Ministry of Water Resources and State Administration for Market Regulation Jointly Issued "Service Contract for Contract Water Conservation Management Projects (Model Text)"

Recently, the Ministry of Water Resources and the State Administration for Market Regulation jointly issued the “Model Text for Water Conservation Management Contract (Demonstration Text)” (hereinafter referred to as the “Demonstration Text”), which has been included in the National Market Regulation Contract Model Text Library for water users and water-saving service agencies to reference. The goal is to establish and improve the water conservation management system, standardize the implementation of water-saving management projects, fully leverage the roles of an effective market and proactive government, and promote the healthy and orderly development of contract-based water conservation management.

According to the Water Resources Department, contract-based water conservation management is an effective tool for implementing the priority of water conservation and an innovative approach to promote water-saving efforts through dual efforts. The Ministry of Water Resources attaches great importance to contract-based water conservation management, incorporating it into the comprehensive framework of water-saving institutional policies. Localities are innovating practices suited to their conditions, expanding application scenarios and business models. Contract-based water conservation management is being fully promoted in three major areas: agricultural water-saving and efficiency improvement, industrial water-saving and emission reduction, and urban water-saving and loss reduction. It has achieved full coverage across 31 provinces and the Xinjiang Production and Construction Corps, with notable results. During the 14th Five-Year Plan period, a total of 2,488 contract water conservation projects have been implemented nationwide, saving 930 million cubic meters of water annually.

The Demonstration Text mainly covers seven aspects: project implementation and operation, water-saving volume confirmation and benefit sharing, rights and obligations of both parties, contract modification, suspension and termination, breach of contract liability, and other matters. The clauses are precisely aligned with the characteristics of contract-based water conservation projects, focusing on the three major areas of agricultural efficiency, industrial emission reduction, and urban loss reduction. It lists different applicable scenarios for contract water conservation projects and provides key information on various benefit-sharing models, such as water-saving benefit sharing, guaranteed water-saving effects, water use fee escrow, and integrated agricultural management. The document includes 36 specific items, such as project name, investment structure, baseline water use determination, water-saving targets, water-saving renovation and service content, and methods for confirming water savings. It features standardized clauses, clear rights and responsibilities, broad coverage, and easy operation, which help guide and regulate contract signing and performance, effectively prevent legal and operational risks, and protect the legitimate rights and interests of all parties. Furthermore, it enhances the normative, professional, and rigorous nature of the contract text, providing important support for the promotion, application, and high-quality development of the contract-based water conservation management model.