ADB approves $150m loan to boost China’s ecological resilience

The Asian Development Bank (ADB) approved a $150 million loan to improve ecological and climate resilience in Qixia City, Shandong Province, China, according to its statement on Wednesday.

The project aims to enhance rural livelihoods and benefit over 429,000 residents by improving natural resources, environmental conditions, and livelihood opportunities, said ADB Country Director for the PRC Safdar Parvez. This initiative will serve as a model for integrated city ecosystem management and could be replicated in other regions of China and beyond.

Qixia City, northeast Shandong Province, is a key water source for Yantai municipality, which is known for its apple orchards. Excessive use of chemicals and plastic has harmed soil and water quality. Climate change is causing more frequent and severe weather events, impacting agriculture and food security in the area.

The project aims to enhance sustainability in agriculture and rural livelihoods by conducting soil testing, using organic fertilizers, and promoting ecotourism for local communities.

It will implement a smart orchard system with modern practices like sensors and automation, reduce chemical use, and improve solid waste management, as per the statement.

Additionally, the project will rehabilitate degraded river courses, prevent forest fires, and enhance forest pest control. Institutional capacity for integrated ecosystem management will be strengthened.

Poised to be completed in 2030, the total project cost is estimated to reach $362 million, with $212 million counterpart financing from the government, involving $85 million co-financing from the Agricultural Development Bank of China. Over $99 million of the ADB financing is earmarked for climate adaptation and mitigation.

Attribution: The Asian Development Bank statement

Subediting: Y.Yasser