The
private enterprises in Zhejiang province, which cover 2/3
of the total GDP value, have been an important motive power
in the rapid economic development during recent 10 years.
As one of the infrastructures and basic industries of national
economy, the water resources industry is gradually attracting
private investors for its stable and huge profits. Therefore,
the provincial government of Zhejiang made out a series of
preferential policies to encourage the private investment
into the water resources sector as to quicken its reform and
development, and this 10-year period has been the duration
of swift development and attracting the largest investment
in water resources sector after the foundation of new China.
I. The process of private investment
in hydropower
In 1993, the private
entrepreneurs started to invest in hydropower projects.
In order to alleviate the power shortage, reforms on the
investment and the price have taken place. The provincial
government determined to mainly use the national fund for
the power gird construction, and the private funds should
be adopted to develop the power source, which aimed to encourage
the share-holding cooperation etc. as the modes for small
hydropower (SHP) development, and also the favorable SHP
price was made.
In the development of
hydropower resources from 1993, the private fund has been
playing the main role in Zhejiang province, and it keeps
the installed capacity of hydro rising sustainable. It is
roughly estimated that, the installed capacity from the
share-holding stations or private owned stations covers
80% of the total newly increased amount. There are some
characteristics for the private fund in SHP development,
shown as follows:
1) Different investors
cooperate with each other on the basis of mutual benefit.
The investors for hydropower development not only include
water resources enterprise, electric power corporation,
but also consist of the social legal entity, individuals,
overseas Chinese and even some share-holding corporations
etc. These different investors venture to establish a corporation
limited or a share-holding company limited for hydropower
development.
2) The private investment
is shifting from the single-unit station with small installed
capacity to the key large-sized hydropower station with
peak-regulation capability, and during 1994-2001, 25 hydropower
stations with installed capacity of more than 10MW each
had been put into operation, up to 66% of the total.
3) These share-holding
hydropower corporations, which were firstly located in villages
or counties, now become the provincial group corporations
in hydropower development.
II. Effects of private funds
in the water sector
After the entry of private
investment into the hydropower field, it brings forward
many positive effects as follows:
1) To promote the rapid
development of hydropower. Owing to the participation of
private enterprises, the speed of hydropower resources exploitation
is much quickened. Every year over RMB1 billion fund swarms
into the hydropower markets in Lishui, Wenzhou, Quzhou and
other cities from other provinces or even foreign countries,
and from 2000 to 2002 the yearly installed capacity amounts
to over 180MW (in 2002 the installed capacity of 200MW can
be expected), which is over 3 times more than that in the
1980s.
2) To accelerate the
economic & social development. As the private fund is
put into the hydropower sector, the local labor force gets
to be used, the infrastructures such as communication, water
conservancy, electric power etc. be improved, which ultimately
betters the living standards of local people and sustain
the local economic development.
3) To optimize the project
construction and management. Now, the construction of hydropower
stations is strictly managed according to the budget and
the work plan, so the cost is generally reduced by 120%-20%
or so, and some projects are completed ahead of the schedule,
which fully shows the advantage of private enterprises,
and achieves higher efficiency and greater benefits.
4) To promote the scientific
& technical advancement. In order to reduce the cost,
at the share-holding station, priority is given to adoption
of the worldĄŻs state-of-art technologies, such as the optimum
design of dam, new materials and automation equipment etc.,
which act actively in the scientific & technical advancement
of hydropower sector. Many share-holding stations have adopted
the unmanned control technology prior to the state-owned
stations.
III. Paid water resources development
In Zhejiang, the institutional
reforms on electric power industry started very early, and
meanwhile, the local governments always take measures to
promote the SHP development, such as protection of the power
price etc., and to encourage its competitiveness in water
resources development as to optimize the configuration of
hydropower resources. On the basis of macro planning and
management, the scientific, economical and rational development
can be guaranteed. From 2001, the bidding competition for
the right of water resources exploitation is gradually standardized.
For example, in Wencheng
County there are over 30 people competing for developing
the water resources of a station with 3MW installed capacity,
and the county government auctioned the right of exploitation
from the initial price of RMB600,000 yuan, and which eventually
concluded at RMB3.6 million yuan.
In Taishun County, the
local government auctioned the water resources of 2500kW
at the price of RMB1.2 million yuan, and another about 1MW
water resources was auctioned at RMB990,000 yuan.
With the paid transfer
of the water resources booming in different areas, the Department
of Water Resources in Zhejiang Province is planning to issue
a set of management regulations concerned.
