Release date: 15 April 2015
Promoter – Financial Intermediary
PUBLIC ENTITY(IES)Location
Description
The project aims to establish new sustainable forest plantations and to improve the management and standing volume of existing plantations, with a focus on rare species and high-quality timber trees. The project will protect against erosion and enhance biodiversity. It will cover 74,000 ha in 51 counties of the three provinces Henan, Guangxi and Hainan.
Objectives
The objective of the project is to support the planting of high-value tree species to establish forest cover on bare and degraded forest lands and improve productivity of existing low-yield forest stands. The plantations are expected to comprise rare, high-value timber tree species, as well as more established well-known timber species. The project imposes environmentally and socially sustainable forest management practices and supports related capacity-building. It is expected to generate income and employment for rural people and reduce rural emigration.
Sector(s)
- Agriculture, fisheries, forestry - Agriculture, forestry and fishing
Proposed EIB finance (Approximate amount)
EUR 100 million
Total cost (Approximate amount)
EUR 214 million
Environmental aspects
The project is eligible under the Facility for Energy Sustainability and Security of Supply (ESF). It will be funded under the China Forestry Framework Loan (CFFL) which supports EU cooperation strategies and complements other EU development and cooperation programmes and instruments in China. The project targets priority areas of climate change mitigation by sequestering carbon and decreasing CO2 emissions. Climate adaptation is addressed by protecting the project areas against harmful soil erosion and by increasing forest cover and forest resources. Thus, the project delivers an important contribution to the Bank's Climate Action objective. It further contributes to the economic development of the country, covering its rural areas.
Procurement
The Bank will require the promoter to ensure that implementation of the project will be done in accordance with the Bank's Guide to Procurement.
Status
Approved - 27/05/2015
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).