A guideline was jointly released by three ministries recently to promote Water Saving Management Contract program and support the development of industry that provides water conservation services.

By 2020, the Water Saving Management Contract program will be conducted as the main mechanism to enhance water efficiency, water-saving industry is projected to record a remarkable growth and water efficiency in China should improve notably, according to the official document issued by the National Development and Reform Commission, the Ministry of Water Resources and the State Administration of Taxation.

Many water technology companies will be started and many cutting-edge technologies will be developed to boost water conservation, the guideline said.

Water Saving Management Contract is a business mechanism that allows water technology companies to conduct technical transformation for water consumers and share the benefits achieved from the reduced water consumption according to the contract. It is designed to cut the risk of the technical reform and boost water-saving industry.

Public sectors and high-water-consumption industries are the key areas that should participate in the Water Saving Management Contract program, according to the plan. It said that governments, schools and hospitals should be the pioneer in the water conservation technical reform.

In the document the ministries also urged to improve financing environment for water-saving companies and cut their taxes.