Apart from technical assistance, the British government will put up about US$9.95 million to subsidize the program, China Daily reported Friday.

Farmers in parts of China's Gansu, Liaoning, Sichuan and Yunnan provinces will benefit from the program, which has been in preparation for three years.

The information was released yesterday at a two-day workshop sponsored by the Ministry of Water Resources.

"The program is designed to optimize water resources management and improve water supply in rural regions, which are at the top of our government's agenda," Chen Lei, vice-minister of the ministry told the workshop.

With the growth in population and rapid economic growth and social development over the last two decades, the shortage of water in some regions has become an increasingly serious bottleneck impeding further progress, Chen said.

"Especially in some rural areas in western provinces, water shortages have become a main contributor to the persistence of poverty," Chen said.

Chen said China was determined to solve the drinking water problem for 24 million farmers within three years.

Chen said his ministry has also implemented a sustainable development strategy by shifting the focus of water resource management from supply to demand control.

"I believe, the program will not only benefit the farmers of the four provinces, but will also benefit China's water resources as a whole," Chen said.

Negll Cox, an official with the British Embassy in China said water will play an instrumental role in the battle against poverty.

"First, the availability of more water for use in agriculture, power generation and industry will help increase farmers' incomes," he said.

(CIIC 07/27/2001)