustainable water resources management through adoption and
application of an appropriate framework for river basin water
resources allocation. The water resources (WR) allocation system is
intended to maximize social, environmental and economic benefits of
water use in the PRC. The methodology prescribed in the ToR
included several key activities, as follows: (i) a review and
assessment of international and domestic practices in river basin
water resources
allocation in selected countries and river basins, including
completed and ongoing pilot programs in the PRC;
(ii) a comparison of various methodologies and models of water
resources allocation, and documentation of best practices;
(iii) preparation of a policy note based on best practices, and
with policy recommendations; (iv) MWR staff study visits to river
basins with good practices in water resources allocation, and
on-
the-job training; (v) an assessment and categorization of river
systems with similar characteristics; and (vi) definition of
principles for river basin water resources allocation, and
preparation and finalizat-
ion of a guiding framework for improved future implementation of
river basin water resources allocation in the PRC.
The draft Final Report is organized in four volumes:
(vii)
(viii)
(ix)
(x)
Volume 1 this volume is the main report which provides a general
overview of the project and reports on the tasks specified in the
ToR.
Volume 2 is the Policy Note prepared to support development of a
guiding framework for river basin WR allocation, and volume 4 is a
background paper produced to document findings of reviews of
international and domestic practice in WR allocation and
management. Volume 2 includes a statement of best practice derived
from the reviews of international and domestic practice. Volume 3
details the guiding strategic framework for river basin WR
allocation that is the key output of the project. The guiding
strategic framework outlines how a water allocation scheme should
be formulated for allocation of water resources to regions
(provinces, autonomous regions and municipalities under direct
supervision of the central government) within a river basin.
Appendix A provides relevant background to the need for
effective management systems and policy for water allocation to
promote river basin integrity and water security. It notes the
increasing competition for access to water resources arising from
population growth and rapid economic development, related problems
of eco-environmental degradation, and the spatial mismatch of
population distribution and availability of water resources in the
PRC. Over-exploitation of resources is evident in many regions
where agricultural, urban and industrial sectors have secured water
resources at the expense of ecology and environment. Although the
rate of increase in water use has slowed, water use is still
increasing, so the water crisis remains to be resolved.
Volume 1: Main Report Volume 2: Policy Note Volume 3: Guiding
Strategic Framework for River Basin Water Resources Allocation
Volume 4: Review of Practice in River Basin Water Resources
Allocation and
Management
-
River Basin Water Resources Allocation and Management Policy xi
GHD Pty Ltd / GIWP September 2010
ReviewofDomesticPracticeChapter 2 summarizes the review of
domestic practice, which is reported separately and in full in
volume 4. The review of domestic practice included:
review of the institutional and legal foundations for water
resources management in the PRC; review of specific cases of water
resources allocation plans/schemes that have been introduced
int; an introduction to approaches for assessments of
environmental water requirements that have
been applied in river basins in the PRC; and discussion of
application of economic methods and economic measures that are most
relevant to
water resources allocation and management.
The Water Law (2002) is the main legal foundation for water
allocation and a water rights framework in the PRC. This is
supported by other regulations, of which the most relevant are
those dealing with the system for licensing of water use rights and
the Interim Measures for Water Quantity Allocation enacted in
2008.
A key output of recent updating of national water resources
planning by MWR was the National Water Resources Integrated Plan
(GIWP, 2008). The NWRIP was an outcome of nation-wide
investigations and quantitative assessments of water resources,
their utilization, and long-term forecasting of water supply and
demand which provides a foundation for practical water resources
allocation.
Pilot trial projects used to advance the practice of water
resources allocation in the PRC are reviewed, including schemes for
the Yellow River basin, the lower Jinjiang river basin in Fujian
Province, the Heihe river basin in north-west China, the Tarim
river basin in Xinjiang Province, the Huolin River in the Songliao
river basin and Daling River in north-east China, the Shiyang river
basin in Gansu Province, and for the main rivers of Jiangxi
Province flowing into Poyang Lake. From the review, it is noted
that there has been a wide variety of approaches, methods and
principles applied in past preparation of water resources
allocation schemes. Future planning and practice in the PRC would
benefit from greater consistency of approach through development of
a strategic framework, guide-lines or statement of best practice,
and a more coherent policy for water resources allocation.
Many ecological problems have occurred in the PRC as the result
of over-exploitation of water resources, including river reaches
ceasing to flow, shrinking of lakes, silting of river channels and
estuaries, vegetation loss, desertification, water quality
deterioration, and biodiversity reduction. This has already had
adverse impacts on the lives of many Chinese people. The concept of
environmental water requirements was scarcely recognized in when
the first pilot schemes for river basin water resources allocation
were introduced.
Economics researchers and practitioners have generally adapted
economic models to public policy decisions by developing the
evaluation procedure termed cost-benefit analysis. The review of
domestic practice also considers approaches to economic assessments
of water value, and the potential roles of water markets, water
pricing and payment for ecosystem services (PES).
InternationalReviewofPracticeChapter 3 summarizes the review of
international practice, which is reported separately and in full in
volume 4. The review of international practice included:
review of global trends in institutional organization for water
resources management; examination of relevant international and
transboundary conventions and pacts; review of specific cases of
transboundary water resources management or allocation in
different
parts of the world;
-
River Basin Water Resources Allocation and Management Policy xii
GHD Pty Ltd / GIWP September 2010
an international selection of cases related to practical
assessments of environmental water requirements in river basins;
and
discussion of international application of economic methods and
measures that are most relevant to water resources allocation and
management.
In most countries, demands for water are initially met by
engineering, supply-side solutions. This paradigm of water
resources management is appropriate for prevailing conditions of
water abundance while levels of demand remain within the
constraints of water resources availability. As demands increase
and approach those limits, water shortages arise and become more
frequent, making it increasingly difficult and expensive to simply
augment supply to match demands. Demands for water for
socioeconomic development begin to erode the water requirements
essential for environmental quality and sustainability of natural
ecosystems. A shift then generally occurs towards more integrated
water resources management (IWRM) in which a balance between demand
and supply is sought through demand management measures as well as
augmentation of supply, and a new paradigm of water sharing and
water allocation is introduced that is characterized by assessment
and provision of water requirements for ecosystem sustainability,
more critical assessment and testing of the socioeconomic
justification of new or increased demands for water, and a shift to
decentralization of institutional administrative arrangements. This
shift has occurred or is occurring in most countries with advanced
economies, and in certain developing countries like the PRC.
The study reviewed the institutional organization for water
resources management in European countries, the United States,
Australia, Chile and other countries. It also reviewed
transboundary conventions and pacts, most notably the 1997 UN
Convention on the Law of the Non-Navigational Uses of International
Watercourses which stresses some basic principles for transboundary
water sharing.
Case studies of river basin water resources allocation schemes
examined in greatest detail include recent reform of water
resources management in the Murray-Darling river basin of
Australia, river basin compacts in the USA including those for the
Colorado, Columbia and Pecos river basins, current water reform in
South Africa with reference to the Inkomati and Orange river
basins, and Pakistans Indus Water Accord. With respect to
environmental water requirements, the international review examined
the Water Framework Directive (WFD) of the European Union (EU),
South Africas National Water Resource Strategy and Australias
National Water Initiative, and looked at practical implementations
in the Murray-Darling basin and the Guadalquivir river basin in
Spain. It concludes that, to meet the challenges of supporting
economic growth while sustaining important environmental values and
ecosystems, it may be necessary to reconfigure economies to adapt
to inevitable water scarcity constraints. Although there are many
methodologies available for environmental flow determination, the
most appropriate are those related to specific ecological
objectives.
In advanced nations there is virtually universal reliance on
analysis of systems operations using water accounting models that
employ networks of nodes and links to simulate the spatial
complexity of water resources and demands in river basins.
Application of these models by skilled water resources analysts
ensures that issues of water resources availability and variability
in space and time are properly accounted for. Priorities for supply
and rules for allocating water to meet demands and EWRs during
periods of scarcity are generally integrated into these models and
can be varied and tested to formulate a scheme that will best meet
the (often competing) objectives for river basin WR allocation and
management.
Tours were conducted by small groups to examine examples of
river basin management and water resources allocation overseas. One
group visited Canberra, Australia from 13-17 June 2010 to discuss
WR management in the Murray-Darling basin; another group will visit
the south-west USA
-
River Basin Water Resources Allocation and Management Policy
xiii GHD Pty Ltd / GIWP September 2010
(Colorado and New Mexico) later in 2010 to review interstate
water compacts for transboundary sharing of water resources in the
Colorado and Rio Grande river basins.
StatementofBestPracticeandPolicyRecommendationsChapter 4
commences with analysis derived from the reviews of domestic and
international practice, and discusses lessons to be learned for
water resources allocation in the PRC. One of the findings is that
the institutional background in each of the international cases is
quite different to that existing in the PRC. Although those
institutional differences limit their relevance to the situation in
the PRC, several useful lessons can be learned from both recent
positive adaptations in water resources management policies and
practice in places like Australia and South Africa, and from
negative aspects of certain other management regimes. There follows
a statement of best practice based upon the lessons learned from
the reviews of international and domestic practice, and policy
recommendat-ions. The Policy Note in volume 2 includes examples
drawn from the review of international and domestic practice to
illustrate the statement of best practice.
DefinitionofPrinciplesPrinciples by which any policy framework
for river basin water resources allocation should be guided are
defined and discussed in chapter 5. These include basic human needs
for drinking, food preparat-ion, hygiene and sanitation, principles
of social equity, economic and operational efficiency,
eco-environmental sustainability and sustainability of water
resources for future generations and socio-economic development,
and a principle of harmonious coordination and balance in
administration of water resources allocation and management.
Adequate consultation with key stakeholders is a fundamental
requirement for social equity.
Related to transboundary sharing of water resources, the UN
Convention on the Law of the Non-Navigational Uses of International
Watercourses emphasizes fair and equitable use, an obligation to
prevent significant harm to others in utilization of water
resources, and partnership in the manage-ment of water
resources.
GuidingStrategicFrameworkforRiverBasinWaterResourcesAllocationVolume
3 presents the proposed guiding framework or strategy for river
basin WR allocation as a stand-alone document, but the framework is
also outlined in reasonable detail in chapter 7 of this volume 1. A
key feature of the proposed framework is a 3-stage approach to
water resources allocation: (1) Formulation of a River Basin Water
Allocation Scheme (RB-WAS) (2) Operation of a River Basin Water
Allocation Scheme (3) Review and revision of a River Basin Water
Allocation Scheme.
Following a decision to implement a RB-WAS, the formulation of a
scheme entails several steps, including: (a) preliminary planning
and investigations; (b) initial stakeholder consultations; (c)
detailed investigations and evaluations of allocation and
management options; and (d) decision making and stakeholder
participation. Steps (a) and (b) serve to establish scheme
objectives, rules and criteria for decision making, and a sense of
common purpose and joint endeavor. Steps (c) and (d) may have to be
repeated numerous times before a scheme is identified that can be
reasonably defended as best meeting often-competing objectives,
particularly in river basins where available resources are scarce
in comparison to demands and water requirements.
Water allocation planning should be nested within the planning
objectives of a comprehensive water resources plan for the river
basin, the Water Resources Management Plan (WRMP). Once the RB-WAS
is implemented, during its operations the framework proposes annual
Water and Regulation
-
River Basin Water Resources Allocation and Management Policy xiv
GHD Pty Ltd / GIWP September 2010
Plans (WARPs) be prepared based on assessments of water
resources available, with seasonal updates. See schematic diagram
below.
WRMPWaterResourcesManagementPlan
RBWASRiverBasinWaterAllocationScheme
AnnualWaterAllocation&
RegulationPlan,withUpdates
principlesobjectivesanalysis
operations of infrastructureconditions for water diversions
specifications for adjustment to variations in water
availability
Key features of the operational phase are monitoring and
evaluation, and reporting and accountabil-ity. The framework also
proposes mechanisms for stakeholder consultation and dispute
resolution.
Occasional reviews of scheme performance against scheme
objectives are proposed, with provision for amendments to the
RB-WAS to maintain flexibility to changing circumstances, or
revisions of the RB-WAS that would require re-formulation of the
scheme to match updated scheme objectives.
Technical issues such as determination of water resources
available, coping with hydrological variability, cutting of
allocations during water shortages and other important issues are
dealt with in the framework.
CategorizationofRiverBasinsChapter 6 describes how a system for
the categorization of river basins was devised with relevance to
the application of the guiding strategic framework, and was applied
to 26 selected river basins in the PRC. The system includes 3
primary categories which may be characterized as: Category 1: The
current balance between water resources available and water use is
satisfactory. Category 2: There are indications of water stress
that will require careful management in the future. Category 3:
Water resources are already being heavily exploited. Urgent
management measures are
required to avoid deterioration of current conditions and
attempt to correct over-exploitation of water resources.
ImplementationoftheFrameworkChapter 8 provides the linkage
between river basin categories and different application of the
guiding strategic framework for river basin water resources
allocation. In brief, less rigorous methods are acceptable in
category 1 river basins and the approach proposed is based upon
past best domestic practice. However, for river basins in
categories 2 and 3, the application of river basin water
account-ing models (river basin water balance network models) is
recommended; together with greater effort
-
River Basin Water Resources Allocation and Management Policy xv
GHD Pty Ltd / GIWP September 2010
to identify scheme objectives including eco-environmental and
social objectives, and in evaluation of impacts on
eco-environmental sustainability and socio-economic outcomes.
Formulation of a RB-WAS should be a multi-disciplinary team
project, and appropriate skills and experience need to be
recruited. Category 3 river basins require greater attention to
detail, scientific field studies and more thorough and intensive
planning and investigations.
GuidetoApplicationoftheStrategicFrameworkChapter 7 in this
volume outlines the general framework proposed for water resources
allocation at river basin scale. Section 7.2 proceeds to discuss
and provide general guidance on some of the key technical aspects
of WR allocation: the quantification of the water resources
available for allocation in a river basin; and the basis for the
sharing or allocation of water between or to multiple water users.
Figure 7-7 proposes a scheme for prioritization of water use that
can be used to adjust water allocations during periods of water
shortage in conjunction with a system of staged restrictions on
water use, although the importance of consultation with key
stakeholders at the initial stage of formulation of a water
allocation scheme is emphasized so that a mutual understanding can
be reached about the basis for reducing allocations.
Section 7.3 explains in detail how a river basin water
allocation scheme (RB-WAS) should be formulated. Section 7.6.1
provides a convenient summary of these procedures. Key principles
for water resources allocation were presented in chapter 5. The
methods to be used to determine water resources available are
explained in sections 7.3.2.1, 7.3.2.2 and 7.3.4.1.
Section 7.4 recommends how a RB-WAS should operate after a
scheme has been formulated and implemented. A key feature of the
recommendation is the annual preparation of water allocation and
regulation plan (WARP) for the coming year of operation based on
assessment of the water resources that are or will be available,
with regular seasonal updates during the course of each year. Other
important features of the recommended procedures for operation of a
RB-WAS are provisions for monitoring and evaluation, and for
reporting and accountability. Section 7.6.2 provides a concise
summary of these procedures.
Section 7.5 provides proposals for reviews of a RB-WAS, and for
possible amendments or revisions to the scheme arising from
periodic (or special) reviews also summarized in section 7.6.3.
Chapter 8 provides clear guidance on how to formulate and
implement RB-WASs for different categories of river basins,
culminating with the summary presented in Table 8-2. The
differences relate primarily to the method recommended for
quantification of water resources available for allocation and the
investigation of potential WR management options, the methodology
adopted for the identification of key eco-environmental objectives
and the determination of EWRs, and the evaluations of
eco-environmental and socio-economic impacts of the RB-WAS.
Several recommendations are provided in sections 7.7 and 9.2 for
the implementation of the guiding strategic framework after
completion of this TA.
In volume 3, Appendix A describes some useful decision support
tools (index measures) that can assist decision makers during
formulation of a RB-WAS; Appendix B provides additional guidance to
assist selection of an appropriate method for assessment of EWRs;
Appendix C provides additional guidance to assist in socio-economic
evaluations during scheme formulation and during scheme operation;
and Appendix D provides a brief review of selected water balance
network accounting models that can be used for water accounting in
river basin WR allocation planning.
RecommendationsAssuming the proposed strategic framework is
adopted as a policy tool in the PRC, chapter 9 provides some
recommendations for its implementation.
-
River Basin Water Resources Allocation and Management Policy xvi
GHD Pty Ltd / GIWP September 2010
The guiding strategic framework prepared under this TA has
potential application anywhere, includ-ing any ADB developing
member country. Application of the framework will be particularly
beneficial in river basins experiencing water stress and river
basins where water must be shared between distinct regions. The
three-stage process of implementation is generally applicable, and
the categorization of river basins and variants of the technical
approach associated with categorization are also generally
appropriate; however the boundary values used in assessment of the
criteria for categorization will probably need to be adjusted to
local needs and conditions.
If the proposed framework for river basin WR allocation is
accepted, an urgent priority is to test the application of the
framework to a small sample of river basins. The purpose of the
trial applications would be to identify and resolve any practical
difficulties for framework application not identified during this
TA which could require amendment to the proposed framework or
refinements in its application. It would be useful if trials could
be expedited to resolve any outstanding issues in advance, so that
the guiding strategic framework could be used more effectively in
delivery of the likely targets of the 12th Five Year Plan
(2011-2015).
Capacity building is recommended to develop the skills and human
resources necessary to implement river basin water allocation
schemes under this guiding strategic framework. Appropriate
training programs are desirable to develop technical skills and
capacity, and to align existing skills to the tasks involved in
formulation and operation of river basin water allocation schemes
according to the proposed guiding strategic framework. Skills and
experience need to be accumulated for river basin water accounting
modeling, associated natural sciences and water resources economics
and social impact assessment. Development of a large pool of
skilled and well-trained professionals is necessary.
A study by water resources engineers and computer programming
specialists is recommended to review existing water balance network
models for water accounting available both domestically and
internationally. Specialists should be sent on training courses so
that they become competent in application of specific modeling
packages and learn their full capabilities. After detailed review
of what is available domestically and capabilities of models
already applied for river basin water resources management planning
in other countries, one of the domestic models should be adapted to
give it the capabilities of a multi-nodal water resources planning
model appropriate to the tasks involved in formulation and
operation of river basin water allocation schemes.
If the two preceding recommendations are to be realized, a
concerted program is essential to develop the required skills and
build capacity. This can best be delivered through formation of a
special technical management unit dedicated to these objectives. It
is therefore recommended as a priority that a Water Resources
Allocation Management Unit (WRAMU) be supported within GIWP to
direct and oversee a program for the development of human resources
skills and technical capacity that will be required for the future
formulation of RB-WASs in the PRC.
-
Final Report Volume 1
River Basin Water Resources Allocation and Management Policy 1
GHD Pty Ltd / GIWP September 2010
1. INTRODUCTION This project arises in response to a request in
December 2007 for Technical Assistance (TA) to the Asian
Development Bank (ADB) by the Ministry of Water Resources (MWR the
Executing Agency) of the Government of the Peoples Republic of
China (PRC). The TA addresses a crucial element for improvement of
water resources (WR) management in the PRC: effective management
systems and policy for water allocation that will promote river
basin and water security.
GHD Pty Ltd of Australia is the principal consultant responsible
for implementation of the TA, work-ing in partnership with the
General Institute for Water Resources and Hydropower Planning &
Design (GIWP) in Beijing. An Agreement was signed by the
consultants and MWR and ADB in April 2009. The consulting team was
mobilized on 1 July 2009.
1.1 Objectives The objective of TA 7127-PRC River Basin Water
Resources Allocation and Management Policy is improved and
sustainable WR management through adoption and application of an
appropriate framework for river basin WR allocation. The WR
allocation system is intended to maximize social, environmental and
economic benefits of water use in the PRC. This should be achieved
by:
(i) equitable distribution of water between regions and among
water user groups; (ii) setting appropriate priorities for water
allocation during periods of water scarcity (drought); (iii)
establishing standing rules for sharing of limited water resources
between regions and user
groups for sustainable development, and for maintaining water
quality and ecosystem protection; (iv) protection of long-term
reliability and sustainability of water resources, and avoidance of
over-
exploitation and degradation of resources; and (v) adapting to
changes and accommodating new demands for water while protecting
the interests of
existing water users and the environment.
These objectives are consistent with the agriculture and natural
resources development goals of ADBs country partnership strategy
for the PRC, and specifically in relation to goals to:
(a) support ecological and environmental improvement; (b)
reverse natural resources degradation; (c) address water resource
depletion and livelihood improvement for people residing in
threatened
and sensitive areas; and (d) promote river basin and ecosystem
management, and the efficient use of natural resources.
1.2 Background to the Study
Continuing population growth and rapid economic development in
the PRC have increased water use per capita and competition among
potential water users. Aquifers are becoming depleted, water
pollution is rising, and the ecosystem and environment are being
degraded. Along with the need to meet increasing water demand,
adequate flows need to be maintained in rivers to protect the
environment and dependent ecosystems. Given the rising urban and
industrial demand for water, the share of irrigation water use is
likely to decrease further. However, because of the political and
social importance of food security in the PRC, ensuring there is
enough water for agriculture remains a
-
Final Report Volume 1
River Basin Water Resources Allocation and Management Policy 2
GHD Pty Ltd / GIWP September 2010
government priority. An excellent account of the growing water
scarcity and pressing issues for water resources management in the
PRC is available in Xie Jian et al. (2009).
As well as the natural temporal variability of available water
resources, there is a geographic mismatch of water resources,
population and arable land. The north of China contains 45% of the
population, and 65% of the arable land, but has only 19% of
national water resources. Water scarcity, either temporal or
spatial, leads to intense political pressures, and because of
conflicting water demands effective planning tools are required to
meet administrative challenges. Key challenges are how to manage a
declining resource in the face of increasing demand, how to respond
to the mismatch between supply and demand, and at the same time
avoid serious environmental and ecological problems that arise from
over-exploitation of natural resources.
Despite progress made in reforming legal and policy frameworks
in the PRC, more development of capacity to adopt integrated water
resources management (IWRM) is needed to meet these key challenges,
develop appropriate frameworks to allocate water, monitor use and
resolve conflicts among water users, and improve governance in WR
management. Based on analysis of these issues, measures should be
formulated to establish modern WR management systems in line with a
water rights regime and integrated river basin management which
will improve efficiency and introduce market mechan-isms for
allocation of water resources.
In particular, the TA will address a crucial element for
improvement of WR management in the PRC: effective management
systems and policy for water allocation that will promote river
basin integrity and water security.
In the past, water resources planning and allocation has been
attempted for some of the major river basins in the PRC, and one of
many objectives in the current 11th 5-Year Plan that ends in 2010
was to extend that to other river basins. Attainment of that
planning objective may be delayed, in part because of the absence
of a recognized guiding framework for the tasks. Completion of
those tasks of water resources planning and allocation will now be
included in the 12th 5-Year Plan for 2011-2015, so outcomes of this
TA will potentially have critical implications for those endeavors
and for future sustainable management of water resources in the
PRC.
Some relevant data, statistics and analysis are available in
Appendix A.
1.3 Methodology To develop effective management systems and
policy for water allocation that promote river basin and water
security in the PRC, the TA includes several key activities as
listed in the ToR: (1) a review and assessment of international and
domestic practices in river basin WR allocation in
selected countries and river basins, including completed and
ongoing pilot programs in the PRC; (2) a comparison of various
methodologies and models of WR allocation, and documentation of
best
practices; (3) preparation of a policy note based on best
practices, and with policy recommendations; (4) MWR staff study
visits to river basins with good practices in WR allocation, and
on-the-job
training; (5) an assessment and categorization of river systems
with similar characteristics; and (6) definition of principles for
river basin WR allocation, and preparation and finalization of a
guid-
ing framework for improved future implementation on river basin
WR allocation in the PRC.
-
Final Report Volume 1
River Basin Water Resources Allocation and Management Policy 3
GHD Pty Ltd / GIWP September 2010
1.4 Activities to Date
1.4.1 Inception Phase An Inception Report was prepared and
finalized in August 2009, and on August 15 a workshop with a panel
of experts and the responsible ADB Project Officer was conducted to
review that report, its review of the background to the study and
its proposals for conducting the TA. All participants appreciated
the importance of the TA as it helps formulate water resources
allocation principles, methodologies and a guiding framework, which
are very relevant to the PRC's priority in water management in the
next five years; i.e., to develop water resources allocation plans
for major river basins and other smaller river basins where water
scarcity is severe or where water shortages occur frequently. The
panel supported the proposed approach and methodology, and in
particular appreciated the incorporation of economic, environmental
and ecological considerations in water resources allocation. MWR
pointed out that the proposed water resources allocation principles
and guiding framework should be consistent with the current PRC
legal foundation for water resources management, particularly the
Water Law (2002).
1.4.2 Interim Phase
In the six months leading to the preparation of an Interim
Report in February 2010, the activities listed as (i), (ii) and
(iii) above were completed. A working paper on the review of
international and domestic practice was completed in November 2009.
Based on the review, analysis of the working paper contents and
lessons learned, a draft Statement of Best Practice was prepared in
December 2009 with a Policy Note summarizing key recommendations. A
meeting with the panel of experts was convened on December 11 to
review the outcomes of the review and draft Statement of Best
Practice and to consider the policy recommendations. A preliminary
guiding framework was also presented to the panel. The panel
expressed appreciation of the efforts made, but requested more
information on institutional and management aspects of
international practice and linkage to the statements about best
practice. They noted a distinction between transboundary water
resources allocation at international level between sovereign
States and at inter-provincial level where a higher-level mediator
and arbitrator exists by virtue of a national government. The
policy recommendations were generally accepted. Panel members
stressed the need to consider development of the guiding framework
within the context of the Water Law of the PRC and its articles
pertinent to water allocation. They pointed out the important role
of water licensing in the allocation, management and distribution
of water at provincial and lower levels, and emphasized that the
key issue for consideration by the TA is water allocation at river
basin scale where water is to be allocated by the national
government to the provinces and regions sharing the water resources
of a river basin. The Statement of Best Practice and Policy Note
were revised following the meeting with the panel of experts in
December.
After completion of the Interim Report in February, a workshop
and tripartite meeting (TPM) were conducted on April 9, 2010. The
responsible ADB officer requested changes to the statement of best
practice and policy recommendations that were included in the
Interim Report , and changes requested have been incorporated in
volume 2 of this Final Report, which is referred to as a Policy
Note. The panel of experts attending the workshop commented on the
river basin categorization, principles and priorities for water
allocation, the concept and management of a water reserve,
terminology to be adopted, matters related to implementation,
revision and evaluation of water allocation schemes, and sundry
other issues. The workshop feedback was useful for completion of
the TA, including finalizat-ion of the categorization of river
basins and formulation of a guiding strategic framework for river
basin WR allocation.
-
Final Report Volume 1
River Basin Water Resources Allocation and Management Policy 4
GHD Pty Ltd / GIWP September 2010
1.4.3 Completion Phase
In the last phase of the TA culminating in the submission and
review of the draft Final Report, the collation and analysis of
data for river basin categorization was completed, and substantial
detail and guidance was added to the preliminary strategic
framework to make it more readily adaptable and implementable in
future practice in the PRC. Linkage between the categorization of
river basins and the practical formulation of river basin water
allocation schemes was made, however the ultimate decision of how
to implement the guiding framework in any particular river basin
will inevitable depend upon specific conditions and requirements
plus the professional and executive judgement of those responsible
at the time.
International study tours were also organized so that small
groups of specialists from MWR and GIWP could observe and learn
from the experience and practice in other countries where water
scarcity creates management problems for WR allocation. Two study
tours were organized: one to the Murray-Darling basin and
Australian federal government organizations responsible for current
WR planning in that river basin; the other to Colorado and New
Mexico in the USA where there are several interstate water compacts
including those for the Colorado, Rio Grande and Pecos river basins
that were subjects of review in the review of international
practice in WR allocation and management that is included in volume
4 of this Final Report 1. Table 1-1 provides some relevant
information.
Table 1-1: Tours Organized for Review of River Basin Water
Resources Management Overseas
Information Australia USA Dates of Travel 13 - 18 June 2010 not
undertaken at reporting date Number in Delegation 3 4 Cities
Visited Sydney, Canberra Denver, Fort Collins, Berthoud (Co),
Albuquerque (NM) Organizations Consulted Federal Department of
Environment,
Water Resources, Heritage & the Arts Water Policy Section
National Water Commission Murray-Darling Basin Authority
Commonwealth Scientific & Industrial Research Organization
(CSIRO), Division of Land & Water
N. Colorado Water Conservancy District Colorado State
University, Water Institute Colorado Water Conservation Board
Colorado Office of the State Engineer, Division of Water Resources
US Bureau of Reclamation, SW Division New Mexico Office of the
State Engineer, Interstate Streams Commission Univ. of New Mexico,
Utton Transboundary Resources Center
An international seminar was conducted in Beijing over 1 days on
September 14-15, 2010. At this seminar, findings of the TA that may
be relevant in other Asian countries were presented to an audience
from WR management agencies in ADB developing member countries
(DMCs), ADB specialists, representatives from Chinese river basin
commissions (RBCs) and provincial water resources departments
(WRDs), and MWR officials and invited domestic and international
specialists.
Following a final workshop on September 13 to receive comments
from the panel of experts appointed by MWR, and a final TPM the
same day, and allowing for time for formal comments to be received,
this draft report was revised and submitted as the Final Report
later in September 2010.
1 Regrettably, due to procedural delays and delays securing
approvals, the US tour could not proceed as scheduled.
-
Final Report Volume 1
River Basin Water Resources Allocation and Management Policy 5
GHD Pty Ltd / GIWP September 2010
1.5 Report Structure The Final Report is organized in four
volumes:
Volume 1: Main Report Volume 2: Policy Note Volume 3: Guiding
Strategic Framework for River Basin Water Resources Allocation
Volume 4: Review of Practice in River Basin Water Resources
Allocation and Management
In volume 1, the next chapter of this report presents a summary
of past and current practice in water resources management in the
PRC that is relevant to this review of water resources allocation.
It considers the institutional and legal setting in the PRC, and
considers past practice in river basin water resources allocation
in several parts of China. Water requirement assessments for
ecosystems and instream environments are discussed, followed by
some comments about approaches to economic evaluation that may be
relevant to water resources allocation.
Chapter 3 deals with the review of international practice in
water resources allocation and management, beginning with a review
of global trends and the key international convention on water
sharing in international watercourses. A comprehensive review of
water resources practices for water allocation and water resources
management in many parts of the world follows, with a review of
current practice internationally for provision of environmental
flow requirements, followed by a discussion of the role of economic
evaluation and economic measures that impact on the allocation of
water resources. Findings from the international study tour are
summarized.
A working paper produced during the review of international and
domestic practice is included as volume 4.
Chapter 4 provides a synthesis of the analysis deriving from the
reviews of international and domestic practice, drawing lessons
that can be learned from the reviews that relate to a statement of
best practice and its application in the PRC. The statement of best
practice and pertinent policy recommendations are summarized in
chapter 4. Volume 2 is a separate Policy Note derived from lessons
learned by the reviews of international and domestic practice.
Chapter 5 provides a definition of key principles for river
basin water resources allocation, discusses roles and
responsibilities in WR management related to river basin water
resources allocation, and draws conclusions about the principles
that should guide WR allocation planning in the PRC.
In chapter 6, work undertaken to categorize river basins in the
PRC is reported. The categorization is linked to potential
variations in formulation of RB water allocation schemes. It
includes an explanation of the objective of the river basin
categorization and the selection of criteria that can best be used
to characterize distinctions between river basins. The selection of
river basins to which the categorization was applied is introduced
and explained, and the task of data collection is described.
Procedures are proposed for use the selected criteria in RB
categorization, and analysis undertaken to compare results of
different proposals is described before a system for categorization
is identified that is suitable for the current purpose.
The guiding framework for river basin (RB) water resources
allocation is the principal outcome of the TA, and its formulation
is described in chapter 7. A complete presentation of the framework
is in
-
Final Report Volume 1
River Basin Water Resources Allocation and Management Policy 6
GHD Pty Ltd / GIWP September 2010
volume 3. Chapter 7 outlines the general approach to its
formulation and the aspects of WR manage-ment covered by the
framework, provides a concise summary of the proposed framework,
and makes pertinent recommendations for further consideration to
make future implementation of the proposed framework more
practical.
Chapter 8 deals with preliminary testing of the proposed guiding
strategic framework. Of course, formulation and implementation of a
RB water allocation scheme is far from trivial, requiring an
extended time-frame that is prohibitive in the context of the
current TA; but it was possible to reflect upon how the guiding
framework would be used in practice and relate this to the
prevailing conditions in selected river basins used as case
studies.
Chapter 9 concludes the Final Report. It presents
recommendations for further consideration by MWR.
1.6 Definition of Terms
1.6.1 Terminology 1.6.1.1 Surface Water Resources, Groundwater
Resources and Total Water Resources
Total water resources are combined renewable resources
potentially available from both surface water and groundwater
resources within a river basin. Many groundwater resources are
connected to surface freshwater bodies (rivers or lakes), and their
extraction and use will deplete the surface water resource
available. Diversion and use of surface water may also deplete
connected groundwater, which for water quality reasons or reasons
of convenience may be a preferred source of water supply. Although
there is often not a direct relationship between extraction of
groundwater and surface water depletion, by convention in the PRC
these connected groundwater systems are included as part of the
river basin surface water resources. (In many other countries,
these connected groundwater resources would not be included with
surface water resources, although the interaction between use of
connected groundwater and surface water would be considered and, if
possible, estimated.) They are also, of course, part of the
groundwater resources, which also include those aquifers that have
no connection with surface water bodies. See Figure 1-1. This gives
rise to the concept of overlap of groundwater and surface water
resources in the PRC.
overlap
Water in rivers, lakes, reservoirs, glaciers, snowpack, etc.
Water in groundwater aquifers connected to surface water
bodies
Water available in shallow groundwater not connected to surface
water bodies
WR TOTAL(renewable)WATERRESOURCES
WRS TOTALSURFACEWATERRESOURCES
GWTOTALGROUNDWATERRESOURCES(subjecttosustainableextractionlimits)
SW
GWC
GWU
Figure 1-1: Water Resources
-
Final Report Volume 1
River Basin Water Resources Allocation and Management Policy 7
GHD Pty Ltd / GIWP September 2010
Groundwater resources are also classified as shallow or deep
groundwater in the PRC, but in general it is against government
policy to exploit deep groundwater and in this report it is not
included in the total water resources of a river basin.
Mathematically, WR = SW + GW . . . [1.1]
GW = GWC + GWU . . . [1.2]
and WRS = SW + GWC . . . [1.3]
where WR is total water resources, SW is water resources
occurring in surface water bodies, GW is groundwater (i.e. all
shallow groundwater), GWC is groundwater in aquifers connected to
surface water bodies, GWU is groundwater unconnected to surface
water bodies,
and WRS is surface water resources as defined in the PRC.
In many river basins, because of the limitations of human
regulation, not all of the total water resources may be available
for exploitation during the passage of large floods, for example;
or in more arid areas where there may be losses in transmission.
This gives rise to another concept common in Chinese WR management:
that of exploitable water resources. The Chinese usage of this term
generally excludes water for eco-environmental purposes. See Figure
1-2.
Figure 1-2: Concept of Water Availability in the PRC
If river basin water allocation is to include allocation of
water to meet eco-environmental water requirements (EWRs) this
presents a small difficulty that needs to be clarified by further
definition, as follows and as depicted in Figure 1-3:
WRX = WR - SWu EWR . . . [1.4]
given that SW = SWX + EWR + SWu . . . [1.5]
while WRA = SW SWu (+GWC (+GWU)) . . . [1.6]
where WRX is exploitable water resources as in common usage in
the PRC, EWR is environmental water requirements to be
allocated,
-
Final Report Volume 1
River Basin Water Resources Allocation and Management Policy 8
GHD Pty Ltd / GIWP September 2010
Water in rivers, lakes, reservoirs, glaciers, snowpack, etc.
Water in groundwater aquifers connected to surface water
bodies
Water available in shallow groundwater not connected to surface
water bodies
SW
GWC
GWU
SWU Surfacewaterthatcannotberegulated&allocated
EWR Ecoenvironmentalwaterrequirement
WRA
Surfacewateravailableforallocation(allocationofgroundwatermaybeormaynotbeincludedinriverbasinwaterallocationsschemes)
WRX exploitablewaterresources
SWX
Figure 1-3: Water Resources Available for Exploitation and
Allocation
SWu is that part of the surface water resources that are
uncontrollable during floods, SWX is that part of the exploitable
water resources occurring in surface water bodies
and WRA is the water resources available for allocation (which
may or may not include available groundwater resources, a decision
to be made during formulation of a water allocation scheme).
The surface water that cannot be regulated and allocated (SWu)
may also be important to ecosystems e.g. intermittent inundation
for sustainability of wetlands or floodplains but because it cannot
be allocated is not included for our purposes in the EWR.
1.6.1.2 Water Resources Management Plans, Water Allocation
Schemes and Water Allocation and Regulation Plans
Water resources management planning entails planning the
management of water for all of its uses and to alleviate impacts of
extremes (floods and droughts). This report refers to three types
of plans, although all three are related.
A Water Resources Management Plan (WRMP) is a comprehensive plan
for management of water resources within a river basin. In the PRC,
it is common practice for river basin commissions (RBCs) appointed
by MWR in each of the major river basins to prepare comprehensive
water resources management plans that deal with broad WR management
issues such as flood and drought management, navigation and other
issues, as well as management of water resources for supply and
demand. Although they do not specify water allocations, they do
explain the principles upon which water allocation should be based
and make estimates of water resources available and forecast
demands. The title given to these comprehensive water resources
management plans vary, but in this report they will be referred to
generically as Water Resources Management Plans (WRMPs).
A River Basin Water Allocation Scheme (RB-WAS) is a scheme, or
plan, for how water resources will be allocated at river basin
scale. It is primarily concerned with how available water resources
will be allocated to meet human domestic and production purposes in
balance with sustainability of the eco-environment. Article 2 of
the Interim Measures for Water Allocation (2008) refers to a
premise that the eco-environment and sustainable water resources
development are protected
-
Final Report Volume 1
River Basin Water Resources Allocation and Management Policy 9
GHD Pty Ltd / GIWP September 2010
(translation from Chinese). At river basin scale, water
allocations for human domestic and product-ion purposes are
allocated to provinces, autonomous regions and municipalities under
central government control, referred to in this report as key
stakeholders. It is intended that each RB-WAS will be prepared by
the relevant river basin commission (RBC) appointed by MWR in each
of the major river basins the other key stakeholders.
A Water Allocation and Regulation Plan (WARP) refers to a
short-term plan for allocation of currently available water
resources. It is proposed that annual WARPs will be prepared to
implement provisions of the RB-WAS, generally at the end of each
wet/flood season. Seasonal updates to the annual WARP may be
appropriate in certain river basins. This would entail hydrological
assessment of the water resources currently available and extra
resources that can confidently be predicted to become available
over the (short-term) planning period.
1.6.1.3 Water Scarcity, Water Stress and Water Shortage
Water scarcity may be defined as a condition where the water
resources available are inadequate for any reason. The inadequacy
may relate to water needed for natural processes such as plant
growth or sustenance of aquatic life, or to water requirements for
human use. Water scarcity may be natural or man-made, caused by
drought (temporary), natural aridity (permanent) or over-use
(induced by man).
Water stress is water scarcity induced by mans use of water
resources. As population and/or socio-economic development grow,
increased demands for water will reach a level when the water used
for human domestic and production purposes exceeds the supply
capacity of river basins, with symptoms of increasing frequency and
severity of water shortages accompanied by degradation of water
resources and dependent ecosystems, decline of aquatic and riparian
habitats and loss of biodiversity. This is water stress.
Water shortage is an imbalance of supply and demand that occurs
whenever the full demands for human domestic and production
purposes cannot be supplied by the water resources currently
available.
1.6.2 Classification of Water Use Water is used for a variety of
purposes, and purpose is one basis for classification that is
relevant to water resources allocation. A common classification of
water use is as follows:
(i) Water for subsistence or survival. This includes drinking
water and is a component of domestic water use; however it is
usually expanded to include other basic domestic use such as
washing and sanitation, generally estimated as between 25 to 50
liters per person per day 2.
(ii) Water required for sustainability of natural aquatic and
riparian ecosystems. This is referred to in this report as
eco-environmental water requirements (or environmental water
requirements, EWRs). Aquatic ecosystems include riverine,
lacustrine and estuarine environments, and wetlands including
intermittent wetlands, marshes and meadows. Riparian ecosystems
include floodplain ecosystems and riparian strips where vegetation
has plentiful access to groundwater connected to water bodies.
Without adequate water of appropriate quality these ecosystems will
become degraded. Most ecologists consider there is a threshold
beyond which ecosystem collapse will be initiated and decline may
be irreversible. Some species may be of direct economic value, and
their
2 A lower allowance of 20 litres per day is proposed by the WHO
and UNICEF, but applies to less developed countries.
-
Final Report Volume 1
River Basin Water Resources Allocation and Management Policy 10
GHD Pty Ltd / GIWP September 2010
decline may cause adverse socio-economic impacts. At a more
basic level, most human economic activity depends on the bounty
provided by natural physical systems, and ecological decline or
ecosystem collapse may have major ramifications for regional
economic production and social welfare.
(iii) Water used for economic production in primary industry.
Because it has different characteristics that may be important,
water used for agriculture is usually identified as a separate
water use category. Irrigation often accounts for the greatest
single component of water used for economic production, and because
of its delivery and application is often the least efficient in its
use of water. In many environments agriculture is possible without
irrigation or with lower reliability of irrigation water supply,
and traditionally farmers have contended with much more varying
climate and water availability than other sectors of the economy.
Mineral extraction (mining) is another primary industry that can
use significant quantities of water although it is sometimes
grouped together with water used for secondary industry,
particularly if water is supplied for both from a common
source.
(iv) Water used for economic production in secondary and
tertiary industry. This includes water used by secondary and
tertiary industry: industrial enterprises, commerce, provision of
services, and in public institutions.
(v) Water used for social purposes. Households typically use
much more water than is used for subsistence or survival (category
(i) above). Water is used in households for a variety of
non-essential purposes that are generally considered to enhance the
quality and standard of living, e.g. gardens, car washing,
recreational pools, cooling, etc. Furthermore, with increased
standards of living quantities of water used by appliances and for
washing and sanitation typically increase significantly. Water is
also used for social purposes in public gardens and water features.
In the PRC this is often considered a separate category of water
use, termed urban ecological water or out-of-stream ecological
water in distinction to instream ecological water requirements of
category (ii) above.
Water use may also be classified as consumptive or
non-consumptive use. Non-consumptive use is usually taken to
include water for the environment, as in category (ii) above, and
the much smaller-scale, out-of-stream ecological water noted in (v)
above. It also includes water used for generation of hydropower.
Water used for generation of hydropower may alternatively be
regarded as another instream water use, even though it sometimes
involves diversion of water away from the stream of origin. Despite
its non-consumptive character, water used for generation of
hydropower is relevant for WR management because except in
run-of-river schemes it modifies the availability of water for
other purposes downstream (i.e. the temporal distribution of
downstream flows).Another means of classifying water resources for
purposes of WR management is according to water supply. Water for
irrigation is generally delivered by separate water supply systems,
for example, and does not require the same level of treatment as
water used for many other purposes. Urban or municipal water supply
systems and rural water supply systems generally deliver treated
water for domestic, commercial and industrial use from different
sources and perhaps to different water quality standards.Industrial
water generally does not require water quality of similar standard
as domestic water use with important exceptions, including food
processing and certain scientific and high-technology manufacturing
and water recycling may be appropriate to improve water use
efficiency. Water for industry and mining operations can sometimes
be delivered from separate water supply systems, particularly where
scale of enterprise or location requires.
-
Final Report Volume 1
River Basin Water Resources Allocation and Management Policy 11
GHD Pty Ltd / GIWP September 2010
It may be relevant to consider new sources of water in WR
management too, including recycled water, treated wastewater or
stormwater, or water from desalination plants. River basin water
resources allocation may also need to consider water transfers to
or from other river basins that can be used to redress
inconsistencies between the spatial distributions of water
availability and demand.
-
Final Report Volume 1
River Basin Water Resources Allocation and Management Policy 12
GHD Pty Ltd / GIWP September 2010
2. REVIEW OF DOMESTIC PRACTICE 2.1 Purpose The methodology
specified in the ToR requires a review of relevant domestic and
international practice so that lessons may be learned for future
application to water resources allocation and management in the
PRC, and in preparation for a statement of best practice and a
policy note related to the TA objectives. A working paper was
prepared during the practice review, which is included as volume 4.
This chapter provides a summary of the review of domestic practice
and its preliminary analysis. In chapter 4, more is included about
the lessons that can be learned, prior to presentation of the
statement of best practice and preliminary recommendations for
future policy.
The review of domestic practice included: review of the
institutional and legal foundations for water resources management
in the PRC; review of specific cases of water resources allocation
plans/schemes that have been introduced in
the PRC; an introduction to approaches to assessments of
environmental water requirements that have been
applied in river basins in the PRC; and discussion of
application of economic methods and economic measures that are most
relevant to
water resources allocation and management.
Faced with many difficult water management issues, the PRC has
made much progress in water resources management, including
improvements to institutional arrangements and the legal system.
Due to intensified competition for water and degraded
eco-environments, water allocation practices have been implemented
for many rivers in the PRC, especially in northern China. Review of
these practices will provide a clear understanding of what has been
achieved and valuable experience on approaches to water resources
allocation. Related topics are also reviewed, such as
eco-environmental water requirements and economic mechanisms, which
have important roles in water resources allocation.
2.2 Institutional Foundation Section B.1 of Volume 4, the
working paper on review of international and domestic practice,
provides more complete description of institutional arrangements
for water resources management in the PRC.
Institutional arrangements are the institutions and
administrative procedures that are developed by society to manage
and allocate water resources. They may be:
(i) government institutions, responsible for either nationwide
or local decision-making; (ii) laws and regulations, which give
guidance for management of water resources and appropriate
procedures;
2.2.1 Legal Provisions China's society and economy have
experienced tremendous change and rapid development in recent
years. With the rapid socio-economic development demands for water
resources have been increasing rapidly too, aggravating water
shortages and creating water resources pollution and other
environment-al problems, which were described in chapter 2.
Sustainable use of water resources in the PRC is there-fore
confronted with major challenges, and its management is receiving
much more attention. The State Council and all levels of water
resources departments are strengthening the legal system structure
for
-
Final Report Volume 1
River Basin Water Resources Allocation and Management Policy 13
GHD Pty Ltd / GIWP September 2010
water resources management to adapt to these challenges. Table
2-1 shows key legislation, policy documents and regulations.
Table 2-1: Laws and Regulations for Water Resources Management
in the PRC
Name Category Date of Enforcement Issuing entity
Constitution of the People's Republic of China Law December 4,
1982
National People's Congress
Soil and Water Conservation Law of the People's Republic of
China Law June 29, 1991
National People's Congress
Flood Control Law of The Peopl