Statistics from the Ministry of Water Resources show that total investment in infrastructure construction of water conservancy projects has reached 32.15 bln yuan this year. Of the total investment, 23.795 bln are raised from national bonds and 8.355 bln comes form the budget. The funds will continue to favor key projects, e.g. the projects to harness the Huaihe River, the south-to-north water diversion project, and projects in rural area, western China and old industrial bases in northeast.

The input in water conservancy projects has guaranteed the smooth progress in construction of key projects. At present, construction of projects to harness the Huaihe River has made headway. Projects at Linhuaigang, Huanga and principal branches of the Huaihe River are being speeded up. The plan for flood control in the drainage area of the Huaihe River has passed review of the Ministry of the Water Resources. A total of 19 key projects will be completed basically by the end of 2007. Another three key projects whose construction have commenced earlier than schedule will be completed by the end of 2010. The legal person system has been adopted in the waterhead project at the central route of the south-to-north water diversion project. The central government's investment will increase from 20 percent to 30 percent, and the proportion of fund in the investment will drop from 35 percent to 25 percent accordingly. The project is now progressing smoothly.

By People's Daily Online