Reference: 20130285
Release date: 2 September 2013

Promoter – Financial Intermediary

The borrower is People's Republic of China, represented by the Ministry of Finance, who will on-lend to Hunan Province. The project will be implemented by Forestry Department of Hunan Province.

Location

Description

The project is one of the eight foreseen under the China Forestation Framework Loan. It comprises the development of 21 800 hectares of long-rotation plantation forests for the production of tea oil (camellia oleifera), carbon mitigation, nature conservation and soil improvements. Institutional support and technology improvements are foreseen.

Objectives

The project will increase forest coverage and standing wood biomass, while committing the local farmers to the project by producing marketable tea oil seeds. Sustainable management regimes enhancing biodiversity and soil protection will be encouraged. Forest carbon sequestration will help mitigate climate change, in line with EU policies.

Sector(s)

Proposed EIB finance (Approximate amount)

EUR 35 million

Total cost (Approximate amount)

EUR 70 million

Environmental aspects

The project is expected to deliver important environmental benefits in terms of climate mitigation, climate adaptation and tackling soil erosion on barren hills. Integration of best practices on sustainable management of camellia oleifera plantation. The project will bring economic and social benefits to the local communities, including minority groups, so as to have the capacity and incentives to commit to more sustainable forest management practices.

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

Disclaimer

Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The data provided on this page is therefore indicative and cannot be considered to represent official EIB policy (see also the Explanatory notes).

Related tags

China Agriculture, fisheries, forestry