11950s-1960s

1970s-1980s

1990s~

Water ResourceDevelopment for Water Use

Water ResourceDevelopment for Water Use& Flood Control

Water Quality Conservation,Water Use & Flood Control· Expansion of water supply· Increase of water pollution· Flood Damage (‘84, ’87disastrous floods)· Increased distrust on tapwater· Large scale multipurposedams· Wide area water supplysystem· River improvement projects· Water resourcemanagement and floodcontrol in watershed· Lack of drinking water inislands· Drought in south area(’678)· Flood Damage (’59Typhoon Sara)· Reservoirs for irrigation· Dams for hydro-powergeneration· Investigation of 4 riverbasins· River Act(’61)· River maintenance masterplan· Middle scale dams· Long-term comprehensiveplan for water resourcemgt.
· Water environmentconservation act(’91)

1

▪

’60s~

Increase and diversification ofwater pollution with economicgrowth and industrialization→ Water pollution in retention area

▪

’80s~

Increase of pollution dischargewith economic growth,Lack of pollution treatment facility→ heavy pollution

’90s~

▪

Improvement of water quality-Huge water pollution accidentssince 1991→ Establishment of sewage andwastewater treatment facilities→ Special acts and countermeasuresfor water environmentmanagement in 4 major rivers

2¡ Difficulties in Water Quality Management• Limitation of end-of-pipe approaches• Difficulties in pollution source control• Resident’s resistance on tighter regulations• Upstream-downstream conflicts on environmental regulationcComprehensive Water Management Measures for the Four Major River Basins(1989) Water pollution of tap water(1990) THM, (1991) Phenol pollutionaccident in Nakdong river(1994) Organic solvent pollutionaccident in Nakdong river

Demand for EstablishingCountermeasures

Changes in Water QualityManagement Policy

2Conventional Policy by WaterQuality Preservation Act

Watershed-based Policy bySpecial Acts

Special Measure Zone

Riparian Buffer ZoneLand Purchase System

Water Quality Criteria & EffluentStandard

Total Pollution Load ManagementSystemEmission Charge

Water Use ChargeTPL Excess ChargeFinancial Supports for WaterSource Area

Support for Water SourceProtection Area

Support for Civilian WaterQuality Monitoring ActivitiesRiver Basin ManagementCommittee

2¡ Special Measures for Four Major Rivers* Strong resistance of residents & regional government / conflict between up- and downstream regionðApproach for ‘agreement’ with the community through more than 420 public hearings,explanatory meetings and panels for convincing the residents of its need for the system

Special MeasuresReaching a compromise should be based on the agreements between interest groups (esp.
upper and down stream) ® Community culture based on enhanced community participation‘Water-use charge’ base on user pay principle for reasonable cost-sharing and securefunds for watershed management‘Butter zone system’ & TPLMS as an effective measures for watershed mgt.
‘Basin management committee’ as a decision-making body / ‘watershed environment office’as an executive body

2BackgroundFor improving the availability of clean and safesource water for water supply, the area aroundthe water abstraction sources can bedesignated as special management zoneintended to prevent soil erosion andcontamination of water sources by humanactivity[ Designated Zones for WSP ]ProtectionAreas

Regulation on pollutiondischarge and activities

Special MeasureZones

Restrictions in land use andfacilities construction

Restricted Areas

Restrict the construction ofindustrial facilities that dischargeany of 17 contaminants

Buffer Zones

Riparian buffer zone

While identifying protected zones is essential for water source protection, their implementationcause burden to local managers and citizens. Local government (for fear of constrainingeconomic development in their district) and individual citizens (who view the zones as fetteringtheir private property rights) at times oppose the imposition of these zones

The introduction of a metric-based surcharge for piped water, coupled withenvironmental regulations, aims to resolve these conflicts (compensate the burden)

3­ Polluter – Benefiter Cost-Sharing forWater Quality ManagementEmission Reduction CostPollutionEmission w/oRegulationw/RegulationWater Qualityfor WaterUse

Investment for Water QualityImprovementPayment for Water SourceProtection (Upstream)

PolluterWater User(Benefiter)

WaterUseCharge

WithoutRegulation forWSPBenefits toland userswithin WSPArea

With Regulationfor WSP

PaymentCost toWater Users* WSP (WaterSource Protection)­ PES for Water Source Protection

3

Introduction of surcharge for piped water: Water Use Charge (1999)­ Charge is levied on all end-user of water along the rivers in proportion to the amountof water use­ Charge levels are different in each river basin­ Setting of charge level is based on the fund requirement for protecting water sourceand relevant water quality management activitiesð Watershed Management Committee(KRW/m3)
Year’99-‘00

Han River Basin

80

‘01

‘02

‘03

110

‘04

120

Nakdong River Basin-

Kum River Basin-

110

Youngsan / SumjinRiver Basin

-110

100

‘05

‘06

‘07

’08-‘10

130

140

150

160

110

120

140

120

130

140

150

120

130

140

150

’11-‘14170

150

160160

160

’15

170

170

3(Million KRW)600,000
한강Han River Basin500,000

478,150

400,000

Nakdong River Basin낙동강Kum River Basin금강Youngsan×Sumjin River Basin영산강·섬진강

300,000231,550

200,000

122,18682,886

100,00001999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

(Million KRW)

Annual

1999

20002001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015 IncreasingRateHan RiverBasinNakdongRiver BasinKum RiverBasinYoungsan·SumjinRiver BasinTotal

27,675 175,358 230,688 246,741 268,644 283,731 304,326 337,907 362,800 386,266 397,652 403,584 430,860 443,187 444,701

443,462457,664

6.8%

26,827 120,738 130,215 139,979 158,546 166,813 186,040 184,527 193,799 212,033 210,872 211,808

214,429

223,877

5.4%

7,011

44,65852,45760,27068,72475,97280,82083,72889,74894,637

99,184 101,932

102,600

105,766

7.6%

7,820

38,492

43,274

46,77351,37157,54963,931

62,483

69,18473,24575,222

76,18877,61378,851

6.3%

27,675 175,358 230,688 288,399 472,532 509,677 551,348 616,548 663,134 717,057 728,390 756,315 810,775 828,465 834,629

838,104

866,158

6.5%

3

Water Use Charge

WatershedManagement Fund

Projects and provisions for encouraging participationof residents and compensating the regulatory burden§Community support project§

Support for vitalizing local economy

Increased infrastructure investment in wastewatertreatment and other expenditure for source waterquality improvement§

Purchasing of land for establishing ‘buffer zone’§Subsidies for wastewater treatment of watersource protection area under strengthenedregulation§

Supporting of various water quality managementactivities in water source protection area

3▪

Recent annual revenue came to the equivalent of 570 million Euro in oneyear, and roughly 50% of this was used for infrastructure and other waterquality improvement projects, 18% on land acquisition (e.g. for examplepurchase of riparian zones for conservation purposes) and 15% oncommunity support programs.

3

Infra.

Infra.

LandComm.
SupportComm.
SupportLand

LandInfra.

Infra.

Comm.
Support

LandComm.
Support1999Han

2002

37.0201579.7Nakdong

41.773.5Kum

29.972.7YoungsanSomjin

40.573.3(Thousand ㎡)18,00016,00014,00012,000

Han

10,000

Nakdong

8,000

Kum

6,000

YS.SJ

4,0002,000
0‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15

WithoutRegulation forWSPBenefits toland userswithin WSPArea

Cost toWater Users

With Regulationfor WSPPayment

§The water use charge system is both to collect revenue via a levy and to achieve awin–win situation for both upstream and downstream users through two majorpolicy measures: investment for water quality management in water sourceprotection area and providing subsidies to upstream residents to compensate forthe losses imposed by environmental regulations.

§The case of water use charges in Korea indicates the possibility of a cooperativesolution to the conflict between upstream and downstream residents under theconsensus of a cost-sharing principle.

§The central government played a key role in resolving the conflict, aiming to bothstrengthen environmental regulations and provide a payment scheme for affectedresidents.
Imperfect / Asymmetric information on the benefit (water user) / cost(residents in regulated area) of water source protection.
ðDifficulties in the process of reaching consensus regarding water usecharge and utilization of fund­ Polluter – Benefiter Cost-Sharing forWater Quality ManagementInvestment for Water QualityImprovementEmission Reduction Cost

PollutionEmission w/oRegulationw/RegulationWater Qualityfor WaterUsePayment for Water SourceProtection (Upstream)

PolluterWater User(Benefiter)

WaterUseCharge

WithoutRegulation forWSPBenefits toland userswithin WSPArea

Cost toWater Users

With Regulationfor WSP

Payment* WSP (WaterSource Protection)­ PES for Water Source Protection­ Polluter – Benefiter Cost-Sharing forWater Quality Management

Investment for Water QualityImprovement

Emission Reduction CostPayment for Water SourceProtection (Upstream)PollutionEmission w/oRegulationw/RegulationWater Qualityfor WaterUsePolluterWater User(Benefiter)

PollutionChargeWithoutRegulation forWSP

Water UseChargeBenefits toland userswithin WSPArea

With Regulationfor WSP

Payment

Cost toWater Users* WSP (WaterSource Protection)­ PES for Water Source Protection

Purpose

Watershed (Environment) Management

Target forCharge

Residents in Watershed (Benefiter of Watershed Management)- Joint burden for the cost of watershed management

Way of Charge

Per Capita Rate + Pro Rata Income

Utilization ofFund

Service Costs for Watershed Management

Payment forEnvironmentalServiceInvestment forWatershedManagement

Present Scheme

Qualitative AvailabilityImprovement Cost(Source Water QualityProtection)

IWRM

Water UseCharge

AbstractionChargeQuantitative AvailabilityImprovement Cost(Dam Operation, etc.)

Service Cost(Production and Supply)

Water Tariff

Water Tariff