Institutional Arrangement for Integrated River Basin Management

This study concerns the management functions, institutional and legal frameworks to foster IRBM in the Yangtze River Basin. It is implemented as part of the EU China River Basin Management Programme funded by the EU.The overall objective of the study is to contribute to an enabling framework of policies, legislation and institutions that will promote IRBM in China and assist the government to harmonise social and economic development and water and environmental protection within the Yangtze River Basin. Specifically, the study will provide the CWRC with a better basis for informed decisions on adjustment of its organization, responsibilities and management functions to be incorporated in the Yangtze River Master Plan. Based on stakeholder mapping an assessment has been made to characterise the present situation of water resources management in China and provide direction for future changes. The assessment found that 1) China has established a legal framework supporting water management in a river basin context, 2) plans embodying IRBM are drafted at national, river basin and provincial levels, and 3) the existing funding of water management is dominated by government investment. A diagnosis and evaluation of the management functions of the CWRC is presented with focus on gaps and overlaps providing recommendations for a more effective governance structure in accordance with internationally accepted principles that have emerged during the past 10 years. The diagnosis is based on key informant interviews and questionnaires and indicated that 1) Chinese legislation enables decentralized river basin management, 2) river basin, regional and provincial management functions are not clearly defined, 3) some management functions of the CWRC are difficult to implement due to discrepancies between authority and responsibilities 4) there are no efficient consultation and coordination mechanisms among stakeholders within the river basin, 5) the implementation of IRBM lacks support of provincial and local authorities, and 6) the CWRC sees stakeholder participation as the key to better river basin governance. Water management in the Yangtze River Basin has been analysed with the Rhine River, Danube River, France and the European Union as reference. The comparisons indicate that 1) legislation or formal agreements between different administrative units, nations or provinces, are required for efficient cooperation, 2) an inter-provincial river basin organization is an ideal platform to promote IRBM and resolve conflicts between nations or provinces within a river basin, 3) political governance and technical support should be separated, 4) stakeholder participation is imperative for efficient IRBM, and 5) pollution of the Yangtze River is at risk of increasing while the Rhine River and to some extent the Danube River have passed a turning point (top of Kuznet’s curve), where pollution is effectively managed and declining.Strategically institutional arrangements for IRBM will be conditional on central government initiative. At the national level four initiatives are proposed as umbrella for basin level action, 1) a national water framework plan to be inspired by the EU Water Framework Directive (WFD), 2) an assessment of basin institutional arrangements inspired by the Rhine and Danube rivers, 3) an assessment of provincial institutions inspired by France and 4) an assessment of legal efficiency taking the EU WFD as benchmark.In close consultation with the CWRC an action plan to foster IRBM in the Yangtze River Basin has been formulated in terms of legislation, institutions, capacity building, financing, information disclosure and stakeholder participation.The principal recommendations of the study are:1) Water Law to be amended or supplemented with legislation, which clearly defines the division of responsibilities between the national, river basin and provincial level authorities.2) A National Water Resource Commission to be established to strengthen cross-sectorial coordination and cooperation and mitigate the current fragmentation of responsibilities, especially the overlapping responsibilities of the Ministry of Water Resources (MWR) and Ministry of Environmental Protection (MEP) in water pollution management and of the Ministry of Water Resources and Ministry of Land and Resources in groundwater management.3) Reform of the CWRC may take one of three basic models: Unified management as branch of central government, essentially the current structure; Coordinated management governed by stakeholders, including central government; Autonomous enterprise authorised by central government.4) Institutions and responsibilities for water resources management and water service delivery to be separated and clearly defined.5) River basin commissions to be assigned responsibility for coordination of water resources management at basin scale and provinces for implementation in accordance with overall management objectives.6) River basin commissions to be responsible for operation of multipurpose infrastructure and bulk water supply.7) Provinces and municipalities to be the responsible for management and delivery of water supply and sanitation services in both rural and urban areas.8) Cost recovery for water resources management, bulk water supply, water supply and sanitation services to be scaled up and serve as water demand management tool as well as a significant source of funding for infrastructure development.9) National Water Resources Council to be set up at national level to supervise and regulate water resources management and services delivery by benchmarking of river basin commissions, provincial administrations and water utility companies using clear and well defined performance indicators