Reference: 20150096
Release date: 22 May 2015

Promoter – Financial Intermediary

PUBLIC ENTITY(IES)

Location

Description

The project aims to afforest 7,700 ha of barren land with Sapindus and Chinese fir and to rehabilitate 2,300 ha of existing stands. It is expected to establish continuous-cover forestry on bare land and to improve productivity of soap nuts which provide valued saponins for the biochemical industry. The project is the sixth allocation under the China Forestry Framework Loan (CFFL) (2010-0330).

Objectives

Several different types of saponins can be extracted from Sapindus mukossa. Saponins are surface-active compounds with detergent, wetting, emulsifying and foaming properties. They have a wide range of biological activities that can benefit, for example, the cosmetic and pharmaceutical industries in developing medicines for a number of diseases. Many saponin compounds are valuable biological raw material for the biochemical industry due to their natural toxicity to insects, parasitic worms and molluscs, in addition to antifungal, antiviral, and antibacterial activity. They are also used in the food industry.

Sector(s)

Proposed EIB finance (Approximate amount)

EUR 30 million

Total cost (Approximate amount)

EUR 65 million

Environmental aspects

The project comprises the establishment and rehabilitation of mixed Chinese fir and Sapindus (soap nut tree) forests. New plantations will be established on degraded or burnt forest land and abandoned arable land. The plantations will be managed according to continuous-cover forestry, producing soap nuts, a rich source of saponins which are widely used in bio-industries. Sustainable forest management and forest certification is promoted in plantation management. The project will generate income and employment for rural people and reduce pressure for rural emigration.

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 - 15/12/2015

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