About 1 trillion yuan (US$125 billion) will be spent over the next five years to improve water security and build sewage treatment systems, a top official said yesterday.

"The country is facing severe water problems," Qiu Baoxing, vice-minister of construction, told a news briefing. "And the urban water environment in China is worsening."

More than 50 water treatment plants  of nearly 800 nationwide  in 30 cities were operating below a third of their capacity or were not used at all, according to ministry statistics.

And 278 cities out of the total of 661 did not have any wastewater treatment plants by the end of last year.

Also, about 20 per cent of water pipes in cities leak, Qiu said.

Per capita water resources in the country are less than a third of the global average  and falling.

"China is at the crossroads in dealing with urban water problems," Qiu said.

To improve urban water supply, the Ministry of Construction (MOC) has set a series of targets for the next five years.

Water coverage in cities will reach at least 95 per cent in 2010, up from the current 91 per cent.

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