ANHUI FORESTRY (FL 20090490)

The project afforests 1,947 ha of bare and degraded lands and rehabilitates 7,882 ha of existing, low quality forests. The planted and rehabilitated forests will develop into diverse habitats that sequester CO2 and store carbon. They also improve biodiversity, soil and water protection and air quality in the erosion prone area.

The project contributes to establishing sustainable and diversified forest ecosystems and landscaping on heavily degraded lands and by rehabilitating low quality forests. 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 adjacent area. In order to improve financial feasibility, the project will also include the production of marketable products including bamboo, tea leaves, timber, pomegranate fruits, bamboo shoots, and camellia seeds for edible oil. These products will be offered on the local market in the Anhui Province.

The Environmental Protection Department of Anhui Province has concluded, in accordance with national laws and policies, that an environmental impact assessment (EIA) is not required for the project. The project area is fragmented to small entities and forestry activities are not allocated to biologically valuable or protected areas. In order to ensure proper consideration of biodiversity and other environmental values in project implementation, EIB requires that an environmental management plan is in place prior to the project implementation. Afforestation, rehabilitation and tending activities increase forest cover and carbon stocks, landscape quality, water retention capacity in soil, soil organic material content and biodiversity in the area.

The Bank will require the promoter to ensure that the project is implemented in accordance with the Bank's guide to Procurement.