Release date: 2 September 2013
Promoter – Financial Intermediary
The borrower is the People's Republic of China, represented by the Ministry of Finance, who will on-lend to Liaoning Province. The project will be implemented by Forestry Department of Liaoning Province.Location
Description
The project is one of the eight foreseen under the China Forestation Framework Loan. The project is to develop 23,700 hectares of forest land in Northern China through establishment of new plantations and rehabilitation of existing forests. Forest types to be developed are ecological forests for soil and water conservation, poplar timber plantations and fruit tree plantations.
Objectives
Besides providing the necessary economic benefits for the local farmers and villages to commit to the project, it also combats against desertification and soil erosion, while preserving biodiversity and improving water quality. Forest carbon sequestration will help mitigate climate change, in line with EU policies.
Comments
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 project is expected to deliver important environmental benefits in terms of climate mitigation, climate adaptation, tackling severe soil erosion and reducing the expansion of the Khorchin desert in northwest part of the Province. Planting of different tree species will provide income and work opportunities for local communities, who will also benefit from the protective functions of planted forest areas.
Procurement
The Bank will require the promoter to ensure that implementation of the project be done in accordance with the Bank's Guide to Procurement.
Status
Approved - 12/11/2013