ADB Approves $150M Loan for Dongting Lake Restoration in PRC
Deal News | Dec 05, 2024 | Asian Development Bank
The Asian Development Bank (ADB) has approved a $150 million loan to support the restoration and sustainable development of the South Dongting Lake Wetland in Hunan Province, PRC. This initiative is part of the regional flyway initiative (RFI), which seeks to preserve crucial wetland sites in Asia and the Pacific that are vital for millions of people's livelihoods and migratory waterbirds. This ecological project aims to enhance the ecosystem services of Dongting Lake, which includes biodiversity habitats, water regulation, and climate regulation. The project will deliver regional and global public goods such as biodiversity conservation and climate change adaptation, benefiting approximately 722,600 residents. Nature-based solutions will be employed to restore the area, and an eco-compensation mechanism will incentivize eco-friendly farming and aquaculture. The project, supported by co-financing from the Agence Française de Développement, is expected to be completed by 2031.
Sectors
- Environmental Restoration
- Sustainable Development
- Finance
Geography
- China – The project's geographical focus is Hunan Province, specifically the Dongting Lake area in China.
- Asia and the Pacific – The project is part of the broader regional flyway initiative affecting various countries in Asia and the Pacific.
Industry
- Environmental Restoration – The project focuses on ecological and environmental restoration of wetlands, an essential component of environmental restoration initiatives.
- Sustainable Development – The initiative incorporates sustainable development by ensuring the preservation of natural habitats and fostering eco-tourism and nature-based businesses.
- Finance – Involves significant financial transactions and contributions from international banks and development agencies.
Financials
- $150 million – ADB's loan amount for the Dongting Lake restoration project.
- $308 million – Total cost of the South Dongting Lake Wetland Ecological Restoration and Sustainable Development Project.
- $93 million – Counterpart financing from the government of PRC.
- $65 million – Cofinancing loan equivalent from Agence Française de Développement.
- $107 million – Portion of ADB's financing that contributes to climate mitigation and adaptation.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Asian Development Bank | Lender | Company | A regional development bank that has approved the loan for this project. |
| Agence Française de Développement | Co-financier | Company | A French development agency contributing a $65 million loan equivalent in co-financing. |
| Government of the People's Republic of China | Counterpart financier | Government | Providing $93 million in counterpart financing for the project. |
| Safdar Parvez | ADB Country Director for the PRC | People | He provided insights into the project’s significance. |