Host: Chongqing Foreign Trade and Economic Relations CommerceUndertaker: Chongqing Investment Promotion Association

In order to support the relocation and resettlement of the Three Gorges Reservoir and the economic and social development of the reservoir area, the state has issued 14 categories of 24 preferential policies and support measures.

Preferential policies for resettlement of rural migrants. One is to establish special funds for water resources in the Three Gorges Reservoir Area. The state prioritizes flooded areas and counties with certain conditions in the Three Gorges Reservoir Area as pilot demonstration counties for ecological clothing industry, and prioritizes special funds for basic farmland and water conservancy. Since 1996, a special fund of 75 million yuan has been allocated annually in the Three Gorges Reservoir Area of Chongqing. The second is to set up special funds for water control of large rivers and rivers. During the Eighth Five-Year Plan period, the state allocated 100 -200 million yuan to the Three Gorges Reservoir Area for relief by work every year, and 100 million yuan to the Three Gorges Reservoir Area during the Ninth Five-Year Plan period. Thirdly, we should implement the policy of subsidies for rural migrants to emigrate. The total number of migrants in Chongqing reservoir area is 1617,000, of which the government organizes the migrants to enjoy 5,000 yuan (static) migration allowance per person.

Preferential policies for relocation of submerged industrial and mining enterprises. First, special loans for technological transformation. From 1993 to 1998, the state allocated 750 million yuan of special loans for technological transformation of inundated enterprises in the Three Gorges Reservoir area every year. Second, joint venture loans. From 1997 to 2001, the state arranged an annual joint venture loan of 1.5 billion yuan for Inundated enterprises in the Three Gorges Reservoir Area. Third, bankruptcy and closure of insured enterprises subsidies. The pension owed by the bankrupt, closed and insured enterprises shall be fully subsidized by the central government by a lump sum of 2.77 million yuan. Fourth, the bank checks. The bank debts of enterprises that have failed in the past years shall be written off according to the total scale of write-off of bad debts in the whole country. Fifth, fiscal transfer payment. The central government shall grant 50% subsidy to local fiscal revenue reduced by the bankruptcy and closure of enterprises by means of transfer payment. Sixth, implement the "4:4:2" policy. The fund gap in the one-time resettlement subsidy for state-owned bankruptcy and closure enterprises shall be solved by the central finance, the reserve fund for immigration funds and the local finance in a proportion of 4:4:2.

Immigration and resettlement planning and investment budget adjustment policies. By adjusting the resettlement plan and investment budget of the Three Gorges Resettlement Project, the state has increased the static investment of migrants in Chongqing by 5.97 billion yuan.

Counterpart support policy. First, the central ministries and municipalities and their brothers supported Chongqing reservoir area with 20.69 billion yuan of funds. Among them, the central ministries and commissions have supported 3.81 billion yuan in project funds, 14.9 billion yuan in counterpart support for provincial and municipal economic cooperation projects, 1.18 billion yuan in social welfare funds and 800 million yuan in other funds. The second is to implement the tariff return of imported self-use goods. From 1996 to 2003, the state approved a total amount of US$100 million per year for importing self-use goods (including US$84.33 million in Chongqing Reservoir Area) for the development immigration construction projects of Chinese-funded enterprises in the Three Gorges Reservoir Area. Tariffs and import links were first levied and then returned by the central finance in full. In August 2004, the State agreed to extend the policy until 31 December 2005. Thirdly, relocation indebted enterprises supported by counterpart mergers and acquisitions are exempted from interest. The counterpart supporting enterprises merge the state-owned and collective relocated industrial and mining enterprises in the Three Gorges Reservoir Area which lost money before the end of 1998. On the premise of implementing the repayment plan, the relocated enterprises shall be exempted from all the previous arrears with the consent of the commercial creditor's bank, and the interest shall continue to be exempted during the repayment period of the next three to five years, subject to the loan balance of the relocated enterprises at the end of 1998.

Post-immigration support policy. First, since July 2006, rural migrants in the Three Gorges Reservoir Area have been included in the late-stage support for large and medium-sized reservoir migrants nationwide, with an annual subsidy of 600 yuan per person for 20 consecutive years. The second is to arrange part of the funds from the Three Gorges Reservoir Area Fund every year to solve the problems left by immigrants. Third, the establishment of the post-migration support fund in the Three Gorges Reservoir Area. From the time the Three Gorges Power Station was put into operation, the state set a standard of 4.5 cents per kilowatt-hour, and the extraction period of each unit was 10 years, which was used for the later support of the Three Gorges immigrants. This policy was implemented until June 2006. Fourthly, special funds for resettlement in the Three Gorges Reservoir Area should be established. The state draws special funds from the income of electricity sales on the Internet of the Three Gorges Power Station at the standard of 0.5 cents per kilowatt hour for a period of 10 years to solve the production and living difficulties of the migrants in the relocated Three Gorges Reservoir Area. The policy was implemented until June 2006. Fifth, support the development of the four major industries in the reservoir area.

Industrial Development Fund Policy. From 2004 to 2009, the central government allocated 500 million yuan annually in the Three Gorges Project Construction Fund to establish the Industrial Development Fund for the Three Gorges Reservoir Area to support the industrial development of the Reservoir Area and solve the employment problem of migrants. Since 2006, it has increased to 1 billion yuan annually.

Three Gorges Reservoir Area Fund Policy. Since November 2007, the State has levied the Three Gorges Reservoir Area Fund at 8 cents per kilowatt hour from the Three Gorges Power Station and the actual sales of electricity on the Internet. After the full outflow of all units, about 800 million yuan per year has been used to solve the remaining problems of the Three Gorges Reservoir Migrants (assistance for urban difficult migrants), the maintenance and management of the reservoir area, the Three Gorges Reservoir Area and the resettlement area. Infrastructure construction and economic development planning, support for reservoir protection projects and maintenance of production and living facilities for migrants. 

Tax distribution policy of Three Gorges Hydropower Station. After the power generation of the Three Gorges Hydropower Station, the value-added tax and the related urban maintenance and construction tax and education fee are added into the tax distribution scope of Hubei Province and Chongqing City, and are allocated according to the comprehensive submerged physical proportion of the Three Gorges Project in Hubei and Chongqing provinces and cities. The implementation period is up to 2009.

Policy on Land Occupancy Tax. Land occupation tax shall be levied according to 40% of the taxable amount for the construction of the dam area and the inundated area of the Three Gorges Project; land occupation tax shall be paid for the relocation of cities and towns, enterprises and institutions and the reconstruction of infrastructure; and land occupation tax shall be paid in accordance with the relevant provisions of the State; all the land occupation tax paid shall be used for the resettlement of rural migrants in the Three Gorges Reservoir Area and for the construction of rural migrants. The cultivated land used for housing and antiquity shall be exempted from the occupation tax of cultivated land.  

Preferential electricity and power support fund policy in the Three Gorges Reservoir Area. First, since the date of power generation, priority should be given to electricity use in the Three Gorges Reservoir Area. During the Tenth Five-Year Plan period, preferential transmission of 2 billion kilowatt-hours per year to Chongqing Reservoir Area (10 billion kilowatt-hours in five years) will be arranged, with a discount of 2 cents per kilowatt-hour. Secondly, during the Eleventh Five-Year Plan period, the Three Gorges General Corporation and the State Grid Corporation each allocated 50 million yuan (25 million yuan for each of the two enterprises in 2006) to Hubei and Chongqing (15.67% and 84.33% respectively) as the power support funds for the Three Gorges Reservoir Area. Special support for reservoir development.

Construction Policy of Electrified County in Reservoir Area. The state gives priority to the flooded areas and counties with hydropower resources in the Three Gorges Reservoir Area as pilot counties for primary electrification of rural hydropower, and gives them support.

Sewage treatment "to supplement and promote" policy. The operation mechanism of sewage treatment in reservoir area has been established. From 2006 to 2010, the state subsidized sewage treatment plant in reservoir area was about 1.13 billion yuan.

The policy of ecological construction and environmental protection in reservoir area. First, from 2002 to 2003, 4 billion yuan was invested in the prevention and control of geological disasters in the Three Gorges Reservoir area and 4 billion yuan in the construction and protection of the ecological environment. Since then, the state has continued to invest in the prevention and control of the third phase of geological disasters in the Three Gorges Reservoir Area. Second, the implementation of the "soil transfer and fertilization" project, the investment of 300 million yuan in the first phase of the project has been completed, the second phase of the project is about to start. Thirdly, the pilot demonstration project of "7+1" for ecological environment construction and protection in reservoir area has been implemented. The construction of ecological home for immigrants in Kaixian County, the protection of the original ecological landscape of Wushan Small Three Gorges and the comprehensive renovation of Hujiaba Falling Area in Fengjie have been started one after another.

Tax  relief and Tax free policy. First, the state gives preferential tax deductions and exemptions to land developed for resettlement of rural migrants and newly-established enterprises. Second, the state canceled 41 fees levied on the Three Gorges Migration Project in Chongqing and exempted 13 fees.


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