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Reference: 20150414
Release date: 30 July 2015

Promoter – Financial Intermediary

PUBLIC ENTITY(IES)

Location

Description

The project is to afforest 4,800 ha of abandoned agricultural land and to rehabilitate 9,600 ha of degraded forest land so as to establish ecological barriers in the environmentally vulnerable catchment areas of the Yangtze and Pearl Rivers in Guizhou Province, China. The total project area is 14,400 ha. The project is an allocation under the China Climate Change Framework Loan (2006-0086).

Objectives

The project promotes sequestration of carbon through biological growth of sustainably managed forests. Climate adaptation is addressed by increasing forest cover and building forest root systems that stabilise soil and increase soil water-retention capacity in vulnerable areas so as to combat landslides and soil erosion.

Sector(s)

Proposed EIB finance (Approximate amount)

EUR 25 million

Total cost (Approximate amount)

EUR 50 million

Environmental aspects

The project improves environmental sustainability of the catchment areas of the Yangtze and Pearl Rivers through planting new forests on abandoned marginal land (4,800 ha) and rehabilitating degraded forest land (9,600 ha) in Guizhou Province, China. The project imposes environmentally and socially sustainable forest management and supports related capacity building. It is expected to generate income and employment for rural people and reduce pressure for rural emigration. The environmental impact assessment (EIA) was completed in December 2014.

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 - 2/02/2016

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).

Related tags

China Agriculture, fisheries, forestry