Release date: 13 June 2017
Promoter – Financial Intermediary
PUBLIC ENTITY(IES)Location
Description
The project is to rehabilitate and afforest 2,037 ha of degraded, mainly abandoned iron-mining land in Ningcheng County, Inner Mongolian Autonomous Region in China. The project includes investments in the necessary supporting facilities, including 30 km of forest roads.
Objectives
The project contributes to establishing sustainable and diversified forest ecosystems and landscaping on heavily degraded lands that consist mainly of old abandoned iron ore mining areas. The project targets primarily environmental benefits and externalities to sequester and store carbon, to improve air and fresh water quality and to improve biodiversity in the area that is adjacent to a rather intensively populated urban centre. To make it financially feasible the project will also invest in edible fruit/seed production on the parcels most suitable for this purpose.
Sector(s)
- Agriculture, fisheries, forestry - Agriculture, forestry and fishing
Proposed EIB finance (Approximate amount)
EUR 30 million
Total cost (Approximate amount)
EUR 60 million
Environmental aspects
The environmental impact assessment (EIA) was completed in November 2016. The project has obtained the statutory environmental permits from the relevant authority and the project planning complies with the environmental and social requirements of the Bank. The project greatly improves the quality of the environment in the city of Chifeng and in the region in general. It contributes to the vegetation belt established to prevent frequent harmful sandstorms in north-east China. It contributes to climate change mitigation and adaptation through carbon sequestration, improved biodiversity and resilience of ecosystem functions. Vegetation cover will improve water retention and the catchment capacity of the project sites.
Procurement
The Bank will require the promoter to ensure that the project is implemented in accordance with the Bank's Guide to Procurement.
Status
Approved - 29/09/2017
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).