The ADB Board of Directors approved a $40 million loan for the Shaanxi Qinling Biodiversity Conservation and Demonstration Project. About 300 giant pandas, along with other threatened species, can be found in the mountains which are southwest of Xi'an, the capital of Shaanxi province.

Destructive land use practices driven by poverty threaten the habitats of many rare plant and animal species, with previous conservation efforts hampered by a lack of financial sustainability. To overcome this, the project will develop ecotourism attractions that will generate a sustainable source of funds to protect and restore the environment, while providing jobs and conservation-linked business opportunities. Among the planned attractions are large-scale botanical gardens, and a wildlife breeding and research program, including a center for giant pandas.

“Through these conservation activities there will be more visitors to the Qinling Mountains, who will be drawn to the wildlife facilities, botanical gardens, hot springs, religious sites and other attractions in the area, helping to raise revenues and generate jobs,” said Raymond Renfro, Principal Economic Specialist in ADB's East Asia Department.

The project will also support the restoration of forest land, provide forest-based livelihood opportunities, develop endangered species management programs, repair and modernize an animal rescue shelter and develop a comprehensive biodiversity data collection system. It will provide a demonstration model for financially sustainable conservation that could potentially be replicated in other areas, and is part of a long term plan by the Shaanxi provincial government to improve conservation throughout the wider Qinling Mountains region.

ADB is providing about 30% of the total project cost of $132.64 million, with the Global Environment Facility (GEF) providing a cofinancing grant of about $4.3 million, and PRC Government about $88.4 million. GEF - which provides concessionary funds for projects that address global environmental issues - has supported conservation programs in the Qinling Mountains since 1985, in tandem with the World Wide Fund for Nature.

ADB's loan from its ordinary capital resources has a 25-year term, including a grace period of 5 years, with interest determined in accordance with ADB'S LIBOR-based lending facility. The Shaanxi provincial Government is the executing agency for the project which is due for completion by April 2015.#