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Moutai helps clean up 'Spirits River'

By Qiu Bo in Guiyang (China Daily) Updated: 2014-07-16 07:09

Moutai helps clean up 'Spirits River'

The Chishui River runs through Maotai Town in Guizhou province. Spirits giant Kweichow Moutai Co Ltd will provide 500 million yuan ($81 million) over the next 10 years to protect the river, a water source vital to the company's development. CHINA DAILY

Spirits giant Kweichow Moutai Co Ltd will provide 500 million yuan ($81 million) over the next 10 years to protect a major watershed, the company said.

At a conference jointly held by the Guizhou provincial government and Kweichow Moutai earlier this month, the two parties announced a joint plan for the Chishui River, a water source that is considered vital to the company's development.

Moutai helps clean up 'Spirits River'
Moutai looks to spread reach in China 
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Moutai helps clean up 'Spirits River'
Under the agreement, the company will provide 50 million yuan for the project annually, with the government allocating also 50 million yuan annually.

The 268-kilometer-long Chishui River is a tributary of the Yangtze River, and its quality has deteriorated in recent years. The Chishui is also known as "Spirits River", as it is a water source for several famous Chinese liquor producers besides Kweichow Moutai, such as the Sichuan Langjiu Group Co Ltd.

Guizhou also signed a deal with the Asian Development Bank last week to help attract more capital for the protection of the river. The agreement was signed during the Eco Forum Global Annual Conference in Guiyang.

Guizhou Vice-Governor Mu Degui and Hamid Sharif, the ADB's country director in China, signed a memorandum during the forum intended to broaden financing channels and attract more capital for the green development of the river.

Xiong Dewei, head of the provincial environmental protection department, said cleaning up the river will cost about 5 billion yuan.

Zhang Qingfeng, a water resources specialist for the ADB, said that investment is expected from government bodies, banks and local companies, and the province may announce policies to clarify stakeholders' rights and obligations.

Jia Kang, director of the Institute for Fiscal Science Research under the Ministry of Finance, said that "healthy green finance" should have policy support.

Zhao Kai contributed to this story.

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