Jilin Province Activates "Water Saving Loans" to Support Water Saving Enterprises and Project Construction

Source: Jilin Provincial Department of Water Resources 

Recently, the Jilin Provincial Department of Water Resources, the Provincial Department of Finance, and the Changchun Central Branch of the People's Bank of China jointly issued the "Notice on Carrying out" Water Saving Loan "Financing Services to the whole province. By carrying out" Water Saving Loan "financing services throughout the province, we fully leverage the role of financial factors in promoting water resource conservation and intensive utilization, and guide financial institutions to increase support for the green and low-carbon development of the real economy, Further support water-saving enterprises and project construction, and assist national water-saving actions.

The main support areas of "water-saving loans" in Jilin Province include urban and rural water-saving water supply, agricultural water-saving efficiency enhancement, industrial water-saving emission reduction, urban water-saving loss reduction, and other water-saving services. Mainly including urban and rural water supply projects with the premise of saving water and improving water resource utilization efficiency; Continuation and modernization of irrigation areas (water-saving transformation), high standard farmland and efficient water-saving irrigation projects, as well as the implementation of water-saving transformation and construction of breeding farms, animal husbandry water-saving demonstration projects, etc; Implementation of industrial water-saving management, upgrading of water-saving technology, equipment and facilities, and advanced wastewater treatment and reuse up to standard; Promote urban water-saving transformation, build sponge cities, utilize wastewater resources, utilize unconventional water sources such as recycled water, and apply and transform water-saving technologies in special industries such as car washing, golf courses, and artificial ski resorts that consume high water; Water saving "three simultaneities" infrastructure construction, water-saving carrier creation, and professional third-party water-saving services such as contract water-saving management.

The "water-saving loan" in Jilin Province will prioritize the protection of credit resources for the credit demand in the field of water resource conservation and intensive utilization, and increase the investment of loans; For eligible enterprises that have already extended credit, the credit limit shall be reasonably increased based on the same collateral guarantee requirements. For those who have not yet conducted credit extension, active credit extension can be adopted to verify the credit limit for the enterprise and meet its temporary funding needs; For enterprises that meet the conditions, the loan term can be appropriately extended based on factors such as project development and construction period, technology research and development period, and service period of third-party professional institutions, to increase medium and long-term loan investment; For enterprises that meet the conditions, they will enjoy the preferential policies of green finance and give preferential loan interest rates under the same conditions; For enterprises that adopt water-saving renovation projects to reduce water intake and sewage discharge, they can enjoy a flexible and rich combination of mortgage and pledge guarantees, and can apply for mortgage and pledge loans with water intake rights in accordance with laws and regulations. Encourage the issuance of credit loans to eligible enterprises; The assessment fees, mortgage registration fees, and other related fees related to the loan shall be waived by the relevant bank in accordance with regulations.

Enterprises (units) and projects registered within Jilin Province with independent legal personality and eligible for the support scope of "water-saving loans" can apply through the water conservancy department. After preliminary review and confirmation, compliant enterprises are recommended to the Provincial Department of Water Resources to form an alternative project library for "water-saving loans" in Jilin Province. Information sharing is achieved with the Provincial Department of Finance and the Changchun Central Branch of the People's Bank of China. The Changchun Central Branch of the People's Bank of China will push to relevant financial institutions to handle loan business according to the conditions of handling bank loans. Relevant financial institutions conduct independent loan review on the applied projects, while strengthening monitoring of fund flow and risk situation to ensure that enterprises use funds in a compliant and reasonable manner.

"Water saving loan" is one of the important focuses of green finance innovation. The financing service work is implemented by the financial institutions within the jurisdiction organized by the municipal and county water administrative departments and the People's Bank of China. In the implementation of policies, the Jilin Provincial Department of Water Resources and the Changchun Central Branch of the People's Bank of China will guide water administrative departments at all levels and relevant financial institutions to actively track the situation of the "water-saving loan" information database, actively connect with enterprises, and provide good financing services for the "water-saving loan". The Provincial Department of Finance will explore and carry out financial interest subsidy pilot projects for the "water-saving loan" project, to assist in the green and low-carbon development of the province's economy.