Final Report - Asian Development Bank

Technical Assistance Consultant’s Report 

Project Number: 39321 

June 2008 

PRC: Preparing the Shaanxi-Qinling Mountains 

Integrated Ecosystem Management Project 

(Cofinanced by the Global Environment Facility) 

Prepared by: 

ANZDEC Limited 

Australia 

For Shaanxi Province Development and Reform Commission 

This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and ADB and 

the Government cannot be held liable for its contents. (For project preparatory technical assistance: All the views 

expressed herein may not be incorporated into the proposed project’s design.

FINAL REPORT 

SHAANXI QINLING 

BIODIVERSITY CONSERVATION 

AND 

DEMONSTRATION PROJECT 

PREPARED FOR 

Shaanxi Provincial Government 

And the 

Asian Development Bank 

ANZDEC LIMITED 

September 2007

CURRENCY EQUIVALENTS 

(as at 1 June 2007) 

Currency Unit – Chinese Yuan 

{CNY}1.00 = US $0.1308 

$1.00 = CNY 7.64 

ABBREVIATIONS 

ADB – Asian Development Bank 

BAP – Biodiversity Action Plan (of the PRC Government) 

CAS – Chinese Academy of Sciences 

CASS – Chinese Academy of Social Sciences 

CBD – Convention on Biological Diversity 

CBRC – China Bank Regulatory Commission 

CDA - Conservation Demonstration Area 

CNY – Chinese Yuan 

CO – company 

CPF – country programming framework 

CTF – Conservation Trust Fund 

EA – Executing Agency 

EFCAs – Ecosystem Function Conservation Areas 

EIRR – economic internal rate of return 

EPB – Environmental Protection Bureau 

EU – European Union 

FIRR – financial internal rate of return 

FDI – Foreign Direct Investment 

FYP – Five-Year Plan 

FS – Feasibility Study 

FSR – Feasibility Study Report 

GDP – Gross Domestic Product 

GEF – Global Environment Facility (of UNEP) 

GIS – Geographic Information System 

GMS – Greater Mekong Subregion 

IA – Implementing Agency 

IDA – International Development Association (part of the World Bank 

Group) 

IEM – Integrated Environmental Management 

IEE – Initial Environmental Examination 

IFAD – International Fund for Agricultural Development 

IFC – International Finance Corporation 

IPSA – Initial Poverty and Social Analysis 

IR – Inception Report 

IRR – internal rate of return 

LG – Leading Group 

LGFD – Louguanfudi Travel Development Company 

MDG – Millennium Development Goal 

MLR – Ministry of Land and Resources 

MOA – Ministry of Agriculture 

MOF – Ministry of Finance 

MOU – Memorandum of Understanding 

MTR – Mid-Term Report (of the PPTA Team) 

MWR – Ministry of Water Resources 

NDRC – National Development Reform Commission 

NGO – non-government organization

NPO – non profit organization 

NPV – net present value 

NNR – national nature reserves (state level) 

NR – nature reserves 

NTFPs – non-timber forest products 

ODA – Overseas Development Assistance 

NTFP – non-timber forest products 

OECD – Organization for Economic Cooperation and Development 

OP – Operational Program (of GEF e.g. OP12 on Integrated 

Ecosystem Management (IEM)) 

PA – Protected Area 

PDF – Project Design Fund (of GEF) 

PPCP – public-private-community partnerships 

PPP – public-private partnerships 

PRC – Peoples Republic of China 

PDRC – Provincial Development Reform Commission 

PES – “Payment for Environmental Services” 

PIT – principal, interest and taxes 

PMO – Project Management Office 

PPTA – Project Preparatory Technical Assistance 

PRA – Participatory Rural Appraisal 

PRO – Poverty Reduction Office 

PRC – People’s Republic of China 

QBQ – Qinling Botanicalal Garden 

QM – Qinling Mountains 

QMEFCA – Qinling Mountains Ecosystem Function Conservation Area 

RCC – Rural Credit Cooperative 

REA – Rapid Environmental Assessment 

SALT – Steepland agricultural technologies 

SARC – Shaanxi Animal Rescue (Zoological) Center 

SQNBG - Shaanxi Qinling National Botanicalal Garden 

NDRC – State Development Planning Commission (now NDRC see 

above) 

SEIA – Summary Environmental Impact Assessment 

SEPA – State Environmental Protection Agency 

SFA – State Forestry Administration 

SIEE – Summary Initial Environmental Investigation 

SME – small and medium-sized enterprise 

SOE – state-owned enterprise 

SP – Shaanxi Province 

SPDRC – Shaanxi Provincial Development Reform Commission 

Spp – species 

SRP – Summary Resettlement Plan 

SSA – Summary Social Assessment 

SQBG – Shaanxi Qinling Botanical Garden Office 

TA – Technical Assistance 

TNC – The Nature Conservancy 

TOR – Terms of Reference 

TVE – township and village enterprises 

WDS – Western Development Strategy (of the PRC) 

WACC – weighted average cost of capital 

WWF – World Wide Fund for Nature/World Wildlife Federation 

UNDP – United Nations Development Program 

UNEP – United Nations Environmental Program 

UNWTO – World Tourism Organization of the United Nations 

VDP – village development plan 

WLSMA – whole landscape system management 

WTO – World Trade Organization

WEIGHTS AND MEASURES 

15 mu = 1 hectare

CONTENTS 

Page 

I. THE PROPOSAL 14 

II. RATIONALE: SECTOR PERFORMANCE, PROBLEMS, AND OPPORTUNITIES 15 

A. Performance Indicators and Analysis 15 

B. Analysis of Key Problems and Opportunities 17 

III. THE PROPOSED PROJECT 27 

A. Impact and Outcome 27 

B. Outputs 28 

C. GEF Financed Activities 35 

D. Special Features 37 

E. Project Investment Plan 38 

F. Financing Plan 39 

G. Implementation Arrangements 40 

IV. PROJECT BENEFITS, IMPACTS, ASSUMPTIONS, AND RISKS 46 

A. Financial and Economic Analysis 46 

B. Social Dimensions 49 

C. Environmental Impact 52 

V. RECOMMENDED ASSURANCES AND CONDITIONS 53 

A. Condition for Loan Negotiation 53

APPENDIXES (PRESENTED IN SEPARATE VOLUME) 

1. Design and Monitoring Framework 

2. List of Donor Projects 

3. IPSA 

4. Planning and Policy Priority Review 

5. Biodiversity in the Qinling Mountains 

6. Institutional Assessments – Mandates and Arrangements 

7. Detailed Description of Components 

8. Consulting Services 

9.. Legal Reform Agenda 

10. Project Costs 

11. Project Implementation Schedule 

12. Project Procurement Plan 

13. Financial and Economic Analysis 

14. Detailed Social Assessment 

15. Initial Environmental Examination 

16. Summary Resettlement Plan 

17. GEF Submission Document 

18. Problem Tree Analysis

SUPPLEMENTARY APPENDIXES (AVAILABLE ON REQUEST) 

A. Sector Assessments and Review 

B. CDA - In-situ Strategy 

C. Legal Review 

D. Institutional Review 

E. Financial Management and Governance Assessment 

F. Ex-Situ Conservation Standards and Guidelines 

G. Endangered Species Recovery Management Plans 

H. Rural Livelihoods and Conservation 

I. Impact of Mini-Hydros and their proposed Removal 

J. Grain for Green Policy Assessment 

K. Tourism Marketing Guide 

L. Detailed Project Costs 

M. Detailed Financial and Economic Analysis

LOAN AND PROJECT SUMMARY 

Borrower Peoples Republic of China 

Classification Targeting classification: General intervention 

Sector: Agriculture and Natural Resources 

Subsector: Environment and Biodiversity 

Themes: Sustainable economic growth and Environmental sustainability 

Environment Assessment Category B. An initial environmental examination was undertaken. The 

summary initial environmental examination assessment was circulated to 

the Board of Directors of the Asian Development Bank (ADB) and will be 

uploaded on the ADB website on **** 2007. 

Project Description The Project Area comprises of 458 sq km on the northern toe slope of 

the Qinling Mountains in an area adjacent and surrounding the 

Louguantai township within Zhouzhi county. The Qinling Mountains is an 

internationally important biodiversity hotspot and represents some 70% 

of Chinas biodiversity including an estimated 200 giant Panda. 

Ecologically the Qinling Mountains are central to soil and water 

management linked to both the Yangtze and Yellow rivers and also the 

capital of Shaanxi Xian. The Project Area is situated about 50km south 

west of Xian city and is currently under the management and control of 

the Louguantai Forest Farm and is identified as the home of the Daoist 

religion. The Project area is divided into a hill and mountainous area (insitu 

zone) where the management objective is low impact development 

that supports the conservation of biodiversity and provides sustainable 

low impact livelihoods for the remaining 4,593 residents. The far smaller 

flat region to the north is currently a mix of agriculture and residential 

development that will be used for far more intensive development for 

which project funds will be used to develop commercial biodiversity 

based enterprises that will generate funds for the management and 

enhancement of the CDA zone. The commercial enterprises will involve 

wildlife breeding and research, wildlife tourism, a Botanical garden and a 

geothermal hot spring development. Linked to these will be additional 

tourism attractions such as walkways, exhibitions, Daoist religious sites, 

These commercial enterprises will address a major weakness of the 

many past biodiversity projects that while achieving significant progress 

the benefits of investment generally ceased immediately on completion 

of the Projects due to non-sustainable institutions and financing 

arrangements. 

Rationale The Project will diversify and further develop the economy of the Shaanxi 

Province by developing the tourism potential within an intensive use 

zone of the Project area including attractions linked to Daoist religious 

and temple sites, geothermal hot springs, an ex-situ wildlife management 

center that includes iconic species such as the giant Panda, Crested 

Ibis, Golden Monkey and Takin, and a newly developed Botanical 

garden for the plants of the Qinling Mountains. The Project will develop 

the Qinling Botanical Garden, Shaanxi Animal Rescue Center, and the 

Shaanxi Forest Bureau Hot Springs Joint Venture as commercial 

operations that will reinvest part of the profits into the larger conservation 

protection zone to re-establish natural habitats, improve livelihoods and 

to demonstrate new technologies and approaches to conservation within 

the wider Qinling Mountains. 

iii

iv 

Impact and Outcome The Project Impact is to improve Rural wellbeing based on sustainable 

conservation and use of Qinling Mountains resources. The outcome of 

the Project is to introduce integrated landscape management to provide 

sustainable livelihoods for the population of the Project area 

demonstrated to wider Qinling Mountains. 

Project Investment Plan The investment cost of the project is estimated at $129.2 million 

including taxes and duties of $6.0 million. 

Financing Plan Source Total Percent 

A. Asian Development Bank 40.0 31 

B. Global Environment Facility 4.27 3.3 

C. Government 

1. Shaanxi Provincial Government 4.2 3.3 

2. Qinling Botanical Garden 44.2 34.2 

3. Shaanxi Animal rescue Center 31.1 24.1 

4. Shaanxi Forest Bureau JV 5.3 4.1 

Subtotal (D) 84.8 65.7 

Total 129.2 100.0 

Allocation and Relending 

Terms 

Period of Utilization Until 31 November 2013 

Estimated Project 

Completion Date 

A loan of $40 million from the ordinary capital resources of the Asian 

Development Bank (ADB) will be provided under ADB’s London 

interbank offered rate (LIBOR)-based lending facility. The loan will have 

a 25-year term including a grace period of 5 years, an interest rate 

determined in accordance with ADB’s LIBOR-based lending facility, and 

a commitment charge of 0.35% per annum, and other such terms and 

conditions set forth in the draft loan agreement. The front-end fee will be 

waived, subject to the Board’s approval. 

GEF grant co-financing of $4.27 million, which will be administered by 

ADB, has been proposed for the Project. 

The PRC Government will relend the proceeds of the ADB loan to SPG 

under the same terms and conditions as those of the original loan. The 

interest rate will be at the same LIBOR-based rate paid by the PRC and 

will be subject to the same terms and conditions as the PRC loan. SPG 

will on-lend to the participating implementing agencies under the same 

terms and conditions as the relending to SPG, including a 25-year loan 

with a 5-year grace period. The interest rate payable on the loan would 

be subject to the same LIBOR-based terms and conditions as the loan to 

the SPG. 

31 March 2013

Implementation 

Arrangements 

The Shaanxi Qinling National Botanicalal Garden and the Louguantai 

Fudi Tourism Company will be responsible for the implementation of the 

Project and for ensuring all enterprises cooperate. The QNBG a new 

enterprise will consolidate the Qinling Botanicalal Garden, Shaanxi 

Animal Rescue Center, and the Louguantai Forest Farm. SPG has 

formed a high level coordination committee to provide policy advice and 

conflict resolution and to approve work plans. The executing agency will 

be the SFD supported by a PMO operated through the PDRC and 

comprising of 11 full time staff from DOF, PDRC, SFD. The PMO will be 

responsible for the overall implementation and administration of the 

Project. 

The implementation of the investments will be undertaken by the Qinling 

Botanical Garden, Shaanxi Animal Rescue Center, and the SFD Hotsprings 

Joint Venture. 

Executing Agency Shaanxi Provincial Development Reform Committee 

Procurement Goods and works for ADB-financed and GEF-financed contracts will be 

procured in accordance with ADB’s Procurement Guidelines (April 2006, 

as amended from time to time). Depending on the value, contracts for 

equipment and materials will be awarded through a combination of 

international competitive bidding, limited international bidding, national 

competitive bidding, direct contracting, and community participation. 

Foreign contractors may bid on contracts using national competitive 

bidding (NCB) procedures. A procurement plan covering goods, works 

and services, including the contract value, procurement method and the 

prequalification of bidders, was agreed with the Government at loan factfinding. 

Consulting Services The Project (including the standalone TA) will contract a total of 72 

person months of technical assistance including 20 person months of 

International expertise. These will be procured in two packages. 

Package A includes 6 person months 6 person months and will be 

financed by loan funds with the consultants contracted by SARC. 

Package B comprising of 71 person months will be financed by 

GEF/Loan and will be contracted through a consulting company using 

QCBS with ADB doing the selection on behalf of the SPG. 

v

vi 

Project Benefits and 

Beneficiaries 

The Project benefits target the 20,356 people within the Project Area of 

which some 4,593 reside within the CDA zone and a further 15,763 in 

the CDA zone. A further 23,405 residents within the immediate fringe of 

the Project Area especially those located close to the ex-situ zone will 

also benefit. Within the Project Area the poverty ratio is estimated to be 

37% on a head count basis or close to 40% on a household basis. Within 

the Project area there are significant differences with the level of poverty 

in the CDA area being over 70% compared to 23% for the ex-situ zone. 

Poverty will be reduced dramatically through (i) significant employment 

opportunities during construction, (ii) approximately 1370 full time jobs, 

(iii) indirect economic benefits providing services and goods to the influx 

of workers and visitors, (iv) access to collective forest land for the 16 

villages within the CDA zone, (v) development of Small and medium 

enterprises,(vi) development of 10 home stay community tourism 

enterprises, (vii) provision of improved mountain pathways and roads, 

and social infrastructure programs. For the CDA resident it is expected 

that over 90% will benefit directly from the Project. 

In the medium term there is an estimated 1.2 million visitors per annum 

that add between ½ and 1 day to the average length of stay of tourists 

within Shaanxi and Xian in particular. The commercial benefits from 

tourism will enable USD $350,000 per annum to be reinvested into 

conservation and livelihood programs a figure that is predicted to 

increase to well over USD $ 1 million in the medium to longer term. 

These funds will add to the Project funded conservation demonstrations 

and will increasingly generate conservation benefits through the wider 

Qinling Mountains where over 5 million residents currently reside. 

Risks and Assumptions Delays of extended construction periods will place significant pressure 

on cash flow for the QBG. The SPG has recognized this risk and has 

committed to underwrite the cashflow provided the business plan 

indicates financial viability. 

Technical Assistance 

The major risks relate to the capacity of QNBG as an new institution with 

little commercial management experience and an unproven 

management team. Within the QNBG there lack of past experience in 

the QBG to operate large commercial operations with the skill and 

acumen that will allow them to compete with other tourism attractions. 

Weak management and poor operation of the proposed investments will 

threaten the financial viability of the QBG which is currently assessed as 

adequate but not strong. The assumed visitation to the QBG site has 

been reduced to slightly over 50% of the original proposal but still 

represents a major determinant of the overall project success. It is also 

assumed that a share of surpluses will be reinvested into CDA 

conservation. This will require a legally defined and enforced contract 

with each enterprise. The Louguantai Forest Farm has no experience in 

the management of conservation forestry and little experience in natural 

forest management two of the functions assigned to them. 

Risks relating to potential invasive species and poor animal welfare have 

been factored into the design of the project through the introduction of 

international expertise and the restriction on the Botanical garden to limit 

the plant species to those from the Qinling mountain.

Figure 1: Map 1 – The Project Area of 458 km² 

vii

viii 

Figure 2: Map 2 – Location of the Project Area in Relation to Xi’an

ix 

Figure 3: Map 3 – Google Image of the Project Area

x 

Figure 4: Map 4 – Project Area Land Uses

Figure 5: Map 5 – Natural Plant Habitats 

xi

xii 

Figure 6: Map 6 – The Qinling Mountains Ecosystem Function Conservation Area in Shaanxi

Figure 7: Map 7: Shaanxi Louguantai National Forest Park - Forest Sub-Divisions 

13

14 Main Report 

I. THE PROPOSAL 

1. I submit for your approval the following report and recommendation on (i) a proposed loan to 

the Peoples Republic of China for the Shaanxi Qinling Mountain Integrated Ecological Management 

Project, and (ii) proposed technical assistance (TA) for Establishment of Shaanxi Qinling Biodiversity 

Promotions Limited.

II. RATIONALE: SECTOR PERFORMANCE, PROBLEMS, AND OPPORTUNITIES 

A. Performance Indicators and Analysis 

1. Shaanxi Province is part of western China. The rate of economic growth in western China 

has lagged that in the eastern provinces. Shaanxi grew at an average of 7.5% from 1990 to 2000 

compared with a national average of 10 to 11%. When coupled with population growth, GDP/capita 

falls from 75% of the national average to less than 60%. Since 2000 Shaanxi has seen higher growth 

rates that are equal to or above the national average as a result of China’s western development 

strategy under the country’s Tenth Five-Tear Plan. From 2000 to 2005 Shaanxi’s GDP grew on 

average at 11.5% per annum, increasing the GDP/capita to 63% of the national average. Among the 

31 provinces, autonomous regions and independent municipalities in China, Shaanxi currently ranks 

16th in terms of population size, 22nd in terms of the size of the economy and production base (as 

measured by GDP and industrial production), and 26th with respect to GDP/capita 1 . Shaanxi is home 

to about 2.8% to the country’s population, contributes 1.8% to its GDP, and has a land area of 

206,000 sq. km. (2.1% of the nation’s total). 

2. Shaanxi’s economy is limited by (i) continued dependence on primary sector production, (ii) 

limited off-farm employment in rural areas, (iii) below average productivity, (iv) low levels of industrial 

production and limited private sector investment, (v) low savings rates to support future investment, 

(vi) limited local government revenue for service provision, (vii) markedly lower levels of urbanization 

than in other areas (40% compared with 60% in eastern provinces), and (viii) export trade amounting 

to only 7% of GDP (compared with 30% for PRC) and FDI inflow of 1.3% of GDP (compared with a 

national average of 4%). Economic development in Shaanxi has had inadequate investment, resulting 

in a rural dominated economy that lacks the capacity to generate sufficient output for export trade and 

an inability to generate paid employment. 

3. The higher growth rates since 2000 result from tourism expansion due to rapid domestic 

tourism growth and increased infrastructure investment in Shaanxi, especially in the capital Xian. Xian 

city accounts for 21% of the population but produces over 40% of the province’s GDP. The poorer 

rural counties have GDP/capita less than 30% of the national average resulting in 55 of the 88 

counties being classified as poverty counties. In 2004, the average annual income of Shaanxi urban 

residents was CNY5,928 ($730 equivalent) while per capita income of the rural population was 

CNY1,050 ($130 equivalent). Rural incomes are only 35% of the $1/day poverty criterion and 

approximately 50% of the average provincial income level. Low living standards and high levels of 

poverty are both a result of past natural resource degradation and also a cause for ongoing 

degradation as low incomes preclude returning cultivated land to forest, reducing and then reversing 

land degradation, and conserving biodiversity resources. Many countries that are classified as Poverty 

Counties are located in the Qinling Mountains including Zhouzhi County where the Project is located 

(at Louguantai). 

4. Currently Shaanxi has a dual economy with strong economic growth limited to a narrow 

geographic location and very weak growth in the wider rural landscape,. Development occurs along 

the central transportation corridor that runs through Weinan, Xian, Xianyang and Baoji prefectures 

and links Shaanxi with Henan and Gansu provinces. The four prefectures that comprise the corridor 

account for about 63% of the Shaanxi population and nearly 75% of GDP. This corridor, which is 

dominated by Xian, has GDP per capita that is 19% above the provincial average but still 23% below 

the national average. Urban residents, however, have per capita income levels above the national 

average. This unbalanced economic and urban development structure is addressed in the Shaanxi 

11th Five-Year Plan (see Appendix 4. 

5. Tourism is an increasingly important contributor to the Shaanxi economy. China currently is 

the fourth largest tourism destination in the world and the largest destination for foreign visitors in 

Asia. Visitation in China overall is growing at around 7% per annum with 124 million international 

tourists and 1.4 billion domestic tourists in 2006. In Shaanxi Province, visitation totaled 1.06 million 

international tourists and 70 million domestic tourists in 2006 and generated receipts of US $5.4 

1 

Which is used in this document as a proxy indicator for the standard of living and consumer purchasing power 

at the provincial and sub-provincial levels. 

15


billion, equivalent to 10% of Provincial GDP. On average, international visitors stay for 2.9 days 

spending $480 while domestic tourists stay for 4 days and spend $70. 

6. Tourism in Shaanxi is mostly based on cultural and historic attraction linked mainly to the 

historical and cultural attractions of past dynasties. The centerpiece for visitation is the Terracotta 

Warriors, an international attraction that received 1.9 million tourists and generated revenues of $25 

million in 2006- a figure that continues to grow 10% per annum. 

7. The 11 th Five Year Plan forecasts rapid growth for the tourist sector, projecting that by 2010 

(the Project mid-term) 1.75 million international tourists and 110 million domestic tourists will visit the 

Province generating receipts of $10 billion. The Shaanxi Tourism Bureau strategy seeks to diversify 

the tourism product mix into three categories of attractions: (i) historical , (ii) Xian city, and (iii) 

ecotourism and natural resource based tourism. The strategy stresses the need to increase the value 

of each visitor as opposed to simply increasing the number of visitors and lists ten priority tourism 

developments including the Qinling Botanical Garden. 

8. The ability to achieve this strategy depends heavily upon protecting the biological and 

natural assets from which tourism products and services can be developed. The main natural asset is 

the Qinling Mountain (QM) range which is located immediately to the south-west of Xian and runs 

east-west, straddling the southern part of Shaanxi. Over 90% of the range lies within the Shaanxi 

Province where it forms a north – south divide and is a major climatic influence on northern PRC, and 

the water resources of the Yellow and Yangtze Rivers. The southern slopes are a water source for 

the South to North Water Transfer Project, contributing over 50% of the water stored in the 

Danjiangkou Reservoir on the Yangtze River. The northern slopes supply water to the Yellow River 

system, which flows to the dry northern parts of the country. The Qinling mountain range represents 

the most valuable environmental and biological resources for future tourism development in the 

Province. 

9. People have lived in the Qinling forest and exploited other biodiversity resources for over 

2,000 years. The administrative development of cities and counties began more than 2,000 years 

ago during the Qin and Han periods. Currently the mountains support 5.1 million residents or about 

14% of the Shaanxi population. 

10. The Qinling Mountains is a temperate broadleaf and mixed forest and is a global biodiversity 

hotspot, supporting many endangered Chinese rare and/or endemic plant and animal species 2 . The 

endangered species include the giant Panda, the global icon of conservation. The Qinling also 

includes the only known wild population of one of the world’s rarest birds, the Crested Ibis (the 

national bird of Japan). The mountains are characterized by very high levels of endemic biodiversity, 

as well as a vertical spectrum of vegetation types. Seventy per cent of all vegetation types in the PRC 

are found in the Qinling 3 . 

11. Significant deforestation has occurred since inhabitation. The deforestation process 

accelerated after the Great Cultural Revolution (1966-1976) with the formation of State Forest Farms. 

The farms faced the necessity of increased logging quotas to meet their dual objectives of (i) 

generating economic growth through forest exploitation and (ii) generating sufficient resources to 

2 Eight animal species class I, 34 animal species class II, including Giant Panda, Golden Monkey, Golden Takin, 

Leopard, Crested Ibis, and Oriental White Stork. Considerable biodiversity: over 3,100 plant species, and over 

600 animal species; and globally significant ecosystems. WWF Conservation Status: Ecoregion PA0434 

critical/endangered. 

3 Over 15 animal species have been listed in the national priority protection wildlife list, including the Giant 

Panda (Ailuropoda melanoleuca), Golden Takin (Budorcas taxicolor), Golden Snub-Nosed Monkey 

(Rhionopithecus roxellana), Brown–Eared Pheasant (Crossoptilon mantchuricum), Crested Ibis (Nipponia 

nippon), 3 Red Panda (Ailurus fulgens), Clouded Leopard (Neofelis nebulosa) and Giant Salamander (Andrias 

davidianus). The QM contains the highest Giant Panda population density in the PRC, being home to 

approximately 20% of PRC’s total wild panda population. Many important plant species are endemic (1,428 

species), relic, rare or endangered, including the Ginkgo, one of the oldest tree species in the world. The 

Chinese Mountain Larch (Larix chinensis), Oneflower Kingdonia (Kingdonia uniflora), the important sourcespecies 

of the cultivated Paeone (Paeonia suffruticosa), the Mao-tai Maple (Acer miaotaiense) and the 

Chinese Fir (Cunninghamia lanceolata) are also highly endangered and therefore listed by the Chinese 

Government as protected species.

maintain ever-increasing staff levels. During this period logging was expanded into the increasingly 

steep and remoter parts of the Qinling Mountains resulting in significant environmental damage 

(including biodiversity loss) and off-site effects in the form of soil erosion and flooding events 

downstream. 

12. The natural environment has been impacted by the historic influences mentioned above and 

current contemporary influences. The historic influences have left a legacy of habitat loss, soil and 

natural resource degradation that need to be remedied. Contemporary influences include loss of 

ecological and environmental integrity due to pollution, over use of natural resources, and the 

pervasive consumption of resources for recreation, rural-residential lifestyles, and industrialization 

based on natural resources. These pressures continue to cause ecological damage and are an 

outcome of the Provincial economy’s reliance upon agriculture. Agriculture has converted land onto 

steep areas some of more than 30 degrees slope and at elevations in excess of 1,500 m above sea 

level. Approximately 70% of the total Qinling Mountains (about 40,000 km² of the total range area of 

nearly 58,000 km²) 4 is degraded. 

13. The Project area comprises 458 km 2 (less than 1% of the Qinling Mountains) including the 

Tianyu and Chiyu River catchments located on the northern slope of the Qinling Mountains adjacent 

to Louguantai Township. The Project Area is located in Zhouzhi County, 50km south and west of Xian 

one hour travel by road. The Project area includes: (i) the Tianyu River and the Chiyu River Valleys, 

(ii) the hill and plain area to the north of the Qinling Mountains, (iii) the existing Louguantai Historical 

and Cultural Area, (iv) a geothermal Hot Springs, (v) an existing collection of bamboo species, (vi) an 

animal rescue center with endangered animals including Giant Panda and Crested Ibis, (vii) the 

ancient Dao temples regarded as the birthplace of the Daoist religion, and (viii) the Louguantai Forest 

Farm. 

14. The registered population of the Project Area is 20,400, Of these, 14,000 to 15,000 live on 

the 6,000ha of flat land to the north (zoned as ex-situ conservation zone for the Project) and 4,600 in 

the 39,000 ha hill and mountain landscape (in-situ Conservation Demonstration Area (CDA) in a 

mostly scattered settlement pattern. Recent policy encouraged voluntary resettlement of residents 

from the CDA and also to convert people out of agricultural land use practices in the Grain for Green 

program. This policy had mixed results, and along with logging bans leaves remaining local residents 

with extremely limited livelihood options. Consequently an estimated 70% of households in the CDA 

are extremely poor. This compares with poverty levels in the flat lands that are estimated to be 28% of 

households. 

15. The Project Area is representative of the northern slopes of the Qinling Mountains and has 

an existing tourism sector generating revenues of about CNY17 million ($2.2 million) from 500,000 

people each year. The area has a northern flat area facing intensive agriculture, residential, and 

tourism development. To the south of this flat area is a hill and mountain area that ranges from 

degraded agriculture and forestry land to near pristine natural forest. The majority of the Project Area 

is forest land either State Forest land managed by the Shaanxi Forest Department through the 

Louguantai Forest Farm or Collective Forest land administered by Zhouzhi County Forest Bureau and 

managed by village level collectives. 

B. Analysis of Key Problems and Opportunities 

16. The Project seeks to protect biodiversity and the ecological functions of the Project Area to 

reverse the negative trend on rural livelihoods and the effect of declining livelihoods on encouraging 

short run resource use decision making that is non-sustainable. Declining environmental trends have 

occurred as a consequence of past forestry, agriculture and other resource use activities and resulted 

in the logging ban in the 1990’s. Since the logging ban the Qinling Mountains face new pressures to 

use land and resources for recreation, urban development. 

17. Biodiversity conservation and restoration and the loss of valuable bioresources, ecosystems 

and habitats must be understood within context in which they occur. Reversing these declines 

4 The total Qinling Mountains covers an area of 76,500 km² when we include the smaller portions in Henan and 

Gansu provinces. See: Tsu-shen Ying and David E. Bouffard “Phytogeography of the Qinling Mountains and a 

Comparison with the Flora and vegetation of Japan” (Available on the Internet). 

17


requires an understanding of the natural and human causes that result in degradation. The loss of 

bioresources, ecosystems and habitats for rare and endangered species is strongly correlated with 

habitat loss due to land degradation. Accordingly, biodiversity conservation and restoration in the 

Project Area and Qinling Mountains requires interventions that respond to land degradation and its 

underlying causes. 

18. The PRC is a signatory to the United Nations Convention to Combat Desertification 

(UNCCD) which defines land degradation as the: “reduction or loss, in arid and semi-arid and dry subhumid 

areas, of the biological or economic productivity and complexity of rainfed cropland, irrigated 

cropland, or range, pasture, forest and woodlands resulting from land uses or from a process or 

combination of processes, including processes arising from human activities and habitation patterns.” 

When land is degraded, its productivity is reduced and may continue to decline unless steps are taken 

to prevent this. Unchecked, land degradation may result in an almost total loss of the productive 

capacity of the land to the point where the land can no longer produce anything of value to humanity. 

19. The risk is that some land including in the Project Area may reach the point where it is so 

degraded that it is uneconomic to invest in its rehabilitation. This occurs when the cost of 

rehabilitation exceeds the value of the land’s future productive capacity. In such situations the only 

cost effective options may be to either close the degraded area and allow it to recover over a 

prolonged period through purely natural processes or to simply accept lower productivity from a 

degraded resource. However in many other, less severely degraded areas, options exist for restoring, 

sustaining and enhancing the productive capacity of the land, through the adoption of the appropriate 

controls and improved land management measures. 

20. Land degradation occurs through a combination of natural causes and human interventions 

that typically accelerate the natural processes of degradation. Because the loss of productive capacity 

is rarely due to just one land degradation process, successful responses require multi-sector 

approaches to understand and respond to land degradation. Currently, land degradation control 

programs promoted by sector agencies focus on single causes of land degradation (such as soil 

erosion, reduced water resources, wind erosion, and salinization) or specific institutional mandate, 

rather than addressing land degradation in a holistic and integrated way. For the implementation of 

successful biodiversity protection, land use and related environmental programs require a 

comprehensive understanding of the range of land degradation causes that affect the productive 

capacity of ecosystems and not just those few causes or issues targeted by individual agencies as 

part of their national and provincial level programs. 

21. There are many root causes of land degradation in China. Many of these are identified in 

the problem analysis – Appendix 20. The fundamental or underlying causes of non-sustainable 

development to the Project Area, and to the Qinling Mountains more generally, include: 

(i) rising population pressure within and on the fringe of ecologically sensitive areas; 

(ii) increasing incomes of urban residents that are placing additional recreation-related 

pressures on fragile ecosystems that are close to major centers (the Project Area is 

less than an hour’s drive from the prosperous urban districts of Xian); 

(iii) decreasing per capita land resources because of urbanization, industrialization and 

policies (such as the Grain for Green policy) to turn cultivated land into forest land in 

highly sloped areas; 

(iv) poverty and economic disadvantage; 

(v) lack of access to credit for poverty and near-poverty households; 

(vi) the high costs of and unfamiliarity with conservation technologies (particularly among 

disadvantaged households with limited education); 

(vii) increasing competition for and overuse of common resources (or resources where 

land and management rights are not clear); 

(viii) too much reliance on biomass to meet rural energy needs; 

(ix) replacement of traditional farming practices with “modern” intensive methods that are 

often poorly understood by villagers; 

(x) rural development policies and interventions that ignore land suitability; 

(xi) urban expansion with the movement of residential development onto the toe slope of 

the Qinling Mountains 

(xii) poorly implemented policy decisions;

(xiii) lack of national, regional, inter-provincial and intra-provincial coordination on natural 

resource, biodiversity conservation, and land use planning; 

(xiv) limited institutional advisory support services including agricultural extension services 

– particularly in meeting the more specific needs of poverty households living in hill, 

mountain and other more remote areas; 

(xv) conflicting mandates and contradictory policies and regulations amongst institutional 

support services and across agencies that develop and implement land use and 

related natural resource policies; 

(xvi) an inadequate regulatory environment for combating land degradation and the loss of 

biodiversity resources; 

(xvii) under pricing of water, pasture, forest products and other natural resources – leading 

to over use, inefficient use, inefficient allocations of scarce land resources, and little 

incentive to move land to higher value uses; 

(xviii) poor construction and maintenance standards of facilities; and 

(xix) donor, government and other land degradation and related projects that are not 

sustainable once project funding comes to an end – meaning that environmental, land 

use and livelihood benefits are also not sustained when funding ends. 

22. General threats to biodiversity in the Qinling Mountains are: (i) loss of vegetation from past 

commercial or illegal timber harvesting; (ii) agricultural expansion and encroachment; (iii) illegal taking 

of natural resources; (iv) reduced potential for gene exchange due to fragmentation by construction of 

highways and infrastructure; and (v) unregulated development of tourism. 

23. Commercial logging was addressed in 1998 by the Natural Forest Protection Program 5 , 

which banned logging in natural forests nationwide. While this stopped commercial logging (except in 

plantations), it does not regulate household use of timber for construction, cooking, and/or heating. 

24. Agricultural encroachment began when people first settled southern Shaanxi Province. The 

flat lands with easy access to water were quickly settled while the remote and rugged terrain in the 

Qinling was ignored except as a source of natural resources. But in modern times, population 

pressure pushed farmers further into the mountains in search of arable lands. Farming on the steep 

slopes of the Qinling caused soil erosion that washed away valuable soils and choked waterways. 

Estimates are that 50% of sediment entering the Yellow River above Henan Province and 12% of the 

total sediment in the Yangtze River is from Shaanxi 6 . 

25. To reverse this trend in land degradation, the PRC instituted the Sloping Land Conversion 

Program (or “Grain for Green” program) in 2000. The program provides grain, cash and saplings to 

farmers who convert their steeply sloping farmlands to grassland or woodland 7 . The program has 

been implemented on 600,000 to 800,000 ha in the Qinling as a whole, including a portion of the 

Project Area (the exact amount is unknown) 8 . The degradation of ecological function includes 

decreased forests and species, reduction of water conservation, acceleration of soil erosion, overuse 

of chemical fertilizers and pesticides, and more frequent flood and drought. The result is that the 

conditions for human survival are getting worse. 9 Data on resource degradation in the Project Area 

from 1988 to 1998 indicates that the forest area decreased at 240 ha per year, and the area suffering 

water and soil loss increased at 18 ha per year (about 5% of the Project Area) per annum. 

26. The strategies proposed in 1998 to protect the Qinling Mountains included: 

5 Xu Jintao, E. Katsigris and T. A. White. 2001. Implementing the Natural Forest Protection Program and the 

Sloping Land Conversion Program: Lessons and Policy Recommendations. CCICED Task Force on Forests 

and Grasslands. China Forestry Publishing House, Beijing, 98p. 

6 Rui,Li, Zhongming,Wen, Fei,Wang, Yue, Wang, and Mingliang, Zhou. Case Study on Conversion of Farmland 

to Forest and Grassland in Ansai County, Shaanxi Province. Reprot prepared for the CCIECED Western China 

Grasslands Task Force June 2001. 




8 Data collected by the PPTA Team on the 16 administrative villages in the CDA zone indicated that between 

67% and 93% (with an un-weighted average of 84% across the 16 administrative villages) of the village land 

area had been converted from agriculture (grain) to forestry (green). 

9 “Shaanxi Qinling Ecosystem Protection Zone (May 2005) 

19


(i) establishing co-management to enhance relations with villagers living in and around 

Nature Reserves; 

(ii) establishing biological corridors to counter impacts of highways and railways; 

(iii) strengthening management of nature reserve along highways to counter illegal entry 

by villagers and livestock and blockage of wildlife movements by fences installed to 

protect natural forests; 

(iv) enhancing the administration and increase investment in nature reserves (particularly 

Zhouzhi Laoxiancheng National Nature Reserve); 

(v) improving management of tourism; and 

(vi) diversifying village commercial enterprises. 

27. While deforestation and biodiversity loss have slowed in many parts of the Qinling 

Mountains, the damage has already been done. The success of the Project depends on changing the 

underlying causes of degradation which determine the trends in biodiversity conservation. 

28. The PRC ratified the Convention on Biological Diversity (5 January 1993), and has 

implemented many of the required actions required by the convention to achieve ratification. The 

system of nature reserves in the Qinling Mountains has been expanded particularly in eastern areas, 

and the financing and management of the 27 national nature reserves in the Qinling Mountains have 

been significantly improved in the past few years 10 . 

29. The PRC Government has given considerable attention to the problems and challenges of 

biodiversity conservation in the Qinling Mountains. The Qinling Mountains are listed as one of the 

eleven most critical regions for biodiversity conservation in the PRC 11 , and the State Environmental 

Protection Agency (SEPA) nominated the Qinling Mountains Ecosystem Function Conservation Area 

(QMEFCA) as a national pilot program in 2001 and the SEPB has submitted a Provincial Approval to 

adopt QMEFCA to SEPA for national ratification in March 2007. 

30. The PRC Government has given particular attention to the Qinling Mountains’ biodiversity. 

The most prominent example is the Qinling Panda Focal Project which is led by the World Wildlife 

Federation (WWF). The Qinling Panda Focal Project emphasizes cooperation with non-traditional 

conservation forces such as national and regional government projects and economic development 

activities and represents an extended commitment by WWF to support the SFD to strengthen 

conservation in the Qinling Mountains. 

31. Conservation of biodiversity has been successfully strengthened through the expansion of 

Protected Areas, which have effectively been doubled from less than 250,000ha in 1993 to more than 

540,000ha in 2006. The majority of these areas however are Panda reserves. Non-panda reserves 

totaled less than 50,000ha in 1993, increasing to only 100,000ha in 2006. The creation of corridors 

linking reserves has added a further 70,000ha. 

32. The creation of protected areas was achieved through the existing institutional arrangements 

for the targeted land. As such, the Protected Areas are not only scattered geographically but also 

across a range of sector and administrative agencies. In the short term the benefits of the creation of 

these Protected Areas has far outweighed the costs of this fragmentation. Many nature reserves 

introduced a wide range of new management techniques and approaches including the use of 

participatory management systems and collaborative management which continues to operate 

successfully. A major constraint, however, has been the ability of nature reserves to implement their 

full work plans due to funding shortages. Various estimates indicate that most Protected Areas only 

receive 30% of their required funding. In an attempt to fill the gap, many enter into commercial 

operations often at the expense of the conservation values they are responsible for conserving. This 

under funding has a negative impact on the public perception of Nature Reserve Staff, which in turn 

reduces the attractiveness of pursuing employment opportunities in conservation. A combination of 

10 This is the current number based on the PPTA’s most recent consultations. This number covers 19 that are 

administered by the SFA and Forestry Departments and Bureaus at the provincial and local government levels, 

and 6 smaller nature reserves managed by other government agencies such as Water resources and the 

Environmental Protection Bureau, 

11 China’s Biodiversity: a Country Study. 1998 State Environmental Protection Administration, Beijing. 476pp.

low salaries, poor benefits and inadequate budgets discourage students from pursuing professional 

careers in conservation. 

33. The location of Nature Reserves was determined more by the opportunity cost of land than 

coverage of ecosystems. This favored higher altitude wilderness areas and the resultant Reserves do 

not represent the full spectrum of biodiversity and ecosystems that need to be conserved, especially 

habitats at lower altitudes. Different habitats in the Qinling Mountains occur at differing elevations and 

many species (including endangered species) move between these ecosystems during different 

seasons. Consequently, many species face declining numbers as while selected habitats are 

protected the range of required habitats throughout the year is no longer available. As a result, the 

IUCN World Conservation Union Red List of globally threatened species in China includes 804 

species in total, 442 plants, and 362 animals. China’s own Red Data Book of threatened species 

includes a larger total. 

34. The Agriculture Ministry reports that 30 percent of the Yellow River’s 150 fish species are 

extinct. The most recent documented extinction of a vertebrate in China was the Baiji or Yangzi River 

Dolphin in 2006. China’s Snub-nosed Monkeys have suffered local extinctions over the last 400 

years, leaving the remaining four species in small, isolated populations which are vulnerable to 

extinction. China’s flagship species, the Giant Panda, was nearly lost before conservation efforts 

brought the global population back to about 1,600 animals. In spite of the extinctions and the long list 

of threatened species, the Chinese Academy of Sciences estimates that 80 percent of China’s plant 

and animal biodiversity stills remains undiscovered. Many of the extinctions of species in China’s 

woodlands and wetlands will never be documented because they occurred before scientists could 

name and describe the species that were lost. More importantly, it may not be possible to protect or 

recover species whose survival is threatened by human activities because of insufficient knowledge 

about these species. 

35. In terms of biodiversity conservation, modern China presents a mosaic of contradictions. 

Unprecedented rates of extinction and rapidly escalating human-caused threats to wildlife are 

occurring at a time when China’s nature reserve system is growing rapidly toward a 2050 goal of 

2,000 protected areas. China’s policy, legal, and regulatory framework for nature conservation is 

among the world’s strongest, and is continually improving. 

36. Successful conservation needs higher representation of biodiversity outside protected areas 

or islands of high biological diversity. Outside nature reserves, although the strict enforcement of 

forestry non-use policies within forest land and the Grain for Green program has helped to reverse 

degradation, they have also created significant negative impacts on local residents. These policies 

reduced the income of local residents from forest and non-forest products due to bans and the 

conversion of farm land into forest cover. The outcome of the policy framework has negatively 

affected local residents and land users. By reducing incomes households are less able to adopt the 

land use practices necessary to achieve the desired policy goals of increased forest cover. In 

response to this policy failure new programs were introduced to encourage voluntary resettlement out 

of the mountainous regions and to remove all resource users. Recently this voluntary resettlement 

program has been rejected by many households due to the outcomes experienced by past resettlers. 

Up to 70% of recent voluntary migrants from the Project Area have been unable to re-establish a 

household or adequate income sources. The role of the Government is only providing facilitation for 

potential resettlers to identify receiving areas and under current arrangements offers no financial 

assistance to offset the costs of relocation. 

37. The Shaanxi Province decision not to complete collective forest certification in 1978, in 

which collectives were awarding forest certificates for forest land, compounds the long-run challenge 

of finding sustainable outcomes. The allocation of certificates to collectives and then to individual 

households would have enabled the village administrations to reallocate the land of those households 

resettling out of the village to the remaining households. The extra land, along with secure tenure, 

would enable land users to move into forest based livelihoods based on conservation or analog 

21


forestry models. Such land use systems would achieve the permanent forest cover that the policy 

intended while enabling remaining households to achieve improved livelihoods 12 . 

38. The income levels of the 16 villages of the CDA zone remain markedly below poverty 

thresholds, and their current income levels are further threatened by the unintended consequences of 

these recent policies. These uncertainties coupled with acute poverty encourage increasingly shorter 

term and exploitative decision making by the remaining households. Voluntary resettlement will 

continue in the short run; however, the limited education levels and lack of vocation training limit the 

ability of such households to compete for well paying jobs in the areas targeted for resettlement. 

Those that resettle often become economically vulnerable due to dependence on casual employment. 

The lack of off-farm jobs and the shortage of land will result in many future resettlers remaining poor 

in their new locations. Generating off-farm rural employment remains a priority for addressing many of 

the land degradation and economic development objectives of the Shaanxi Province. 

39. Logging and forest thinning are banned in Natural Forest Protection Areas such as the 

Louguantai Forest Farm. This policy includes collective forest land. Non timber products utilization has 

also been restricted in many ways. When enforcement of the logging ban started, state owned 

forestry farms received financial support from the government and have now moved into tourism 

businesses. In contrast the communities whose forests are in the NFPP project area have lost the 

income from the forest resources but received no additional support from the Government except 

plantation subsidies. The Project CDA forests are inside NFPP areas and currently are included in the 

logging and NTFP bans. The Shaanxi Forest Department will exempt the Project Area from this ban to 

enable an assessment of community managed forest based livelihoods and the SFD to use the 

assessment to inform future policy reform. 

40. While voluntary resettlement has provided some benefits, it reduces CDA population. This 

results in reduced government services (especially health and education). In addition, many that 

migrate are of working age, potentially eroding future village leadership. The outcome is effectively 

involuntary resettlement for families wishing to educate their children or to access health services. 

The 11 th Five Year plan reports reduced budgets for future resettlement, and the Grain for Green 

program will further limit options and benefits for CDA households. The 11 th Fiver Year Plan does 

strongly support the implementation of the socialist countryside policy that seeks to link urban to rural 

areas and to link industry to the rural poor as proposed by the Project. 

41. The Socialist Countryside Policy plays a central role in the 11th Five Year Plan (FYP). 

The policy emphasizes increasing farm production from crops, apples and other economic trees, 

strengthening county level economies, expanding local industry based on local comparative 

advantage, strengthening the province’s system of agricultural service centers, improving water 

supply, electricity supply, social services and other public facilities at the village level, expanding local 

government revenues in counties, townships and villages, and enhancing democratic management 

and accountability at the local level. 

42. Government policies and planning priorities (see Appendix 4) specify a movement towards 

far greater differentiation in Provincial Economic development planning with sub regional strategies 

that seek to build on comparative advantage. The Project Area is included within the Southern 

Regional Economic planning Strategy which places priority on sustainable economic development, 

conservation and protection of ecological resources and functions, the need to build local enterprises 

to address rural poverty through linking the rural poor to loal value adding industry and market chains. 

Tourism and more specifically ecotourism is identified as a key element of the economic development 

strategy for the Southern Region. 

43. Tourism is recognized as one of the key economic drivers in the 11th FYP, with tourism 

receipts expected to expand from $4 billion to $10 billion in 2010 – contributing over 10% to the 

province’s gross domestic product. To strengthen tourism, the provincial plans for the next five years 

places more emphasis on intensive higher value-added tourism. The objective is to provide a balance 

between the quantity, quality, efficiency of the tourism activities and environmental protection. Xian 

will play a pivotal role in the province’s tourism sector; however, Xian’s tourism is a highly developed 

12 For example agro-forestry land use systems in Shandong Province increase land user incomes from CNY 

3,300 per annum to over CNY 10,000 per annum.

and mature product compared to other tourism opportunities in the province. These opportunities 

include ecotourism where higher growth is possible because of the recent and future planned 

improvements to the province’s transportation system. The result will be greater travel by urban 

residents to increasingly accessible tourism destinations in the province, particularly in the Qinling 

Mountains. 

44. The Xian tourism sector is responding to the growth challenge through plans and strategies 

designed to diversity its tourism products. Product diversification includes expanding the range of 

historical and cultural products (including the Dao religion), developing eco-tourism and other 

resource-based tourism particularly in the QM, and establishing Xian as a major international city with 

unique local characteristics. 

45. The problem of unbalanced development in Shaanxi is clearly recognized in the Shaanxi 

11th FYP. In keeping with the Government’s policy on the socialization of the countryside discussed 

above, the 11th FYP includes interventions designed to bring achieve balanced and inclusive 

provincial economic growth. This includes investment to reduce inequalities in GDP, productivity, 

incomes, consumer purchasing power, access to basic services, and quality of life between, the less 

developed and rural northern and southern regions, and the more advanced central region linked to 

Xian and the transportation and tourism corridor from Henan through central Shaanxi to Gansu. 

46. The proposed tourism strategy for the southern Shaanxi region outlined in the 11 th Five Year 

Plan, includes the Qinling Mountain range, prioritizes green industry development in such areas as 

forestry, agriculture and agro-industry, hydro-power, the development of Chinese herbs for medicinal 

and other purposes, eco-tourism, and other forms of tourism including historical and cultural tourism 

based on the Tang Dynasty. The Project seeks to develop tourism prioritized by the Southern Shaanxi 

strategy by developing attractions linked to the Qinling Mountains strengthening the current Shaanxi 

tourism market. The tourism section of the Shaanxi Province 11th FYP identifies ten major tourism 

sites with one being the Botanicalal Garden. In addition, the Qinling Mountain Ecological Tourism 

Area is one of six tourism “brands” to be emphasized in the tourism strategy under the Shaanxi 11 th 

FYP. 

47. The tourism industry is divided between hotels/accommodation facilities, travel and tour 

agencies, and tourism attractions and tourist sites. The province’s tourism base and supporting 

infrastructure are well developed. There are currently about 300 starred hotels in Shaanxi (five star – 

4 hotels, four stars – 24 hotels, three stars – 135, two stars or below – 137 hotels) supplying 60,000 

beds. When the non-starred hotels are added, the province has well over 330,000 beds. Four and 

five star hotels are generally owned by the state and/or operated through foreign joint ventures. Most 

of the two and three star hotels are owned by the state with management contracted to domestic 

private sector enterprises with a few under private ownership. 

48. Shaanxi has about 470 travel agencies. The 45 international travel agencies that can receive 

international tourists and organize outbound travel by Chinese individuals and groups are owned by 

the state through joint ventures (JVs) between SOEs and foreign and domestic enterprises. In 

contrast, the remaining 425 or so domestic travel agencies are mainly owned and operated by 

domestically owned private enterprises, with 2% owned by the government. 

49. Shaanxi has developed 300 tourism sites. Cultural and historical sites cannot be sold to the 

private sector. Only one such site, a theme park in Xian, is owned by the private sector. The smaller 

tourism sites with lower or no ranking are owned by a mix of government and private interests. 

Compared to OECD countries, the government plays a larger role in product development, marketing 

and financing of tourism attractions and services in the PRC as a whole and in Shaanxi in particular. 

Private sector involvement in the Shaanxi tourism industry is too low, and the current government 

strategy seeks to expand private investment from both domestic and foreign sources in the Shaanxi 

Province tourism industry. 

50. The Shaanxi Tourism Bureau provides the following functions and services: policy and 

planning, tourism development, quality of service regulation and handling of tourist complaints, a 

service center to assist tourism operators, and supervision of the tourism environment. The Xian 

Tourism Administration has a similar structure and provides similar services and has a division that 

23


monitors marketing trends. A further division provides tourism information, consulting assistance and 

assistance with tour guide management. The Xian Administration has in total about 60 employees. 

51. The government previously carried out all tourism certification; however, certifications for 

hotels and restaurants are currently done by the Shaanxi Tourism Association. The Association 

operates at arm’s length from government, but its leaders are often from the Tourism Bureau. The 

Association membership includes hotels, travel and tour agencies, tourism sites and the larger 

standards that attract a large number of tourists. The Association includes three branches: (i) hotels 

and restaurants including hotel suppliers; (ii) travel and tour agencies, and (iii) tourism sites. The 

Association also has a training school that provides training for tourism managers, guides and other 

tourism services. 

52. There are a number of reasons for the limited involvement of the private sector in Shaanxi 

tourism. First, the private sector generally plays a smaller role in investment and production in the 

Shaanxi Province economy than in the more highly developed PRC provinces on the east coast. 

Second, the private sector in Shaanxi and other parts of western China has more limited access to 

commercial financing at reasonable terms than the SOEs and other government entities. Third, high 

quality tourism attractions require significant capital investments that can be slow in generating major 

returns. (The private sector in China generally prefers investments in property that generate quick 

returns, have short pay-back periods and provide returns on investment in the area of 15% to 20% or 

more.) Fourth, as noted earlier, many tourism attractions in Shaanxi involve historical sites, cultural 

relics and ancient buildings that need to be managed and protected by government. The expectation 

is that eco-tourism and other resource-based tourism will provide greater opportunities for private 

sector ownership and management in the future. 

53. While tourism is an important source of economic strength, jobs, investment and business 

development in Shaanxi, the Province’s (including Xian) tourism sector is losing ground to other PRC 

destinations in attracting and lengthening the duration of stay of the higher spending international 

tourist. Tourism officials recognize that the industry has been too dependent on a narrow range of 

products that are associated with the Qin dynasty (especially with respect to the Terracotta Warriors). 

Product diversification and the development of more specialized higher value products that appeal to 

higher income market niches in both China and other countries is needed to attract greater numbers, 

increase the duration of stay, and increase the spending of each visitor to Shaanxi. 

54. More specifically, Shaanxi needs to capitalize on its potential for tourism development that 

would be related to the unique collection of plants, animals and birds that live in and around the part 

of the Qinling range which is located within the Xian tourism region. There is an outstanding 

opportunity to promote conservation-based tourism linked to the growing domestic and international 

demand at sites such as the Terracotta Warriors, and to create employment and wealth in the Qinling 

Mountains for the future promotion of sustainable conservation. The Shaanxi Tourism Bureau is 

currently preparing a strategy to support eco-tourism and other resource-based and cultural tourism in 

the Qinling Mountains. 

55. The switch to high value tourism requires not only appropriate product development and 

marketing but also to remove the threat of current land degradation and biodiversity losses that 

contradict the potential value of ecotourism in the Project Area and the Qinling Mountains. Further it 

will require the preparation and enforcement of appropriate tourism standards and the training of local 

people living within or near the Project Area to fully participate as workers in, suppliers to, and/or 

owners of the tourism facilities established in the ex-situ area and the much larger CDA part of the 

Project Area. 

56. Over the past decade, Shaanxi has made major advances in improving the management 

and quality of its traditional tourism products. Major investments have been made in tourism facilities, 

the Shaanxi Tourism Group Company was formed in 1998, and in 1999 the commercial aspects of the 

Terracotta Warriors site was placed under the management of a state-owned tourism enterprise 

called the Qin Dynasty Terra-Cotta Tourism Corporation Limited (which is a subsidiary of the Shaanxi 

Tourism Group). However, more work is needed to further improve the quality of the Province’s 

tourism attractions and other products and to attract new enterprise investments (including from the 

private sector) as well as new skills, ideas, energy, and market and product development expertise

into the Province’s tourism industry 13 . These and other enhancements will be needed for the Shaanxi 

Province and the city of Xian to achieve the major increases in tourist numbers and revenues from 

both domestic and international sources called for in the Shaanxi 11th FYP. 

57. With government policy changes from exploitation of natural resources to the protection of 

the environment and conservation based on “non-use”, many existing institutions have yet to 

restructure or reorganize to deliver these new mandates. For example, the Louguantai Forest Farm 

has moved from relying on logging revenues to pay for staff costs to being dependent on the 

Government budget, and the Shaanxi Forest Department formed new units such as the Shaanxi 

Animal Rescue Center which support its increasing role in conservation. These new enterprises all 

suffer from weak management standards, budget shortfall requiring them to adopt cost recovery or 

revenue generation activities. 

58. The historical manner for PRC to address these issues was to create accountability through 

assigning one manager to each business or enterprise. While achieving accountability for specific 

functions this approach has, over-time, created a proliferation of new enterprises often with 

overlapping jurisdictions and mandates. A similar organizational fragmentation exists within the nature 

reserves that fall under national, provincial and county bureaus which are often linked to differing 

National Ministries. These agencies, while providing similar functions, compete for their share of 

revenues and resources often to the cost of wider conservation objectives. Interventions that 

successfully address resource degradation require a multi-stakeholder integrated landscape approach 

to address the underlying causes of degradation. The prevailing organizational and institutional 

framework is however multi-agency based with little coordination or cooperation while the individual 

agencies compete for market share. 

59. The ambiguity created by current organizational arrangements for the Project Area has been 

further compounded by the agreement to assign the Project to the Qinling Botanical Garden 

government unit effectively duplicating existing organizational and legal mandates of the Louguantai 

Forest Farm, Shaanxi animal Rescue Center and the 16 collectives and their land. Organizational 

consolidation that unifies these interests into a unitary institutional model is a critical success factor to 

achieving long term commercial sustainability and better resource use outcomes and has been 

agreed in principle by the SPG. 

60. A significant constraint to achieving sustainable natural resource management outcomes is 

the government safeguards for changing land use and accessing water resources. These safeguards 

seek to protect food security by ensuring that there is no net loss of basic cultivated land within a 

county or province. However, this precludes the movement of land into higher value and perhaps 

more sustainable land uses such as the proposed development of large scale commercial tourism 

attractions. 

61. The Project seeks to support the Shaanxi 11 th FYP implementation and its expected impact, 

outcome and outputs for the Project Area and wider Qinling Mountains will provide a significant 

contribution to the 11th FYP goals. In addition, the tourism facilities and other commercial activities 

proposed for financing under the Project will benefit significantly from: (i) the transportation 

investments, (ii) the overall tourism development strategy, (iii) the further development of Xian as a 

major Asian and international city, (iv) the improvements to rural family incomes, (v) the more 

balanced, diversified and dynamic economic structure, and (vi) the higher levels of science 

development, innovation, and urban prosperity that will result from the Shaanxi Provincial 

Government’s 11th FYP as well as broader trends in the provincial, national and international 

economies over the longer term. 

13 The requirement and trend for tourism in China to emphasize higher quality and high value added over 

quantity-based tourism were discussed in a recent article in the China Business Review. In particular, this 

article discussed the new demand for luxury among US baby boomers and tourists from other OECD 

countries. This is creating a broader market of travel purchasers who are willing to pay premium prices for an 

up-scale travel experience to China. These tours often have a starting price of $500 per day and their duration 

on average is 14 days. This kind of luxury tourism will have a small but growing market in China as the 

country’s upper income and upper middle class continues to expand. See Chase Poffenberger and David 

Parry, “Travel and Tourism: The New Face of Tourism in China” China Business Review, January-February 

2007. 

25


62. The proposed Southern Shaanxi Regional Strategy (11 th Five Year Plan For Shaanxi 

Province 2006) proposes to protect natural resources in order to develop nature and ecotourism, 

alternative livelihoods and off-farm employment opportunities. The Project seeks to develop 

commercially successful businesses that will invest in conserving the resources throughout the 

Project Area in the first instance and then increasingly within the Qinling Mountains. As such the 

concept of ex-situ tourism development is simply a means for generating a more sustaining flow of 

investment for the conservation of biodiversity. Similarly the Project will invest into the CDA to improve 

livelihoods of local residents. The local residents will increasingly derive income from forest or forest 

based products either directly or through adding value to forest and local products such as essential 

oils, medicinal plants and the production of handicrafts. 

63. ADB’s Country Partnership Strategy (2008–2010) provides support for poverty reduction 

and investment that improves the quality of life for those on low incomes and assist the protection of 

its natural resources and environmental assets especially those that have regional or even 

international significance. ADB’s operations will support the 11 th FYP implementation with a focus on 

improving equity and environmental sustainability. The ADB partnership program seeks to achieve 

this through improving resource use efficiency, fostering sustainable cities and urban development, 

enhance rural development through linking producers to markets and industry, and enabling private 

sector development. The proposed Project supports ADB’s partnership strategy though support for 

sustainable rural development based on linking rural livelihoods to sustainable natural resource 

management and biodiversity conservation within a wider landscape model. The approach to tourism 

will assist in the development of high value tourism that is pro-poor through linking each enterprise to 

rural communities for goods and service opportunities and through the provision of a levy into an ecofund 

for the financing of CDA conservation and conservation based livelihood development. Through 

these linkages poor and often vulnerable rural residents will increase income levels and increasingly 

derive income from either or both paid employment and forest resources. 

64. External Assistance. Biodiversity has been well supported within the Qinling Mountains 

since 1995 when the first World Bank - GEF protected area and nature reserves program was 

implemented (see Appendix 2). The program sought to strengthen nature reserve management 

capacity and to introduce new approaches to conservation management built on collaborative 

management styles. This donor work was further developed through the continued support and 

involvement of WWF in the Qinling Mountains where programs for strengthening nature reserves, 

panda conservation and rural livelihood improvement and monitoring continue successfully. 

65. Land degradation, especially through human activities that destroy natural habitats such as 

land conversions, industrialization, poor management of water resources and deforestation, severely 

endangers the PRC’s rich biodiversity. ADB’s Capacity Building to Combat Land Degradation 

Project 14 , the first project under the PRC-GEF Partnership on Land degradation in Dryland 

Ecosystems, is ongoing in six provinces/autonomous regions: Gansu, Inner Mongolia, Ningxia, 

Qinghai, Shaanxi, and Xinjiang. In Ningxia, a multi-agency task force has prepared a provincial level 

strategy and action plan for land degradation control through an Integrated Ecological Management 

(IEM) approach. 

66. The PRC has given particular attention to the Qinling Mountains rare and endangered 

species. The most prominent example is the Qinling Panda Focal Project which is led by the World 

Wildlife Federation (WWF). WWF has supported species management for Giant Panda, habitat 

protection and restoration, capacity building programs, rural livelihood and ecotourism programs in the 

Qinling Mountains with considerable success and influence. The Qinling Panda Focal Project 

emphasizes cooperation with non-traditional conservation forces such as national and regional 

government projects and economic development activities. 

67. More specifically, the PRC has implemented a number of related initiatives over the past 

decade with ADB and other international partners. Related programs and projects that will offer 

valuable links and potential collaboration with this Project include the ongoing PRC-GEF Partnership 

14 ADB. 2004. Technical Assistance to the People’s Republic of China for the Capacity Building to Combat Land 

Degradation Project. Manila. Approved on 29 June 2004 for $13.8 million, of which $7.7 million was provided 

by GEF as a grant. Supported by ADB. 2004. Technical Assistance to the People’s Republic of China for the 

Support Implementation of Capacity Building to Combat Land Degradation Project. Manila, for $1.2 million.

on Land Degradation in Dryland Ecosystems, and the GEF/ADB-financed Capacity Building to 

Combat Land Degradation Project. 

68. Within the rural development and land use sectors the World Bank has successfully 

implemented 14 projects, IFAD and ADB one each, Japan has also implemented one afforestation 

project in Shaanxi. The total value of these projects exceeds $1 billion (see Appendix 2). 

69. Lessons Learned. Resource degradation requires interventions that address a wide range 

of the underlying causes. Sector approaches have proven to be ineffective and expensive in PRC, 

often resulting in significant negative offsite impacts on local residents. Fragmented Institutional 

arrangements continue to maintain inappropriate responses and perverse incentives for continued 

land degradation. 

70. Rural poverty reduction initiatives that do not link producers to the market chain and support 

producers to exploit these linkages rarely enable beneficiaries to exit poverty. Success derives from 

interventions that link the poor to economic growth opportunities, commercial value chains, and the 

opportunity to compete for off-farm employment 15 . 

71. The Project will adopt a commercial approach to the diversification of local economic 

development in the Project Area by supporting three significant commercial enterprises to grow and 

thereby provide job opportunities for local rural residents. The further linkage of these enterprises 

through a sustainable financing mechanism that funds conservation programs in the CDA is unique in 

China. The financing mechanism seeks to transfers funds from the commercial enterprises in the exsitu 

zone to the CDA for the management and protection of Qinling Mountain Biodiversity. Funds will 

also be used to assist develop more sustainable and benign livelihoods for the remaining rural 

residents. The agreement to form a consolidated management of the Project area through the 

amalgamation of three enterprises under one management structure provides the basis for 

overcoming the institutional weaknesses in implementing successful multi-sector programs. However 

to be successful competent management needs to be established and supported with staff that have 

skills and motivation for implementing sustainable programs. 

72. Lessons from similar ADB projects are: (i) provincial government should provide a project 

management office with adequate financial and staff resources to ensure strong ownership; (ii) a 

strong leading group is necessary to provide leadership and guidance; (iii) commercial projects should 

be supported only if an entity exists to financially and managerially back the project that is also 

committed to promoting rural development; (iv) commercial operations should adopt a flexible 

approach and be sensitive to changes in market demand and prices; and (v) consultants are required 

to support institutional building capacity of the stakeholders involved, including project management. 

A. Impact and Outcome 

III. THE PROPOSED PROJECT 

73. The impact of the proposed Project will be to improve the wellbeing of rural communities in 

the Project Area based on the sustainable conservation and use of Qinling Mountain resources. There 

will be increased smallholder incomes and skills for livelihood diversification including the ability of the 

rural poor to access higher paid employment. Income diversification will be supported through the 

development of Small and Medium Enterprises (SME), the expansion of pro-poor tourism and 

ecotourism opportunities, and the reallocation of land and adoption of appropriate forest based land 

use activities. Biodiversity conservation will be enhanced through habitat protection and restoration 

programs linked to conservation forestry, strengthened management and ex-situ species 

management programs and extensive awareness and education programs. 

74. The Project’s outcome is to introduce an integrated landscape management that provides 

sustainable livelihoods for the population of the Project area as a demonstration for the wider Qinling 

Mountains. The Project will address underlying causes and effects of both historical and 

contemporary resource degradation. The main targets and indicators will be (i) demonstration of an 

15 

ADB. 2006. Special Evaluation Study on Pathways Out of Rural Poverty and the Effectiveness of Poverty 

Targeting. Manila. 

27


integrated spatial plan for Louguan Township and surrounding forest farm; (ii) livelihood improvement 

for up to 12,000 farmers, (iii) up to 40 small enterprises established, (iv) environmental treatment of 

over 90% of all waste streams arising from mass tourism, (v) management plans prepared for at least 

6 endangered species, (vi) measurable increases in the extent and quality of habitat within the Project 

area, (vii) increased tourism visitation from 300,00 to more than 1 million by 2020, and (viii) 

contribution to at least 2 managed conservation breeding programs. 

75. The Project has three outputs: (i) successful tourism development that supports 

conservation, (ii) improved livelihoods from sustainable management and conservation of natural 

resources, (iii) project management and institutional arrangements for sustainable management of 

resources established and demonstrated. 

B. Outputs 

1. Component One: Tourism Development to Support Conservation 

76. Component one will support two commercial enterprises to develop and expand their 

business models within the ex-situ zone. These enterprises include (i) QNBG (incorporating the 

Qinling Botanicalal Garden, SARC, Louguantai Forest Farm) and (iii) Louguantai Hot Springs 

Development. SPG has proposed a two-phased approach, with ADB and GEF helping to finance 

phase 1 during 2008–2013, and the Shaanxi government and enterprises entirely financing phase 2 

during 2014–2018. The second phase will be about the same magnitude as the first phase but will 

allow for (i) expansion of the infrastructure for tourism in PA, (ii) preparation of plans for improving 

biodiversity conservation in the other nature and forest reserves in QM, and (iii) incorporation of 

lessons learned from phase 1. The Project in phase 1 will support two public-sector enterprises that 

will undertake significant construction of buildings including exhibition halls, offices, tourism 

accommodation and restaurants, animal exposition and display areas, animal enclosures, roads and 

infrastructure including drainage systems, lighting, water supply and irrigation investments, and Daoist 

temple and related building renovations. 

77. Qinling National Botanicalal Garden (SQNBG) is a new business enterprise consisting of 

269 ha of constructed gardens that represent the plants of Qinling. The gardens will be interlinked 

with walkways along which public education and awareness displays will inform the public on themes 

such as natural history, environment and biodiversity. The QBG will also construct a major exhibition 

hall to represent aspects of natural history and a service reception center including hospitality and 

restaurant functions. The gardens will be linked by walkways and a 1230m cable car to a series of 

Daoist temple sites that will be restored and protected 16 . 

78. The 18 constructed gardens will amount to 57 ha interspersed amongst 25 ha of lawn. The 

display will be supported with a greenhouse for propagation and display purposes. The site will 

require utilities and infrastructure to minimize the visitation impact on the environment and the 

gardens themselves. Electric vehicles will be used to move people around the garden as needed. 

The enterprise has been allocated permission to use land; however, this land will require resettlement 

of some 143 households and a limited amount of land acquisition. The remaining land will require 

3,780 affected persons to be compensated through a fixed payment to farmers and a profit share 

agreement based on share of capital in the QNBG. As the Revenues increase forecast profit share 

revenues increase. In total the QBG will employ over 250 people with the local residents and affected 

persons having the first right of refusal for any employment opportunity. 

79. Revenues will be generated from day visitation and the use of entry tickets along with profits 

from attractions or services including the cable car, restaurants, rental cars, temples sites and 

exhibition hall. Visitor numbers are expected to rise from 350000 in 2011 to 478,000 on project 

completion to over 1.1 million in 2035. Revenue forecasts indicate a revenue stream increasing from 

16 The restoration program will be jointly undertaken by the Qinling Botanical Garden and the Daoist Community 

with the Daoist community participating in the identification of “legitimate sites” and also in the specifications of 

design. The Daoist community will be required to provide their ratification of the final designs to the PMO prior 

to any ADB approval for the financing of these sites. This approval will include design, and operational 

parameters including the sharing of revenue if required.

CNY 37million to CNY 64million in 2015 and CNY 158 million in 2036. The enterprise as a negative 

net cash flow during the construction period until 2011. Employment will move from the current 40 

staff to over 250 staff by Project completion and as visitor numbers grow the level of employment 

could reach 600. 

Table 1: Forecast Financial Performance of QBG 

Year Visitor numbers Revenue (CNY million) NCF (CNY million) 

2011 350,000 37 -5 

2015 517,000 64 8.4 

2020 725,776 90 31 

2036 1,270,00 157 96 

80. The Qinling Botanical Garden (QBG) will use 4039.5 mu (269.3 ha) of collective owned rural 

land from Dianzhen village for development under this project. While the QBG has received approval 

to prepare the Project Feasibility Study for the Project Area the QBG currently has no land use rights. 

Two approaches have been proposed to access land use rights. These include (i) land acquisition 

amounting to 293.63mu (19.64 ha), and (ii) land rental using a land shareholding agreement for 3,746 

mu (249.66 ha) where current land use right holders will gain shares on the QNBG enterprise. Within 

the Project area, there is rural cropping land, other rural agricultural land, rural idle land, rural 

residential land and rural infrastructure construction land – the rights for all land types are held by 

Dianzhen village and its residents. 

81. Currently the proposed use of a shareholding agreement is deemed by the PPTA to have 

no legal status being contra to local regulations 17 . The following section outlines these issues and 

recommends a series of actions to be undertaken before any processing of the QBG project loan. 

82. Required Approvals: 

� QBG will provide a land use pre-checking report from a land use management authority as 

required by the law to confirm: (i) basic farming land has been relocated to another location. 

(ii) land use application of QBG is consistent with the government land use plan and 

regulation, (iii) there is a change of agricultural land quotas for QBG. 

� QBG will acquire 293.63 mu (19.57 ha) of land. It will be required to get approval for 

acquisition of land after the project feasibility study is approved by SPG. Then the 

resettlement plan will be implemented 

1. Land Rental 

83. The draft contract of land shareholding provided by QBG indicates that the contract follows 

the requirement of the “Rural Land Contracting Act of PRC; The Contract Act of PRC; and The 

Forestry Act of PRC. However a recently introduced Shaanxi Land regulation states that contracted 

land management right (land user right) of collective members on the rural land may not be invested 

in an enterprise in a share arrangement. The “Implementation Methods of Shaanxi Province on Rural 

Land Contracting Act of PRC” has been in place since January 1st 2007 and as such the QBG 

proposals to put collective members’ land user rights into a shareholder arrangement is no longer 

legal.. 

84. The contract 18 has proposed a financial return arrangement for the land which is put into a 

shareholder arrangement. The proposal envisages two parts to the financial consideration for land 

use being: 

� Fixed Rental Revenue: Starting from the first year of the land share establishment. The land 

is classified into three categories for the purpose of the land rental prices. (i) first class 

(irrigated land) will be paid CNY 500 per mu., (ii) second class (dry land) will receive CNY 400 

17 

The PPTA has been advised that this constraint does not necessarily apply to the QBG and that an official 

document to this effect will be provided to ADB. 

18 

A more detailed list of outstanding issues regarding the acquisition of land use rights is provided in Appendix 

6,10, and 11 

29


Yuan, and (iii) third class (sloping land) will receive CNY 300 in the first year. The fixed return 

will progressively increase by CNY 20 per year for all classes of land. 

� Shareholding Profit Share Revenue: From the first year that QBG receives ticketing income 

shareholders will receive their share of net revenue form the QNBG. The fixed return will stop 

increasing once a profit share is received, but will be retained as part of the return to the land 

share shareholders. The share value will be calculated on the basis of the price set up for the 

50 years of the land user right. Sloping land will be valued at CNY 7,500/mu, dryland CNY 

10,000/mu, and irrigation land CNY 12,500/mu. The value of the land use right from this 

contract will be calculated against the total capital of the QBG. The proportion of revenue from 

tickets will be shared on the share of land use right in the total capital of QBG. There is 

however no indication of how other equity will be valued in the total share capital. 

85. The Shaanxi Animal Rescue Center (SARC) currently operates from an existing site of 

141 ha within the Lougauntai Forest Farm. The main rescue center is a 6 ha area for animal pens. 

This area is open to the public. The current site is in poor repair with significant animal welfare issues. 

The center attracts 30,000 tourist visitors per year mostly to glimpse panda, golden monkey, crested 

ibis, and takin. The Project seeks to significantly expand and enhance the current facility to create it 

as a center of excellence in the management and display of threatened indigenous species. As such 

the center is intended to demonstrate to the rest of PRC the potential opportunities and benefits from 

establishing international standards in the care and welfare of the animals within this ex-situ 

conservation, education and research center. 

86. The project will modernize the center to meet international standards by: (i) increasing the 

personnel and their capacity in wildlife conservation, (ii) achieving more efficient rescue of wild 

endangered animals and their rehabilitation, (ii) developing a high quality tourism site, (iv) increasing 

the quantity and quality of research into wildlife, and (v) creating an awareness and education 

program for visitors and local communities on wildlife and biodiversity. The Project will achieve this by 

increasing the area of the rescue, breeding, research and husbandry facilities from the current 141 ha 

to 1,112 ha. The enlargement will include the development of three satellite sites in more natural 

environments for giant panda, crested ibis and golden monkey within the wider Project Area. 

87. The satellite proposed for the Panda station is now to be located at the Hu Bao valley on 

the periphery of the CDA about 2 miles south of the SARC existing site overcoming the concerns 

raised of its location within the high biodiversity valley originally proposed. The PPTA still considers 

the scale of the satellite for about 40 Pandas (with an additional 20 in the main center) to be a 

concern. Population modeling indicates that without further wild captives, a capacity of 15 to 20 is 

more than adequate in the medium term. 

88. The current animal rescue and exposition site will complete a refurbishment and 

reconstruction program designed to ensure animal welfare and animal presentation is world class. 

The Project will provide an international design expert to prepare site layouts, design specification and 

detailed terms of reference for the SARC design institute to follow in the completion of a detailed 

engineering design. To avoid potential public and media ridicule, ADB should require the detailed 

engineering design be reviewed by both ADB and the international expert to ensure compliance with 

the TOR’s provided. 

89. At Project completion the center will have 70% of the forage area developed and be able to 

support 80% of total planned numbers of iconic species. The center will undertake the science for 

controlled release of species from breeding centers as numbers and the science enables this to 

occur. It is proposed that the giant Panda Breeding Center be expanded to include 10 nursery rooms, 

32 enclosures, and a research and feed growing areas. The Crested Ibis Center will include 

construction of a 140,000 sq m facility comprising an artificial wetland on which a large flight aviary 

will be constructed to enable nesting colonies to be established. The Golden Monkey site will involve 

10ha of forested/treed land that will support 30 animals. 

90. Being located one hour drive from Xian provides the SARC a major marketing advantage over 

competing panda attractions. It also has the added benefit of having access to other iconic Qinling 

Mountain species. The rapid expansion of Chinese tourism and the central role of Xian and the 

Terracotta Warriors in this growth offers a large accessible visitor population of both local and 

international tourists. A visitation management program will be introduced.

91. Revenue will be generated through the visitation program. Visitation is projected to increase 

to 430,000 by Project completion and then increase to over 1 million in 2030. Revenue levels will 

increase to CNY 33.3 million by Project completion, CNY 63 million by 2015, and CNY 130 million in 

2036. SARC management will contract a commercial tourism operator to manage the commercial 

aspects of the site. Current staff levels of 28 full time and 12 part-time will increase to nearly 200 full 

time jobs. 

Table 2: Forecast Financial Performance of SARC 

Column Heading Column Heading Column Heading Column Heading 

2011 280,000 26.4 -1.5 

2015 519,000 63 21.7 

2020 829,000 100.6 50 

2036 

(Source: PPTA Estimates) 

1,100,000 130 77 

92. Hot Springs Development involves an existing development of the Shaanxi Louguantai 

Daoism Hot Spring adjacent to the Shaanxi Animal Rescue Center (SARC). The first stage of 

development was completed in late 2007 and involves an accommodation and bath area. The 

Development is being undertaken as a joint venture between the Shanxi Forest Bureau (as 

represented by the Louguantai Forest Farm 49%) and the Shaanxi Tourism Group Corporation (51%). 

The Project will support the second phase of the development to improve leisure tourism in the 

Project Area, to promote tourism and the Project Area as a tourism attraction, to stimulate growth in 

local industry through providing goods and services to visitors, and importantly to promote greater 

understanding of Daoism as a religion. 

93. The Project will support the construction of 18 multi-room villas with five bedrooms for two 

people each or a total capacity of 180 people per night. In addition the project will support 

development of a restaurant, bathing pool complex, internal utilities and site infrastructure, equipment 

and vehicles and staff training programs. Visitation is expected to derive from both over night stays 

and day visitors with the development providing the top end of available accommodation in or around 

Louguantai. Accommodation occupancy is expected to reach 70% by 2020. Day visitation would start 

from about 300,000 in 2011 and reach 500,000 in 2023 at which level it would reach operational 

capacity. Management of the operation will be undertaken through a commercial management 

contractor with substantial experience in the tourism sector. The Shaanxi Tourism enterprise needs to 

raise private sector funding for the completion of the hot springs development. Prior to ADB approval 

a Bank Guarantee or letter of credit should be provided to ensure that financing is available. 

2. Component Two: improved livelihoods from sustainable management and 

conservation of natural resources 

94. Component two will support the implementation of the proposed CDA zone management 

strategy (see Appendix 8) and result in improved conservation values through increasing forest cover 

and manipulating of existing forests to restore wildlife habitat. The CDA zone supports 4,593 residents 

that lost income sources due to policies removing access to forest products, livestock and agriculture 

on steep lands. 

95. Financing of CDA programs will continue after Project completion through the three tourism 

enterprises contribution to a profit share and redistribution program. During the construction period of 

the Project the profits will be modest. After 2012 the amounts involved could increase substantially 

and be able to support CDA conservation and eventually beyond the Project Area. The existing 

institutional arrangements for land use and the provision of a financing mechanism are a major risk to 

the profit share arrangement. The QNBG will use an internal accounting method to transfer funds from 

the enterprises to the CDA. For the hotsprings the transfer is deemed to apply only to the Louguantai 

Forest Farm shareholding and is therefore set at 49% of the rate applied to both Qinling Botanical 

Garden and SACR. It is recommended that the management of QNBG set the fee based on an 

internal charge against assets (levy on land and capital assets) to create incentives for efficient use of 

land and to ensure funds are available to the CDA program. 

31


96. The final size of the transfer will depend ion the need of each enterprise and the CDA 

program. For the CDA program the scale of the final program is determined by the scope of work 

planned and this can be adjusted to accommodate the available resourcing. With the asset and 

capital structure of QNBG unknown the PPTA has applied a charge against net profit after tax. To 

achieve the expected minimum scale of program that currently costs $400,000 per annum a charge at 

8% of net profit is necessary (see Table 3). 

Table 3: Projected Financial transfers to the Eco-fund based on 8% of Net Cash Flow – CNY 

0`000’s 

2012 2013 2014 2015 2016 2017 2018 2019 2020 

Qinling Botanical garden 148 186 152 195 238 280 323 366 409 

SARC 120 120 120 120 120 120 120 120 120 

Hotspring 32 32 32 32 32 32 32 32 32 

Total CNY (0000) 300 338 304 347 390 432 475 518 561 

Total USD (000) 400 451 405 462 519 576 633 690 747 

97. The amount generated will increase in time as profits increase through visitation growth and 

fee increases. The amount raised even at an acceptable charge of 15% (equivalent to a commercial 

return on assets) is significantly higher and represents a very good opportunity for SFD to reinvest 

into conservation throughout the wider Qinling Mountains see Figure one. As such the Project could 

act as an incubator for future investment and commercial conservation programs. 

USD (000) 

1400 

1200 

1000 

800 

600 

400 

200 

0 

Projected Revenue Transfer 

2012 2013 2014 2015 2016 2017 2018 2019 2020 

5% reallocation 8% reallocation 10% reallocation 15% reallocation 

15% reallocation 




98. The revenue available for CDA programs could be allocated to the following guidelines (i) 

Monitoring 25% ($100,000), (ii) habitat development 40% ($160,000), (iii) implementation of 

endangered species management plans 10% ($40,000), (iii) livelihood improvement ($100,000). As 

the amounts increase the funds allocated to wider livelihood and conservation programs can also 

increase including options such as scholarships for residents of the Qinling Mountains to work in 

conservation or livelihoods, livelihood enterprise grants etc. 

99. ADB should seek an assurance for loan negotiations that this is supported by the Government 

and then require an official agreement with each of the enterprises to this effect before loan 

effectiveness.

100. Improved Village and Forest-based Livelihoods The Project will introduce technologies, 

infrastructure and business development resources to reduce poverty that currently afflicts 70% of 

households within the 16 administrative villages to 20% of households by Project completion. 

Livelihood improvement program will be limited to the estimated 8,500ha of collective forest land 

within the Project Area. The Project will demonstrate support forest based production systems to 

enable policy reforms and future replication of successful models. A total of 16 village development 

plans will be prepared including a forest and natural resource plan in a participatory planning process 

(see Appendix 7 and Supplementary Appendix 2 for detailed procedures and pro-forma formats). The 

plan will identify collective forest land that will be surveyed and demarcated, and the Shaanxi Forest 

Department will issue each collective with the necessary forest tenure certificates establishing rights 

to forest resources and the collective will assign these to individuals residing within the community. 

During the planning process village forestry associations will be formed through which the 

conservation forestry program will be implemented. 

101. On completion of the planning process all village development plans will be approved by the 

collective, the QNBG as represented by Louguantai Forest Farm and then submitted to the PMO for 

approval. Once approved the plans will provide the agreed work plan for releasing project funds. It is 

envisaged that the plans would include at least the following needs: (i) forestry management, (ii) 

enterprise development, (iii) social infrastructure, and (iv) infrastructure access. 

102. For forestry, local residents will receive support for the development of nurseries, planning 

costs and for the planting expenses. The labor input to planting will be financed through the Project. 

The program will be facilitated by trained planners (staff of Louguantai Forest Farm) and supervised 

by Louguantai Forest Farm staff. A total of 5,000 ha of analog conservation forestry is budgeted 

although this figure will need to change to represent the village planning outcomes. Mixed species 

forests that mature into forests that are analogous to natural forest will provide substantial wildlife 

benefits, reduced soil and water loss, and both forest and non-forest products for harvest. It is 

expected that up to 3.5 ha may be allocated to each household based on 100% involvement and 5ha 

based on approximately 70% involvement. 

103. CDA communities will also access project funds for social infrastructure, small enterprise 

development and improved access through the VDP. The small enterprises will be linked to 

sustainable forest production systems or other benign activities such as bee keeping, essential oil 

production, medicinal plant production. To avert the risk to naturally growing plants households will 

also have access to plant materials and production grants to produce raw materials for local 

enterprises. For enterprises involving processing of plant materials these enterprises will be operated 

by the forest associations. The PMO and QNBG will administer the contracts on behalf of the 

associations. Opportunities and interest in such enterprises will be identified during the village 

planning process. These will be assessed through research studies into plant and plant extract for 

essential oils and medicinal plants. Support is provided for market research and market chain linkage 

studies to ensure viability and to maximize local producers into value chains. 

104. A total of 8 Community based ecotourism home-stays for medium to high value clients will be 

developed to support the growing demand for overnight accommodation in wild or natural 

environments. It is proposed to differentiate these from existing home stays by providing a slightly 

higher quality of service and accommodation. 

105. Community infrastructure including 17.5 km of roads along the Tianyu River and 109 km of 

mountain pathways will be upgraded to reduce travel times and ensure access during adverse 

weather. Grants will also be available for either villages or households to develop social infrastructure 

especially alternative energy sources (biogas and solar) and water supply schemes where these are 

identified during the village development planning program. 

106. Demonstrating Conservation of Biodiversity The CDA will be used as a demonstration and 

training program for those working in other parts of the Qinling Mountain. In effect, it will operate as a 

field conservation training and demonstration area from which methods and skills are developed and 

then lessons learned disseminated. The project will prepare a detailed forest and habitat management 

plan for the CDA as a training program for agency staff in the Qinling Mountains. A total of 2,000ha of 

habitat restoration will be completed using ecological research, forest silviculture, under-storey 

planting, and canopy manipulation. The objective of habitat restoration is transform existing 

33


monoculture forest plantings into mixed species forest cover that approach the forest architecture of 

natural forests. Technical assistance will be supported by GEF for defining and implementing the 

Conservation Forestry Programs. Research into tree and shrub species, ecological impacts and 

monitoring grad-sects, permanent sampling plots will assess the impact on floral characteristics, 

environmental parameters, and overall forest structure. The data sets will provide a strong basis on 

which to develop future policy and government interventions within the Qinling Mountains, especially 

within the corridors that link protected areas. Lessons learned should also be incorporated into the 

proposed landscape planning exercise, biodiversity monitoring and information services and project 

dissemination program (see Component 3). The conservation program will be implemented by the 

Louguantai Forest Farm based on the habitat management implementation plan and will offer 

employment to local CDA residents to provide the labor for all field activities. 

107. The Project will address Qinling Mountains biodiversity and its status as a global biodiversity 

hotspot through developing endangered species management programs that will operate within and 

beyond nature reserve boundaries. Support will be provided to undertake the research and 

management planning for five endangered species and for initial implementation programs. The CDA 

endangered species management program will focus on using the Project Area as a field 

conservation research area from which monitoring and lessons can be disseminated throughout the 

conservation sector in the QM. In addition, the program will integrate the ex-situ species management 

program of the Shaanxi Animal Rescue Center (see Component one) with the CDA endangered 

species management programs through making significant operational and management changes to 

SARC and its facilities. The integration will be developed through shared research, joint planning 

exercises and sharing of data and experiences. In the medium term options for controlled release 

programs and supporting research will be included in species management plans. The program will 

be implemented by QNBG through the SARC division. 

3. Component 3: Institutional arrangements to support market based approaches 

for biodiversity conservation 

108. The Component will develop the institutional arrangements and mechanisms to introduce 

programs supported by market based approaches. The component will deliver (i) effective Project 

Management, (ii) legal reforms, and (iii) a conservation replication and dissemination program. 

109. Project Management The Project will be implemented through a Project Management Office 

that will support the newly formed QNBG and Louguantai Fudi Hotsprings Development Ltd to 

coordinate implementation amongst the Implementing enterprises. The PMO will be supported with 11 

staff supplied by the Shaanxi Department of Finance, PDRC, and Shaanxi Forest Department. The 

project will fund staff, office facilities and equipment, Project Impact Monitoring contracts in Project 

Years 1, 3 and 5, and resettlement monitoring for the first three years. The resettlement monitoring 

will report direct to both the PMO and ADB on resettlement outcomes. A total of 15 professional job 

exchanges for up to two months are allocated to QBG (5), SARC (5), and other non IA’s and EA 

staff(5). Procurement planning will be undertaken by each of the Implementing enterprises and will 

be administered by a local bidding company contracted by the PMO on a percentage fee basis. 

110. Institutional Strengthening The Project will support essential institutional reforms for the 

purpose of enabling project implementation and long term feasibility and sustainability of the Project 

strategy. The Project will undertake legal reviews and develop recommendations for the Government 

on four policy issues relating to (i) reform of collective land tenure in Shaanxi Province, (ii) the 

establishment of community partnerships in natural forest management, (iii) the development of 

operational guidelines and standards for ecotourism in Shaanxi, (iv) an assessment of options for 

developing IEM sustainable management policy. The studies will be awarded as contracts to institutes 

and individuals with a strong knowledge in the subject matter. 

111. The QNBG will be established before Loan Negotiations and all assets and business interests 

transferred into the new organization. Under the QNBG the sustainable financing mechanisms are 

more easily implemented. Under the consolidated organization the capital levy can be captured within 

the accounting system and transferred to a separate ledger account and even Bank account if 

necessary. These funds would become the revenue for the proposed CDA business group and made 

available through the Board of Directors based on a rolling three year work plan and an annual work

plan budget. Provision for this arrangement will need to be written into the constitution of the new 

organization. 

112. Replication Program The Project will undertake a series of participatory programs involving 

biodiversity expertise from over the whole Qinling Mountains using the Project Area as a basis for 

developing and testing approaches to field conservation. Shaanxi Forest Department with support 

from WWF have cooperated to produce important gains in a landscape approaches to management 

of Nature reserves and the linking corridors and also the remaining forest farm lands. Support will be 

provided for a process of defining and testing landscape planning and conservation management 

models for the Qinling Mountains where the total Project Area shall be used to complete a landscape 

planning and management model. The model will be evaluated and then used to prepare landscape 

management guidelines for the Qinling Mountains. The approach seeks to develop consensus, 

understanding and skills, as well as identify existing data and approaches that could be applied to the 

Landscape plan. Participants will form a professional communication network for conservation 

workers that will be used for the dissemination program and seek to build a stronger professional 

cadre across geographically and institutionally scattered personnel. An integral part of the landscape 

plan will be a master tourism plan for the ex-situ zone and Louguantai in particular. The project will 

assist stakeholders to develop a tourism spatial plan that can guide the Louguantai Forest Park 

ongoing investment program. 

113. A critical aspect of the replication program will be the capture and analysis of data and its 

subsequent dissemination. Support is provided for the development of a data collection system 

including field monitoring equipment such as camera traps, GPS etc., data collection costs for 4 years 

including the purchase and interpretation of imagery, training for existing LFF staff to form a field 

monitoring team. The Monitoring team will be supported and trained by WWF to develop monitoring 

capacity that is consistent with other parts of the Qinling Mountains conservation system. WWF is 

selected due to its existing extensive monitoring program in the Qinling Mountains and its close 

association with the Shaanxi Forest Department. The SFD GIS will form the basis of an information 

service provider for the Project and planning processes within the Project. These will include the 

range of research and planning contracts that will be undertaken in other components. The Project 

will develop a biodiversity monitoring framework for the Project Area based on work completed to data 

and similar initiatives being support by SFD. Technical assistance is provided for developing 

advanced field monitoring techniques. The baseline will be formed through a series of contracted field 

survey and research studies involving (i) vegetation studies, (ii) vertebrates, (iii) invertebrates, (iv) fish 

and aquatic biodiversity, (vii) amphibians, (viii) soil microbial organisms. While the ability to detect and 

quantify biodiversity impacts will be limited within the life of the Project data sets and analysis will be 

used in future evaluations and management decision making. 

114. The dissemination program shall be contracted by the PMO to an NGO or institute with 

proven experience in awareness and communication in rural China and the Qinling Mountains. The 

program will develop a communication strategy for the project as a whole and will work closely with 

the SFD - GIS and information services unit. The Program will include the communication of data, 

analysis and lessons learned from the project to a wide set of stakeholders in conservation and 

government administrations within the Qinling Mountains. The program will also build training 

programs for the development of awareness and understanding of market based approaches to both 

high and field level staff. 

C. GEF Financed Activities 

115. GEF will provide US $5 million in funding to the Project. Of the total amount funds are 

deducted to recover the project preparation costs and a 10% management GEF Executing Agency 

fee for ADB to provide Project oversight. The total GEF investment funds are therefore $4.27 million. 

116. The GEF will finance activities in all three components that directly related to strengthening 

the conservation of biodiversity in the Project area and the Qinling mountain range. GEF funds target 

the global benefits from globally threatened species and the GEF priority biodiversity conservation 

themes related to biodiversity conservation outside of nature reserves in the wider landscape and the 

sustainable financing of biodiversity. The approach to the use of GEF funds emphasizes the 

development of communication and shared information and lessons through wider participation in 

conservation planning and decision making, the demonstration of new management systems related 

35


to landscape wide planning, the development of species management plans over the total Qinling 

Mountain, new technologies including monitoring and information systems, the use of analog forestry 

models and ecologically defined habitat restoration programs. 

117. In output 1, GEF financing of US $174,000 is used to support the SARC ex-situ species 

recovery and management technical expertise for Giant Panda, Crested Ibis, and Golden Monkey. In 

addition ex-situ conservation facility design expertise will be provided to advise the detailed design 

process. The expertise will ensure that a world class ex-situ breeding program is undertaken and that 

these programs are consistent with national priorities and plans. 

118. In output 2, GEF will provide US $ 1.2 million of funding into the demonstration of 

conservation of biodiversity (subcomponent 2). Specifically the funding will be used to support (i) the 

preparation of a habitat and natural forest management plan ($99,600), (ii) ecological research grants 

($318,700) to develop the data sets and to test silvi0culture systems for habitat restoration, (iii) 

conservation forestry technical assistance to support the habitat restoration programs. Additional 

support is provided for the development of capacity and programs for endangered species recovery 

including (i) field survey contracts ($ 378,600), (ii) species recovery management plans ($151,100) 

and (iii) initial implementation of recovery implementation programs ($160,900). 

119. In output 3, GEF funding of $ 2.9 million will support (i) 4 legal reform studies and drafting 

programs, (ii) Landscape conservation planning ($749,700), (iii) field conservation monitoring 

including monitoring contracts ($151,100),WWF technical support and training contract ($44,000), 

monitoring equipment ($35,000) and monitoring training ($42,100), (iv) Technical assistance for 

species and monitoring expertise, (v) monitoring baseline research contracts ($576,200), (vi) support 

15 job exchange opportunities for technical conservation staff, and (vii) a replication and awareness 

program ($291,800). These programs involve an on-going planning process that seeks to develop a 

communication process between conservation stakeholders, define how to do biodiversity 

conservation planning within the Qinling Mountains landscape and actually demonstrate this within 

the Project Area. This process will not adopt a nature reserve focus but will focus on key species and 

their management within the Qinling Mountain Range and how the scattered management units and 

their staff can jointly contribute to the overall goal. 

120. Replication systems rely heavily on shared data and through the process of joint planning and 

discussions, the ongoing piloting of ideas and technologies in the Project Area, ecological and 

species research programs. These activities will generate substantial data, information and lessons 

that will captured within the Qinling Mountains GIS held by SFD and supported by WWF. A WWF 

contract will be awarded for year one and two to provide technical monitoring training to QNBG.

Component 

Sub-component 

Table 4: Project Use of GEF Funds 

Component One Technical assistance for 

captive breeding 

Component Two 

2.2 - CDA conservation of 

biodiversity 

Component Three 

Item Amount (USD ‘000’s) 

- Habitat Plan 99.6 

- Ecological research 319 

- Conservation Forestry Expert 72.4 

- Endangered species program 

– (5 plans, research contracts 

690.6 

and 

grants) 

initial implementation 

3.2 - Institutional Strengthening Legal Reforms 330 

3.3 - Replication Programs Qinling Mountains Landscape 

Planning 

Monitoring and information 

750 

- SFD monitoring costs 151.1 

- WWF training 44 

- Training in monitoring 42.1 

- Monitoring equipment 35 

(SQNBG) 

- TA 517.7 

- Research Monitoring 576.2 

Contracts 

Job exchange 176.6 

Dissemination programs 291 

Total GEF Investment 4,270 

D. Special Features 

121. The Project has a number of new innovations and approaches for China. The central 

innovation is based on support for commercial enterprises within a small intensive use zone to 

generate revenue for the management of biodiversity in the larger low impact or non-use area. The 

commercial enterprises being built are currently small government units that have responded to 

customer demand for rare animal experiences, or recently formed Public enterprises working in Joint 

Ventures to exploit the market potential of natural attractions such as hot springs, the home of Daoist 

religion, and a remarkable landscape. The Qinling Botanical Garden is responding to the belief that 

the current and future visitation offers a captured market that it can gain benefit from as well as 

generate its own visitor profile. The agreed transfer of financial resources from these three ex-situ 

enterprises to the CDA conservation program will provide a sustainable financing mechanism that is 

not reliant upon continued donor or Government support. 

122. The Qinling Botanicalal Garden does require land ownership rights and land use rights over 

the 269ha required for its development. This will require resettlement and compensatory mechanisms 

to enable households to re-establish their lifestyle and incomes. Land to be used for construction will 

be acquired at market rates. The land use rights for the area to be planted will be rented from existing 

farmers who will receive compensation through a fixed payment per mu and a share of profit or 

revenue of the enterprise. All employment generated by the Project will in the first instance be offered 

to affected persons and thereafter to people living within the Project Area. 

123. The development of the Shaanxi Animal Rescue center offers world class and highly 

demanded tourism opportunities linked to globally iconic species including (i) Giant Panda, (ii) Crested 

174 

37


Ibis, (iii) Golden Monkey. The iconic nature of these species and their use in ex-situ conservation and 

commercial exploitation needs to be world class. International scrutiny can be expected in relation to 

the care and welfare of animals and the possibility of creating incentives for further wild harvesting of 

animals for commercial benefit. Both the ADB and the Government need to fully recognize the extent 

of scrutiny that can be expected and to jointly ensure best practices are followed. The proximity to 

Xian and the mass tourism market driven mostly by the Terra Cotta Soldiers provides an exciting 

opportunity to link the Project Area its enterprises and its inhabitants to the Shaanxi tourism market 

chain. The potential benefits from tourism and nature tourism are such that significant reductions in 

the levels of household poverty in mountainous villages of the Project Area are envisaged. 

124. An important feature of the Project is the use of a smaller manageable Project area as a field 

conservation demonstration area and the linkage of this to the wider Qinling mountains. The nature of 

this linkage being through the participation envisaged in the preparation and review of Qinling 

conservation priorities and plans, the demonstration of new technologies and practices and the 

sharing of information and opportunities for research, monitoring etc. The proposed Project Area 

institutional and organization reforms mirror the major challenge facing improved management in the 

wider Qinling Mountains. Here the vast array of scattered and often overlapping organizational 

interests has resulted in competitive behavior, lack of cooperation, wastage of resources, and the 

dilution of skills in shortage. The consolidation of enterprises into one singular management, entity 

would be a significant achievement that has benefit throughout China and natural resource 

management. 

125. The use of GEF funds has purposively been kept at a distance from existing Implementing 

agencies. The EA, Shaanxi PDRC wished to allocate these resources often competitively to institutes 

and NGOs that can match the grant funds with their own resources. As such the EA seeks to lever 

additional resources into the Project and ensure the most cost effective use of GEF resources. 

E. Project Investment Plan 

126. The project investment cost is estimated at $ 129.2 million, including taxes and duties of $6.0 

million.

Table 5: Project Investment Plan 

($ million) 

Item Amounts a 

A. Base Cost b 

1. Component A Commercial Ex-Situ Business 93.6 

2. Component B CDA Livelihoods and Conservation 15.1 

3. Component C Institutional Arrangements 5.9 

Subtotal (A) 112.6 

B. Contingencies c 

10.6 

C. Financing Charges During Implementation d 5.9 

D. Commitment charge 0.1 

Total (A+B+C+D) 129.25 

a 

Includes taxes and duties of $6.0 million. 

b 

In mid 2007 prices. 

c 

Physical contingencies computed at 5% for civil works; and 5% for field research and development, 

training, surveys and studies. Price contingencies computed at 1.9% on foreign exchange costs and 

2.2% in 2008 and 3% thereafter on local currency costs; includes provision for potential exchange 

rate fluctuation under the assumption of a purchasing power parity exchange rate. 

d 

Includes interest, commitment charges and front end fees. Interest during construction has been 

computed at the five-year forward London interbank offered rate plus a spread of 0.4% after waiver. 

Source: PPTA estimate 30 August 2007 

F. Financing Plan 

127. The Government of Peoples Republic of China has requested a loan of US $40 million from 

ADB’s ordinary capital resources to help finance the Project. The loan will have a 25 year term, 

including a grace period of 6 years, an interest rate determined in accordance with ADB’s London 

interbank offered rate 5.4% -based lending facility, a commitment charge of 0.75% per annum, 19 .and 

such other terms and conditions set forth in the draft loan and project agreements. The Government 

has provided ADB with (i) the reasons for its decision to borrow under ADB’s LIBOR-based lending 

facility on the basis of these terms and conditions. ADB loan funds will contribute 31% of the total 

cost of financing. GEF will finance $4,27 million or approximately 3.3% of the total project cost. The 

remaining US $ 84.93 million (66%) will be contributed by the Shaanxi Provincial Government as 

counterpart funds or from enterprise revenues. 

128. The Government of PRC shall on end the loan funds to each Implementing Agency on the 

same terms and conditions of the loan. Counterpart funding will be managed by each of the 

Implementing agencies from their own resources or those guaranteed from other Government 

Agencies. Counterpart funds will be provided for the Qinling Botanical Garden Enterprise on a 1 to 1 

ratio between loan and counterpart funds. The counterpart funds for the Qinling Botanical Gardens 

will be provided by State Forest Administration (SFA), Chinese Academy for the Advancement of 

Sciences (CAAS), Shaanxi Provincial Government (SPG) at 28.5% per each while the remaining 

14.25% will be provided by the Xian Municipality. For the Shaanxi Animal Rescue center counterpart 

funds will be provide by the Shaanxi Forest Bureau. The Hot springs counterpart funds will be 

provided by the management entity FUDI Tourism Development Co Ltd – which is a joint venture 

company representing Shaanxi Tourism Group Company (51%) and Louguantai Forest Farm (49%). 

19 

{Where commitment charges form part of interest during construction, show these as separate line items in the 

cost estimate table.} 

39


Source 

Table 6: Financing Plan 

($ million) 

Total % 

Asian Development Bank 40.0 31 

Global Environment Fund 4.27 3.3 

Government 84.93 65.7 

Total 129.2 100.00 

Source: PPTA Estimate 13July 2007 (Government includes both counterpart funds and 

revenue from Implementing Agencies – see Appendix 13 for details) 

G. Implementation Arrangements 

1. Project Management 

129. The Executing Agency (EA) responsible for the overall implementation of the Project is the 

Shaanxi Forest Department. The SFD will be supported by a PMO operated by PDRC with staff from 

SFD, and Shaanxi Department of Finance. The SFD will work closely with a high level Co-ordination 

Commission staffed by representatives of the QNBG and Louguantai Fudi Development. The PMO 

will be staffed with a total of 11 positions and will be the focal point for the Project administration and 

management. 

130. The Implementing Agencies shall be the QNBG and the FUDI Tourism Development 

Company Ltd. Each Implementing Agencies will establish a Project Implementation Unit to administer 

implementation. 

131. The PMO will support project administration through the contracting of a procurement agency 

to undertake the Project procurement program on a fee for service basis. The PMO has successfully 

used this approach for World Bank projects previously. 

2. Implementation Period 

132. The Project will be implemented over a 5 year period from March 2008 to March 2013. The 

Implementation schedule is presented as part of Appendix 11.

Qinling National 

Botanical Garden (Implementing 

Agency) 

Qinling National Botanicalal 

Garden Enterprise 

Shaanxi Animal Rescue Center 

Louguantai Forest Farm 

3. Procurement 

Figure 8: Project organization chart 

ia 

Project Coordinating Committee 

Shaanxi Provincial Government, through 

the Provincial Development and Reform 

Commission working with the 

Department of Finance and Shaanxi 

Forest Bureau 

(Executing Agency) 

Project Management Office 

Louguantai Fudi Tourism 

Development Ltd. through 

Louguantai Hot Springs 

Development Division 

(Implementing Agency) 

133. Goods, related services and civil works financed partly or wholly by ADB and GEF will be 

procured in accordance with ADB’s Procurement Guidelines (as amended from time to time) and the 

Procurement Plan described in Appendix 12 which will be reviewed and updated on an annual basis. 

Contract packages for goods and related services exceeding $1,000,000 will be awarded on the basis 

of international competitive bidding or limited international bidding, while those costing between 

41


$100,000 and $1 million will be awarded through national competitive bidding. Contracts below 

$100,000 will be procured through shopping. For contracts below $100,000, direct contracting can be 

used. Civil works contracts costing more than $10.0 million will be procured using ICB, while those 

valued at the equivalent of $10.0 or less can be procured using the national competitive bidding 

procedures, in accordance with the PRC’s Tendering and Bidding Law (1999), subject to 

clarifications 20 to the law that have been agreed with ADB for the purposes of ADB's Procurement 

Guidelines. For small-scale works, contracts in rural areas may be awarded using community 

participation procedures. The selection of suppliers/contractors and award of contracts will be subject 

to ADB’s approval. 21 The relevant sections of ADB’s Anticorruption Policy will be included in all 

procurement documents and contracts. 

134. The PMO will monitor and report of the implementation of the Procurement Plan and will 

coordinate procurement activities through the use of a procurement agency under the Project. 

Measures to strengthen the capacity of the PMO and IA staff in undertaking procurement activities will 

be implemented including training on procurement and other aspects of project implementation. PMO 

staff will also be nominated to attend ADB-sponsored course and seminars on procurement and 

project implementation prior to Loan effectiveness. 

4. Consulting Services 

135. Project will finance two consulting packages. Package A, supports 6 experts both international 

(3pm) and domestic (3pm) to support the technical design and operation of the proposed SARC 

expansion. The experts will have experience in Panda, Ibis and Golden Monkey ex-situ conservation 

and will be recruited by SARC using QBCS rules based on a 80:20 technical financial assessment to 

ensure high quality technical expertise. Package B will support conservation and planning activities as 

well as capacity building of IA’s and includes a total of 71 person months being 17 months of 

International and 54 months of domestic. These positions will include technical support for village 

level development planning, design expertise of ex-situ conservation, tourism planning inputs, 

conservation forestry planning and technical support, GIS and in formation services technical and 

design inputs , biological surveying technical input for monitoring and biodiversity conservation 

expertise to analyze and use monitoring data. A summary of all consulting packages is included 

under Appendix 8. All recruitment will follow ADB’s Guidelines on the Use of Consultants (April 2006, 

as amended from time to time) by ADB and its Borrowers. 

20 http://coso/documents/ellah/NCB_Amex_PRC.doc 

21 ADB will require the PPMO to use ADB-approved standard bidding documents to ensure high quality and 

consistency of the documents, and to facilitate ADB’s review of the documents. This will be reflected in the 

Project Administration Memorandum to be prepared for the Project during appraisal.

Position 

Package A: 

Package A –SARC 

International 

Table 6 Summary of Consulting Services 

Total Person 

Month 

Project Yr 

One 

Panda Expert 1 1 

Ibis Expert 1 1 

Golden Monkey 

Expert 

Domestic 

1 1 



Golden Monkey 

Expert 

Total Package A 

(USD 0.123 million) 

Package B 

International 

Species Recovery 

Expert 

1 1 

6 6 

Project Yr 

Two 

5 0 5 

Biological Surveys 5 0 5 

Biodiversity 

Conservation 

5 0 5 

Tourism Planner 10 3 7 

Animal Exposition 

Design expert 

1 1 

Wildlife vet 1 1 

Subtotal 

International 

National 

Project Yr 

Three 

17 4 13 0 

Village Planner 6 2 2 2 

Tourism Planner 24 6 10 8 

Conservation 

Forestry 

9 3 3 3 

GIS Expert 5 0 5 


and Surveys 


Expert 

5 0 5 

5 0 5 

Subtotal National 54 11 30 13 

Total Package B 


5. Anticorruption Policy 

71 15 43 13 

136. ADB’s Anticorruption Policy was explained to and discussed with NFD and the Implementing 

Agencies. Consistent with its commitment to good governance, accountability, and transparency, ADB 

reserves the right to investigate, directly or through its agents, any alleged corrupt, fraudulent, 

43


collusive, or coercive practices relating to the Project. To support these efforts, relevant provisions of 

ADB’s Anticorruption Policy are included in the loan regulations and the bidding documents for the 

Project. In particular, all contracts financed by ADB and GEF in connection with the Project will 

include provisions specifying the right of ADB to audit and examine the records and accounts of NFD, 

the IAs and all contractors, suppliers, consultants and other service providers as they relate to the 

Project. The Project design and implementation arrangements provide for mitigating corruption risks. 

Risks associated with project management, including procurement and disbursement, will be 

mitigated by (i) engaging an international consultant and a national consultant to advise and assist in 

the procurement of goods and services, and the engagement of other consultants; (ii) introducing a 

dual signing system in which the civil works contractor awarded the contract will also sign an 

anticorruption contract with the employer; and (iii) periodical inspection by the PPMO of the 

contractor’s activities related to fund withdrawals and settlements. 

6. Disbursement Arrangements 

137. The proceeds of the loan will be disbursed in accordance with ADB’s Loan Disbursement 

Handbook, as amended from time to time. 22 Because many of the payments will be made for large 

contracts, direct payment, reimbursement, and commitment procedures will be used to withdraw 

funds from the loan account. To expedite the flow of funds and simplify document processing, the 

Statement of Expenditure procedure may be used to reimburse eligible expenditures for any individual 

payment not exceeding $100,000. The payments exceeding Statement of Expenditure ceiling will be 

reimbursed based on full documentation process. Before disbursement, the PRC Government shall 

have certified to ADB that the onlending agreement, which shall include the terms and conditions 

required under the loan agreement, shall have been duly effective and binding upon the parties 

thereto in accordance with its terms. GEF grant funds will be channeled through ADB. To expedite the 

disbursement of the loan and the GEF grant proceeds, the Government through the Shaanxi 

Department of Finance will set up two imprest accounts, one for the loan proceeds and the other for 

the GEF grant, in a commercial bank acceptable to ADB. 

138. Disbursements from the imprest accounts will be supported by an appropriate withdrawal 

application and related documentation. The initial amounts to be deposited in each imprest account 

shall not exceed the estimated expenditures for the next 6 months or 10%, respectively, of the loan 

amount and GEF grant, which ever is the lower. Each sub-borrower will open a second generation 

imprest account. It will be a condition of disbursement of the loan proceeds and the GEF grant that (i) 

the onlending agreement for the relevant activity has been entered into between the Government and 

the sub-borrowers, and (ii) such onlending agreements contain the same financial terms and 

conditions as required in the loan agreement. 

139. The PMO required additional capacity and experience to efficiently deal with the operation 

and withdrawal procedures necessary for the operation of the imprest accounts. Accordingly, 

assistance and training will be provided so that PMO staff and the IA staff can expedite loan and GEF 

grant disbursements. 

7. Accounting, Auditing, and Reporting 

140. All agencies involved in project implementation will maintain records and accounts that 

identify goods and services from loan proceeds and the GEF grant, financing resources received, 

expenditures incurred and use of local funds. These accounts will be established and maintained in 

accordance with sound accounting principles and internationally accepted accounting standards. The 

PMO will review and consolidate these accounts and have them audited annually in accordance with 

sound accounting practices by the sovereign audit agency of the Government or other auditors 

acceptable to ADB. The audit report will include a statement verifying whether or not the funds 

disbursed by ADB were used for the purposes for which they were provided, as well as the auditor’s 

opinion on the use of the imprest account and statement of expenditures procedures. Copies of the 

audited accounts and auditor’s report will be submitted to ADB within 6 months after the end of each 

financial year. The PMO will prepare consolidated quarterly reports indicating progress made, 

problems encountered during the period, steps taken or proposed to remedy the problems, proposed 

program of activities, and progress expected for the next quarter. Both the loan and GEF grant will be 

22 ADB. 2007. Loan Disbursement Handbook. January. Manila.

covered in these reports. Within 6 months of physical completion of the Project, PMO will submit to 

ADB a completion report that describes the achievements in relation to the Project’s expected impact, 

outcome and outputs. The Project is supporting the development and implementation of a Project 

Benefit Monitoring and Evaluation (BME) system. Implementation of the BME will be contracted to the 

third party by the PMO and will provide a statistical baseline, in Project Year one, an assessment of 

achievements in terms of inputs and output by mid Project year three and the overall outputs and 

outcomes of the Project in Project Year 5. 

8. Project Performance Monitoring and Evaluation 

141. To monitor the progress of the Project in achieving the planned outcome and outputs, the 

PMO will establish and maintain a project performance management system (PPMS), which will be 

designed to permit adequate flexibility to adopt remedial action regarding Project design, schedules, 

activities and development impacts. The PPMS will adopt the following agreed indicators (i) project 

progress, (ii) enabling framework improvements (policies legal/regulations harmonization and clear 

institutional mandates), (iii) results of capacity development, (iv)revenue and viability status of the 

three enterprises, (v) progress towards demonstration and pilot targets using participatory procedures, 

(vi) beneficiary impacts and (vi) related improvement to the sustainable financing of field conservation. 

Loan: 

ADB LIBOR-based rate, 

25 years with 5-year grace 

period 

Relending: 



period 

Onlending: 



period 

Figure 9: Flow of funds 

Asian Development Bank Global Environment 

Facility 

Government of the People’s 

Republic of China 

(Ministry of Finance) 

Shaanxi Provincial Government a 

(Department of Finance) 

Separate imprest accounts for ADB 

Loan and GEF Grant in US$ and 

CNY 

Subborrowers 

Qinling National Botanicalal Garden 

Louquantai Fudi Tourism 

Development Ltd. 

Grant 

Grant 

Grant 

45


142. At Project inception, the PMO, in consultation with each sub-borrowers and with the 

assistance of the consultants, will develop comprehensive PPMS procedures to systematically 

generate data on inputs and outputs of the project activities; and the socioeconomic, health, and 

environmental indicators to measure project impacts. This will include individual and consolidated 

work plans that once approved will form the basis for assessing progress and achievements, 

143. The PMO will refine the PPMS framework, confirm achievable targets, firm up monitoring and 

recording arrangements, and establish systems and procedures no later than 6 months after Project 

Effectiveness. Baseline and progress data will be reported at the requisite time intervals by the IAs to 

the PMO, including resettlement monitoring results and reporting on any environmental management. 

The PMO will be responsible for analyzing and consolidating the reported data through its 

management information system, and for reporting the outcome to ADB through the quarterly 

progress reports. 

9. Project Review 

144. In addition to regular monitoring, the project performance will be reviewed at least twice per 

year for the first two years and once a year thereafter, jointly by ADB and the Government. The review 

will assess implementation performance and achievement of progress towards project outcomes and 

outputs, financial progress, identify issues and constraints affecting implementation, and work out a 

time-bound action plan for their resolution. ADB and the Government will undertake a midterm review 

prior to the end of Project year three to assess implementation status and take appropriate measures 

including modification of scope and implementation arrangement, and reallocation of loan and grant 

proceeds, as appropriate, to achieve the Project’s objectives. 

IV. PROJECT BENEFITS, IMPACTS, ASSUMPTIONS, AND RISKS 

A. Financial and Economic Analysis 

1. Benefits and Impacts 

145. In the Project area, the northern flat land will be zoned for high volume tourism based on three 

major enterprises and the existing Louguantai Daoist attractions. The major purpose of the zone is to 

develop commercial enterprises that generate resources that can be transferred for investment into 

the sustainable management of natural resources within the CDA. The commercial enterprises will 

provide significant employment opportunities for local residents in the ex-situ and CDA and the 

surrounding fringe areas. The marketing of the enterprises will seek to develop a strong cultural, 

ecotourism, nature tourism focus around the concept of a Louguantai experience. Tourism 

development will be planned with safeguards to ensure environmental pollution is managed including 

solid waste management, waste water, and noise and air pollution. The three enterprises will be 

integrated within a Louguantai spatial tourism plan that seeks to develop an additional tourism 

attraction that extends the current duration of stay in Xian by one half to one day per national and 

international visitor. Within the Ex-situ zone there will be 10,000 jobs created during the construction 

phase and a further 870 permanent jobs within the enterprises. These jobs will be awarded to local 

community members wherever possible. There will be substantial indirect employment providing 

services and selling goods to those who benefit from employment. 

146. The CDA will be treated as a field conservation zone where new approaches and techniques 

are applied to achieve the dual objectives of (i) increasing the forest cover to protect soil and water 

resources, and (ii) to increase the quality of forest cover to mimic the architecture and structure of 

nature forest habitats to increase the value of forests as habitat and for biodiversity conservation. The 

Project seeks to achieve these objectives by reversing past policies of excluding local villagers by 

with-holding forest rights for collective forest lands, establishing an exemption to manipulate existing 

forest cover on both collective land and Louguantai Forest Farm land. The remaining 4,593 residents 

will be provided with rights to their land and will receive assistance to (i) establish analog forest 

systems on this land, (ii) grants to develop local value adding industries for forest derived products 

including essential oils and medicinal plants, (iii) assistance to establish a total of 10 home stays 

comprising of 4 rooms per home stay, (iv) access to resources for introducing alternate energy and

water supplies, (v) a program to improve access through upgrading the Tianyu River road and a 

network of mountain pathways. 

147. In total 5,000ha of collective forest land will be transformed into analog /conservation forestry 

that supports increasing biodiversity and local livelihoods. A further 2,000ha of habitat restoration will 

be implemented on the State Forest land using a field based experimental approach to move from 

plantation orientated forest cover to more natural forest systems. In total an estimated 4010 full time 

equivalent jobs will be created within the CDA area over the final four years indicating employment 

benefits will be available for about 1 in 4 residents. In addition, a total of 100 permanent jobs for the 

home-stay businesses and an estimated 100 jobs for the small and medium sized businesses and a 

further 200 plus for maintaining the conservation forest program on State Land. 

148. Beyond the Project funds will continue to be invested into the CDA zone through the 

sustainable financing mechanism. Current estimates indicate a transfer of approximately USD 

400,000 from 2012 will be available. These funds will continue to invest in the Project Area, however 

as funds increase some resources will target biodiversity in the wider Qinling Mountains providing 

additional benefits to the conservation of biodiversity. The role of the Project in the CDA area is to 

engage villagers and land owners to introduce new techniques that can continue to be supported 

once the eco fund system reaches viability. 

2. Financial Analysis 

149. Financial analyses were carried out for the three commercial enterprises in Component one 

and for the Home stay tourism activities. The small and medium enterprises, and conservation 

forestry livelihood models were not financially assessed given (i) the uncertainty of the exact nature of 

the business and its scale, (ii) the long term nature of the forest investment and the very high 

proportion of public good benefits linked to habitat creation and improved ecological services. 

150. The commercial enterprise display financial returns (FIRR) both pre and post tax that exceed 

the WACC - see Table 6. The QBG has a lack of liquidity during the construction period that the 

Government has acknowledged and indicated their commitment to underwrite this working capital 

requirement of the enterprise during this period. With this commitment the risk of failure is reduced 

however the QBG as currently proposed must be considered a risky investment. 

151. The impact of the Qinling Botanical Garden shareholding distribution based on the 6% of NCF 

reduces the before tax FIRR from 9.5% to 9.1% while the post tax FIRR declines to 7.5%. Including 

the revenue transfer to the Louguantai Forest Farm are included the FIRR reduces to 8.5% and 6.8% 

respectively. The impact of visitation level is highlighted as the same models return FIRR of 12.8% 

after shareholder payout and revenue redistribution based on the Chinese Feasibility Study visitation 

of 600,000 in year one. 

152. The FIRR for the home stay option is presented in Appendix 16 with a resultant FIRR of 19%. 

No FIRR was calculated for the total Project. 

Table 7 Summary of Financial Analysis (before income redistribution) 

Parameter QBG SARC Hot Springs 

NPV (10%) -2105 18085 1916 

FIRR (Pretax) 8.8% 15.96% 13.7% 

Costs plus10% 8.3% 14.8% 10.9% 

Revenue minus 10% 8% 13.9% 9.4% 

FIRR (Post Tax) 7.1% 13.5% 10.9% 

WACC 

(source PPTA estimates) 

5.6% 5.6% 6.7% 

153. The combined Qinling Botanicalarden and SARC provides an FIRR of 9.3% after tax, 

shareholder distribution, and revenue transfer to the Louguantai Forest Farm. However this does not 

47


represent the NQBG as it does not include the financial costs and revenues of either (i) Louguantai 

Forest Farm and (II) the NQBG management overheads. 23 

3. Economic Analysis 

154. Economic analysis was undertaken for the three commercial enterprises and the project as 

whole. The quantified benefit stream for the commercial enterprises was limited to the visitation and 

revenue data for each enterprise and did not include the contribution to global species management, 

genetic collections for biodiversity, cultural and religious values, and scientific contribution to 

biodiversity conservation. No economic benefits were quantified for the impacts and benefits arising 

from the profit redistribution to the CDA program. 

155. The EIRR’s range from 11% to 23% and indicate a economic feasible investment. The QBG 

enterprise is the least feasible investment however the base revenue assumptions are purposively 

conservative which results in an EIRR set to the hurdle rate see Table 7. The EIRR for Component 

One is 14.2%. The EIRR for the combined Qinling Botanical Garden and SARC is 13.7%. The EIRR 

for the home stay (10 enterprises) is estimated to be 23%. 

156. No EIRR was calculated for Component Two and three due to the public good and uncertainty 

attached to the quantification of benefits. The benefits are substantial in terms of potential livelihood 

and environmental improvements in the CDA zone and the wider Qinling Mountains. The EIRR for the 

total Project is estimated to be 10.9%. Further details on economic analysis can be found in Appendix 

16. 

Table 8 Economic Assessment of Commercial Enterprises 

Parameter QBG SARC Hot Spring 

NPV(10%) 2,496 22,965 5,657 

EIRR 11% 17.9% 23% 

EIRR (costs +10%) 10% 16% 20% 

EIRR (revenue -10%) 9.3% 15.4% 17.9% 

4. Risks 

157. The Project will introduce commercial enterprises into a small less ecologically sensitive part 

of Project area. The revenue and net profit generated will be reinvested in the larger CDA important 

for conservation purposes. Past models of conservation management have proven to be successful 

during the life of a project but have often failed on Project completion due to the lack of institutional 

arrangements and non-sustainable financing arrangements. The Project will address both of these 

issues directly. A major risk to the investment is the continuation of the layering of government units 

over the same land and forest resources resulting in competitive institutional behavior that is 

contradictory to the Project requirements and goals of sustainability. 

158. The overall Project impact and outcomes will not be achieved unless there is a formal 

commitment to the transfer of a profit share to fund the CDA program. As a minimum this should be 

set as a charge against the business assets both land and capital invested once these values are 

known as part of the institutional reforms. For the intervening period the ADB and PRC need to 

formally agree that a minimum of USD 400,000 will transfer starting from 2012. 

159. The QBG enterprise currently has little or no commercial experience and the existing capacity 

is assessed as being inadequate for the proposed Project in terms of financial management, 

commercial market orientation, and use of capital efficiently. The forecast cash flow and economic 

return is marginal and when combined with the current assessment of capacity creates a risk that 

needs to be addressed. While there is a proposal for an institutional strengthening TA grant from ADB 

this remains unconfirmed. Without the input to institutional strengthening the Project has a high 

chance of failure. 

23 

The NQBG was not agreed until Loan Fact Finding and the staffing needs and financial projections for both of 

these units have not been provided.

160. Other risks relate to (i) the impact of delays and cost over runs, (ii) potential issues relating to 

the possibility of invasive species being introduced by the QBG, (iii) the lack of land use rights and the 

possible uncertainty over the long term access to land for the QBG, (iv) animal welfare standards in 

SARC and the scale of the proposed development with respect to Panda breeding and research 

being far in excess of the numbers likely to be generated through the captive breeding programs. 

161. The vulnerability and lack of acceptable livelihood options for CDA residents needs to be 

reflected in Project implementation. There is no rapid short term solution if residents do not want to 

resettle voluntarily and there needs to be an agreed medium term commitment to improve the quality 

of life and wellbeing of some of Shaanxi Province poorest households. This will require recognition of 

rights, assistance to develop improved livelihood systems and inclusion in the management of the 

CDA program. Without these inputs residents will behavior with respect to their environment, 

biodiversity and natural resources will negate many of the expected Project benefits simply by 

necessity. 

5. Sustainability 

162. The Project’s overall sustainability will be achieved through three commercial tourism 

operations and the proposed institutional arrangements including sustainable financing. The 

underlying premise of the Project is to develop a self sustaining and financing management and 

conservation program for the Project Area and increasingly for this to be extended into the Qinling 

Mountains. Financial projections indicate that in the medium term substantial resource transfers can 

be delivered to the goal of biodiversity conservation. 

163. Post project the use of these transfers will have effectively reduced the demand on 

government resources to support the QBG, SARC and Louguantai Forest Farm and will create 

substantial tax revenues from these enterprises. The transfer of finance and its reinvestment into the 

CDA program will not be achieved without an appropriate governance and accountability structure 

that is managed through applying commercial best practice. The proposed formation of QNBG that 

consolidates the range of existing units and organizations seeks to introduce these functions. 

B. Social Dimensions 

1. Social Benefits and Poverty 

164. The Project benefits target the 20,356 people within the Project Area of which some 4,593 

reside within the CDA zone and a further 15,763 in the CDA zone – see Appendix 14, a further 23,405 

residents within the immediate fringe of the Project Area especially those located close to the ex-situ 

zone will also benefit. Within the Project Area the poverty ratio is estimated to be 37% on a head 

count basis or close to 40% on a household basis. However there are significant differences with the 

level of poverty in the CDA being over 70% compared to 23% for the ex-situ zone. The poverty in the 

CDA is highlighted by the low grain availability per capita of 198kg compared to 422kg in the ex-situ 

zone population with the CDA income per capita being only 18% of the national average. The 

livelihood survey conducted found that the stakeholders had extremely limited human capital with 

poor education levels amongst adults. The scattered nature of habitation in the CDA (12 persons per 

km 2 compared to 267/km 2 in the ex-situ zone) has limited the development of social capital that is 

further eroded by migration out of the Project Area. Physical capital has improved with road upgrading 

along the Tianyu river but other infrastructure is virtually non-existant. Financial capital is limited and 

access to borrowed capital is difficult due to the lack of security, deposits and access to banks. The 

natural capital is extremely rich, however much of the land is degraded and the forest resources are 

no longer available to local residents. Up to 50% of residents would resettle if they could afford to do 

so but realize that to find a receiving village, to pay for the relocation and to re-establish a household 

is unlikely. These households recognize that many who have resettled in the past are significantly 

worse off. Many of these households are dependent upon subsidies payments from Programs such 

as the Grain for green program, however the snow fall of 2006 resulted in very low production from 

economic trees grown under the grain for green program. A key issue of this group is the lack of 

tenure or use rights over the collective forest land that has been withheld since 1978. 

165. The ex-situ households are significantly better off with access to physical infrastructure 

especially roads, health and education services, more opportunity for off farm employment, access to 

49


productive land and markets for high value fruit crops including kiwifruit, sand additional land for 

renting. 

166. With increased employment developing in Xian males often migrate increasing the importance 

of the female in the households and the day to day input to food production. A gender action plan is 

included in Appendix 14. 

167. Overall, up to an estimated 10,500 households are expected to benefit from the Project the 

vast majority of these will be in the ex-situ zone or the fringe areas around this. the estimated 1237 

households in the CDA area will receive benefits from employment (500) , paid land conversion 

programs, opportunities to start small business, the assignment of forest use rights to the collective 

and then to the household with supporting conservation forest plantings, improved access, water 

supplies and access to alternative energy sources will also provide significant benefits. Within the exsitu 

zone there will be direct employment for 870 full time employees, and an additional 15,000 jobs 

during project construction. Flow on benefits will arise from the additional opportunities that arise fro 

increased tourism and economic development. The movement into forest based livelihoods will 

provide long term benefits that are not quantified in the economic analysis. A detailed social 

assessment is presented in Appendix 18. 

2. Land acquisition and resettlement 

168. A short resettlement plan has been prepared – see Appendix 16. For the construction of the 

Qinling Botanical Garden a total of 293.63mu of land will be acquired with (i) 133mu of irrigated land, 

(ii) 42.2 mu of dry farmland, (iii) 29,.7mu of orchards, (iv) 42.9 mu of housing land, and (v) 88.7 mu of 

uncultivated land. The buildings of some 115 households or 504 people will be affected by this 

acquisition totaling 19,319 m 2 and supporting infrastructure including walls (3.54km), power lines 

(0.96km), telecom lines (01.125km), Power poles (16), Power converters (1), Telecom poles (17), 1 

well, 7,150 trees. Cropping losses include 390.8 mu of vegetables and 3,517.1 mu of other crops. 

169. The QBG will manage this acquisition with affected people being relocated into the urban area 

of Dhaizhen village where they are eligible for the compensation of lost assets and lost income 

relocation expenses, and trees. Land compensation is managed by the village administration and is 

supposed to be used for ensuring income is available for those that resettle. . 

170. The QBG requires the land use rights for a further 3,745.9 mu that affects a total of 19,320m 2 

of buildings used by 617 people from 143 households. The total number of affected persons including 

those with buildings is 3,780 in 948 households. Ownership of the land will remain with the village and 

the households with the QBG establishing a land rental agreement to establish the right for use. This 

agreement is based on a set fee that amounts to CNY500, CNY 400, CNY 300 per annum per mu for 

irrigated, dry land farmland, and hill or sloping land. The rental contract will be inflated at the CNY 20 

per mu per annum across all types of land. 

171. Once the QNBG reaches a profit the fixed land rental price will be fixed and replaced with a 

shareholders agreement where each household will receive equity to the value of CNY 12,500/mu for 

irrigated land, CNY 10,000/mu for dry land cropping, and CNY 7,500/mu for sloping land. As profits 

are generated dividends to equity will be paid based on the share of equity – however the real value 

of other equity holders is currently unknown. There is a need for a loan condition that the 

shareholders dividend will be paid at a level not to disadvantage the affected persons and that if there 

is insufficient profit the fixed rental price apply in all circumstances to guarantee this. Without 

knowledge of the final shareholding calculation of expected returns is not possible. The data in Table 

8 is based on the data from the resettlement report prepared by the Qinling Botanical Garden with the 

addition of the PPTA financial estimates. 

172. The reported existing income of CNY 319 per mu is lower than the figure estimated by the 

Poverty Reduction Office which reports an average household income for Dianzhen village to be CNY 

965 per capita. As the Qinling Botanical Garden RP indicates land availability to be approximately 1 

mu/capita the proposed existing income is only 33% of total per capita income. The PPTA surveys 

indicate that this figure should be close to 60%. The PPTA survey results also do not support the 

CNY319/mu figure. The survey found that mean agricultural income per household was CNY 8,211 

which accounted for 61% of total household income. Based on the survey data, gross income per mu

was between CNY 900 and CNY 1156 per mu. At these income levels suggest a mean net income 

would be approximately CNY 540 to CNY 660 per mu not CNY 319. The PPTA survey income levels 

are consistent with the PRO estimates. Based on PPTA data the resettled households would not be 

receiving adequate compensation until between 2012 and 2015. 

Dian Zhen 

Village 

Before 

becoming 

Shareholder 

Funds 

transferred to 

resettlers 

PPTA Cash 

Flow 

(CNY/ mu) 

Shareholder 

CNY per mu 

(PPTA 

figures) 

Table 9: Resettled Farmer Land Rental Compensation Forecasts 

Total Shareholder Payment To Resettlers 

�6� of annual profit 24 Land Origina Original Annual 

(mu) l 

Net 

Profit 

(CNY 

10,000) 

Net 

Profit 

(CNY/ 

mu) 

Rental 

Payment 

received 

(CNY 

10,000) 

) 

�CNY 10,000� 

2011 2015 2020 2025 

3,745.87 119.58 319 25 

3,745.87 0.00 149.83 189.65 251.62 341.97 439.40 

3,745.87 0.00 149.83 

(400) 

0 149.52 

(300) 

313.20 

(800) 

477 

(1200) 

600 400 0 700 1100 1500 

173. The PPTA legal assessment is that in its current format the proposed land rental agreement 

contravenes the requirements of Shaanxi land regulations enacted on January 1 2007. Discussion 

with PDRC indicated that these regulations did not necessarily apply to the QBG proposal and that 

they would furnish to ADB at LFF an official document to that effect. There are major risks about the 

land use agreement especially for such a long term investment as the Botanical Garden in that the 

current use right holder may claim these back again and remove the plantings. 

174. The acquisition of land involves the conversion of basic cropping land into the Botanical 

Garden, the conversion of public roads into private roads, the use of geothermal water for the 

greenhouse heating etc. Each of these requires approvals to be obtained prior to the feasibility study 

being approved. Based on the review of the Jixian Township Basic Farming Land Protection Plan, the 

Government agreed that: 

� QBG will provide a land use pre-checking report from an appropriate level land use 

management authority as required by the law to confirm: (i) basic farming land has 

been relocated to another location. (ii) land use application of QBG is consistent with 

the government land use plan and regulation, (iii) there is a change of agricultural 

land quotas for QBG. 




175. The upgrading and expansion of the Shaanxi Animal Rescue Center will require land to be 

acquired permanently for the construction of the Ibis Center (2ha), Golden Monkey (3ha), and the 

animal rescue center (4ha). The land acquisition involves 30 households and a total of 125 people 

with 2.9ha of land being dry land agriculture, 5.5ha being slope land, and 0.6ha being irrigated. 

Compensation is budgeted at a higher unit cost than the QBG compensation program . 

24 This is based on the Chinese Feasibility Forecasts. The PPTA has reduced the rate of visitation in year one 

from 600,000 to 350,000 effectively reducing the net cash flow and also the return to shareholding. 

25 . 

51


176. The Hot-Spring development does not involve any resettlement or land compensation issues. 

C. Environmental Impact 

177. The Project area does not include a nature reserve or protected area however it is classified 

as forest lands with the majority being natural and conservation forest classification. The recently 

completed and ADB financed Land Degradation Strategy for Shaanxi identified the North slopes of 

the Qinling Mountains as the highest priority ecological zones in the Province requiring significant 

protection. SEPA has also included the Qinling Mountains as a national priority for the Ecological 

Function Management Area recognizing the critical ecological functions provided in supporting 

biodiversity and the soil and water process that directly influence the wider Shaanxi province including 

the water supply of nearby Xian city. 

178. The Project area has national and international cultural and religious values relating to the 

Daoist movement. The Louguantai area is acclaimed as the birth place of Daoism and there are a 

number of existing temples that have been restored and continue to be used. The Project proposes to 

intervene at a further 18 historical and religiously important temple sites that will require safeguard 

procedures to be followed. 

179. The Qinling mountains is globally recognized as a biodiversity hot spot due to the high levels 

of biodiversity represented and the high levels of associated endemism in the range. There are 37 

globally endangered species within the Qinling Mountains including major iconic species such as the 

giant Panda (the Qinling mountains has 20% of the PRC population), the Crested Ibis, Golden 

Monkey, Golden Takin, Chinese Giant Salamandar. Historical deforestation and loss of habitat has 

created system-wide threats too much of the biodiversity. In response donors and international 

community have provided substantial foreign investment in an attempt to reverse threat and to secure 

the future of existing biodiversity. A major gap in the protected area coverage has been the toe slopes 

on both the North and South side of the Qinling Mountains where the Project Area is located. The 

Biodiversity is also supported through the ex-situ activities of the Shaanxi animal rescue center and its 

management of “rescued animals” and their welfare comes under direct scrutiny both nationally and 

internationally. 

180. The project investments will have a number of potentially positive impacts on the environment 

through support for the introduction of improved land use practices including forest cover and 

biodiversity within the CDA zone and the development of world class ex-situ collections. These 

activities will continue long after the project through financing provided from the enterprises being 

developed in the ex-situ zone of the Project. A significant threat is the added risk of the proposed 

QBG to introduce non-native non-Qinling plants into the Botanical garden and how these have the 

potential to become invasive species. Both the CBD and GEF have prioritized the management of 

risks arising from potentially invasive species and these have been discussed in full with the QBG, 

however they still propose to include such species without appropriate skills or systems in quarantine 

or control of plant materials. Equally important is the likely impact on iconic faunal species including 

Panda and Crested Ibis both in the wild and in captivity. For example, currently the SARC is only 2 

breeding Pandas are from Wollong and not the Qinling sub-species. The proposed scale of the Panda 

breeding unit of 60 Panda’s suggests that significant numbers would need ot be wild harvested to use 

this capacity. 

181. To achieve this the Project will support a number of commercial enterprises that will 

undertake significant construction of buildings including exhibition halls, offices, tourism 

accommodation and restaurants, animal exposition and display areas, animal enclosures, roads and 

infrastructure including drainage systems, lighting, water supply and irrigation investments, and into 

the Daoist temples. Of special concern is the level of impact from road investments that include 

bridges and supporting drainage systems, water supply systems for the QBG and Dian Zhen village, 

the damming of the river for the Crested Ibis artificial wetland, and the impact arising from massive 

increases in the number of visitors. 

182. While the direct impact of these constructions and interventions will be significant they have 

been assessed to be sufficiently managed within the current set of concept designs provided –see 

Appendix 18 for the initial environmental assessment.

183. A major lesson from tourism related investments and initiatives are the potentially large 

impacts on the immediate environment and society. These impacts need to be assessed not only from 

the perspective of the predicted visitation rates but also from within a worse case scenario. Such 

scenarios could include the possibility of the current proposal having a significant under estimation of 

visitors numbers, or should reflect a high volume day visitation around the time of the major periods 

holiday and Daoist celebrations for PRC. The current impact assessment reflect the impacts that are 

likely to occur as visitation increases to the ex-situ site with the inevitable flow over to the CDA area. 

With total visitation is conservatively estimated to exceed 1.2 million visitors per annum with the 

associated impacts on transport, parking, water supply, waste streams. 

184. The PPTA and Project site was visited by two different ADB environmental specialists during 

the PPTA both of whom after site visits have confirmed that ADB considers the project to be classified 

as a Category B project with a potential upgrade to Category B sensitive. The PPTA was therefore 

instructed to prepare an IEE which is presented as Appendix19. 

V. RECOMMENDED ASSURANCES AND CONDITIONS 

A. Condition for Loan Negotiation 

(i) Institutional reforms 

� The creation of the QNBG before Loan Negotiations 

(ii) QBG related issues 

� Land use approvals for the purchase of land that is classified as basic 

farm land 

� Provincial approval or ratification that QBG is legally allowed to offer 

resettlers an equity share in the QBG business as part of their 

resettlement compensation. A detailed equity and capital structure should 

be provided for the QNBG and Qinling Botanical Garden enterprise to 

clearly indicate where shares will be held. The current QNBG option as a 

Government Entity could not provide such a share holding. 

� A certified valuation of the current capital (equity and debt ) within the 

QNBG and any related enterprises to enable a full assessment of the 

potential returns to resettled shareholders 

� That all Daoist and temple sites will be jointly developed by the Qinling 

Botanical Garden and the relevant Daoist community. The Daoist 

community will be required to approve of final designs and management 

proposals before ADB approves expenditure 

(iii) SARC issues 

� Approvals from the LFF for the use of land as proposed 

� That the Panda breeding and research center be located in Hu-Bao valley 

adjacent to the CDA zone. 

(iv) CDA approvals required 

� That the Shaanxi Forest Department agree to issue Collective forest 

certificates to the 16 CDA villages 

� That Shaanxi Forest Department exempt the Project from the conditions 

of the natural forest utilization controls to enable conservation forestry to 

be applied to both the collective and Louguantai Forest Farm land. 

53

TA 4721-PRC: Preparing the Shaanxi-Qinling Mountains Integrated Ecosystem Management Project 

Final Report Appendix 1 

Design 

Summary 

Impact 

Rural wellbeing 

improving based on 

sustainable 

conservation and use 

of QM resources 

Outcome 

Integrated landscape 

management providing 

sustainable livelihoods 

for the population of the 

Project area 

demonstrated to wider 

QM. 

I. DESIGN AND MONITORING FRAMEWORK 

Performance Targets Data Sources/Reporting 

Mechanism 

Area experiencing land 

degradation and soil erosion 

reduced by 15% by 2020 

Critical habitats covered by 

protected area -- e.g. growth in 

protected area that successfully 

protects endangered and nonpriority 

species 

Increased tourism revenues 

from both mass and high value 

tourism 

Investment and business 

opportunities increased with 40 

new businesses started and $1 

million investment by 2015 

Increased rural smallholder 

incomes with skills to complete 

for off farm employment and self 

employment 

By 2013 integrated landscape 

management is demonstrated 

7,000ha of forested land 

managed 

3 large scale commercial 

enterprises providing 30% of 

profits to the in-situ conservation 

program 

In-situ poverty household 

decline from 900 to 200 (20% of 

total hh) by 2020 

Ex-situ poverty count (hh level) 

declines from 980 to 260 (from 

28% to 7% of total hh) 

At least 20 enterprises 

developed within villages have 

increased incomes from 

transition to higher value more 

sustainable rural industries. 

Environmental protection from 

mass tourism is treating over 

90% of all waste streams 

5 globally threatened species 

Monitoring reports of the 

Shaanxi Environmental 

Protection and Qinling 

project area 

Monitoring reports of 

Shaanxi Forestry, Agriculture 

and other related Bureaus 

Annual reports for Poverty 

Reduction Bureau 

11th and 12th 5yr plan 

evaluations 

Govt. statistics on rural 

incomes, employment, small 

businesses 

Biodiversity species data – 

baseline and annual 

monitoring data of the 

species in the in situ area -- 

from Environmental 

Protection and Forestry 

Bureaus and WWF 

Tourism numbers and 

revenue data from the 

Tourism Bureau 

Shaanxi Statistical 

Yearbooks and yearbooks 

data from county and 

townships 

Household surveys including 

migration data 

Visitation, occupancy, 

revenue, origin of tourists 

(Shaanxi, other PRC 

provinces, international), and 

other data from participating 

tourists attractions (ex situ 

Botanic Garden, eco-lodges, 

etc.) 

Govt Statistics 

Assumptions 

and Risks 

Assumptions 

Project design implemented 

effectively 

Move to outcome i.e. project 

linked not long run 

Institutional arrangements to 

support commercial resorting 

of sustainable development 

are fully in place 

Risks 

Urban growth, including 

influx of migrants, exceeds 

forecasts and exerts more 

pressure on available 

infrastructure and on ecosystems 

Slower growth than 

anticipated in PRC economy, 

urban incomes and tourism 

from national and 

international sources 

Weak and uncoordinated 

enforcement of 

environmental, land use and 

related laws and regulations 

Assumptions 

Continued growth in demand 

for tourism for biodiversity 

and religious and historical 

sites 

Infrastructure assets are 

properly constructed and 

maintained 

Supporting institutional and 

regulatory mechanisms and 

incentives are put in place 

for implementing a 

landscape management 

approach. 

Voluntary resettlement from 

Qinling Mountains continues 

without major disputes 

( there is a conflict between 

this and the concept of 

attracting more into the QM 

also here we need to limit to 

Project outcomes ) 

Risks 

Improving the environment of 

Qinling Mountains is given 

lower priority in the future not 

sure what you are saying 

Lack of government support 

1

2 

Design 

Summary 

Outputs 

Component I: 

Tourism Development 

to Support 

Conservation 




Mechanism 

are protected through habitat 

regeneration and management 

Endangered species of giant 

panda, takin, golden monkey, 

crested ibis, giant salamander, 

red panda, clouded leopard, 

brown-eared pheasant, 

Manchurian trout, gingko tree, 

Chinese mountain larch, one 

flower kingdonia, mao-tai maple, 

and Chinese fir are monitored 

with numbers increasing by 

2015 

Tourism increases from current 

300,000 per year to 800,000 by 

2015 and 1.2 m. by 2020 

Ex situ enterprise revenue 

increases from CNY 62 million 

to RMB 158 million by 2015 

and RMB 415 million by 2035 

500 jobs for in-situ community 

members 

870 jobs for the ex situ 

community members 

Approximately 15,000 full time 

job equivalents during 

construction 

SQNBG operational by loan 

negotiations and generating 

revenue for the Conservation 

Demonstration Area by Year 4 

DA 

269 ha botanical garden 

established with 18 formal 

gardens and walkways and 

supporting public education 

facilities 

870 jobs created for community 

members in the ex-situ zone 

143 households resettled 

18 Daoist sites restored 

1 cable car constructed 

QBG revenue increasing from 

CNY 30 million to 65 million by 

2015 

Botanic garden investing 15% of 

its Project profits into the in-situ 

Project Area 

Animal rescue centre extended 

and refurbished with extensive 

Project reports and 

monitoring 

Site inspection and project 

implementation reports. 

Enterprise financial accounts 

Project monitoring and 

reporting via PMO 

Procurement records 

Wastewater and solid waste 

system data (rate of capacity 

utilization, influent and 

effluent flow volumes). 

Water supply data, (rate of 

utilization and flow volumes) 

Water quality monitoring 

program data, including 

monitoring wells around 

Louguantai 

ADB Review Missions 

Household Surveys 

Assumptions 

and Risks 

for community participation 

Insufficient enforcement and 

control systems 

Revenue is shared equitably 

and with the guidance of the 

proposed landscape 

planning approach 

Lack of commercial 

management and 

inadequate investment into 

institutional strengthening of 

the QNBG Government Unit 

Assumptions 

SQBNG able to offer 

shareholding to compensate 

for land acquisition 

Timely completion of 

infrastructure 

EPB enforces environmental 

monitoring standards 

Effective stakeholder 

participation and ownership 

developed 

Strong support from the 

Shaanxi government 

Activities and construction of 

facilities will fully engage and 

respect the Daoist culture 

Appropriate portion of ex situ 

revenues and profits are 

invested in the in situ area 

Profits will be distributed into 

in-situ conservation 

Visitation profile will grow 

with Botanic garden products 

and other Louguantai



Design 

Summary 

Component II – 

Improved livelihoods 

from the sustainable 

management and 

conservation of 

natural resources 

A: Improved village 

and Forest-based 

Livelihoods 

B: Demonstration of 

Biodiversity 

Conservation 


Mechanism 

enclosures with satellite areas 

for Ibis, Panda, and golden 

monkey 

Upgraded exhibit area and 

support service for SARC 

The QNBG investing $400,000 

into conservation by 2012 

Phase II of hot springs 

development/Daoist cultural 

center completed and operating 

Tourism visitation increases 

from current 300,000 per year to 

800,000 by 2015 and 1.2 million 

by 2020 

16 Village development plans 

prepared including conservation 

forest and nature resources 

plans 

5000ha of collective forests with 

certificates awarded to individual 

households planted and 

maintained as conservation 

forests 

40 business development grants 

awarded 

10 homestay tourism enterprises 

started 

17.5km of roads 

109km of mountain pathways 

upgraded 

100 alternative energy (biogas) 

100 household water supplies 

LFF habitat restoration plan 

prepared 

2000ha of habitat management 

implemented 

Endangered spp management 

plans for 5 species prepared 

endangered species research 

contracts competed and 

reported 

Endangered species monitoring 

Annual Reports of the EA to 

ADB 

Satellite imagery for changes 

in land use, forest cover etc. 

Project monitoring reports 

Govt statistics and poverty 

reduction office data 

SQNBG records and 

financing transfers to 

conservation 

Enterprise accounts 

Tourism and visitor numbers, 

gate ticket sales and 

revenues 

Field surveys and gradsects 

for habitat and wildlife 

monitoring 

Project benefit monitoring 

and evaluations 

Assumptions 

and Risks 

tourism products 

The mass tourism is 

managed within the ex-situ 

enterprises 

Risks 

Land use rights not 

established for QNBG 

Invasive species introduced 

to QM 

Animal rescue center and 

botanic garden create nonsustainable 

demands for 

indigenous biodiversity 

Disease and pandemic risks 

to captive species 

Institutional incentives result 

in profit capture 

Loss of well being for rural 

residents 

Assumptions 

Improved livelihoods will 

result in more conservation 

and protection of natural 

resources and biodiversity 

Communities engage in 

commercial enterprises 

linked to tourism, and natural 

resource processing 

Project Area is perceived as 

being representative for 

wider QM demonstration 

Support from Government 

Agencies and programs 

Risks 

Tourism benefits leak 

beyond Project Area 

Local community business 

successful leading to nonsustainable 

use of resources 

Lack of management and 

quality control 

3

4 

Design 

Summary 

Component III: 

Institutional 

arrangements for 

sustainable 

management systems 

of QM natural 

resources 

demonstrated and 

replicated 

A: Effective Project 

Management and 

Monitoring 

B: Institutional Reform 

and Capacity Building 

Program 

C: Conservation 

Monitoring and 

Replication 




Assumptions 

Mechanism 

and Risks 

and reporting systems in place No linkages to markets, 

promotions, and support 

services 

Project Management Office 

formed and operating with 11 full 

time staff 

Project disbursement ratio 

targets achieved 85% of the 

time 

Annual work planning and 

evaluation achievements 

4 Legal reform studies 

completed and proposed 

reforms submitted to the 

Provincial Peoples Committee 

SQNBG staffed by Loan 

Effectiveness and strengthened 

by PY 3 

Sustainable financing program 

operating by the end of Yr 2 with 

$400,000 reinvested into 

conservation in 2012 and 

thereafter 

Integrated Landscape habitat 

management plan for the Project 

Area completed within a action 

planning and capacity building 

approach by Yr 4. 

Tourism master plan completed 

as part of the Landscape Habitat 

Management Plan 

Conservation Monitoring unit 

established and equipped by 

mid PY 2 

Monitoring program designed 

and agreed with training 

provided to all stakeholders by 

PY 2 

Research contracts awarded 

and completed by PYr 3 

Data Collated for PA, remote 

QM management forum 

minutes and plan 

Habitat restoration and 

management plan for QM 

Project monitoring data and 

WWF monitoring data sets 

and reports 

PMO records on project 

activities and evaluations 

Project records and outreach 

programs 

Project Area plans 

Eco-fund records and 

audited accounts 

Business records 

Training program evaluation 

records 

Conservation program is not 

implemented successfully 

Ex-situ businesses and mass 

tourism erode the “high 

value” tourism experience 

Assumptions 

Ex-situ business benefit from 

wider conservation programs 

QM program considers 

Project Area as 

representative and relevant 

Replication of institutional 

models is linked to eco-fund 

programs 

Risks 

Weak coordination of the IAs 

by the EA 

Resistance by some 

stakeholders 

Ex-situ tourism facilities not 

fully commercialized and 

therefore not able to repay 

loan and generate surplus to 

support in-situ biodiversity 

conservation and livelihoods



Design 

Summary 

Activities with Milestones 


Mechanism 

sensing analysis completed and 

stored with operational database 

accessible to staff by PY 4 

Public education and awareness 

program implemented 

15 professional job exchanges 

Component I: Commercial businesses investing in the management of the Project 

Area 

1.1 Construction of the botanical garden, exhibition and research buildings, nursery, 

temple restoration, access roads, and cable car 

Activity (1) Establish specialized gardens by end of 2010 

Activity (2) Complete the greenhouse development, paleontology museum, Daoist 

temples and historic buildings, and other civil works and infrastructure by end 2009 

Activity (3) Complete the cableway by end of 2010 

Activity (4) Procurement of office and vehicles by end of 2010 

Activity (5) Initial resettlement process to be completed by end of 2008 with process 

completed by end of 2012 

Activity (6) Training programs to be concluded by end of 2010 

Activity (7) Design input to be completed by end of 2008, marketing and education to be 

completed by end of 2012 

1.2 Hot Springs Development 

Activity (8) Villa construction, restaurant and swimming pool complex, site infrastructure 

and design and supervision to be completed by end of 2009 

1.3 Shaanxi Animal Rescue Center 

Activity (9) Crested Ibis breeding base to be completed by 2009, Panda breeding base 

and Animal Rescue Center to be completed by 2010, and Golden Monkey base to be 

concluded by 2011 

Activity (10) Animal exposition area upgraded to international standards 

Activity (11) Design and management contract to be concluded by end 2008, and training 

to completed by end of 2009 

Component II: Improved livelihoods fro sustainable management of in-situ natural 

resources 

2.1 Village development planning 

Activity (12) Complete 16 VDPs by 2010 

Activity (13) Conservation Forestry planting and conservation agriculture by 2012 

Activity (14) Small Business development grant awarded by 2012 

Activity (15) Home stay tourism operators selected and operational by 2012 

Activity (16) Road improvement programs and pathway upgraded by 2012 

Activity (17) Grants awarded for social infrastructure by 2012 

2.2 In-situ Conservation of Biodiversity 

Activity (18) Habitat restoration on LFF land completed for 2000ha by 2012 

Activity (19) Endangered Species Management Plan for 5 species by 2012 based on field 

research contracts 

Component III: Institutions for sustainable management of Qinling Mountain natural 

Assumptions 

and Risks 

Inputs: 

Total Project $129.16 ___ 

million 

ADB Loan Inputs $40.0__ 

million 

GEF input $4.27 million 

Counterpart funds $ 85.9__ 

million 

Civil Works $63.5 

Equipment $9.9 

Vehicles $0.6 

Materials $5.0 

Training $1.3 

Surveys $5.1 

Specialist Services $1.24 

Resettlement $5.5 

Design and Supervision $3.7 

Total Investment cost $96.4 

Total Recurrent $16.2 

Total Project Cost $123.2 

Interest costs $5.9 

Fees $0.1 

Total cost to be financed $ 

129.2 million 

5

6 



Design 


Summary 

Mechanism 

resources demonstrated, replicated and supported through effective project 

management 

3.1 Project Management Operational 

Activity (20) Establish and staff PMO by end of first six months of Project; before Loan 

effectiveness with work plans, procurement plans and training plans agreed 

Activity (21) Professional Job Exchanges (13) 

Activity (22) Contracting of Project BME by 2008, 2010, 2012 

Activity (23) Contracting of resettlement monitoring by end of 2020; before loan 

effectiveness 

3.2 Institutional Strengthening 

Activity (24) Complete Legal review studies by 2011 

3.3 Conservation replication 

Activity (25) Complete the preparation of a Project Area Master plan by developing and 

applying a landscape planning model by 2011 

Activity (26) Establish a Conservation monitoring center for the Project Area with SFB by 

2008, and design, implement and evaluate a conservation monitoring program as part of a 

QM wide capacity building and awareness program by 2010 

Activity (27) Develop and implement a Communication and awareness program for 

disseminating the Projects lessons by 2009 

Assumptions 

and Risks

1 



I. LIST OF DONOR PROJECTS 

Currency unit: USD '000 

Project Status 

Amount 

Disbursed 

Financial Sponsor 

Total 

Budget 

No. Project Name Major Agency Start Date IFI / Country 

I International Finance Institution Loans 

Provincial Finance 

1 Water Rebuilding in Villages 7 county governments 1985.5.9 World Bank 18,220 24,410 Finished 

Department 

Forest Project and Nature 


2 

Provincial Forestry Dept. 1985.9.5 World Bank 2,000 2,000 Finished 

Reserves Management Project Department 

Shaanxi Agriculture 

Provincial Agriculture Dvpt 


3 

1989.9.14 World Bank 106,000 106,000 Finished 

Development Project 

Project Office 

Department 

Provincial Agriculture 


4 Agriculture Service 


Department 

Department 

Loess Plateau Soil and Water Provincial Soil & Water 


5 


Conservation I 

Conservation Dept. 

Department 

Qinba Mountains Area Poverty Provincial Poverty Alleviation 


6 

1997.12.12 World Bank 72,000 52,670 On-going 

Alleviation 

Office 

Department 

Guanzhong Irrigated 

Provincial Water 


7 


Agricultural Area Rebuilding Conservancy Dept. 

Department 

Loess Plateau Soil and Water Provincial Soil & Water 


8 


Conservation II 

Conservation Dept. 

Department 

Yangling Sustainable 

Yangling Demonstration 


9 

2000.4.30 World Bank 300 0 On-going 

Development Project 

Zone Mgmt Committee 

Department 

Qinling Mountain Area 

DOA IFAD Project 


10 

2000.2.16 IFAD 18,148 5,000 On-going 

Integrated Agriculture Dvpt. Management Office 

Department 

Provincial Environment 

Provincial Environment 


11 

1993.7.16 World Bank 393 393 Finished 

Technology Assistance Protection Info Centre 

Department 

Xi’an Environment Technology Xi’an Environmental 


12 

1993.3.20 World Bank 216 218 Finished 

Assistance 

Protection Research Institute 

Department 

Shaanxi Environmental 


13 

Provincial ADB Office 1997.12.5 ADB 156,000 70,700 Finished 

Protection Project 

Department 

Provincial Agriculture and 

Agricultural Bank of 

14 The Fourth Agriculture Loan 


Animal Department 

China 

China Sustainable Forestry SFA and Provincial Forestry 

World Bank 

On-going to 

15 

2002.4.16 

242,340 Forestry Department NA 

Development 

Department 

and GEF 

Aug 31, 2009 

On-going to 

Dec 31, 2007 

1994.6.7 World Bank 200,000 Forestry Department NA 

SFA and Provincial Forestry 

Department 

Forest Resource Development 

and Protection 

16



2 

Project Status 

Amount 

Disbursed 

Financial Sponsor 

Total 

Budget 

No. Project Name Major Agency Start Date IFI / Country 

Total IFI 1,030,330 

II Bilateral Assistance 

4,000 Finished 

Xi’an Construction 

Committee 

1989.1.14 France 1,686 

Purify Water Factory Dam, 

water transport dyke and 

water pop net 

Heihe River Water Diversion 

Project 1 

17 

0 Finished 

Xi’an Construction 

Committee 

18 N/A N/A 1989.5.19 France 2,314 


Xi’an Planning 

Commission, 

1993.8.25 Japan 37,910 



Heihe River Water Diversion 

Project 2 

19 

Financial Dept. 

water pop net 


Xi’an Planning 

Commission, 

1995.11.2 Japan 23,630 



water pop net 

20 N/A 


Financial Dept. 


Department 

21 Shaanxi Afforestation 2001.3.30 Japan 35,000 

n/a Ongoing 

22 Combating Land Degradation SFA GEF 13,800 

n/a Ongoing 

Shaanxi Forest 

Department 


Department 

SFA 2004 ADB 1,200 

Capacity Building to Combat 

Land Degradation 

23



I. INITIAL POVERTY AND SOCIAL ASSESSMENT 

A. Linkages to the Country Poverty Analysis 

Is the sector identified as a national priority in 

country poverty analysis 

Yes 

No 

Is the sector identified as a national priority 

in country poverty partnership agreement? 

Contribution of the sector or subsector to reduce poverty in PRC: 

The People’s Republic of China is entering a new era with the 11 th Five-Year Program 2006-2010. This builds on a gradual 

shift since 2003 toward policies aimed at balanced, equitable and sustainable development. Social indicators have 

continued improving in the PRC and in the aggregate poverty has moved downward. Although the PRC is one of the 

leading industrial engines of the global economy, its GDP per capita in 2005 was still a modest $1,730. In 2005, the PRC 

had an absolutely poor population of 26.1 million and a low income population of 49.8 million. PRC’s 11th FYP has a 

stronger emphasis on rural development with a pledge to increase farmers’ incomes and enhance public services in the 

countryside. 

The ADB 2007-2008 Country Strategy and Program for the PRC is updated to provide an initial response to the PRC’s new 

policy, social and economic environment. This update highlighted ADB’s priorities which are in line with the Eleventh FYP 

and stresses its continuous efforts to support the Government to (i) sharpen its fight against poverty; and (ii) achieve the 

Millennium Development Goals (MDGs), including policy work in such areas as social protection, strengthening the role of 

NGOs in reducing poverty and cooperating with the World Bank and other development partners to advance policy dialogue 

on the changing nature of poverty in the PRC. Nationally, the majority of the poor live in the central and western provinces, 

which lag behind the eastern provinces in achieving the Millennium Development Goals. In these regions poverty is rural 

and strongly correlated to access to land and the incidence of land degradation. Growth has outpaced environmental 

sustainability in many of these areas, and the environment is a major constraint to sustained economic development. 

Environmental protection, ecosystem restoration, and biodiversity conservation are playing a major role in the western 

development strategy. The majority of ADB’s lending, to the interior provinces seeks to create a climate for pro-poor 

economic growth. Ongoing ADB-financed policy work is addressing poverty-related issues in health, education, social 

protection, nutrition, land degradation, access to clean drinking water, and sanitation in rural areas. The poverty partnership 

agreement, signed by the Government and ADB in September 2003, sets out strategies and interventions for poverty 

reduction. The PRC and ADB will continue to cooperate on a broad range of activities related to policy and regulatory 

reform and capacity building in the environmental sector, and support projects to address environmental problems. Projects 

will be designed so that the poor capture some of the environmental benefits. To sharpen the poverty focus of its 

environmental work, the PRC and ADB are addressing land degradation by supporting the implementation of the 10-year 

PRC-Global Environment Facility (GEF) Partnership for Degradation in Dryland Ecosystems to address policy, institutional, 

technical, and financing issues related to combating land degradation. It aims to reduce poverty, arrest land degradation, 

and restore dryland ecosystems in the western region, to be accomplished through the GEF Operational Program (OP) 12 

by introducing integrated ecosystem management and removing institutional barriers. 

This project directly contributes to these objectives by introducing integrated landscape management models which 

promotes market-driven biodiversity conservation, and provides sustainable livelihoods for the population of the Project 

Area that can be demonstrated for, and replicated in, the wider Qinling Mountains. The Project promotes the participation 

and empowerment of rural communities and sustainable livelihood improvement by means of: (i) improved agricultural and 

other technology; (ii) value addition; and (iii) non-extractive use of natural resources using commercial enterprises in such 

areas as eco-tourism, Chinese herbal medicines, non-timber forest products, biodiversity conservation services and 

innovation in public-private-community partnerships. 

The Project Area is within the Qinling Mountain range, and is a highly complex area of different geographic features, 

settlement patterns and densities, multiple land uses, and multiple, overlapping land use and related management rights 

among forestry and other government agencies, Zhouzhi County, and various townships, villages and households in the 

Project Area. The total registered population in the Project Area is about 20,400, including 3 townships and 30 

administrative villages. No ethnic minorities are living in the project area. Poverty is widespread both in the Qinling 

mountains and the project area based on the national poverty benchmark, with small-scale agriculture on steep slopes, very 

limited infrastructure throughout the rugged and isolated valleys, and few links to the modern economy. Zhouzhi County, 

which is the only project county, is directly under Xi’an City. Its total area is 2,974 km2, including 2,200 km2 of mountain 

area in the Qinling Mountains that takes up 74% of the total land area; cultivated land covers 60,000 mu and forestland 

196,600 mu. GDP/capita in Zhouzhi is estimated to be only 50% of the provincial average, 30% of the average for the total 

country and only 20% of the average for the Xi’an urban districts. Zhouzhi is well below the provincial and national 

averages in virtually all of the main socioeconomic indicators – retail sales per capita, gross fixed investment, household 

savings, and fiscal capacity. Net farmer per capita income in Zhouzhi was only CNY1,317 in 2005, which was only 40% of 

the national average and 64% of the provincial average in that year. Despite its low household incomes and levels of 

development, Zhouzhi has never been designated as a national or provincial poverty county under national or provincial 

programs. However, about 17% of the Zhouzhi population reportedly is below the poverty line, and 103 out of 379 

administrative villages in the county are considered to be poverty villages. Poverty levels are particularly high in the 

1 

Yes 

No

2 



mountain areas where 60% of the population is below the poverty threshold. Mountain areas account for about 74% of the 

County’s land area, 60% of its poverty population, but only 10% or 60,000 of the County’s total population. 

The project preparatory (PPTA) will design and invest a project for loan and grant financing to improve rural well-being 

through a sustainable land conservation and use of QM resources which will include: (i) commercial ex-situ businesses 

investing in the management of the Project Area and the (ii) Improved livelihoods from sustainable management and 

conservation of in-situ natural resources and (iii) institutional arrangement for a sustainable IEM of QM resources 

demonstration and replications; C: ecosystems through IEM approach to sustainable use of biodiversity, agriculture, and 

natural resources by means of (i) effective project management, (ii) institutional strengthening through legal reform and 

organizational restructuring, and (iii) replication and dissemination of biodiversity conservation 

B. Poverty Analysis Targeting Classification: General intervention 

What type of poverty analysis is needed? 

The total registered population in the Project Area is about 20,355 including 3 townships and 30 administrative villages. 

Poverty in the project area remains significant by world benchmarks. Using the poverty line of Shaanxi province of CNY865 

per capita per year results in 21 villages out of 30 being poor. A survey done in 2005 by the Poverty Reduction Office shows 

that a total of 7,586 people in both ex-situ and in-situ are counted as poverty population covering 1,889 households. Further 

splitting the poverty populations into ex-situ and in-situ, high poverty incidence occurs in the in-situ, accounting for 73%, 

about 3,208 people, while in ex-situ the poverty incidence is 27%, about 5,155 people. The poverty ratio in the project area 

therefore is considered as 37%. The project poverty classification fits the “general intervention” as less than 50% of the 

population are the poor among project beneficiaries. 

Poverty analysis was undertaken using formal field surveys and participatory key informant discussions both in the in-situ 

and ex-situ areas. Institutional consultation was undertaken regarding the ongoing efforts and experiences in poverty 

reduction in the province. The design of interventions on improving rural livelihoods and poverty reduction will result in 

improvements through increased incomes while conservation of the environment, a strong and growing tourism sector 

through construction of a international standard Botanic Garden, an expansion of the Animal Rescue Centre, the Hot 

Springs Development/ Daoist Cultural Centre, as well as associated alternative livelihood opportunities such as Chinese 

medicinal herbs production etc and training components all provide instruments for more sustainable livelihoods through 

higher incomes, job creation, and small enterprise opportunities, and economic diversification. 

A social and poverty assessment was carried out for each of the subprojects in compliance with ADB’s Guidelines on 

Incorporation of Social Dimensions in Bank Operations. The assessment included a rural livelihood assessment which 

confirmed disparate growth rates between sectors resulting in large income inequities between rural and urban residents 

and between different rural areas. Causes of poverty in the PA are complex, but are very much associated with land 

degradation and the harsh human living environment. In summary, the following causes were identified during the 

household survey and the PRA exercises: (i) pervasive small-scale agriculture on steep slopes, threatened by wild animals; 

(ii) limited infrastructure; (ii) limited alternatives for other livelihood activities; (iv) unsustainable land conversion program — 

no alternative job and income opportunities for surplus labor; (v) poor access to social services such as education, health 

care with few links to the modern economy; (vi) traditional agricultural practices are used as the main exit from poverty, 

which leads to limited solutions for high poverty levels and can further degrade the environment. 

The social analysis confirmed the poverty status of people in the in-situ area where China’s current Poverty Reduction 

program is still being implemented, such as the Voluntary Resettlement Plan. Specific alternative livelihood activities as well 

as the improvements to infrastructure such as road, water supply etc will directly benefit these communities which will 

reduce their reliance on low-productive sloped land farming and provide increased access to income generation activities. 

C. Participation Process 

Is there a stakeholder analysis? Yes No 

Is there a participation strategy? Yes No 

Consultation with stakeholders, beneficiaries and directly affected people has been undertaken and will continue during 

design and implementation of the subprojects. Detailed discussion with Xi’an City government, the line agencies, 

representatives of the Botanic Garden and other investors, cultural and ecotourism operations and a small group of rural 

residents were held. The Executing Agency for the PPTA, the Foreign Loan Support Management Office of the Shaanxi 

Provincial Development and Reform Commission (PDRC), was established. The Leading group is chaired by the governor, 

and will coordinate and enlist the support of involved and concerned agencies to ensure smooth implementation. The group 

will also play its role as a steering committee. A standing office is set up under the leading group headed by the director 

general of the PDRC. The PMO is engaging 11 staff and links closely to the existing group of the Qinling Botanical Garden. 

An expert panel with six experts in different disciplines provides technical guidance to the PMO and the consultant team. In



addition, the arrangement in Shaanxi province for implementing the ongoing PRC-GEF Partnership on Land Degradation 

will provide an opportunity to build capacity in project planning and implementation. The PMO has provided assistance in 

making local experts from different disciplines available to work with the consulting team during the PPTA phase. 

A participatory and consultative methodology was adopted to undertake the social analysis and rural livelihood survey 

during the PPTA. It involved (i) a formal questionnaires survey with 200 households;(ii) discussions with project 

stakeholders; (iii) key informant interviews in rural communities; (iv) a series of stakeholder workshops; and (v) interviews 

with key government staff, non-government organizations; and (vi) interviews with women. 

During project implementation, the participation of stakeholders will be further supported and deepened. An IEM institutional 

framework is included which will provide further opportunity for participation in both planning and implementation. The 

institutional capacity building will be undertaken early in the project design to facilitate successful operation of the IEM 

approach. The Resettlement Plans (RPs) include plans for consultation and participation during implementation. And 

Participatory Village Development Planning will further enhance the participation of beneficiaries. 

Participation strategy required: Yes. 

D. Gender and Development 

Strategy to Maximize Impacts on Women 

Gender analysis: Gender roles are determined by a combination of cultural factors, occupations, environmental conditions, 

education levels, and employment opportunities. In the project area, income inequities create incentives for rural workers to 

migrate to urban labor markets. However, due to its close location to good roads and to both county town and township 

compounds, female laborers - particularly young women - share the opportunities with men for off-farm jobs. Only slight 

agricultural feminization in the ex-situ is observed, while in the in-situ area young people tend to be mobile and the group 

left behind is older and has high illiteracy, which reaches a rate of 95% among women in some in-situ villages. 

Gender Plan Prepared Yes No 

In general, the project will benefit women significantly and will not have an adverse impact on women or children. They will 

benefit from tourism facilities that are provided, greater access to information and jobs and increased opportunities for 

starting small income generation activities. Women will gain employment during the construction of the Botanical Garden, 

Animal Rescue Center and Hot Springs. As part of the participation strategy, priority will be given to women for direct and 

indirect project benefits and for protection against social risk; special gender measures have been included in the RPs. 

Gender disaggregated indicators will be monitored in the project performance management system. The project will not 

have significant negative impacts on women, but a gender plan proposes systems to ensure equal participation of women 

on project activities and equal opportunities of women for access to social services, training, employment, land relocation 

and beneficiary agreements. 

Has an output been prepared? No 

E. Social Safeguards and other Social Risks 

Safeguard Significant/Non 

Significant/None 

Resettlement Significant With close consultation and careful 

screening procedures, the land 

acquisition and resettlement impacts are 

considered significant 1 . Two subprojects 

are defined with potential resettlement 

impacts, namely the Animal Rescue 

Center and Botanic Garden. Both subcomponents 

require permanent land 

acquisition and the latter requires 

relocation of houses and people. The 

Resettlement involves about 143 

households for relocation, 115 

households for land acquisition and 948 

households for land use restriction for 

Strategy to address issues Plan Required 

A Full 

Resettlement 

Plan for Botanical Garden, a 

Short Resettlement Plan for 

Animal Rescue Center, a Due 

Diligence report for Hot 

Spring 

1 ADB's policy on involuntary resettlement [ADB. 1995. Policy on Involuntary Resettlement. Manila,] defines resettlement as 

“significant” where 200 or more people experience major impacts. Major impacts are defined as involving affected people 

being physically displaced from housing and/or losing 10% or more of their productive, income generating assets. 

3

4 

Indigenous 

People 2 



None 

the Botanic Garden; and 30 households 

for land acquisition for the Animal 

Rescue Center. In total, about 4000 

people will be affected by different 

resettlement impacts. Total land 

acquisition will be 28.6 ha, while another 

249.7 ha of small landholders’ will be 

put into the shareholding system due to 

the change of land use. 

Resettlement plans have been 

formulated for the Botanical Garden and 

the Animal Rescue Center that will 

ensure adequate compensation for 

affected people. A Due Diligence report 

has been prepared for the Hot Springs. 

In the QM area there are Hui, Man, 

Mongolian, and Korean minorities, with 

a total minority population of about 

36,000 (less than 1% of the QM 

population) However, none of these 

indigenous people are inhabitants of the 

project area. Therefore, indigenous 

people will not play a significant role in 

project design. 

Labor Not significant There will be some shifting of locations 

related to new economic opportunities 

as well as because of the design and 

implementation of project activities such 

as the construction and operation of the 

Botanic Garden. Biodiversity 

conservation and eco-system 

restoration will require some 

restrictions on livelihood activities. The 

project is designed to minimize these 

negative impacts on rural communities; 

otherwise any such plans will 

incorporate mitigating measures through 

rural employment opportunities 

Affordability None 

especially for seasonal employment for 

women and the rural landless. 

Suitable pricing arrangements will be set 

up including lease options/private 

investment options in conservation and 

tourism to ensure sustainable use of 

resources. The project work in this area 

will ensure the poor are not adversely 

affected. 

Other Risks / 

Vulnerabilities 

Not significant The project will require adjustment of 

livelihood and land use to suit long-term 

and sustainable ecosystem 

management. The Government will 

need to build capacity to ensure smooth 

implementation of the Project. Current 

plans may include employment 

guarantees, fund provided for 

alternative livelihood, establishing a 

rural minimum living standard protection 

system etc. 

2 Indigenous people are defined by ADB as “those with a social and cultural identity distinct from the dominant or mainstream 

society, which makes them vulnerable to being disadvantaged in the process of development.” 

No 

No 

No 

No



PLANNING AND POLICY PRIORITIES FOR QINLING MOUNTAINS 

1. The PRC, the Shaanxi Provincial Government, ADB, GEF and other partners have developed 

and are implementing a multi-dimensional program to address biodiversity conservation and 

restoration, land degradation, and the loss of valuable eco-systems in the Qinling Mountains (QM). 

2. The PRC has ratified several international conventions relevant to biodiversity conservation in 

the QM and has conducted many follow-up actions pursuant to ratification. The PRC ratified the 

Convention on Biological Diversity (CBD on 5 January 1993. Within the framework of the Convention, 

the PRC completed its Biodiversity Action Plan (BAP) in June 1994 that outlines a strategy and a set 

of strategic actions designed to conserve the country’s rich biodiversity. The PRC adopted the 

Convention to Combat Desertification (CCD) in December 1996 and has subsequently started to 

implement a number of activities including the preparation of the National Action Plan to Combat 

Desertification (NAPCD). The PRC signed the United Nations Framework Convention on Climate 

Change (UNFCCC) in 1992, which was subsequently ratified in 1994. It has also ratified the Kyoto 

Protocol (30 August 2002). 

3. Environmental protection, eco-system restoration, and biodiversity conservation play a major 

role in the western development strategy of the Government of China, which began under the 9 th 

Five-Year Plan, was accelerated under the 10 th Five-Year Plan, and continues under the 11 th Fiveyear 

Plan. The priority given to the environment in the western development strategy are fully 

consistent with the increasing attention given to environmental protection and ecosystem restoration 

in the PRC’s last three Five-Year Plans. 

4. The Ninth Five Year Plan approved in 1996 marked a turning point in China’s approach to 

environmental issues and gave sustainable development and environmental protection a higher 

priority. The Tenth-Five-Year Plan (approved by the ninth National People’s Congress in 2001) 

states that ecological improvement and environmental protection should be taken as an important 

part in economic development and in improving the living standards of the Chinese people. This Plan 

requires that ecological rehabilitation should be enhanced, ecological deterioration be restrained, 

environmental protection and treatment be strengthened and urban and rural environmental quality 

be improved. 

5. This Plan further indicates that comprehensive eco-environmental rehabilitation and treatment 

programs are to be carried out in key regions. These notably include the natural forests protection 

programs in the upper reaches of the Yangtze River, upper and middle reaches of the Yellow River 

and Inner Mongolia in the Northeast; and the program to convert farmland to forests and grasslands. 

The Plan also sets out measures to enhance the management of nature reserves. Endangered and 

rare plant and animal resources and wetland resources are to be protected. Programs to protect wild 

animals and rehabilitate their habitats are to be implemented, in order to both recover ecological 

functions and to conserve biodiversity. These environmental themes have been carried over and 

further strengthened in the documents prepared by the national Shaanxi governments for the 11 th 

Five-Year Plan approved in 2006. The parts of the Shaanxi 11 th Five-Year Plan relevant to this 

Project are discussed in greater detail in a later section. 

A. Conservation and Environment Priorities 

6. The GEF in collaboration with the ADB, PRC governments and other national and 

international partners have been implementing since 1995 programs and projects in China designed 

to conserve and restore biodiversity resources and to reverse land degradation and related negative 

environmental trends 1 . The GEF’s current program in the PRC emphasizes biodiversity conservation. 

1 The GEF Operational Strategy was established in 1995 and reflects international consensus that global efforts 

toward environmentally sustainable development should feature integrated management of natural resources— 

including energy—and enhancement of cooperation and synergies, with an emphasis on the regional level. 

OP12 (Operational Program 12, Integrated Ecosystem Management [IEM]) was initially conceived in 1999 as an 

operational program on carbon sequestration, but a year later was given its current title to reflect an integrated 

and multifocal approach to the management of natural systems GEF focal areas now correspond to the desired 

global environmental benefits (GEBs) of biological diversity, conservation and sustainable use, climate change 

mitigation and adaptation, protection of international waters, reduction of persistent organic pollutants, and 

1

2 



The overall goal of GEF’s biodiversity program is the conservation of biological diversity, the 

sustainable use of its components and the fair and equitable sharing of the benefits arising out of the 

utilization of genetic resources. 

7. The program has four strategic objectives: (i) catalyzing sustainability of protected area 

systems at national levels; (ii) mainstreaming biodiversity in production landscapes/seascapes and 

sectors; (iii) capacity building for the implementation of the Cartagena Protocol on Biosafety; and (iv) 

generation, dissemination, and uptake of good 2 practices for addressing current and emerging 

biodiversity issues. 

8. The system of nature reserves in the Qinling Mountains has been expanded and extended 

particularly in the eastern areas, and the financing and management of the 25 national nature 

reserves and the provincial and county level reserves in the QM have been significantly improved in 

the past few years 3 . These improvements and investments were made to better protect the giant 

panda and other rare and endangered species and to protect important eco-systems. Recent 

improvements to the nature reserves at Taibai Mountain, Foping, Changqing, and Zhouzhi (which 

begins only a few km from the southern end of the PA), are particularly relevant to this project. 

9. The PRC has given considerable attention to the problems and challenges of biodiversity 

conservation in the QM. The Qinling Mountains are listed as one of the eleven most critical regions 

for biodiversity conservation in the PRC 4 , and the State Environmental Protection Agency (SEPA) 

nominated the Qinling Mountains Ecosystem Function Conservation Area (QMEFCA) as a national 

pilot program in 2001. The SP Government in 2003 recognized the QM as a national-class ecological 

function protected zone, and approved the Shaanxi-QM ecological function protected zone plan. The 

QMEFCA comprises about 58,000 km² (similar to the QM range in Shaanxi Province), and contains 

19 existing nature reserves (about 380,000 ha or 7.4% of the QMEFCA area, including both national 

level and provincial level reserves) 5 . 

10. The EFCA concept is comparatively new to China and provides opportunities mainstream 

biodiversity conservation and sustainable natural resource management and to display how 

sustainable livelihoods and sustainable biodiversity conservation can be compatible, integrated and 

mutually supportive. While the QMEFCA has to date been inadequately financed, adequate 

management systems are not yet fully in place and this is not yet fully operational, the Project is being 

designed and will be implemented in a manner that will demonstrate potential ways to 

operationalize the EFCA concept. In Shaanxi, the local EPA has prepared a plan covering the 

QMEFCA (32 counties for a total area of 51,000 km²). Four ecological function zones were specified, 

with some overlapping of zones: (i) endangered species conservation (10,000 km²); (ii) water 

resources conservation (37,600 km 2 ); (iii) protection/ecotourism (2,500 km²); and (iv) soil erosion 

control (10,000 km²). 

11. Expanding on the above, SEPA, in cooperation with other agencies, is developing a Plan for 

the Conservation of National Ecological Function Conservation Areas (EFCAs) covering the period 

2006-2020. The establishment of national EFCAs is a new measure in China to sustainably manage 

landscape-scale ecosystems by protecting primary ecological functions. Although EFCAs take 

economic growth into consideration, they can restrict development in the interest of conservation. 

reversal of land degradation. OP12 projects are intended to be multifocal, dealing with two or more focal areas; 

and synergistic, where achievement of benefits in one focal area leads to increased benefits in another. See: 

Global Environmental Facility, Review of the GEF Operational Program 12: Integrated Ecosystem Management, 

Prepared by the GEF Office of Monitoring and Evaluation, GEF/ME/C.25/5, May 6, 2005, page 7. 

2 The term “good practice” is used by GEF in preference to “best practice” because the quality of different 

practices of biodiversity conservation will be context-specific. Something that may be “best” in one situation 

may be bad, or “worst” in another. 

3 This is the current number based on the PPTA’s most recent consultations. This number covers 19 that are 

administered by the SFA and Forestry Departments and Bureaus at the provincial and local government 

levels, and 6 smaller nature reserves managed by other government agencies such as Water resources and 

the Environmental Protection Bureau, 

4 China’s Biodiversity: a Country Study. 1998 State Environmental Protection Administration, Beijing. 476pp. 

5 See: “Project Development Facility; Request for Pipeline Entry and PDF-B Approval; Project Title – Shaanxi 

Qinling Mountains Integrated Ecosystem Development Project”, Prepared by David McCauley, IA/ExA 

Coordinator and Bruce Carrad, ADB, February 8, 2006.



Using EFCAs, SEPA plans to reduce the pressure of human activities on ecosystems and prevent 

degradation of ecological functions caused by inappropriate development and construction projects. 

The Shaanxi Environmental Protection Department (SEPD) prepared and approved its provincial plan 

for the Shaanxi Qinling National EFCA in 2005 (TA team has obtained this plan). The EFCA covers 

57,900 km² or around 28% of the province area and 105% of the Qinling area in Shaanxi (55,000 

km 2 ). The EFCA includes all or part of 23 nature reserves whose total area is 4,300 km², or 7.4% of 

the EFCA area. The EFCA includes parts of six municipalities, 38 counties (all of 13 and parts of 25), 

and 483 townships. The plan was submitted to SEPA in November 2005 for review and approval as 

a national EFCA. 

12. The Qinling EFCA covers all of the Qinling range in Shaanxi and some of the Daba range, 

which is located south of the Qinling. The proposed Project Area lies within the Qinling EFCA, as 

does all of Zhouzhi County south of provincial highway 107. Qinling EFCA is divided into two main 

function zones: Zone II is for forest and biodiversity conservation, and Zone III is for forest plantation 

and water conservation. The two main function zones are sub-divided into three sub-zones: Sub- 

Zone 1 is for high importance; Sub-zone 2 is for medium importance; and Sub-zone 3 is for areas 

only parts of which are of conservation importance. Zhouzhi County and the proposed Project Area 

are zoned as II-1, the highest priority for forest and biodiversity conservation. 

13. The same zoning applies to all of the national nature reserves in the central Qinling. EFCAs 

are not administered under State Council regulation as are nature reserves. The Qinling EFCA is not 

yet approved by SEPA, thus it is a provincial designation at present. The greatest opportunity for 

EFCA contribution to nature conservation will lie outside but near nature reserves in situations similar 

to that at the proposed Project Area. EFCAs in such locations could provide meaningful buffer zones 

for nature reserves. Such buffer zones could be particularly important if nature reserve law were to 

be strictly enforced in future, which would mean that there would be substantial relocation of villagers 

from reserves and onto lands within EFCA boundaries. 

14. In addition, the national importance of EFCAs is recognized in the national 11 th Five-Year 

Plan. For example, the document “The Outline of the Eleventh Five-Year Plan For National 

Economic and Social Development of the People Republic of China” lists, on page 22, twenty-two 

selected development-restricted zones, including 15 ecological, forest and/or biodiversity function 

zones, 5 desertification combating zones, and 2 soil erosion combating zones. This listing is provided 

in the section on: "Promoting Balanced Development among Regions”, and thus is consistent with the 

emphasis placed on environmental protection, eco-system restoration and biodiversity conservation 

in the PRC’s western development strategy. 

15. Further, in June 2003, the SP Government issued notification of special measures for the 

northern foot-slopes of the QM, which aimed to prosecute violators of the laws and regulations for 

eco-environmental protection. Many illegal mining sites have been closed, some existing tourist sites 

have been rejuvenated, cultivation on slopes exceeding 25° has been banned, the environmental 

impact assessment of proposed projects has been re-examined, polluters and illegal loggers have 

been fined, and some vegetation belts have been established. 

16. The PRC has implemented a number of related initiatives over the past decade with ADB and 

other international partners. Related programs and projects that will offer valuable links and potential 

collaboration with this Project include the ongoing PRC-GEF Partnership on Land Degradation in 

Dryland Ecosystems, and the GEF/ADB-financed Capacity Building to Combat Land Degradation 

Project, that is ongoing in six western region provinces/autonomous regions including Shaanxi. 

17. The Capacity Building project, which is supported by supported by GEF and ADB under the 

OP12 Partnership, is currently ongoing in Shaanxi Province and Ningxia Hui Autonomous Region as 

well as in Gansu Province, Xinjiang Uygur Autonomous Region, Inner Mongolia Autonomous Region 

and Qinghai Province. 6 Implementation commenced in late 2004, and reportedly is making progress 

6 TA 4358(G), Capacity Building to Combat Land Degradation Project, approved on 29 June 2004 for $13.8 

million, of which $7.7 million was provided by GEF as a grant. It is supported by and ADB-financed TA4358 to 

Support Implementation of the Capacity Building To Combat Land Degradation Project, for $1.2 million. This is 

ADB’s first “hybrid” project, fully grant financed, but processed and administered as a loan to provide the 

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in creating the necessary pre-conditions for demonstration investments of the type proposed. Its initial 

focus is for each province to (i) prepare its own strategic plan for land degradation control, using an 

IEM approach; (ii) review the policy and legislative/regulatory conditions for land degradation control; 

(iii) strengthen national and provincial coordination and improve operational arrangements at 

provincial and county levels; (iv) support capacity for future IEM investment projects; 7 (v) examine 

ways of improving and coordinating existing monitoring and evaluation systems for land degradation; 

and (vi) support project implementation. 

18. The World Bank as well has undertaken previous conservation investments in the QM, and is 

implementing other projects in the PRC that promote sustainable land management and biodiversity 

conservation (e.g. the Gansu-Xinjiang Pastoral Development Project, $66.25 million loan and $10.5 

million GEF grant). ADB’s 2006-2008 program includes six projects that are anticipated to involve a 

combination of loans and GEF grants for related efforts to promote sustainable natural resources 

management. 

19. The PRC and its international partners have given particular attention to the QM’s rare and 

endangered species. The most prominent example perhaps is the Qinling Panda Focal Project which 

is led by the World Wildlife Federation (WWF) with funding from ADB, GEF and other national and 

international sources. The Qinling Panda Focal Project emphasizes cooperation with non-traditional 

conservation forces such as national and regional government projects and economic development 

activities of an area or of private enterprises. 

20. The project was officially launched in March 2002 and includes three main activities: (i) the 

establishment of a ‘Qinling Panda Protection Network’ based on a Memorandum of Understanding 

between WWF and the Shaanxi Forestry Department, in order to facilitate the creation of twelve new 

panda reserves and five new ecological corridors in the Qinling Mountain Range; (ii) promoting 

cooperation between conservation and tourism development in the Southern Taibaishan region of 

Zhouzhi County in the Qinling mountain range; this activity addresses the need to coordinate the 

relationship between conservation and sustainable development in the region and mitigate further 

loss and fragmentation of panda habitats caused by random tourism development in the region; (iii) 

engage the local community in conservation activities by working with different stakeholders (such as 

local government, conservation, agricultural and poverty alleviation institutions as well as 

businesses), to seek win-win solutions and to obtain better conservation results in the form of “social 

co-management” – in order to encourage long-term sustainable development. 

B. Poverty Reduction Priorities 

21. Poverty reduction projects have often been financed and implemented with the help of foreign 

partners including the ADB and the World Bank. One example, that is particularly relevant to this 

Project, is the Qinling Mountain Area Poverty Alleviation Project of the International Fund for 

Agricultural Development (IFAD). This IFAD Project started in 1999 and its total project cost was 

$106.3 million. This included an IFAD Loan for $29.0 million, co-financing of $10.4 million from the 

World Food Program, contributions from the borrower of $62.6 million, and contributions from the 

beneficiaries of $4.1 million. The Executing Agency is the Ministry of Agriculture and the Ministry of 

Finance in Beijing. The goal of the project is to enable food and income security for vulnerable rural 

households living in an environment with degraded natural resources, while the objective is to 

achieve sustainable advances in productive capacity, both on and off farm, and to provide increased 

access to economic and social resources, including education, health, sanitation and social networks. 

Government with the to responsibility and flexibility required for such a complex set of capacity building 

reforms. 

7 Specifically, in each province/region, this includes (i) documenting past (post 1985) and on-going IEM/land 

degradation control related projects and programs; (ii) learning the lessons from past successes and failures by 

assessing the impact of past land degradation investments; (iii) building a cadre of provincial planners with the 

skills required to design land degradation control investment projects (through training); (iv) identifying 

investment project ideas, preparing expanded project concept notes, and undertaking feasibility studies of 

selected priority IEM/ control project investments eligible for possible ADB, GEF, or other development agency 

financing under the PRC-GEF Partnership. A study of co-financing options will be undertaken to identify one or 

more modalities for combining loan financing, GEF grants, other concessional resources, and government 

support.



22. The provision of farm credit is seen as the major instrument to stimulate on and off farm 

production and income. However, for credit to achieve its full potential, it is necessary to increase the 

intrinsic productivity of agricultural land through irrigation and dryland improvements, and to 

strengthen key support mechanisms, in particular agricultural, livestock and tree crop input supply 

and extension services. The IFAD project: (a) directly invests in rural production infrastructure, such 

as irrigation and terracing, to create the basis for economic production; and in socio-economic 

infrastructure, such as roads, drinking water, electricity and health facilities, to improve productive 

capacity and raise living conditions; (b) facilitates access to financial services and especially credit, 

thus allowing farmers to obtain the necessary capital inputs for productive activities; and (c) reinforces 

human resource development through grass-roots organizations to help farmers and especially 

women enter the market economy and use credit more effectively. 

23. For over 15 years, PRC governments have designed and implemented poverty reduction 

strategies in many parts of the Qinling Mountains, including prefecture, county and township level 

strategies in the Project Area. A major purpose of these strategies was to provide alternative and 

more sustainable livelihoods in order to reduce pressures on valuable biodiversity, ecosystems and 

other natural resources particularly in the QM and other part of western China. 

24. The decline in rural poverty in China is generally recognized as one of the major 

accomplishments of the PRC’s market opening and reform program that began in 1978. Over the 

period from 1978 to 2001, the number of (mainly rural) people living in extreme poverty in China has 

reportedly fallen by over 90% from 260 million in 1978 to less than 25 million people in the later year, 

and the current number is likely even lower. This decline is the result of the GOC’s poverty reduction 

program, more recently the western development strategy, and perhaps most importantly the strong 

and nearly continuous economic growth enjoyed by the PRC economy over this extended period (see 

IFAD Website, “Rural Poverty in China”, 17 January 2007). 

25. Most of the remaining rural poor live in remote hill and mountain areas that have limited 

productive cropland, low yields particularly from farming on higher slopes, few non-farm jobs, and 

limited access to markets and basic services. The hill and mountain (in-situ) areas in the PA and QM 

have many of these same characteristics; but, compared with other poverty regions in western China, 

are fairly close to a large and quite prosperous metropolitan market, Xi’an. This should mean that the 

opportunities for eco-tourism and other resource based tourism, other non-farm businesses and 

sustainable livelihood opportunities, and non-farm employment should be much greater for the PA 

and wider QM. 

26. Poverty reduction and related rural development strategies will continue under the Socialist 

Livelihood Policy that is emphasized in the GOC and SPG 11 th Five-Year Plan documents. This 

Project provides an opportunity to design, test and implement the concepts put forward in the SPG’s 

Socialist Livelihood Policy in order to demonstrate, particularly in the QBCDA area, how well 

designed, managed and coordinated poverty reduction, rural development, tourism promotion, 

biodiversity conservation, and related environmental improvement programs can work together to 

provide both sustainable biodiversity conservation and sustainable livelihoods for QBCDA residents 

and other members of the target population. 

27. One example of a poverty reduction strategy in the Project Area that has received favorable 

attention is the development strategy of Jiufeng Township in Zhouzhi County. This strategy has 

employed a variety of instruments to reduce poverty, promote sustainable livelihoods, and reduce 

pressure on the PA’s biodiversity resources. These include: road construction to improve access to 

markets and basic services; technical support and training to assist local villagers to establish 30 

home tourism facilities as well as three farm tourism spots in four villages, including one QBCDA 

village Gengyu; promotion of eco-tourism, adventure tourism, and other forms of adventure tourism; 

promoting fruit tree production and other economic trees in order to convert land from farms to forests 

in a manner that improves livelihoods over the longer term; increased cultivation of medicinal herbs; 

use of biogas and other alternative energies that promote biodiversity conservation; and, resettlement 

of people from the mountain areas to the flatlands and areas with gentle slopes. Consultation 

indicated that similar alternative livelihood strategies are being (or have been) implemented in many 

of the QM’s nature reserves, including in Foping Zhouzhi and Taibai Shan. 

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6 



28. In the first years of the current decade, quite a large number of people have been resettled 

from hill and mountain areas to the flatter and generally more productive and prosperous areas of the 

QM – as well as to locations outside the QM. Data collected by the PPTA Team from township 

officials indicate that the number resettled in the PA mainly from 2002 to 2004 totaled about 4,400 

people, (constituting about one-fifth of the PA’s total population), distributed as follows by township: 

Jixian – 2,000; Louguan – 1,800; and Jiufeng – 600. Turning to the wider QM, it is expected that, 

over the longer term, voluntary resettlement through individual household decisions supported by the 

PRC’s resettlement program will result in a significant decline in the total QM population from its 

current level to perhaps only 3 million – with even sharper declines in the more remote hill and 

mountain areas within the QM system. 

29. Biodiversity conservation and restoration in the PA and wider QM have benefited from the 

program for converting highly sloped farmland above 25° of slope into forest. The land conversion 

program, which was launched in 2001, is expected to be completed in 2010. Farmers who converted 

their land are entitled to receive 200 kg of grain per mu and CNY130 subsidy per household per year 

for an eight year period. This program has become the main sources of livelihood for the poor both in 

the PA and elsewhere in the QM and other northern parts of China. 

30. Consultations with senior PDRC officials indicated that the land conversion program is to be 

reduced under the 11 th Five Year Plan because of concerns that the program is having a negative 

impact on food production and security 8 . The PPTA consultations with village leaders in the QBCDA 

area identified other problems with the land conversion program that are specific to that area: (i) part 

of the land was converted into economic trees; this is very much welcomed by the rural people but it 

takes a few years to obtain economic benefits from these trees; and (ii) land conversion has greatly 

increased the numbers of all wild animals including of wild bore/hogs which eat everything growing in 

the farmland and thus greatly reduce agricultural production on the remaining more limited farmland 

on the flatlands and gentler slopes. 

31. The expectation is that the PA in particular will receive lower priority under the smaller land 

conversion program compared with other areas of Shaanxi Province. This means that alternative 

strategies must be found to generate sustainable livelihoods while conserving and restoring 

bioresources in the PA and the wider QM. 

32. Many of the approaches to be applied in the PA and under the QMEFCA are consistent with 

the whole landscape system management approach (WLSMA) noted in the text. 

C. Landscape Management Approach and its Application in the Context of the Qinling 

Mountains. 

33. The Landscape System Management Approach (LSMA) approach has arisen largely in 

response to the ‘Sustainable Development’ concept and the need to mainstream biodiversity into 

production landscapes. This requires that a more integrated approach to environmental and 

conservation planning be embraced which recognizes the trans-boundary nature of environmental 

processes and the trans-sectoral nature of environmental policy making. The LSMA approach 

supports the Ecological Function Conservation Area approach developed by State Environmental 

Protection Agency (SEPA), this is a new measure in China to sustainably manage landscape-scale 

ecosystems by protecting primary ecological functions, the program covers the period 2006-2020. 

34. ‘Mainstreaming biodiversity’ was defined by participants at the Global Environment Facility 

(GEF) workshop on biodiversity held in Cape Town, South Africa, in September 2004. The objective 

of mainstreaming biodiversity is: 

To internalize the goals of biodiversity conservation and the sustainable use of 

biological resources into economic sectors and development models, policies and 

programs, and therefore into all human behavior. 

8 Other reasons could be the high and continuing cost of the program and concerns that the program could 

result in the establishment of a large group of rural people that will become totally dependent on government 

subsidies for their livelihood and survival.



35. Within the Qinling Mountain system, environmental protection and conservation are linked to 

the agriculture, forestry, energy, water resources, livelihoods and other policy areas on a local, 

regional and national level. To begin to address the complex challenge of meeting a wide range of 

sustainable land use objectives and integrating biological resource management, the adoption of a 

strategic approach is required. Thus, the LSMA approach provides a holistic planning framework for 

the management of large ‘landscape’ units within the “Living Landscape”. 

36. Successful LSMA requires and contributes to greater transparency and accountability and 

better governance practices. Experience elsewhere is showing that LSMA helps to promote forest 

and agricultural governance arrangements that improve livelihoods and promote sustainable forest 

and land management. In so doing, complementary initiatives that address forest law enforcement 

and governance are encouraged. 

37. An important aspect of adopting a LSMA for this project is that it would address wide ranging 

issues which support the restoration of the Qinling Botanical Garden Conservation and 

Demonstration Area (QBCDA) landscape and its corresponding habitats as outlined in the Qinling 

Botanic Gardens Feasibility Study rather than concentrating on the conservation of single species 

flora and fauna with its associated inherent difficulties. 

38. The term ‘landscape’ is both a collective and descriptive word. Without precise definition, its 

meaning remains ambiguous, both in general usage, between academic fields and within individual 

disciplines. As a concept it is elusive in everyday use encompassing natural values, cultural and 

symbolic values and sensory experiences. The ‘landscape’ concept by definition; implies the 

integration of economic, environmental and socio-cultural qualities in a physical setting. These 

qualities are driven by wide ranging factors which are ever changing and as they do so, the 

landscape changes in response. The changes may be either positive or negative for the environment 

depending on the policy objectives pursued. 

39. The so called ‘driving changes’ which have occurred in the Qinling Mountain system have 

been both biophysical and socio-economic in nature. Landscape change is a normal process since it 

is a physical reflection of changes in land use which may be both anthropogenic and / or natural 

influences 9 . However, when changes occur rapidly this can dramatically affect the qualities and 

internal coherence of the ‘landscape’. 

40. Landscape change has occurred in the Qinling Mountains over extended periods of time. The 

recorded history of the area goes back over two thousand years, but occupation by humans and their 

influence on the landscape probably extends back many more millennia. Increasing levels of 

technological advancement and mechanization linked to aggressive and non-sustainable policies 

within the recent past – 50 years or so – have been the greatest destructive influences. The extractive 

industries such as forestry, power generation and mining have been able to exploit the areas natural 

resources to the full. 

41. Over a short period, as a result, the forest structure has simplified. Many of the ‘climax’ forest 

species have been decimated and the natural forest structure destroyed. Along the river systems, the 

riparian habitats have been severely damaged and road building programs have fragmented 

landscape units and habitats. This has resulted in a major reduction of habitat and associated 

biodiversity and also the essential connectivity between habitats. Additionally, farming activities have 

led to the clearance of vegetation cover and poor cultivation practices on steep slopes. This has 

eventually led to extensive soil erosion problems in hill and mountain areas. 

42. The Chinese Government responded to the environmental issues created by aggressive 

forestry management and over harvesting within the Qinling mountain forest landscapes and the 

problems of erosion and deforestation created by agricultural activities via the introduction of two 

major environmental land based programs: 

9 Natural influences may include, global warming, natural forest fires, disease and pest etc. 

7

8 



43. Natural Forest Protection Program (NFPP) launched in 1998. At the core of this program is a 

logging ban on 30.38 million ha of natural forest area. This program, which demands a complete 

moratorium on logging and timber cutting, is applied to the whole of the forest area of the Qinling 

Mountains. This amounts to approximately 50,500 km² of which 13,635 km² is high forest. 

44. Sloping Land Conversion Program (SLCP) (“Grain for Green”) initiated in 1999. This is 

applied in the Qinling Mountains to sloping land of 25° and above. As a consequence, an area 

corresponding to between 30–40% (6,170–8,266 km 2 ) is subject to this program in the Qinling 

Mountains. 

45. Within the Qinling Botanic Garden project area, these two programs have been applied. This 

has resulted in positive and negative consequences both for the environment and for the communities 

living in the area, and consequential implications for long term conservation based land management. 

46. Although the Natural Forest Protection Program has focused on natural regeneration, such 

restoration does not necessarily restore the naturally occurring climax habitats that have been lost. 

This is due to the fact that in many areas the climatic (overstorey) trees have been progressively 

removed and are no longer present to regenerate. Unfortunately this would mean that the restored 

forest would consist only of natural understorey species. Under these circumstances the biodiversity 

representative of the natural habitat will not be restored without forest management such as felling of 

secondary species in order to allow the replanting of the climatic forest species. Under the current 

regulations this cannot be achieved as no interventions are permitted. 

47. For the community, the “Grain for Green” program creates implications for livelihood 

opportunities. Whilst compensation payments are made to farming families participating in the 

scheme for the first eight years, the ability of some farmers to meet the loss of income through other 

farming or tertiary activities may not be feasible. Secondly, income from the land subject to “Grain for 

Green” which has been revegetated or attempted to be revegetated may not be able to support the 

farmer when the compensation period expires. Developing alternative production systems based on 

maintaining permanent vegetation cover should be addressed and opportunities such as agri-forestry, 

medicinal plants, coppicing systems etc. should be investigated. 

48. To meet the challenge of applying the LSMA approach to the project area an opportunity 

arises to devise and demonstrate systems that strike a balance between improving ecological 

integrity, restoration of the naturally occurring habitats, and enhancing peoples’ livelihoods, these 

experiences and recommendations of ‘good practice’ can then be replicated to other locations within 

the Qinling Mountains. 

49. Prospective pilot area LSMA projects for Qinling Botanic Garden QBCDA area with potential 

for replication and wider adoption within the Qinling Mountain System: 

(i) Monitoring and adaptive management to determine the ecological or socio-economic 

effectiveness of the NFPP and SLCP programs within the project area. Establish 

monitoring plots to assess the effectiveness and medium / long term environmental 

and biological implications of the programs. Undertake socio-economic analysis to 

assess livelihood implications current and long term. Support and develop capacity at 

the systemic level in order to make necessary adjustments to NFPP and SLCP 

programs (policy, legislation) and provide best practice guidelines. 

(ii) Development of management systems for mountain forest habitat restoration that 

encompass technical and silvicultural requirements and the institutional change 

necessary to relax the NFPP in order to allow pilot projects to commence. Establish 

monitoring systems for pilot areas. Investigate the economic potential of linking some 

selective forest restoration areas to livelihood development (creating symbiotic 

relationships) through adoption of sustainable silvicultural systems such as irregular 

shelterwood systems that can encourage habitat improvements, and increase 

potential for NTFPs and small round wood craft products. 

(iii) Development of management systems for riparian habitat restoration that encompass 

technical and river management requirements. Establish monitoring systems for the



riparian habitats in the QBCDA area. Investigate the economic potential of linking 

riparian management to livelihood development by creating small fishpond / wetlands 

for small-scale production of species endemic to the QBCDA river system 10 (e.g. 

Manchurian Trout) to increase and improve current riparian habitat conditions and aid 

species recovery. 

(iv) Investigations on permanent cover cropping systems for land removed from 

agriculture in the “Grain for Green” program to improve long term conservation 

measures whilst supporting livelihoods, e.g. investigations into production systems for 

endemic shrub and tree species for the production of medicinal herbs and oils, 

‘coppice with standard systems’ for the production of craft based materials, 

permanent cover agro-forestry systems etc. 

(v) Habit restoration and management of controlled release areas as a halfway step for 

the wild release of Giant Panda, Crested Ibis etc. Monitoring and scientific research 

focused on information requirements for designing a controlled or wild release 

program (habitat restoration and management, animal behavior patterns etc) 

10 

This project could be linked to the river system water management improvements and management of the 

hydro electric stations in the QBCDA area 

9



A. Introduction 

BIODIVERSITY OF THE QINLING MOUNTAINS 

1. Increasing population pressures, cultural traditions, and economic development have 

degraded China's biological resources. The combination of a large population (over 1.3 billion people 

with an annual growth rate of 0.59 percent or nearly 8 million people) and limited land and water 

resources (only ten percent of the land area is arable and freshwater per capita is one fourth the world 

average) has caused extensive loss of habitats for housing, infrastructure, farming, logging, fuelwood 

collection, and livestock grazing. As a result, the IUCN World Conservation Union Red List of globally 

threatened species in China includes 804 species in total, 442 plants, and 362 animals. China’s own 

Red Data Book of threatened species includes a larger total. 

2. The Agriculture Ministry reports that 30 percent of the Yellow River’s 150 fish species are 

extinct. The most recent documented extinction of a vertebrate in China was the Baiji or Yangzi River 

Dolphin in 2006. No verified sighting of a free-ranging South China Tiger has been reported since the 

early 1990s: Some scientists believe the sub-species is extinct outside of zoos. China’s Snub-nosed 

Monkeys have suffered local extinctions over the last 400 years, leaving the remaining four species in 

small, isolated populations and vulnerable to extinction. China’s ultimate flagship species, Giant 

Panda, was nearly lost before conservation efforts brought the global population back to over 1,500 

animals. 

3. In spite of the extinctions and the long lists of threatened species, Chinese Academy of 

Sciences estimates that 80 percent of China’s plant and animal biodiversity remains unknown. Many 

of the extinctions of fish species in China’s woodlands and wetlands will never be documented 

because they occurred before scientists could name and describe the species that were lost. More 

important, it is not possible to protect or recover many species whose survival is threatened by human 

activities because we have not yet learned that these species exist, where and how they live, and how 

they are threatened. 

4. In terms of biodiversity conservation, modern China presents a mosaic of apparent 

contradictions. Unprecedented rates of extinction and rapidly escalating human-caused threats to 

wildlife are occurring at a time when China’s nature reserve systems is growing rapidly toward a 2050 

goal of 2,000 protected areas. China’s policy, legal, and regulatory framework for nature conservation 

is among the world’s strongest, and is continually improving (Annex 1). There is little question that 

China’s growing network of protected areas combined with its policy and legal framework could 

reverse most of the deteriorating trends in biodiversity if management, implementation and 

enforcement were carried out as written, and supported by updates to adapt to changing situations 

(such as the new nature reserve law now being drafted). In support of this contention, several key 

components of the biodiversity conservation policy and legal framework are listed in the paragraphs 

below. 

5. The Forest Law (revised in 1986), specifies goals of maintaining an average of 30 percent 

forest cover over the entire country, including 40 percent in mountainous areas, and prohibits logging 

in protected areas. It also imposes strong penalties for illegal felling of trees and attempts to establish 

closer links between harvesting and reforestation. The Environmental Protection Law of 1989 

promotes rational use of natural resources and facilitates the development of a comprehensive system 

of nature reserves. The Wildlife Conservation Law of 1989 includes categories of protection for 

endangered and threatened wildlife. 

6. China is increasingly active in international nature conservation efforts. China participates in 

the UNESCO Man and the Biosphere Program, and ratified the Ramsar Convention in 1992 and the 

Biodiversity Convention in 1993. China acceded to CITES, the Convention on International Trade in 

Endangered Species of Flora and Fauna, in 1994. 

7. National environmental strategies and actions plans have also been prepared as required by 

China’s accedence to international conventions. A national nature conservation strategy was 

produced in 1987 that provided a general overview of conservation status and trends. A Biodiversity 

Conservation Action Plan was completed in 1993 with assistance from the Global Environment Facility 

(GEF) and IDA, and was approved by the State Council, which establishes national priorities in 

biodiversity. A National Environment Conservation Action Plan was approved by the State Council. 

1

2 



China’s National Agricultural Conservation Action Plan was approved in 1999, and a National Wetland 

Conservation Action Plan was approved in 2000. 

8. In spite of the rapid growth in the protected area network and China’s impressive policy and 

legal framework, nationwide there are few situations where species and/or habitat conservation crises 

have been resolved with positive outcomes. The Qinling Mountains represent one location where this 

is happening. The coverage of protected areas is increasing, a range of stakeholders participates in 

natural resource management, sustainable use is not an abstract concept but a working goal, and the 

areas of many important habitats and wildlife populations that rely on them are either maintaining 

current levels or are recovering. This section of the Mid-Term Report describes the current situation in 

the Qinling with respect to biodiversity and the protected area network that supports it. 

1. Data Sources 

9. Field research in China has historically focused on identification of biota in specified 

geographic locations. Thus there are often abundant and reliable records of the distribution of species 

but less abundant and less reliable reports of the abundance, population trend, and/or ecology of 

species. Species records for mammals, birds, reptiles, amphibians and higher plants are based on 

current field surveys (in the previous ten years) and, in most cases, are generally representative of the 

situation in the field. Species records for fish and invertebrates are probably less representative 

because field surveys for these groups have been less intensive than for the plants and vertebrate 

fauna. Where species records are considered to be outdated or inaccurate, adjustments have been 

made in the following tables. An example is South China Tiger Panthera tigris amoyensis, which is 

often reported as a resident of the Qinling but for which there are no reliable records since June 1964. 

2. Common and Scientific Names 

10. Common names for all wild animals are capitalized except when hyphenated (e.g. Yellowthroated 

Martin). Scientific names are italicized and the genus name is capitalized while the species 

name is not. 

3. Physiography 

11. Shaanxi Province is in midwestern China and covers a total area of 205,600 km 2 . Southern 

Shaanxi is the transition region from the southern humid subtropical evergreen forest zone to the dry 

desert zone in north. Altitudes range from 300-3,700 m. 

12. The Qinling Mountains, a major watershed of the Huang He (Yellow) and Chang Jiang 

(Yangzi) rivers, The Qinling range covers 50,500 km 2 in Shaanxi Province 1 and 76,500 km 2 in total 2 . 

The Qinling range is an important geographical divide between north and south China and between 

the Yellow and Yangzi River watersheds. The highest peak, Taibai Shan, is 3,767 m above sea level. 

The western part of the range reaches elevations from 2-3,000 m, while most of the eastern part is 

below 2,000 m. Five major soil types have been described from the Qinling: (1) ochric castanozom 

below 1,000 m; (2) brown forest soil at 1,000-1,500 m; (3) podzolic brown earth from 1,500-2,800 m; 

(4) podzolic soil from 2,800-3,000 m; and (5) alpine meadow soil above 3,000 m. 

13. The vertical climatic zones from lowest to highest elevation on the Qinling have been 

classified as northern subtropical, warm temperate, middle temperate, cooler temperate and subcold 

temperate. There are important differences in the temperature and humidity on the south and north 

slopes of the Qinling. On the south slope, average annual temperature is 2°C higher than on the north 

slope, average winter temperature is 4-5°C higher, relative humidity is 10% higher and average 

precipitation is 200-400 mm greater. These differences have important implications for spatial 

distribution of biodiversity. For example, the preferred habitats of the Giant Panda Ailuopoda 

melanoleuca are on the south slopes of the Qinling where bamboo, the Giant Panda’s main food, is 

more abundant due to the milder and wetter microclimate. 

1 Anon. 2006. Cities in Shaanxi Strive to Balance Environment, Development. 18 May 2006. China Daily. 

2 Tsun-shen Ying and David E. Boufford. 1998. Phytogeography of the Qinling Mountains and a Comparison 

with the Flora and Vegetation of Japan. In: Sino-Japanese Flora, its Characteristics and Diversification, 

Boufford, D. E. and H. Ohba (eds), 1998, The University Museum, The University of Tokyo, Bulletin No. 37, 

Tokyo.



4. Biogeography 

14. Chinese life forms occur in two main biogeographic realms, the Palaearctic and Indo- 

Malayan. Southern Shaanxi marks the northern extent of the sub-tropical zone of the Indo-Malayan 

Realm, the well-known refuge for animals and plants of the tertiary period (65-1.8 million years BP). 

Northern Shaanxi represents the colder temperate climes of the Palearctic Realm. The Indo-Malayan 

Realm includes a belt across southern China where tropical and sub-tropical broadleaved evergreen 

forests are dominated by plant taxa such as Dipterocarpaceae (dipterocarps), Moraceae (mulberries) 

and Lauraceae (laurels). Moving northward the shift to the Palearctic Realm is marked by transition to 

forests dominated by deciduous and coniferous taxa including the Fagaceae (oaks) and Pinaceae 

(pines). Shaanxi Province lies in the Palearctic Realm and is characterized by biota adapted to 

northern climes with cold winters. 

15. Xie Yan et al. 3 assessed the biogeography of China on the basis of plant and mammal 

distributions. At the broadest scale the Qinling was assigned to the Northeast China area (Area I). At 

the next lower level the Qinling was placed in one Sub-area, Central China (Sub-area IIa). At the next 

lower level the Qinling was assigned to one region, Qinling and Daba Mountains mixed forest (Region 

9). At the lowest level of classification the Qinling is sufficiently important in biogeographic terms to 

occupy a single unit of its own, Unit 46, Qinling Mountains. 

B. Qinling Biodiversity 

16. The region was free of ice during the most recent glacial period from 10,000-13,000 years 

BP and as a result provided refuge for a wide variety of biota that did not survive glaciation in areas 

only slightly further north. The Qinling supports a rich wildlife resource in spite of environmental 

degradation over recent centuries (Table 1). 

17. The Qinling is well forested: It represents 0.6 percent of China’s land area but 1.1 percent of 

China’s forests (Table 2). On only 1.1 percent of China’s forested area, the Qinling supports nearly 14 

percent of China’s vascular plant biodiversity and over 17 percent of China’s vertebrate fauna 

biodiversity. 

18. Based on its high levels of biodiversity (and its importance as part of the Yellow and Yangzi 

River basins) the Qinling was identified by SEPA as one of 10 national pilot sites for establishment of 

ecological function protection areas (see Section 7.1.3). A second testament to the importance of the 

biodiversity of the Qinling is its designation as one of 16 biodiversity hotspots in China designated in 

the National Forestry Nature Reserve System Plan. The Daba range immediately south of the Qinling 

was also selected as one of the 16 hotspots. Together they account for one eighth of the biodiversity 

hotspots identified in the SFA plan 4 . These two areas are combined in SEPA’s ecological function 

conservation area in the Qinling. 

19. Because of the rich biodiversity in the region, it is not feasible to address the conservation 

status and requirements of all 3769 vascular plants and 577 vertebrate animal species. For this 

reason this biodiversity assessment addresses species considered to be of regional, national, or 

global conservation concern. Only those species listed as threatened by IUCN-World Conservation 

Union (IUCN), listed in China’s Red Data Book (RDB), restricted in international trade by the 

Convention on International Trade in Endangered Species (CITES), or included in conservation 

treaties are addressed in this summary. 

3 

Yan Xie, J. MacKinnon and Dianmo Li. 2004. Study on biogeographical divisions of China. Biodiversity and 

Conservation 13: 1391–1417. 

4 

Li Diqiang, Song Yangling and Ouyang Zhiyun. 2003. Research on the National Forestry Nature Reserve 

System Plan. World Bank-GEF Forest Resources Development and Protection Project, Nature Reserves 

Management Project. China Land Press, Beijing, in Chinese and English. 

3

4 



Table 1: Number of Wildlife Taxa in the Qinling 

Species Group 

Numbers of 

Orders Families Genera Species 

Fern - 33 83 323 

Gymnosperm - 10 23 45 

Angiosperm - 188 984 3,401 

Total vascular plants - 231 1,090 3,769 

Fish 6 13 67 109 

Amphibians 2 7 12 19 

Reptiles 3 8 26 26 

Birds 17 47 166 308 

Mammals 7 29 81 115 

Total vertebrates 35 104 352 577 

Total vascular plants & vertebrates 35 335 1,552 4,346 

Flora sources: 

Zhang Qin-Wei. 2001. Studies on the Composition, Characteristics and Geographic Element of the 

Family of Seed Plant Flora in Qinling MT. Bulletin of Botanical Research, 21(4): 536-545 (in 

Chinese). 

Xu Hao et al. 2006. A Discussion in Exploitation and Utilization of Pteridophytic Resources in Qinling 

Mt. Journal of Northwest University (Natural Science Edition), 36(4): 603-606 (in Chinese). 

Fauna source: Xu Taoqing and Cao Yonghan. 1996. Shaanxi Province Vertebrate Fauna List. 

Shaanxi Science and Technology Press, Xi’an, Shaanxi. 

Table 2: Land and Forest Area, and Species in the Project Area, Qinling and China 

Project 

Area 

Total 

Qinling 

Total 

Project 

Area as a 

percent of 

Qinling 

China Total 

Land area (km²) 458 50,500 0.8 9,326,410 0.6 

Forest area (km²) 242 13,635 1.8 1,286,300 1.1 

Ferns (no. of species) 71 323 22.0 2,600 12.4 

Gymnosperm (no. of species) 12 45 26.7 193 23.3 

Angiosperm (no. of species) 1,219 3,401 35.8 24,357 14.0 

Total: vascular plants 1,302 3,769 34.5 27,150 13.9 

Fish (no. of species) 12 109 11.0 1,010 10.8 

Amphibians (no. of species) 7 19 36.8 220 6.8 

Reptiles (no. of species) 9 26 34.6 380 8.6 

Birds (no. of species) 91 308 29.5 1,186 26.0 

Mammals (no. of species) 35 115 30.4 509 22.6 

Total: vertebrate fauna 154 577 26.7 3,305 17.5 

1. Qinling Flora 

Qinling as 

a percent 

of China 

20. This section is adapted largely from the work of Tsun-shen Ying and David E. Boufford 5 . 

Their report provides a useful foundation from which to interpret the importance of the Qinling flora 

and its relationship with the flora of the East Asia region, and with Japan in particular. In addition to 

this description, Appendices 5 and 6 list the conservation status of plants of conservation concern 

recorded in the Qinling (Appendix 5) and on the Project Area (Appendix 6). 

5 Tsun-shen Ying and David E. Boufford. 1998. Phytogeography of the Qinling Mountains and a Comparison with 

the Flora and Vegetation of Japan. In: Sino-Japanese Flora, its Characteristics and Diversification, Boufford, 

D. E. and H. Ohba (eds), 1998, The University Museum, The University of Tokyo, Bulletin No. 37, Tokyo.



a. Overview 

21. Shaanxi Province supports 210 families, 1,100 genera, and 4,100 species of vascular plants. 

Shaanxi has 37 species of plants listed as threatened in the Red Data Book of China and 11 species 

from the Qinling are listed as globally threatened in the IUCN World Conservation Union Red List of 

Threatened Species. 

22. The Qinling ecosystem is dominated by temperate vegetation in deciduous broadleaf forests 

but is representative of both subtropical and temperate ecosystem types. Cold-tolerant plants derived 

from the sub-tropical zone to the south are represented in the Qinling but in fewer numbers than the 

temperate species from the north. 

23. The flora of the Qinling comprises around 3,125 species of flowering plants in 892 genera, of 

which 39 genera are endemic to China. The 20 largest families together contain 65% of the total 

species. Endemic species and non-endemic species are nearly equally represented in the Qinling, 

and the vegetation is comprised of two main elements: an endemic Chinese element and a Sino- 

Japanese element. 

24. Based on floristic composition, vertical distribution and slope aspect, Qinling plant 

communities can be classified as: 

i. Northern Slope: 

(i) Quercus aliena Blume var. acutiserrata Maxim, forests (below 1,800 m); 

(ii) Quercus liaotungensis Koidzumi forests (1,800-2,200 m); 

(iii) Betula albo-sinensis Burkill forests (2,200-2,800 m); 

(iv) Abies fargesii Pranchet forests (2,800-3,000 m); 

(v) Larix chinensis Beissn. forests (3,000-3,400 m); and 

(vi) subalpine scrub (above 3,400 m). 

ii. Southern Slope: 

(i) Quercus vari-abilis Blume forests (below 1,500 m); 

(ii) Quercus aliena var. acutiserrata forests (1,500-2,000 m); 

(iii) Betula utilis D. Don forests (2,000-2.500 m); 

(iv) Abies fargesii forests (2,500-3,000 m); 

(v) Larix chinensis forests (3,000-3,400 m); and 

(vi) subalpine scrub (above 3,400 m). 

25. High endemism is a conspicuous feature of the Qinling flora. For example, 

Sargentodoxaceae, Eucommiaceae and Davidiaceae are endemic to China; Eupteieaceae, 

Helwingiaceae, Toricelliaceae are of Sino-Japan-Himalayan or Sino-Himalayan distribution. All of the 

dominant species except Betula utilis are endemic to China or to the Qinling (Larix chinensis, for 

example, is restricted to the Qinling). In addition the ranges of a number of more widespread species, 

frequently dominant in other parts of China, intersect in the Qinling area. 

26. Of the 217 species within the Quercus aliena var. acutiserrata forests, 126 are endemic to 

China, including seven restricted to the Qinling. One hundred sixteen of the 184 species in the 

Quercus liaotwigensis communities are endemic to China and six occur only in the Qinling. The 

Betula albo-sinensis forests contain 152 species, of which 111 species are endemic to China, and five 

are endemic to the Qinling. The Abies fargesii forests contain 105 species, 72 of which are endemic 

to China, including seven restricted to the Qinling. The Larix chinensis forests contain 114 species, 76 

of which are endemic to China, including 11 endemic to the Qinling. 

27. Antiquity is another outstanding characteristic of the forests in the Qinling. Some species of 

the genera Carpinus and Quercus that are common or dominant today are morphologically similar to 

fossil species of the same genera 6 . 

6 Tanai, T. 1972. Tertiary history of vegetation in Japan. pp. 235-255. In A. Graham, ed. Floristics and 

Paleofloristics of Asia and Eastern North America. Elsevier Publ. Amsterdam. 

5

6 



28. Temperate forest characteristics are another prominent feature of the vegetation of the 

Qinling. Except for Abies fargesii all other forest dominants are deciduous trees. There are no 

evergreen broadleaved forests, or even mixed evergreen-deciduous broadleaved forests. The forests 

are composed of about 526 species of 261 genera and 92 families. Except for Elaeagnus L. (2 

species), Ilex L. (1 species), Daphne L., Rhododendron L. (3 species) and several species of conifers, 

almost all other species are deciduous. In addition, most of these genera and species are elements of 

the East Asiatic flora and indicate a very close relationship between the flora of the Qinling and the 

flora of Japan, especially that of central Japan. 

b. Survey of the Largest Families of Angiosperms 

29. The largest families of flowering plants in the Qinling are listed in Table 3. The Rosaceae 

are a major family in this region and are particularly characteristic of the flora and vegetation of 

temperate areas in China. The Asteraceae and Poaceae also exhibit an extraordinary frequency in 

the forests, and elsewhere in this region. There are seven families with more than 100 species. The 

Ranunculaceae and Cyperaceae are north temperate in nature and form the major part of the flora. 

The Lamiaceae and Apiaceae comprise an important element of the flora, and three genera of 

Lamiaceae endemic to China occur in the Qinling. While the Liliaceae and Orchidaceae are 

comparatively poorly represented, two genera and 50 species of Orchidaceae endemic to China occur 

here. Ten additional families have between 40 and 100 species (Table 3). Except for the Oleaceae 

and Rubiaceae, these families temperate in distribution. In addition, the Berberidaceae and 

Saxifragaceae contain 44 and 47 species respectively endemic to China, and have the highest 

proportion of endemic species of all of the larger families. The families mentioned above contain a 

combined total of 2,193 species, including 1,041 species endemic to China, or 65% of the total flora, 

and play an important role in shaping the characteristics of the flora and vegetation of the Qinling 

range.



Table 3: Ranking of the 20 Largest Families in the Flora of the Qinling based on Number of 

Species* 

Family Number of 

genera 1 

Number of 

genera 

endemic to 

China 

Number of 

Species 2 

Asteraceae 100/227 3 355/2323 163 

Poaceae 92/228 219/1202 64 

Rosaceae 37/48 199/855 116 

Fabaceae 51/163 2 175/1252 78 

Ranunculaceae 25/40 128/736 77 

Cyperaceae 12/31 121/688 40 

Lamiaceae 36/99 3 116/808 59 

Apiaceae 37/95 110/525 58 

Liliaceae 28/55 103/335 46 

Orchidaceae 45/165 2 102/998 50 

Caprifoliaceae 9/12 2 74/207 43 

Saliaceae 2/3 73/266 45 

Scrophulariaceae 22/60 66/634 33 

Saxifragiaceae 12/26 65/440 47 

Polygoneaceae 8/14 1 58/228 19 

Brasicaceae 25/96 57/411 15 

Oleaceae 9/12 47/176 23 

Berberidaceae 7/11 44/280 37 

Caryophyllaceae 15/31 41/372 11 

Rubiaceae 11/75 1 41/477 17 

Total 582/1,650 14 2,193/13,212 1,041 

Percent 57.63 5.8 65.24 47.5 

1 

number of genera in the Qinling/number in China 

2 

number of species in the Qinling/number in China 

3 

percent of China genera in the Qinling 

4 

percent of China species in the Qinling 

*Source: Ying and Boufford 1998 

c. Relationships of the Qinling Mountain Range Flora 

i. Geographical Affinities of the Genera 

Number of 

species endemic 

to China 

30. Approximately 892 genera and 3,124 species occur in the Qinling. Among the native genera 

in the flora of the Qinling, 220 (27%) are tropical, 563 (69%) are temperate, and 39 (5%) are endemic 

to China. Of the 892 genera in this region, 653 (73%) are shared with Japan. Ying and Boufford 7 

classified the genera of flowering plants in the Qinling into 15 distribution types (Table 4). 

7 Tsun-shen Ying and David E. Boufford. 1998. Phytogeography of the Qinling Mountains and a Comparison with 

the Flora and Vegetation of Japan. In: Sino-Japanese Flora, its Characteristics and Diversification, Boufford, 

D. E. and H. Ohba (eds), 1998, The University Museum, The University of Tokyo, Bulletin No. 37, Tokyo. 

7

8 



Table 4: Distribution pattern of genera of seed plants in the Qinling 1 

Distribution type Number 

of 

genera 

in region 

Percent of 

all genera 

in region 

Number 

of species 

in region 

Percent 

of all 

species 

in region 

Number of 

species in 

China with 

this pattern 

Cosmopolitan 70 7.8 443 14.2 104 67.3 

Pantropic 106 11.9 333 10.7 362 29.3 

Tropical Asia & Tropical 

America 

10 1.1 21 0.7 62 16.1 

Old World Tropic 26 2.9 54 1.7 177 14.6 


Australia 


Africa 

17 1.9 31 1.0 148 11.5 

22 2.5 45 1.4 164 13.4 

Tropical Asia 39 4.4 73 2.3 611 6.4 

North temperate 229 25.7 1,286 41.2 302 75.8 

East Asia & North 

America 

66 7.4 160 5.1 124 53.2 

Old World temperate 91 10.2 258 8.3 164 55.5 

Temperate Asia 24 2.7 71 2.3 55 43.6 

Mediterranean, West Asia 

& Central Asia 

23 2.6 42 1.3 171 13.5 

Central Asia 11 1.2 13 0.4 116 9.5 

East Asia 119 13.3 243 7.8 299 39.8 

China endemic 39 4.4 51 1.6 257 15.2 

Total 892 100 3,124 100 3,116 31.0 

1 Source: Ying and Boufford 1998 

Percent of 

all genera 

in China 

with this 

pattern 

(i) Cosmopolitan genera: Seventy genera, mainly aquatics and mesophytes, are 

cosmopolitan. These represent 36 of the 158 native families in the Qinling and include 

443 species. They comprise about 14% of the flora of the Qinling, and 23% of the 

total families. Many mesophytes such as Carex L., Polygonum L., Ranunculus L., 

Viola L., Gentiana L., and Cyperus L. are either the dominant or common species of 

the herbaceous layer in forests and in montane grasslands. 

(ii) Pantropical genera: In the Qinling, 106 genera, or 12% of all genera, are pantropical 

(found in all three tropical regions, the Americas, Africa-Madagascar, Asia- 

Australasia). They contain 333 species, or 11%, of all species in the Qinling. 

Although these genera are mainly found in the tropics, some, such as Ilex L., 

Cynanchum L., Impatiens L., Buddleja L., Ficus L., Cuscuta L. and Pilea Lindley, 

extend to subtropical or even temperate latitudes. However, the distributions of many 

of these genera in the tropics are often in cool, moist, montane areas. 

(iii) Tropical America and tropical Asia: Only ten genera in nine families, representing 1.1 

% of all genera, are included in this category. These are all woody genera and include 

20 species, or only 0.6% of the total Qinling flora. These genera are usually at lower 

elevations in the Qinling, but a few occur in forests at higher elevations. In China, 

some of these genera, such as Meliosma Blume, Sagereia Brongn. and Picrasma 

Blume may extend north of the Qinling but most of them, such as Phoebe Nees. 

Sloanea L., Eurya Thunb. and Sapindus L. are distributed only to the south. 

(iv) Old World tropics: This distribution type is difficult to distinguish from the subtropical 

and sometimes even temperate pattern. One example is the genus Melia L. which 

has about 15 species in the Old World tropics but only two species in China, one of 

which extends as far north as the northern slope of the Qinling. In the Qinling, 26 

genera, or approximately 3% of all genera, are Old World tropical. These contain 

about 54 species, or 1.7% of all species in the Qinling. Among them, Elatostema 

Gaudichaud, Cayratia Juss. and Asparagus L. are found in the herb layer of the 

broadleaved deciduous forests, while the shrub Alangium Lam. is rather common 

along streams or at the edges of forests.



(v) Tropical Asia and tropical Australia: The western extremity of this distribution type 

extends to Madagascar. Seventeen genera (2% of all genera) and 31 species (1% of 

all species) can be placed in this category. Most are woody species that occur 

predominantly in southern China and extend northward to the southern slope of the 

Qinling. Only a few, such as Leptopus, Cudrania, and Gastrodia, reach the northern 

slope. The genus Nothopanax has a disjunctive distribution in southwest China and 

New Zealand. Some genera, such as Wikstroemia, Leptopus and Nothopanax are 

constituents of the forests, but are not common. 

(vi) Tropical Asia and tropical Africa: Genera are distributed from tropical Africa to the 

Indo-Malaysian region. In the Qinling, 22 genera (2.5% of all genera) are of this 

distribution type. These genera contain 45 species (1.4% of the total species). 

Except for Miscanthus and Microstegium, these genera are uncommon in this region. 

(vii) Tropical Asia: The Indo-Malesian region has one of the richest floras in the world. 

The eastern portion of the Indian region and the northwestern portion of the Malesian 

region, through the Malay and Indo-Chinese peninsulas, are very closely linked 

floristically with the mountains of south-central China. Thus, a fairly large number of 

"typical" Indo-Malesian genera occur in south China. For example, this category 

forms the nucleus of the flora of Guangdong Province. In the Qinling, however, this 

distribution type is represented by only 39 genera, or 4.4% of all genera, and about 73 

species, or only 2.3% of all species. 

(viii) North temperate: Included here are all the widely distributed genera restricted to the 

temperate regions of Eurasia and America. Their distributional areas sometimes 

extend southward to the more mountainous regions of the tropics. The genera of this 

category total 229, or 26% of the total genera, and represent the highest proportion of 

distribution types in the flora of the Qinling. These genera contain about 1,286 

species, or over 41% of all species in this region and form the nucleus of the flora of 

the Qinling. Among the especially prominent and significant genera in terms of their 

dominance in the vegetation of this region are Abies (fir), Larix (larch), Betula (birch), 

Quercus (oak), Salix (willow), Rhododendron, Spiraea, Thalictrum, Polygonatum, 

Pyrola, and Alliu. Most of these genera contain only deciduous trees and shrubs, and 

all of them are typical North Temperate genera. 

(ix) Eastern Asia and North America: This pattern is one of the best known and has 

attracted the greatest interest of biogeographers. In the Qinling mountains, 66 genera 

or 7.4% of all genera belong to this type. They contain 160 species, or 5.1% of all 

species in the region. These 66 genera also make up about 60% of the disjunctive 

genera with distributions restricted to eastern Asia and temperate North American. 

Although genera with this distribution pattern are concentrated in eastern Asia and 

North America, some extend into central Asia (Veronicastrum), or rarely to Australia 

(Lespedeza) in the Old World, and occasionally even into tropical regions in the New 

World (Muhlenbergia). 

(x) Old World temperate: This category includes 91 genera, or 10% of all genera, and 

258 species, or over 8% of all species. Most of these genera are herbaceous and are 

the main constituents of montane grasslands or of the herb layer in forests. 

(xi) Temperate Asia: These genera are distributed mainly in temperate Asia, but 

sometimes extend southward to the higher subtropical elevations. In the Qinling, this 

distribution type is represented by 24 genera, or nearly 3% of all genera, which 

together contain about 71 species, or 2.3% of all species. Excepting Caragana, 

Campylotropis, Exochorda and Armeniaca, all of these genera are herbaceous. 

(xii) Mediterranean, western Asia to central Asia: Only 23 Qinling genera, or 2.6% of all 

genera, belong to this distribution type, which includes 42 species, or about 1.3% of 

the total. These genera usually display a disjunctive distribution pattern. Except for 

Gypsophila and Erodium all genera are uncommon in this region. 

(xiii) Central Asia: This distribution type is represented by only 11 genera, or 1.2% of all 

genera, and 13 species or only 0.4% of all species. All are herbaceous. Except for 

Notholirion hyacinthinum, which is the main constituent in the herb layer in forests of 

Abies fargesii, none is a significant constituent in the forests of this region. 

(xiv) Eastern Asia: This category includes all genera restricted essentially to China and 

Japan. This category is large with 119 genera or over 13% of all genera in the 

Qinling, including 243 species, or nearly 8% of the total. These genera sometimes 

extend southward into Burma, India, Vietnam, and/or the Malay Archipelago. 

(xv) Endemic genera: For the Qinling as a whole, 39 of the 892 native genera (4.4%) are 

endemic to China, but all of them are shared with other provinces (Table X3). Twenty 

9

10 



of these genera are monotypic and 16 are oligotypic; the three remaining genera have 

multiple species. Among the 39 are 17 arborescent genera, of which 15 are 

deciduous and two are evergreen. Eighteen genera are herbaceous, of which four are 

annual and fourteen are perennials. The four remaining genera are lianoid. 

Kingdonia is one of the main constituents of the herb layer in the Abies fargesii 

forests. 

31. Among the native genera in the flora of the Qinling, 220 (27%) are tropical, 563 (69%) are 

temperate, and 39 (5%) are genera restricted to China (Appendix 5). Temperate genera are the 

dominant elements in the flora and vegetation of the Qinling. Of the 892 genera in this region, 653 

(73%) are shared with Japan. 

ii. Analysis of the Endemic Species 

32. Of the approximately 3,124 native species in the flora of the Qinling Mountains about 1,620 

(51.9%) are endemic to China. Of the 192 species restricted solely to the Qinling, 60 are woody, 128 

are herbaceous, and four are lianoid. The woody species, except for Jasminum humile L. forma 

kansuense (Kobuski) Miao, are all deciduous. Among the 128 herbaceous species only four species 

(1.6%) are annual. The proportion of annual endemic species is low in this region. Among these 

endemic species, 40 are restricted to the western Qinling, 12 to the eastern part, and 136 to the 

central part, of which 29 extend westward to the western part and ten extend to the eastern part. Only 

four endemic species have a widespread distribution across the Qinling. Most of these endemic 

species occur between 800 and 2,000 m elevation. In addition to the species that are strictly endemic 

to the Qinling, about 1,428 species in the flora of the Qinling Mountains are endemic to China. Among 

these, 1,181 are dicots, 219 are monocots and 28 are gymnosperms. 

2. Composition of the Vegetation 

a. Composition of the Broadleaved Deciduous Forests 

33. A Quercus aliena var. aculiserrata forest (oak) covering an area of 6,800 m 2 had a flora 

composed of 217 species of 134 genera in 57 families, of which 126 species, or 58% of the total 

species, are endemic and 91 species are non-endemic. 

34. A Quercus liaotungensis forest (oak) covering 4,000 m 2 included 188 species in 118 genera 

and 53 families. 116 species, or 62% of the total, are endemic and 72 species are non-endemic. 

35. A forest of Betula albosinensis (birch) covered 4,000 m 2 and included 152 species, of which 

111 or 73% were endemic. Of the 41 non-endemics, 26 are restricted to eastern Asia. 

36. A Betula utilis forest (birch), occupying an area of 6,400 m 2 was composed of 173 species, 

of which 119, or 69%, were endemic and 54 were non-endemic. 

i. Subalpine Coniferous Forests 

37. An Abies fargesii forest (fir) covering 8,400 m 2 included 105 species of 75 genera and 36 

families. Among these, 72 species, or 69%, were endemics, including seven endemic to the Qinling. 

38. Larix chinensis forests (larch) occur only in the Qinling Mountains. One such forest covering 

6,400 m 2 had 114 species, of which 76 species, or 67%, were endemic and 38 species were nonendemic. 

39. Ying and Boufford concluded that the Qinling vegetation can be thought of as comprising two 

main elements: an endemic or native element and a Sino-Japanese element derived from the Tertiary 

Geoflora. The remaining few species are from miscellaneous sources.



3. Qinling Fauna 

a. Overview 

40. The Qinling ecosystem is sufficiently biodiverse and distinct from other ecosystems that it is 

assigned its own biogeographic unit, the Qinling Mountains. Similar to the case for flora, the fauna of 

the Qinling reflects the meeting of temperate and sub-tropical faunas. Fauna species totals for the 

Qinling are listed in Table 5. 

Table 5: Numbers of Vertebrate Species in the Qinling by Taxonomic Order 

Order Family Genus Species 

Fish 6 13 67 109 



Birds 17 49 166 308 

Mammals 7 27 81 115 

Total 35 104 462 577 

41. The fauna of the Qinling, similar to the flora, is distinguished by its diversity in general, and 

by its mammalian diversity in particular. Birds and mammals are the most thoroughly studied, 

whereas the invertebrate fauna is relatively unknown but promises to be rich as well. In an eight-year 

study of the butterfly fauna of the south slope of the Qinling 191 species were recorded, three of which 

were new to China and 44 were new to Shaanxi 8 . One new genus and three species of eriophyid 

mites were discovered in the Qinling in 2006 9 . Also in 2006 nine new Qinling species of linyphiid 

spiders were assigned to an existing genus while five more new species were assigned to a new 

genus 10 . Increased scientific attention to the Qinling invertebrate fauna would probably lead to 

additional discoveries of new taxa. 

42. The Qinling is renowned nationally and globally as a site supporting China’s “big four” 

species of watchable wildlife: Giant Panda, Golden Snub-nosed Monkey, Crested Ibis, and Golden 

Takin. Several nature reserves in the Qinling support the three mammals, while the Project Area 

supports Golden Snub-nosed Monkeys and Golden Takin in the wild and a formerly wild but now 

captive population of Crested Ibis (numbering over 220 birds in 2006). The Project Area also has a 

captive population of around 12 Giant Pandas at the Louguantai breeding center. Descriptions of the 

status of the “big four” Qinling species are given below. 

b. Giant Panda (Ailuopoda melanoleuca) 

i. Conservation History of Giant Panda 

43. Giant Pandas are endemic to China and the northernmost areas of Vietnam and Myanmar 

that border south China 11 . They now survive in five mountain ranges of Sichuan, Gansu, and Shaanxi 

Provinces. The entire Qinling lies within the former range of Giant Panda. After 30 years of 

conservation effort, China's national wild panda population was estimated at 1,596 in the national 

census in 2003-4, a substantial increase from the several hundred thought to survive when the first 

research project began in the early 1980s. In 2005, around 183 pandas were held in captivity 

worldwide, mostly at the captive breeding center at Wolong, (over 100 pandas in 2006) but also in the 

breeding center on the proposed Project Area (12 pandas), and in zoological gardens around the 

8 Zhou, X, L. Sun, W. S. Pan, Z. Lu, Y. Ni. 2002. The Faunal Study on the Butterflies of the South Slope of 

Qinling Mountains. Peking Univ. Vol.37 No.4 pp.454-469. 

9 Xue, X.F., Z. W. Song and X. Y. Hong. 2006. A new genus and three new species of Phyllocoptini (Acari: 

Eriophyidae: Phyllocoptinae) from the Qinling Mountains, Shaanxi Province, northwestern China. 

Zootaxa1275:31-41. 

10 Tanasevitch, A. V. 2006. On some Linyphiidae of China, mainly from Taibai Shan, Qinling Mountains, 

Shaanxi Province (Arachnida: Araneae). Zootaxa 1325:277-311. 

11 Hu, J. C. and F. W. Wei. 2004. Comparative ecology of Giant Pandas in the five mountain ranges of their 

distribution in China. Pages 137-148 in Lindburg, D. and K. Baragona (eds), Giant Pandas Biology and 

Conservation. Univ. California Press, Berkeley. 

11

12 



world. By year-end 2006 the captive population had increased to 212. For zoos around the world the 

annual “lease” fee for a pair of Giant Pandas is around $2.6 million. At this rate the 12 captive pandas 

at the Louguantai breeding center could return nearly $16 million per year (assuming a 1:1 sex ratio). 

44. Giant pandas were first recorded by scientists in the Qinling in 1964, a century after the 

discovery of Giant Pandas in Sichuan. A research group headed by Professor Fang Shengguo of 

Zhejiang University in East China studied differences between pandas from Sichuan and those in the 

Qinling and concluded that two species of pandas have been separated geographically for 10-12,000 

years. The local or Qinling subspecies has been confirmed as a new sub-species of Giant Pandas. 

ii. Conservation Planning and Management 

45. China has drafted and begun implementing a 15-year plan (2006-2020) to restore the habitat 

and increase the artificially-bred population of the Giant Pandas unique to the Qinling Mountains. By 

2020 when all the projects of the plan are completed, the population of the Qinling pandas is planned 

to reach 400 and their habitat will be expanded to 500,000 hectares from the current total of more than 

340,000 hectares. 

46. According to the plan, Shaanxi was to enlarge the area of the state-level nature reserves for 

Giant Pandas in the province from the current 171,900 hectares to 370,000 hectares before June 

2006. This was accomplished by establishing (or planning) five news nature reserves at 

Huangbaiyuan, Pingheliang, Niangniangshan, Panlong, and Banqiao 12 . This action will result in 

nature reserve protection for more than 80 percent of the habitat of Qinling pandas. The remaining 20 

percent of panda habitat is found in small, isolated patches, most of which will be protected by the 

existing nature reserves or corridors in the Shaanxi portion of the Qinling. Shaanxi Province will also 

improve its Giant Panda protection and management system, and build a panda information 

management and patrol inspection and monitoring system by the end of 2010. 

47. The plan also includes evacuating local residents from panda habitats and planting corridors 

of bamboo between the habitats of different panda groups in Qinling, which have been isolated after 

fragmentation by highways, farmlands, and human residential areas. Four such corridors have been 

established at Houzhenzi, Jiuchihe, Erlangba, Caiziping, and Dashuping. 

48. Shaanxi Forestry Department manages the captive Qinling sub-species by operating a Giant 

Panda research and breeding center named Shaanxi Rescue and Breeding Research Center for 

Endangered Wild Animals and located in the proposed Project Area in Zhouzhi County. The center 

holds a captive population of 12 Giant Pandas which are held for display and bred to increase 

population numbers. 

49. Shaanxi provincial government has implemented measures to improve nature conservation, 

in particular the Grain to Green Project and Natural Forest Protection Project, which bans logging for 

natural forests for a decade and restore previously-logged forests. The province has established 14 

nature reserves for Giant Pandas, including four state-level reserves, and five panda corridors since 

1978, which effectively protected the habitat of the Qinling pandas. 

iii. Research at Changqing Nature Reserve 

50. The seminal work on Giant Panda in the Qinling was published in the Chinese by Professor 

Pan Wenshi and colleagues in 2001 13 . In 2004, a selected proceeding of Panda 2000, a conference 

attended by specialists, was published and included summaries of research completed by Pan and 

other workers in the Qinling 14 . The following paragraphs summarize information presented in the latter 

book. 

12 

Correspondence and meetings with Shaanxi Province Forestry Department, Administrative Office of Nature 

Reserves and Wildlife. 

13 

Pan, W. Z., X. Lu, D. Wang, H. Wang, Y. Long, D. Fu and X. Zhou. 2001. A chance for lasting survival. (In 

Chinese.) Beijing: Peking University Press. 

14 

Pan, W. S., Y. Long, D. J. Wang, H. Wang, Z. Lu and X. J. Zhu. 2004. Future survival of Giant Pandas in the 

Qinling mountains of China. Pages 81-87 in Lindburg, D. and K. Baragona (eds) Giant Pandas: Biology and 

Conservation. University of California Press. Berkeley and Los Angeles, CA.



51. Pan and his colleagues studied Giant Panda in Changqing Forestry District of the Qinling 

from 1986-1999. Twenty-one Giant Pandas were radio-instrumented during the project, enabling 

study of habitat use, spatial distribution, and reproductive biology. In summary, the following points 

are considered most critical to management of the species across the Qinling: 

(i) the Qinling population is concentrated in the upper reaches of three valleys drained by 

the Xushui, Youshui, and Jinshui Rivers; 

(ii) Giant Pandas occupy habitats ranging in elevation from 1,300-3,000 m: farming and 

associated villages limit Panda movements below 1,300 m; 

(iii) south-facing slopes were preferred; 

(iv) Giant Pandas occurred in four populations: three were close enough to permit panda 

movements between them (Xinglongling, Niuweihe, and Taibaishan) and the fourth 

was isolated (Tianhuashan); 

(v) the three connected areas were estimated to support 167-331 Giant Pandas; 

(vi) the sex ratio of the population was 1:1 and females produced one offspring every two 

years; 

(vii) Giant Pandas attained sexual maturity at the age of 4.5 years; 

(viii) the population growth rate was estimated at 4.1% annually; and 

(ix) genetic diversity of the population had not been degraded by inbreeding. 

52. Pan and colleagues concluded that: 

(i) the reproductive potential, population structure, and genetic diversity of the Qinling 

population favor its long-term survival; 

(ii) human-caused habitat destruction is the greatest threat to the Qinling population and 

extinction can only be prevented by protecting Giant Panda habitats; 

(iii) population management measures should focus on the boundary between the 

farmlands at lower elevations and the lower forest habitats; 

(iv) Giant Panda will probably survive in the Qinling if management is based on good 

science and loving concern for the species. 

iv. Research at Foping National Nature Reserve 

53. San Diego Zoo’s Center for Research on Endangered Species (CRES) initiated in 2006 a 

program through its Panda Unit to conduct a long-term intensive research on the conservation 

behavior and ecology of Giant Pandas at Foping Nature Reserve. Research addresses specific 

conservation issues of wild Pandas to yield results of conservation value for wild Pandas. Research 

topics include: mating behavior and dispersal of young and impacts of these factors on genetics; 

denning ecology with respect to logging of old-growth trees that formerly provided den sites, and 

prospects for installation of man-made dens. The Panda Unit also plays a supportive role in 

continuing financial and scientific capacity-building of Chinese conservation biologists and managers 

working with giant pandas. This acknowledges emerging scientific talent in China and the need for 

conservation initiatives to be largely run by Chinese nationals, as this ensures maximum long-term 

sustainability. 

v. Census of Giant Panda 

54. The global Giant Panda population was estimated in three counts in 1974-77, 1985-88 and 

2004 15 . Totals were 2,459, 1,112, and 1,596, respectively (Figure 1). Counts for the Qinling from the 

same three periods were 237, 109, and 273, respectively. The Qinling population was estimated at 

300 after the 2004 census in which 273 pandas were counted. Foping NNR in the Qinling supports 

the highest density of pandas in China. 

55. The decline in Panda numbers from the first to second counts (Figure 1, Table 6) resulted 

mainly from the reduced area of survey from nearly 30,000 km 2 in the first count to nearly 14,000 km 2 

in the second count. However, Panda habitats were degraded in Sichuan Province during the 12 

years between counts and Panda numbers declined sharply as well. Habitat degradation was 

15 rd 

SFA. 2006. The 3 National Survey Report on Giant Pandas in China. Science Press, Beijing. 355p + maps, 

in Chinese. 

13

14 



attributed to commercial logging in and around Panda nature reserves and increasing numbers of 

people living in Panda nature reserves and collecting fuelwood for cooking and heating. 

4000 

3500 

3000 

2500 

2000 

1500 

1000 

500 

0 

1977 1989 

Year of Census 

2004 

Census area (10 km2) 

All pandas 

Qinling pandas (x10) 

Habitat (km2) 

Potential Habitat (km2) 

Figure 1: Panda population and habitat estimates during three national counts 

56. The 44 percent increase in all Panda numbers from the second to the third census was 

related in part to the increase in survey area (increase from nearly 14,000 to over 23,000 km 2 or 66 

percent). One interesting result of the third census was the 150 percent increase in Qinling Panda 

numbers compared to the 44 percent increase in total Panda numbers (in Sichuan, Gansu, and 

Qinling). This suggests the 4.1 percent growth rate documented at Changqing NNR is representative 

of the Panda population throughout the Qinling. 

57. The sustained increase in habitat area occupied by Pandas is due to three factors: (i) 

increase in the detail and accuracy of the counts from year to year; (ii) increase in the count area 

between years 2 and 3; and (iii) sightings of Pandas in years 2 and 3 in areas where they were not 

previously seen. 

Table 6: Percent Change in Giant Panda Census Results during the First Three Years of 

Census 

From Year 1 

to Year 2 

Change in survey area -53% 66% 

Change in total Panda numbers -55% 44% 

Change in Qinling Panda numbers -54% 150% 

Change in habitat area 56% 236% 

From Year 2 

to Year 3 

58. Potential habitat includes areas considered by specialists to be inhabitable by Pandas but in 

which no Pandas have been seen. The increase in potential habitat reflects human judgment, 

whereas the increase in Panda-occupied habitat reflects recorded evidence of Panda use. 

vi. Release of Captive Pandas 

59. SFA is developing a release program and experimentally released one Panda at Wolong in 

2005. The animal was injured by another Panda and later recaptured and return to the breeding 

center. 

60. The Reintroduction Specialist Group of the IUCN Species Survival Commission recognizes 

two reasons for reintroduction of endangered species: (i) to augment the species population in the 

wild; and/or (ii) to increase genetic diversity in the wild. The Specialist Group policy is that 

reintroduction is not an appropriate strategy for reducing a surplus of animals in captivity. Review of



the release criteria of the Reintroduction Specialist Group in 2002 led to the conclusion that release of 

captive pandas was not recommended, pending the outcome of the third census in 2004 16 . 

61. The third census (Figure 1, Table 6) showed a 44 percent increase in total Panda numbers 

and a 150 percent increase in the Qinling population as compared to the second (1989) census. 

These results indicate that the wild populations are recovering naturally from the very low numbers of 

the late 1980s and that the first reason for reintroduction (augment numbers of Pandas in the wild) is 

no longer valid. 

62. After 17 years of study of Giant Pandas in the Qinling, Pan Wenshi and colleagues 

concluded in 2002 that the genetic diversity of the Qinling population had not been degraded by 

inbreeding 17 . This result indicates that the second reason for reintroduction of captive Pandas 

(increase genetic diversity in the wild) is not applicable to the population in the Qinling. 

63. The 66 percent increase in area occupied by Pandas from the second to the third census 

indicates that Pandas are naturally dispersing to habitats that are suitable but previously unoccupied. 

This is further evidence that the population is recovering naturally and that the risk and expense of 

reintroduction are not warranted. 

c. Sichuan Golden Monkey (Rhinopithecus roxellana) 

64. Four species of Golden Monkeys live in mountainous habitats in northern Vietnam and 

southwest China 18 (Table 8). The Sichuan golden monkey occurs in Shaanxi Province and on the 

proposed Project Area where it lives in deciduous broadleaf and conifer forests at 1,200-3,000 m. The 

three China Golden Monkeys occupy forests with distinct seasons and snow in winter. This 

adaptation to subtropical and temperate forests distinguishes the Chinese species from other 

primates, most of which are adapted to tropical habitats. 

65. Golden monkeys live at low total population numbers and densities. Individual groups range 

over large areas to forage for a high-quality diet of fruits, seeds, leaves and shoots (Table 7). Golden 

monkeys mature at seven years of age and adults make up around 50% of wild populations. The 

interbirth interval is estimated at three years. 

66. All four species of golden monkey are globally threatened but the Sichuan Golden Monkey is 

least vulnerable to extinction, with an IUCN classification of Vulnerable (Table 7). With reference to 

the Endangered Guizhou Golden Monkey, Conservation International noted that “even in the absence 

of any external threats, populations smaller than 200 monkeys can not be considered viable” 13 . This is 

due largely to disease risks among small populations. The total Qinling population is thought to 

exceed 4,000. However, it occurs as many small and sometimes isolated populations in fragmented 

habitats. Continuous (unfragmented) stands of dense forest habitat are needed to maximize genetic 

exchange between Golden Monkey sub-populations and thereby increase population viability. 

16 Mainka, S., W. S. Pan, D. Kleiman and Z. Lu. 2004. Reintroduction of Giant Pandas: An update. Pages 246- 

249 in Lindburg, D. and K. Baragona (eds) Giant Pandas: Biology and Conservation. University of California 

Press, Berkeley. 308 p. 

17 Pan, W. S., Y. Long, D. J. Wang, H. Wang, Z. Lu and X. J. Zhu. 2004. Future survival of Giant Pandas in the 

Qinling mountains of China. Pages 81-87 in Lindburg, D. and K. Baragona (eds) Giant Pandas: Biology and 

Conservation. University of California Press. Berkeley and Los Angeles, CA. 

18 Conservation International. 1999. Guizhou Snub-nosed Monkey: Conservation and PHVA Workshop. 

Fanjingshan National Nature Reserve. 25-29 October 1999. 

15

16 



Table 7: Ecological Notes on Four Golden Monkey Species 

Tonkin golden 

monkey 

Guizhou golden 

monkey 

Sichuan golden 

monkey 

(Min & Qionglai 

Mts.) 

Location: Vietnam Guizhou Sichuan, Gansu, 

Shaanxi 

Yunnan golden 

monkey 

Yunnan 

Altitude (m) < 1,082 1,500 to 2,100 2,000 to 3,300 3,000 to 4,400 

Temperature 

(annual, °C) 

Main habitat Tropical limestone 

forest 

Main foods Fruits, seeds, 

leaves 

Population density 

(monkeys /km²) 

22.2 5.0 – 17.0 6.3 4.7 

Semi-deciduous 

broadleaf forest 

Leaves, leaf buds, 

fruit/seed 

Conifer and 

deciduous 

broadleaf forest 

Leaves, leaf buds, 

fruit/seed, green 

winter stems, 

lichens 

Subalpine conifer 

forest 

Lichens, leaves 

6 (n = 2) 14 (n = 2) 12 (n = 1) 7 (n = 3) 

IUCN Threat Status Critically 

Endangered Vulnerable Endangered 

Endangered 

Sources: 

Kirkpatrick, R.C. 1998. Ecology and behavior of the snub-nosed and douc langurs. In The natural history of the doucs and snubnosed 

langurs, N.G. Jablonski (ed.), pp. 155- 190. World Scientific, Singapore. 

Conservation International. 1999. Guizhou Snub-nosed Monkey: Conservation and PHVA Workshop. Fanjingshan National 

Nature Reserve. 25-29 October 1999. 

IUCN [International Union for the Conservation of Nature and Natural Resources]. 1994. IUCN red list categories. IUCN Species 

Survival Commission, Gland. 

67. Similar to the other two China golden monkeys, conservation of the Sichuan Golden Monkey 

is hampered by gaps in scientific knowledge. The size and structure of all golden monkey populations 

are poorly documented in part because of the difficulty of field study. Thus it is not possible to 

accurately determine if populations are increasing or decreasing in size and how groups or 

populations respond to human activities (conservation and development). Patterns of habitat use 

have been studied using radio-telemetry 19 . Seasonal shifts in habitat use were related to the 

phenology of forage plants. 

68. Sichuan Golden Monkey is found throughout the broadleaf deciduous forest of the Qinling 

and in the core and buffer zones of the proposed Project Area. The Project Area population size has 

not been estimated and systematic population census is needed. The NFPP logging ban in protected 

areas and the reductions in commercial logging outside protected areas should have positively 

affected the Qinling Golden Monkeys by improving the quality of their habitats. The SLCP should also 

have helped to restore habitats but this has not been monitored. Human activities remain a threat as 

three Golden Monkeys were poached at the western edge of the proposed Project Area in 2006. 

d. Golden Takin Budorcas (taxicolor bedfordi) 

69. Four sub-species of Takin occupy the Himalayan range through India, Bhutan, and Myanmar 

to China. The subspecies B. t. bedfordi is endemic to the Qinling mountains and is referred to as the 

Golden Takin. However, Takin seen in Qingmuchuan Nature Reserve (formerly Majiashan NR) at the 

western end of the Qinling range were thought to be of the B. t. tibetana subspecies 20 , so there is 

probably overlap of subspecies ranges near the Sichuan-Gansu-Shaanxi boundary. All four 

subspecies of Takin are listed in the IUCN World Conservation Union Red List of globally threatened 

species as Vulnerable. 

19 Li, B. G., C. Chen, W. H. Ji and B. P. Rao. 2000. Seasonal home range changes of the Sichuan Snub-nosed 

Monkey (Rhinopithecus roxellana) in the Qinling Mountains of China. Folia Primatologica 71(6):375-386. 

20 Zeng, Z. G., H. S. Gong, Y. L. Song, T. Miao and S. R. Ma. 2005. A new distribution record of Sichuan takin 

Budorcas taxicolor tibetana in Qinling Mountains in Shaanxi, China. Acta Zoologica Sinica 51(4):743-747.



70. Golden Takin is a member of the Bovidae or cattle family and the goat or Caprinae 

subfamily. Golden Takin in the Qinling are seasonal migrants, living at lower elevations in winter and 

returning to higher elevations in spring through autumn. The habitat of Golden Takin is deciduous 

broadleaf forest and forest edge. Takin do not forage mainly on grasses as do many bovids, but 

rather eat leaves, buds, and shoots that typically provide a higher protein diet. 

71. Golden Takin occupy all nature reserves and corridors in the Qinling and are found in the 

core and buffer zones of the proposed Project Area. Carrying capacity of Golden Takin in Foping 

NNR was estimated at 1,000 animals in 2003 21 , or a density of 3.4 per km 2 . This compares to the 

1996 population estimate of 435-527 (about 1.7 per km 2 ) 22 . An estimate for the population in 

Qingmuchuan NR in 2005 was around 60 animals, for a density of about 0.6 per km 2 . 

72. Field studies of Golden Takin have not yet addressed the need for information that would 

lead to more effective conservation management. In some reserves (Zhouzhi and Taibaishan), the 

populations of Golden Takin are thought to be increasing. This needs to be investigated 

systematically and quantified spatially and seasonally. Reasons for changes in population numbers 

should be determined in an effort to remove remaining threats to species survival. Lessons from the 

Qinling might be applicable to Takin populations at other locations in China. 

73. Threats to Golden Takin are mainly human disturbance and habitat degradation. It is 

reported that there is government authorized trophy hunting for Takin in the Qinling and this needs 

further investigation. Villagers in the Qinling comment that the flesh of Golden Takin is not good to eat 

and the Takin has little or no role in traditional medicine. Some villagers report being attacked by 

solitary male Takin which occasionally descend to lower elevations near villages and farms. The 

primary predator of adult Golden Takin was probably Tiger, which is regionally extinct. Leopard is 

extant in the Qinling and might prey on immature Golden Takin. 

e. Crested Ibis (Nipponia Nippon) 

74. The following discussion was adapted mainly from Threatened Birds of Asia: The Birdlife 

International Red Data Book 23 . Notes related to Zhouzhi County are added. Crested Ibis formerly 

inhabited wetlands from Russia south through the Koreas to Japan and over most of east China. In 

the early to mid 1900s, Crested Ibis was common along the Wei River and in the Qinling. Its decline 

to near extinction began in the 1950s, probably related to increased use of toxic agricultural 

chemicals, loss of lowland woodland nesting and roosting habitats, and hunting pressure. By early 

1981 the known global population consisted of five birds in Japan that were taken into captivity for 

breeding. The last of the Japan population died in 1995 without having produced young. Seven wild 

birds were discovered at Yang County on the south slope of the Qinling in 1981. Measures were 

immediately taken by PRC to protect this nesting population (no hunting, no use of agricultural 

chemicals, and no felling of trees) and numbers increased as a result. 

75. A Protection and Rearing Centre was established in Yang County in 1990, and 25 weak or 

injured chicks (of which 12 survived) were taken into captivity and used to breed 23 birds (of which 20 

survived), and by 1997 there were 32 Crested Ibises at the centre. By the end of 1998, there were 52 

captive birds at the centre, and the captive conditions there were considered to be overcrowded. Six 

young birds were sent to Beijing Zoo between 1981 and 1988 to establish a breeding centre, and two 

chicks were born there in 1989, the first successful captive breeding of the species. In 1997, there 

were 22 birds at Beijing Zoo, and in 2000 there were 105 captive birds in Yang County Protection and 

Rearing Centre (one of which was sent to Japan), 23 in Beijing Zoo and seven in Japan. In May 2002, 

the Louguantai Breeding and Rescue Center in Zhouzhi County on the north slope of the Qinling was 

given 60 Crested Ibis from Yang County to begin captive breeding. That facility is within the proposed 

Project Area and now holds over 220 captive Crested Ibis. 

21 

Song, Y. L., G. D. Dang, J. S. Li, X. J. Wang, Z. G. Zeng, T. J. Wang, L. G. Zhao. 2003. Estimating the 

carrying capacity of the golden takin at Foping National Nature Reserve, Shaanxi, China. Acta Zoologica 

Sinica 49(4):445-450 (in Chinese). 

22 

Zeng, Z. G., W. Q. Zhong, Y. L. Song, J. S. Li and F. Guo. 2002. Group size, composition and stability of 

golden tnkin in Shaanxi Foping Nature Reserve, China. Folia Zoologica 51(4):289-298 (in Chinese). 

23 

BirdLife International. 2001. Threatened birds of Asia: the BirdLife International Red Data Book. Cambridge, 

UK: BirdLife International. 

17

18 



i. Re-introduction to Former Range 

76. Re-introduction to the wild is now being considered in Russia and Japan. In China, birds 

from Shaanxi could be dispersed to other parts of the former range of Crested Ibis in China, as the 

wild population is currently vulnerable to extinction through a chance catastrophe within its limited 

range. Some researchers suggest the captive birds are not well adapted for re-introduction into the 

wild and there is a risk of introducing diseases that are often present in captive birds into the wild 

population. The IUCN Species Survival Commission suggests that it may be best to release captive 

birds in areas that are remote from any wild birds to eliminate the possibility of disease transmission. 

An alternative strategy could be to translocate surplus young birds from the wild population into new 

areas, as this would reduce potential problems with disease, and these birds are likely to be much 

better able to survive in the wild than the captive birds. It will be necessary to determine whether the 

prospective release sites have sufficient areas of suitable habitats to support a self-sustaining 

population. It will also be necessary to determine whether the threats which caused the Crested Ibis 

to disappear from most of its former range have now been removed from the release sites. The IUCN 

Species Survival Commission drafted guidance on re-introduction in 1998 and the guidelines were 

being updated in early 2007. 

ii. Research 

77. Field surveys should be conducted in parts of the former range in China to identify suitable 

release sites for wild-caught or captive birds. Studies should include assessments of prey populations 

because the shortage of prey in winter was considered to be a threat to wild birds. 

iii. Management of Captive Populations 

78. Some of the captive birds at the Yang Xian Protection and Rearing Centre have shown signs 

of abnormality probably due to inbreeding. Extreme care should be exercised in mating any of these 

captive birds (that show inbreeding abnormalities) with wild birds because of the danger of the 

transmission of disease from captive birds to the wild population. Urgent attention should be paid to 

reducing the captive populations through release in carefully selected locations where disease risk to 

wild populations can be minimized. Continued expenditure of funds on captive populations should be 

discouraged in favor of funding conservation of free-ranging birds in the wild. 

4. Qinling Species of Conservation Concern 

79. Species of conservation concern are those listed in China’s Red Data Book, protected 

nationally (throughout China) or in Shaanxi Province, listed as globally threatened in the Red List of 

IUCN World Conservation Union, or restricted in international trade by the Convention on International 

Trade in Endangered Species of Flora and Fauna (CITES). The Global Environment Facility (GEF) 

prioritizes those species listed by IUCN World Conservation Union as globally threatened. The IUCN 

categories are shown in Figure 2. Species listed in the shaded categories are considered globally 

threatened.



Figure 2: IUCN World Conservation Union RedList Categories of Global Threat to Flora and 

Fauna 

Critically Endangered 

*declined 80% in last 10 yrs. 

*

20 



81. The Project Area supports a variety of wildlife species of national, regional and global 

conservation concern (Table 10). GEF prioritizes those species listed in the left-hand column of Table 

10, namely those 37 species that are globally threatened. These are listed by name in Table 11 and 

summary accounts of some globally threatened species are shown in Appendix 10 of this report. The 

other categories of protection or conservation concern are also important but these address 

international trade (CITES), national concerns (Red Data Book and China national protection), or 

regional concerns (migratory bird treaties, Shaanxi Province protection). China is a signatory to two 

bilateral migratory bird treaties, one each with Japan and Australia. 

Table 10: Plants and Vertebrate Animals in the Qinling of Conservation Concern 

IUCN 

China Red Data 

1 CITES2 3 China Protection 

Red List Book 

Shaanxi 

Province 

protected 

species 

CR 2 App I 10 animal CR 4 Class I 11 52 animal 

EN 17 App II 

9 plant 

9 animal 

VU 18 App III none VU 42 

EN 15 Class II 45 54 plant 

NT 8 

Totals 37 69 56 106 

1 

CR = Critically Endangered; EN = Endangered; VU = Vulnerable 

2 

App = Appendix 

3 

CR = Critically endangered; En = Endangered; Ra = Rare; Vu = Vulnerable; Un = Undetermined 

82. Of the 37 globally threatened species 33 are permanent residents of the Qinling. The other 

four are migratory birds that do not breed here but occur during autumn, winter and/or spring (Baikal 

Teal, Vulnerable; Imperial Eagle, Vulnerable; Saker Falcon, Endangered; and Great Bustard, 

Vulnerable). 

83. Of the 11 globally threatened plants in the Qinling, the one Critically Endangered plant is an 

orchid that is taken from the wild for markets. Nine of the eleven globally threatened plants are found 

in the Project Area. 

Table 11: Globally Threatened Species 1 Recorded on the Project Area and/or the Qinling 

Species 

Scientific Name Common Name 

Location of 

IUCN 

Threat 

Category 

Occurrence 

2 Project 

Qinling 

Area 

Acer miaotaiense Miaotai Maple VU yes yes 

Corylus chinensis China Nut Tree EN yes yes 

Cypripedium calcicolum Brown Mocassin Flower CR yes 

Eleutherococcus brachypus �� EN yes 

Eleutherococcus stenophyllus �� EN yes 

Gingko biloba Gingko EN yes yes 

Holopogon smithianus �� EN yes 

Picea brachytyla Maidiao Spruce VU yes yes 

Picea neoveitchii Big-fruit Spruce EN yes yes 

Pterostyrax psilophyllis �� VU yes 

Tapiscia sinensis �� VU 

Andrias davidianus Chinese Giant Salamander CR yes yes 

Batrachuperus pinchonii Stream Salamander VU yes 

Paa boulengeri Boulenger’s Frog EN yes 

Scutiger ninghsanensis Ningshan Frog EN yes 

yes 

yes 

yes 

yes 

yes



Chinemys reevesii Chinese Pond Turtle EN yes 

Pelodiscus sinensis Chinese Softshell VU yes yes 

Anas formosa Baikal Teal VU yes 

Aquila heliaca Imperial Eagle VU yes 

Falco cherrug Saker Falcon EN yes 

Ketupa blakistoni Blakiston’s Fish-owl EN yes 

Nipponia nippon Crested Ibis EN yes 

Otis tarda Great Bustard EN yes 

Syrmaticus reevesii Reeves’s Pheasant VU yes 

Ailuropoda melanoleuca Giant Panda EN yes 

Ailurus fulgens Red Panda EN yes 

Budorcas taxicolor Golden Takin VU yes yes 

Capricornis sumatraensis Serow VU yes yes 

Cuon alpinus Asiatic Wild Dog EN yes yes 

Hystrix brachyura Malayan Porcupine VU yes yes 

Neofelis nebulosa Clouded Leopard VU yes 

Rhinopithecus roxellana Golden Snub-nosed Monkey VU yes yes 

Sorex sinalis Chinese Shrew VU yes 

Trogopterus xanthipes Complex-toothed Flying Squirrel EN yes 

Uropsilus soricipes Chinese Shrew Mole EN yes yes 

Ursus thibetanus Asiatic Black Bear VU yes yes 

Vernaya fulva Red Climbing Mouse VU yes 

Total 

1 

2 

Per IUCN World Conservation Union Red List 

CR = Critically endangered; EN = Endangered; VU = Vulnerable 

CR = 2 

EN = 18 

VU = 17 

18 37 

84. The four globally threatened amphibians are two salamanders and two frogs. Chinese Giant 

Salamander is the world’s largest amphibian, a flagship species for wetland conservation in 

mountainous regions of China, and it has been recorded on the Project Area. Its populations have 

been depleted by capture for use as a food item, destruction and degradation of wetland habitats, and 

pollution of water. The other three species do not inhabit the Project Area but they face these same 

threats. Chinese Giant Salamander is reared in large numbers on the south slope of the Qinling for 

sale to food markets. 

85. The two globally threatened reptiles, Chinese Softshell (Pelodiscus sinensis) and Reeve’s 

Terrapin, are terrapins that inhabit rivers and associated wetlands. Their wild populations are 

threatened by capture for sale as food items. Chinese Softshell is reared commercially for food 

markets, and the wild population is threatened by capture of animals for captive breeding. Chinese 

Softshell has been recorded on the Project Area in Tianyu stream. 

86. None of the globally threatened birds, but six of the mammals inhabit the Project Area. All of 

these are forest dwellers except for the Dhole, which inhabits open landscapes and the forest edge. 

These species would be expected to occur on the west side of the project area near the proposed 

core and buffer zones. 

87. The four migratory species listed in Table 11 are one water bird and three upland birds. 

Baikal Teal occupies the area in autumn and spring during its two annual migrations. The other three 

species remain in southern Shaanxi during winter and return to northeast China, Russia, and Mongolia 

during the summer breeding season. Threats to these species in the Qinling are mainly habitat loss, 

hunting, and disturbance. 

21

22 



5. Data Gaps and Unresolved Issues 

a. Detailed Summary of Qinling Biodiversity 

88. The Qinling mountain ecosystem has been recognized for decades by many authorities and 

government at all levels as an extraordinary natural resource. Volumes have been written about the 

importance of the ecosystem and hundreds of scientific and popular manuscripts have been 

published, mainly in the Chinese, on various discrete issues. Only for Giant Panda have long-term 

research programs been undertaken and summary results published in formats relevant to 

conservation management. For other species and groups of species the research efforts and 

literature are fragmented, probably due to the scarcity of funding for applied long-term field research. 

Thus there is often detailed knowledge of the biology or ecology of a given species (e.g. the group 

sizes of Sichuan Golden Monkeys or Golden Takin and their seasonal distributions), but there is 

seldom adequate synthesis. This also results in part from the lack of funding for synthesis of past 

efforts and lessons learned. Two examples of the need for consolidation and interpretation of 

scientific information are: (i) summary of the three Giant Panda censuses and interpretation with 

respect to conservation of all recorded fauna besides Giant Panda; and (ii) summary of the semiannual 

transect surveys carried out by WWF and SFD in terms of implications for species 

management and recovery, and overall conservation biology of the Qinling. A third pressing need is 

for a consolidation of all Qinling research projects and publications related to biota and presentation of 

the results by species, community, vegetation type and other relevant categories. These efforts 

should look critically at past research projects to learn lessons that can guide future research. 

b. Crested Ibis 

89. Detailed studies have been completed mainly for the Giant Panda, Golden Takin, Sichuan 

Golden Monkey, and Crested Ibis. Of these four species, the one most urgently in need of 

conservation action is Crested Ibis. While the wild population on the south slope of the Qinling is 

increasing in size, it is the only wild population known in China. The two reasons listed by the Species 

Survival Commission of IUCN for reintroduction of captive animals to the wild are to augment the wild 

population and to increase genetic diversity of the wild population. The first of these reasons is 

applicable throughout virtually all of the former range of Crested Ibis where the species is extinct. The 

second reason might be applicable as well, although at least one researcher has reported 

abnormalities in the Yang County population that suggest inbreeding depression. The captive 

populations are self sustaining and reintroduction is under consideration in China and Japan. 

Reintroduction planning should focus on the captive population at Zhouzhi County to re-establish wild 

populations on the north slope of the Qinling and at select wetland nature reserves throughout the 

species former range. 

c. Non-charismatic and Globally Threatened Species 

90. Table 11 lists 37 species from the Qinling that are globally threatened, nine of which have 

been recorded on the Project Area. Of the nine, Chinese Giant Salamander is Critically Endangered. 

It has not been adequately addressed by research or by species management or recovery plans. 

Chinese Giant Salamander is farmed in the Qinling for food markets but its conservation in the wild 

remains ineffective due to habitat destruction (clear, clean mountain rivers) and hunting pressure. 

91. Two endangered species have been reported on the Project Area, Asiatic Wild Dog and 

Chinese Shrew Mole. Neither has been researched in the Qinling and no conservation management 

or species recovery plans address these species. 

92. Six globally vulnerable species have been recorded on the Project Area, two of which are 

members of the “big four” and have been adequately researched and addressed by conservation 

plans. The remaining four species (Chinese Softshell, Serow, Malaysian Porcupine, and Asiatic Black 

Bear) have not been adequately researched in the wild. Wild populations of Chinese Softshell and 

Asiatic Black Bear are under severe pressure from hunting/collecting for food markets. Chinese 

Softshell is farmed and wild terrapins are captured to supplement farm populations. 

93. In addition to the nine globally threatened species on the Project Area, 26 of the remaining 

28 globally threatened species in the Qinling are not among the “big four” and have not been 

adequately researched or addressed by conservation or recovery plans.



C. Biodiversity Conservation 

1. Government Conservation Initiatives 

a. Protected Area System 

94. The protected area system in China includes nature reserves, forest parks, wetland parks, 

scenic landscapes, heritage sites and ecological function conservation areas. All types of protected 

areas in China include provision for human recreational use but visitor access is most restricted by 

nature reserves. Nature reserves are established at local (county or prefecture), province, or national 

levels, and can be promoted from provincial to national level according to a process administered by 

the State Forest Administration (SFA). Nature reserves are typically established to protect 

ecosystems (e.g. forests, grassland, wetlands or others), species groups (e.g. endangered species or 

water birds), or species (e.g. Giant Panda, Chinese Giant Salamander, or Golden Snub-nosed 

Monkey). Nature reserves are administered by various sectors but mainly by forestry, environment, 

and water resources. Overall national coordination of the nature reserve system is the responsibility 

of SEPA and its provincial departments. 

95. Three types of protected areas are found in the Qinling and the project area, 27 nature 

reserves (NRs), one ecological function conservation area (EFCA), and a number of forest parks. 

These are discussed in the following paragraphs. 

96. The Government of China (PRC) promulgated the National Biodiversity Conservation Action 

Plan in 1994. One result has been a rapid increase in the total protected area in China. PRC has 

designated 2,349 nature reserves covering 1.5 million km 2 or over 15% of China’s land area (Figure 

3). 

18% 

16% 

14% 

12% 

10% 

8% 

6% 

4% 

2% 

0% 

1956 

1978 

1985 

1989 

Figure 3: China’s nature reserve area by year as a percent of total land area 

i. Institutions, Administration, and Management 

97. Throughout China the Forestry Departments at province or region level are generally 

responsible for the administration of nature reserves. Departments in charge of water and land 

resources, agriculture and animal husbandry collaborate with the Forestry, Agriculture Reclamation 

and Environmental Protection Departments to implement nature conservation. 

The administrative authority for wildlife conservation in Shaanxi Province is the Shaanxi Forestry 

Department (SFD). The Administrative Office of Nature Reserves and Wildlife of SFD carries out this 

mandate. On what are commonly known as state forest farms, SFD is responsible for wildlife 

conservation but the focus of these farms is commercial forestry rather than conservation. 

98. The Environmental Protection Department of Shaanxi Province (SEPD) is responsible for 

implementation of the Convention on Biodiversity in Shaanxi. In that capacity SEPD is charged with 

meeting the obligations of Shaanxi with respect to the Convention on Biodiversity (CBD) of 1992. The 

CBD resulted from the United Nations Conference on Environment and Development held in Rio de 

Janeiro in 1992 (see www.biodiv.org). The Standing Committee of the People's Congress approved 

1991 

1995 

2001 

2005 

23

24 



China’s accedence to the CBD in June 1993. The CBD obliged China to draft a national biodiversity 

conservation strategy and China was one of the first countries in the world to do so. China's 

Biodiversity Conservation Action Plan (BCAP) was promulgated on 13 June 1994. SEPD is 

responsible for implementing the BCAP in Shaanxi. 

99. Beneath the regional level of authority lies the city or prefecture level, which is represented in 

the Project Area by the Government of Xi’an City. 

ii. Legislation, Conventions, Treaties 

100. A list of policies, laws, regulations, plans, and guidelines used to administer and manage 

nature reserves and wetlands in China is shown in Appendix 1. China’s legal system is generally 

adequate as a framework for protection of biological resources. However, as noted in China’s 

biodiversity program for GEF, governance of biodiversity conservation has not been adequate to halt 

losses of habitats and biodiversity. In addition to the legal framework within China there are numerous 

international conventions, treaties and agreements to which China is a signatory and which are also 

relevant to conservation (Appendix 1). 

iii. Protected Areas in Shaanxi Province 

101. Shaanxi Province has gazetted a total of 51 nature reserves (Figure 4, Appendix 2). The 

total land area protected in these 51 reserves is 10,076 km 2 , or around 5% of the land area of Shaanxi 

Province (195,800 km 2 ). Almost 90% of the protected land area is administered by the forest sector 

(Figure 5) as are 38 of the 51 nature reserves (75%). 

102. Two of Shaanxi’s seven national nature reserves (NNRs), Taibai Mountain and Foping, are 

listed as international biosphere reserves by the UNESCO Man & the Biosphere Program. In 2003, 

when Shaanxi had only five NNRs, coverage of the important biodiversity sites was considered 

inadequate 24 . 

24 Li Diqiang, Song Yangling and Ouyang Zhiyun. 2003. Research on the National Forestry Nature Reserve 


Management Project. China Land Press, Beijing, in Chinese and English.



Figure 4: Shaanxi Forestry Department Nature Reserves and Project Area Boundary in Zhouzhi 

County 

25

26 



Other 

3% 

Agriculture 

1% 

Water 

1% 

Land 

0% 

Environment 

8% 

Forest 

87% 

Figure 5: Shaanxi nature reserve administration expressed as land area by agency 

iv. Protected Areas in the Project Area and Qinling Mountains 

103. The three types of protected areas that relate to the Project Area and the Qinling are nature 

reserves (NRs), forest parks (FPs), and ecological function conservation areas (EFCAs). The Qinling 

Mountains support 27 nature reserves and one EFCA. All but two of the nature reserves are 

administered by the forest sector and 98% of the protected land area is administered by Forestry. 

Water Resources Bureaus manage the remaining two nature reserves that account for 2% of the 

protected land area. 

104. Qinling nature reserves cover 557,298 ha or nearly 10% of the 5.05 million ha total area of 

the Qinling mountain area in Shaanxi Province (Table 12). New reserves have been designated in the 

Qinling since 1965 (Figure 6). The declining trend in gazettal of new reserve area reflects the 

increasing difficulty of establishing reserves in a human-dominated landscape. The cumulative total 

area has progressively increased as new reserves have been designated (Figure 7). 

Area (ha 

200,000 

180,000 

160,000 

140,000 

120,000 

100,000 

80,000 

60,000 

40,000 

20,000 

0 

1965-93 2001-2 

Year interval 

2006-10 

Panda Non-panda 

Figure 6: New protected area in the Qinling mountains since 1965 by reserve type* 

* Panda reserves are established to protect many species, but Giant Panda is a top priority. 

Non-panda reserves are established in other ecosystems for other species such as wetland 

habitats for the Chinese Giant Salamander.



Area (ha 

500,000 

450,000 

400,000 

350,000 

300,000 

250,000 

200,000 

150,000 

100,000 

50,000 

0 

1965-93 2001-2 

Year interval 

2006-10 


Figure 7: Cumulative Total Protected Area in the Qinling Mountains by Reserve Type* 

*Panda reserves are established to protect many species, but Giant Panda is a top priority. 

Non-panda reserves are established in other ecosystems for other species such as in wetland 

habitats for the Chinese Giant Salamander 

Table 12: Gazetted and Planned Nature Reserves in the Qinling 

(shaded reserves are not gazetted by year-end 2006) 

No. Name Level 

Area 

(ha) 

Year 

Gazetted 

Agency Location County 

1 Taibaishan Nat 56,325 1965 Forestry Taibai, Zhouzhi, Hou 

2 Foping Nat 29,240 1978 Forestry Foping 

3 Zhouzhi Nat 56,393 1986 Forestry Zhouzhi 

4 Changqing Nat 29,906 1994 Forestry Yang 

5 Zhouzhi Laoxiancheng Prov 12,611 1993 Forestry Zhouzhi 

6 Ningshaan Pref 26,732 2001 Forestry Ningshaan 

7 Guanyinshan Prov 13,500 2002 Forestry Foping 

8 Tianhuashan Prov 25,485 2002 Forestry Ningshaan 

9 Sangyuan Prov 13,800 2002 Forestry Liuba 

10 Wuliangshan Prov 13,700 2002 Forestry Feng 

11 Motianling Prov 11,700 2002 Forestry Mian 

12 Niuweihe Prov 13,087 2002 Forestry Taibai 

13 Yingzhuishi Prov 10,732 2002 Forestry Zhen’an 

14 Qingmuchuan Prov 10,200 2002 Forestry Ningqiang 

15 Huangboyuan Prov 25,409 2006 Forestry Taibai 

16 Pingheliang Prov 17,275 2006 Forestry Ningshaan 

17 Niangniangshan Prov 17,000 2008 Forestry Foping 

18 Panlong Prov 18,844 2008 Forestry Chenggu 

19 Banqiao Prov 36,130 2008 Forestry Yang 

20 Baofengshan Prov 29,500 2002 Forestry Lueyang 

21 Luoyang Dani Prov 5,740 2006 Water Lueyang 

22 Niubeiliang Nat 16,418 1986 Forestry Chang’an, Ningshaan, Xushui 

23 Zhuhuan Prov 37,550 1983 Forestry Yang 

24 Xushui Pref 5,740 2000 Water Taibai 

25 Lingkou Dani Pref 5,715 2006 Water Luonan 

26 Long Xian Pref 6,559 2005 Water Long 

27 Huashan Pref 12,007 2004 Province Huaying 

TOTAL 557,298 

27

28 



105. Nature reserves in the heart of the Qinling cover nearly all of the important habitats for the 

Giant Panda (Figure 8). The reserve network was planned and established by SFD with support from 

WWF. It includes five long-established national nature reserves, nine recently established reserves, 

five corridors, and five planned reserves. The network was fragmented by highway 108 but the impact 

on Panda movements was mitigated by construction of two highway tunnels spanning around 1.9 km 

and two bridges spanning about 2.1 km. This provided a total of about 4 km of corridors through 

which Pandas can cross the highway alignment. 

v. Gaps in Coverage of Qinling Protected Areas 

106. While the protected area system in the Qinling is excellent in its coverage of the upper 

elevations, there is little protection for the lower slopes that support Quercus variabilis forests and 

provide winter habitats for many species including Giant Panda and Golden Takin 25 . Conservation 

implications of this elevation gap were considered most serious at Niubeiliang and Taibaishan NNRs. 

The difficulty in protecting the lower slopes is that they have been settled and farmed for centuries. 

The proposed ADB-GEF project site addresses the need to protect lower elevation habitats on the 

Qinling. 

107. The size of the Hanzhong Crested Ibis Nature Reserve in Yang County was considered in 

2003 to be too small to cover the habitat needed by the wild population of Crested Ibis (ibid.). The 

reserve area has since been increased from 2,584 ha to 37,549 ha to fill this gap. 

108. With the exception of protecting low-elevation slopes, all other gaps identified in the National 

Forestry Nature Reserve System Plan have been filled by establishment of new nature reserves and 

protected corridors at the higher elevations. 

vi. Consolidation of Qinling Protected Areas 

109. The collaborative efforts SFD and WWF have yielded the ultimate benefit for the Qinling 

protected area system, which is nearly complete coverage of critical habitats for key species, mainly 

the Giant Panda. This is a noteworthy achievement. The 16 nature reserves that form the large block 

of protected area cover about 385,185 ha. The five corridors that fill the gaps between nature 

reserves cover 65,369 ha. The total area covered by this single block of protected areas is about 

450,554 ha. Of the 21 protected areas (16 NRs + 5 corridors), the five corridors and three nature 

reserves have not yet developed formal management bureaus. To avoiding further administrative 

fragmentation of the protected area system, it might be advisable to combine these three planned NRs 

and five corridors with one another or consolidate them into the existing system. This could avoid 

duplication of expenditures for establishment of new NRs while solidifying the management regimes 

for the corridors. The following examples have not been discussed with SFD and are only listed here 

to illustrate the concept: 

� Changqing NNR + Jiuchihe corridor + the portion of Banqiao NR adjacent to the 

southwest boundary of Changqing NNR = the new Changqing NNR; 

� Panlong NR + the balance of Banqiao NR + Motianling NR = a new un-named NR; 

� Foping NNR + Niangniangshan NR = the new Foping NNR; and 

� Tianhuashan NR + Caiziping corridor + un-named NR + Ningshan NR + Pingheliang 

NR + Yingzuishi NR = a new un-named NR. 



Management Project. China Land Press, Beijing, in Chinese and English.



Figure 8: Giant Panda Conservation Network in the Qinling 

(WWF-China, used with permission) 

110. Consolidation of NRs has been accomplished at other locations in China. One notable 

example is the Naoli-Qixing River basin in Heilongjiang Province. Here a riverine corridor was 

protected by a number of established and planned wetland nature reserves under Forestry and 

Agriculture Bureau authority. These reserves were combined into a single large wetland nature 

reserve under Forestry administration with support from Agriculture Bureau. While consolidation into a 

single nature reserve on the Qinling might not be achievable or even desirable, at least some 

consolidation of the many reserves and corridors on the Qinling could yield benefits including 

streamlined administration, cost savings, and enhanced management effectiveness. This approach 

would fit the priorities recommended by the World Bank Nature Reserves Management Project in 

2003 26 . 

vii. Forest Parks and Forest Farms in the Qinling 

111. Forest parks number 42 and cover 1,736 km 2 in the Qinling, or over 3 percent of the 50,500 

km 2 of total Qinling area in Shaanxi (Appendix 11). At year-end 2006 China had established 1928 

forest parks covering a total area of over 151,300 km 2 . Of these, 17 are listed as Natural Cultural 

Heritage sites by the United Nations, and 10 are listed as World Geoparks. China’s forest parks 

received over 200 million tourists in 2006, an increase of 20% over 2005. Total forest park income 

was $10 billion in 2006 and the forest park network created more than 3 million jobs in 2006. Forest 

parks are established, administered, and managed by SFA to protect natural resources and 

ecosystems. Forest parks contribute to rural economies by creating jobs and stimulating markets for 

local products. Forest parks in the Qinling account for 2 percent of China’s forest parks by number 

and just over 1 percent by area. 



Management Project. China Land Press, Beijing, in Chinese and English, see page 172 in English. 

29

30 



112. Forest farms number 103 and cover 13,164 km 2 in the Qinling, or 26 percent of the 50,500 

km 2 of the total Qinling area in Shaanxi Province (Appendix 12). Forest farms are commercial 

organizations administered by SFA and provincial forestry departments, and by collectives. Forest 

farms produce timber in commercial plantations, and many have diversified into related industries such 

as wood products and non-timber forest products. Reorganization of the forest farms was necessary 

following imposition of the ban on felling of trees in natural forests under the Natural Forest Protection 

Program of 1998. This had a severe impact on the forest farm network by reducing the area of forest 

under commercial management and, as a consequence, the need for forestry personnel. 

b. Implementing the Biodiversity Convention in China 

i. Multilateral Cooperation 27 

113. The World Bank-GEF China Nature Reserve Management Project (funded by GEF) began in 

the second half of 1995 and finished in 2000. The domestic executing institutions were the State 

Forestry Administration; provincial forestry departments in Yunan, Hubei, Jiangxi, Shaanxi and Fujian; 

nature reserves of Xishuangbanna in Yunnan, Poyang Lake in Jiangxi, Wuyi Mountain in Fujian, 

Shengnongjia in Hubei; nature reserves of Foping, Zhouzhi, Niubeiliang, Taibaishan and Changqing in 

Qinling, Shaanxi; Wuyishan Nature Reserve in Jiangxi, and Changqing Forestry Bureau in Shaanxi. 

ii. Non-Governmental Cooperation 

In 1996, China joined IUCN as a country member. The two sides jointly convened the First Forum on 

Biological Diversity in Asia. In April 2000, China joined Wetland International. China also conducted a 

joint project with WWF for protection of Giant Panda and its habitats. 

iii. Action Plan for Conservation of Biological Diversity 

114. With financial support from UNDP-GEF, China compiled its China Biodiversity Conservation 

Action Plan (BCAP) in 1994 in which the priorities for ecosystems, and species protection were set. 

China’s BCAP clarified the objectives for seven initiatives and raised 26 priority action programs and 

18 priority projects for immediate implementation. PRC also compiled and promulgated China’s 

Agenda 21 – White Paper on China’s Population, Environment and Development in the 21 st Century. 

Chapter 15 “Conservation of Biological Diversity” of the White Paper defines the policies, targets, 

priority areas and projects for biodiversity conservation. At year-end 1997, the State Council approved 

"China's Biodiversity: A Country Study", which set out the objectives of national capacity building for 

conservation and sustainable use of biodiversity in China for the ensuing fifteen years (1996-2010). It 

addressed legislation, institutional construction, human resources, policy framework, protection 

facilities, science and technology, education and public participation, and international cooperation. 

115. PRC approved a Trans-Century Green Engineering Plan, a National Ecological Environment 

Construction Plan, and a Compendium of National Ecological Conservation. The PRC Government 

set up its Compendium of Development Plan for Nature Reserves in China (1996-2010), specifying 

the targets and specific programs for nature reserve planning nationwide. China also formulated a 

Biodiversity Conservation Action Plan for Forestry, a Biodiversity Conservation Action Plan for 

Agriculture, a National Wetlands Conservation Action Plan, and an Action Plan for Ex situ Protection 

of Giant Panda. 

iv. Monitoring 

116. PRC has established monitoring networks for major ecosystems and key groups of species 

and substantial information has been produced. PRC set up monitoring systems for forest resources 

and for wild fauna and flora, among others, and a monitoring center for fisheries environments. China 

has also set up a general environmental monitoring station and over 2,000 local environmental 

monitoring stations. Sixty-four ecological positioning study stations have been established and a 

27 China's Second National Report on Implementation of the Convention on Biological Diversity by State 

Environmental Protection Administration of China, China Environmental Science Press, September 2001.



network for ecosystem study has been operational for many years studying the structure, function, and 

evolution of ecosystems. 

117. PRC conducts inventories of forest resource status and trend at the national level every five 

years. Provinces and municipalities can also arrange investigations to provide scientific information 

for compilation of forestry programs and management of forest resources at local levels. The fifth 

national investigation on forest resources has been completed. 

118. PRC started a national investigation of terrestrial wild fauna in 1995 and a national 

investigation of key protected wild flora in 1996 to provide a scientific basis for the protection of rare 

and endangered species. All provinces, autonomous regions and municipalities have completed their 

field investigations, data processing and analyses. 

119. Beginning in 2000, China conducted an annual statistical survey of nature reserves to collect 

information on numbers, areas, categories, classes, target species as well as regional distribution and 

sectoral distribution of nature reserves. Some nature reserves monitored natural resources and 

biodiversity, and established monitoring networks for rare and endangered species including Giant 

Panda. 

120. Although China has achieved progress in research and monitoring of biodiversity, there 

remain gaps according to the requirements of the CBD. Application of rapid assessment and remote 

sensing technology remains limited. The indicators and methodologies for investigation and 

monitoring need to be standardized and normalized, and the approaches to monitoring are not 

advanced. Data sharing between sectors and with the public has not been achieved. The institutional 

capacity for monitoring is weak, and the expertise of monitoring personnel needs improvement. The 

purpose for monitoring also needs attention to ensure that resulting data will lead to useful 

management information. 

v. Protection of Rare and Threatened Species 

121. From 1997 to 1998, China published the China Red Data Book on Endangered Fauna. In 

1999, China promulgated the first batch of National Key Wild Flora under Protection, which includes 

246 flora species in eight categories. Thirty-three nature reserves for Giant Pandas have been 

established, covering 165,000 ha of panda habitats and 643,000 ha of protected area. From 1991 to 

2000, China Research Center for Protection of Giant Panda, at Wolong, Sichuan Province, bred 37 

Giant Pandas that survived. The numbers of Crested Ibis Nipponia nippon have increased from 7 

when it was first rediscovered in 1981 to more than 920 in 2006. 

vi. Status of Scientific Research on Ex-situ Conservation in China 

122. Studies on the introduction of plants and the mechanism by which rare plants become 

endangered have been extensively conducted in introduction and propagation centers across the 

country. 

123. Captive breeding has been conducted for species including Giant Panda, Crested Ibis 

Nipponia nippon, Golden Monkey Rhinopithecus spp., and South China Tiger Panthera tigris 

amoyensis in zoos and wild animal breeding centers. In some cases, progress has been achieved, 

and captive populations have increased. Few if any captive breeding programs have led to 

reintroductions of captive animals for conservation. 

vii. International Cooperation on Ex-situ Conservation 

124. China and the US have cooperated on the research on Giant Panda breeding and 

germplasm resources. The study of Giant Panda breeding was also conducted with Japan. Studies 

of nutrition, management, and veterinary care of Giant Pandas and tigers were conducted with IUCN. 

31

32 



c. Environmental Protection Department 

125. Shaanxi Government has taken action to curb the ecological deterioration in the Qinling 28 . 

Many heavy polluters in Shaanxi have been shut down; tourism activities that adversely affected 

natural environments have in some cases been stopped; and real estate development is banned at 

the foot of the mountains. 

126. However, with the economic development and intensified human activities in the past 

decades, the Qinling has suffered ecological degradation. The rate of forest coverage declined from 

64 percent 50 years ago to 46 percent in 2002. While nature tourism is developing, restaurants and 

hostels lack facilities for waste treatment and this degrades the natural environment. Waste water and 

solid waste discharged from enterprises and residences have polluted the Feng, Ba and Hei Rivers 

and their 17 tributaries in the Qinling mountains. The Hei River is located at the west boundary of the 

proposed Project Area. 

127. In March 2001, the State Environmental Protection Administration (SEPA) designated the 

Qinling one of the 10 national pilot Ecological Functional Conservation Areas (EFCAs). Under this 

program governments at various levels in the Qinling were required to restore degraded environments. 

Shaanxi provincial government started a special anti-pollution project along the north foot of the 

Qinling Mountains, where ecosystems are most seriously degraded and pollution is the most difficult to 

control. Shaanxi Environmental Protection Department notes that in Xi'an alone, 407 enterprises are 

targeted under the program. 

128. Ecological rehabilitation of the Qinling is a long-term project. Total government investment is 

projected at CNY24.5 billion ($3 billion) by 2015. The goal is to restore landscapes and ecosystems of 

the Qinling. He Fali, Director of SEPD and chief of the Qinling ecological restoration project, notes 

that his department is determined to make Qinling clean again and leave future generations a "green 

heritage." 

i. Ecological Function Zoning 

129. SEPA is cooperating with various agencies to develop a program for National Ecological 

Function Zoning. The purposes are to define ecological functions of various regions based on natural 

or ecological science; identify key regions whose protection is needed to ensure biodiversity 

conservation in China; and guide rational development and conservation of resources. Seven types of 

ecological function areas have been classified based on their dominant ecological functions: 

(i) water source protected area; 

(ii) soil conservation area; 

(iii) wind sheltering and sand fixing area; 

(iv) biodiversity conservation area; 

(v) flood control area; 

(vi) agriculture development area; and 

(vii) urban construction area. 

ii. Ecological Function Conservation Areas 

130. SEPA, in cooperation with other agencies, is developing a Plan for the Conservation of 

National Ecological Function Conservation Areas covering the period 2006-2020 29 . The establishment 

of national EFCAs is a new measure in China to sustainably manage landscape-scale ecosystems by 

protecting the primary ecological functions. Although EFCAs take economic growth into consideration, 

they can restrict development in the interest of nature conservation. Using EFCAs, SEPA plans to 

reduce the pressure of human activities on ecosystems and prevent degradation of ecological 

functions caused by inappropriate development and construction projects. SEPA plans to achieve this 

28 

Zhang Tingting. 2004. Great Efforts Made to Restore Eco-environment of Qinling. The Consulate General of 

the People’s Republic of China in Canada, http://www.chinaembassycanada.org. 7 May 2004. 

29 

China�s Ecological Function Conservation Zones. China Science and Technology Newsletter 254. Ministry of 

Science and Technology, China, 30 March 2001.



by using management and other measures including proper development of unique regional 

industries. The establishment of EFCAs is also important for prevention or amelioration of natural 

disasters, sustainable economic and social development, and ensuring ecological sustainability. 

131. SEPA guidance and regulations on EFCAs include the following: 

(i) The Construction of Eco-Functional Zones in 2002 (2004-06-29); 

(ii) "Interim Regulations on Division of Eco-Functional Zones" Promulgated (2002-09-12) 

(iii) Provisions on the Report and Evaluation of Eco-Functional Zones at National Level 

(on trial) 2004-06-24 

(iv) Organization and Operation System of Appraisal Committee for Eco-Functional Zones 

at National Level 2004-06-24 

(v) Interim Regulations on Division of Eco-Functional Zones 2004-06-21 

(vi) Outline of Planning the Eco-Functional Zone (on trial) 2004-03-29 

(vii) Measures of Approval and Management of the Eco-Functional Zone 2004-03-29 

132. The National Outline of Ecological Environment Conservation issued by the State Council in 

2000 states that ecological functions will be protected and restored through the establishment of 

EFCAs. China’s National 10 th Five-Year Plan for Environmental Protection stated that 15 national and 

40 provincial EFCA’s would be established 30 . China’s 11th Five-Year Plan for National Economic and 

Social Development highlights the development of EFCAs as important for the building of a resourcesaving 

and environment-friendly society. The State Council’s decision on the Implementation of the 

Outlook on Scientific Development and Strengthening of Environmental Protection designated EFCAs 

as one of the objectives of China in environmental protection. 

133. Over recent years, SEPA, in cooperation with other agencies and local governments, 

promoted the development of EFCAs. First, it carried out trials at 10 national EFCAs in important 

ecological function areas including the Qinling: 

(i) Yinshan Ke’erqin Sand Land National EFCA (Inner Mongolia); 

(ii) Sanjiang Plain National EFCA (Heilongjiang Province); 

(iii) Poyang Lake National EFCA (Jiangxi Province); 

(iv) Dongting Lake National EFCA (Hunan Province); 

(v) Ruo’ergai Maqu National EFCA (Sichuan and Gansu Provinces); 

(vi) Qinling Mountain National EFCA (Shaanxi Province); 

(vii) Hei River Valley National EFCA (Gansu and Inner Mongolia); 

(viii) Yangtze River Origin National EFCA (Qinghai Province); 

(ix) Yellow River Origin National EFCA (Qinghai Province); and 

(x) Talimu River National EFCA (Xinjiang). 

134. Shaanxi Environmental Protection Department (SEPD) prepared and approved its provincial 

plan for the Shaanxi Qinling National Ecological Function Conservation Area in 2005 (Figure 9). The 

EFCA covers 57,900 km 2 or around 28% of the province area and 105% of the Qinling area. The 

EFCA includes all or part of 23 nature reserves whose total area is 4,300 km 2 , or 7.4% of the EFCA 

area. The EFCA includes parts of six municipalities, 38 counties (all of 13 and parts of 25), and 483 

townships. The plan was submitted to SEPA in November 2005 for review and approval as a national 

EFCA 31 . The Qinling EFCA covers all of the Qinling range in Shaanxi (but does not extend into 

neighboring provinces) and some of the Daba range, which is located south of the Qinling. The 

proposed Project Area lies within the Qinling EFCA, as does all of Zhouzhi County south of provincial 

highway 107. 

30 

The National Tenth Five-Year Plan for Environmental Protection. Approved by the State Council on 26 

December 2001 and distributed by State Environmental Protection Administration, State Development and 

Planning Commission, State Economic and Trade Commission and Ministry of Finance. State Environmental 

Protection Administration, January 2002, Beijing. 

31 

Shaanxi People’s Government. 2005. Shaanxi Qinling National Ecological Function Conservation Area. 85p. (in 

Chinese). 

33

34 



135. Qinling EFCA is divided into two main function zones: Zone II is for forest and biodiversity 

conservation, and Zone III is for forest plantation and water conservation. The two main function 

zones are sub-divided into three zones: Sub-Zone 1 is for high importance; Sub-zone 2 is for medium 

importance; and Sub-zone 3 is for areas only parts of which are of conservation importance. Zhouzhi 

County and the proposed Project Area are zoned as II-1, the highest priority for forest and biodiversity 

conservation. The same zoning applies to all of the national nature reserves that are located in the 

central Qinling. 

136. A UNEP-GEF project entitled Demonstration of Ecosystem Function Conservation Area 

Approach in the Qinling Mountain Area was planned in 2004. The estimated total funding is $35.7 

million and the project is not yet approved. The goal of the project is to maintain and enhance 

ecosystem services provided by the Qinling Mountain Ecosystem Function Conservation Area 

(QMEFCA) to achieve sustainable development in coordination with the regional economy, society 

and environment. The objective of the project is to build a framework of policy, regulation, 

assessment and monitoring for implementing the QMEFCA through enhanced management capability 

of protected areas and ecosystem goods and services.



Figure 9: Shaanxi Province ecological function conservation area 

35

36 



iii. The Qinling EFCA and the ADB-GEF Project 

137. The goal of the Project is recreation development that contributes to sustainable social 

development and sustainable nature conservation including recovery of lost or degraded ecosystem 

resources and functions. This objective is equivalent to that of the EFCA 12 . The only noteworthy 

difference is that the EFCA includes economic activities other than recreation (e.g. transport, 

manufacturing, mining, and farming). Thus the goals of the EFCA and those of the proposed Project 

are essentially identical. Indeed, the proposed Project represents the ideal type of development in the 

EFCA. 

2. Poverty Alleviation 

138. New anti-poverty measures are planned for southern Shaanxi farm communities 32 . The 

governments of Shangluo, Ankang, and Hanzhong Prefectures (three southernmost prefectures in 

Shaanxi Province) were working in 2006 on green projects to improve economic development. These 

include production of more than 1,500 kinds of local products such as walnut, Chinese chestnut, 

persimmon and edible fungus, to increase farmer incomes and enable forest conservation. Other 

industries targeted for development include Chinese medicines, tea, wine, food and tourism. This 

program targets protection of biodiversity and China's main water resource for the central line of the 

South-North Water Diversion Project. Due to environmental degradation over the past 50 years, 

around one fifth of the Shanglou Prefecture population (or 0.5 million of 2.5 million people) are 

considered to lack adequate food and clothing. The green development projects are intended to aid 

this sector of the community. 

3. Non-Government Initiatives 

a. World Wide Fund for Nature 

139. In March 2002 the World Wide Fund for Nature (WWF) launched its Qinling Giant Panda 

Project 33 . The purpose of the project is to protect the Giant Panda and its habitats in the Qinling 

mountains. The Qinling panda population includes approximately 300 pandas that are geographically 

and genetically isolated from other panda populations in Sichuan and Gansu Provinces. Development 

pressure on panda habitats in the Qinling is expected to increase with implementation of the Western 

China Development Program. Thus the urgent need for enhanced protection. 

140. Similar to the ADB-GEF Project, the WWF Panda Project seeks balance between 

conservation and development. WWF involves private sector investors to fund the development of 

new industries, activities and livelihoods for villagers in an effort to reduce or eliminate human-caused 

pressure on panda habitats. WWF’s Panda Project plans by 2012 to achieve a 10% increase in the 

Qinling giant panda population and a 20% increase in the area of protected panda habitats. These 

goals are to be met by “mobilizing non-conventional stakeholders to adopt and apply conservation and 

sustainable use approaches in their policies, decision-making, investments and consumption 

behavior”. 

141. The WWF Panda Project has three modules: 

(i) Habitat protection and creation of five ecological corridors for giant pandas in the 

Qinling (see below); 

(ii) Cooperative biodiversity conservation and tourism in the southern Taibaishan region 

of Zhouzhi County; and 

(iii) Sustainable community development within the entire giant panda range in the 

Qinling. 

32 Anon. 2006. Cities in Shaanxi Strive to Balance Environment, Development. China Daily, 16 May 2006. 

33 This section adapted from WWF website http://www.wwfchina.org/english/sub_loca.php?loca=27&sub=90



142. In late 2002, the Shaanxi provincial government gazetted five new panda reserves and five 

panda corridors, increasing protected areas by 130,000 hectares. The five new giant panda reserves 

are Motianling Reserve (8,520 ha), Ningqiang Qingmu Chuan Reserve (10,200 ha), Guanyinshan 

Reserve (13,534 ha), Sangyuan Reserve (13,805.7 ha) and Ningshaan Reserve (26,732 ha). 

143. WWF undertook community activities in Changqing Nature Reserve. These included raising 

salmon as an alternative livelihood, installing fuel-efficient stoves, supporting village infirmaries and 

providing micro-credit. These activities increased public awareness of conservation and helped 

restructure local economies after logging was banned in 1998. The conservation focus also helped 

reduce illegal logging and poaching. WWF now aims to extend these activities to other areas of the 

Qinling. 

144. The Houzhenzi Forest Plantation formally established a wildlife patrol in September 2002. 

Supported by WWF, the 30-member team protects and monitors 51,167 ha on the north slope of the 

Qinling, a natural habitat of giant panda. 

145. To avoid ecological degradation caused by uncontrolled tourism, WWF, Xi'an Municipality 

and Zhouzhi County government are working to integrate biodiversity conservation and tourism in the 

southern Taibaishan area. A Memorandum of Understanding was signed in June 2002. 

146. Janssen Pharmaceutical Ltd. and a Belgian zoo jointly invested $500,000 for captive panda 

conservation in Shaanxi. According to the Shaanxi Forestry Department, this is the largest nongovernmental 

investment they have ever received for wildlife conservation. 

147. The WWF Panda Project is funded mainly by WWF Netherlands and cooperators include: 

Shaanxi Forestry Department, Xi’an Tourism Administration, Xi’an University of Architecture and 

Technology, Zhouzhi County Government, Zhouzhi County Tourism Administration, Houzhenzi 

Township Government, Houzhenzi Forest Farm, Laocheng Reserve, Taibaishan National Nature 

Reserve, Foping National Nature Reserve, Changqing National Nature Reserve, Tourism Research 

Center, Chinese Academy of Social Sciences, The International Cooperation & Communication 

Center of Forestry Economics, and Beijing Forestry University. 

i. Giant Panda Corridors 

148. WWF and Shaanxi Forestry Department (SFD) cooperated to create panda corridors to 

reduce habitat fragmentation in the Qinling. This was achieved in conjunction with the Natural Forest 

Protection Program (NFPP), the 1998 program under which China banned logging in natural forests 34 . 

NFPP is implemented nationally by SFA and the forestry departments in each province. 

149. Corridor locations were chosen to include 65,369 ha of otherwise unprotected giant panda 

habitat. Corridor locations were selected based on two surveys covering 120,000 ha: the Third 

National Survey Report on Giant Panda in China 35 , and a subsequent three-month survey organized 

by the NFPP office in Shaanxi. Five ecological corridors were selected at: Houzhenzi of Zhouzi 

County, Dashuping of Taibai Forest Bureau, Erlangba of Taibai County, Jiuchihe of Yang County, and 

Caiziping of Ningxi Forest Bureau. 

150. Establishment of corridors included demarcation, forest management and protection, 

reforestation, forest fire management, tunnel construction, community development, and research and 

monitoring. The work was planned to be completed in 2005. In each corridor, a core zone and a 

buffer zone were demarcated based on the geographic location of the corridor and the frequency of 

panda movements. 

34 For detailed description see Xu Jintao, E. Katsigris and T. A. White. 2001. Implementing the Natural Forest 

Protection Program and the Sloping Land Conversion Program: Lessons and Policy Recommendations. 

CCICED Task Force on Forests and Grasslands. China Forestry Publishing House, Beijing, 98p. 

35 SFA. 2006. Third National Survey Report on Giant Panda in China. Science Press, Beijing, 355p. 

37

38 



SFD considers the corridor project to be seminal because it involved non-traditional wildlife 

conservation partners and united separate government programs (NFPP and the Wildlife Protection 

and Nature Reserve Program) for protection of a species and its habitat. A suggestion was provided 

ii. Research Initiatives 

151. Researchers in China and abroad have investigated Giant Panda conservation issues in the 

Qinling. This section summarizes conclusions of a few recent research projects. 

iii. Paying Villagers to Protect Giant Panda Habitats 

152. In part of a large survey of tourism in China, non-Chinese OECD country residents were 

asked in group interviews if they would pay extra fees to ensure Giant Pandas survive in the wild as 

opposed to surviving in comparable numbers but in captivity. Results showed that people would pay 

on average around $10 per person in additional fees for this outcome. If this fee had been collected 

from an estimated 5 million foreign tourists (in 1997), the total amount paid as a conservation incentive 

to villagers would have increased their gains per hectare by 200 times (from $0.05 to $10/ha). This 

was concluded to be adequate incentive for villagers to reduce impacts to the forest habitats of 

pandas. However, this translates to $0.67 or around CNY5.40 per mu per year, an amount unlikely to 

change farmer behavior in 2007. 

iv. Monitoring Conservation Effectiveness 

153. During the first 22 years of the history of Wolong National Nature Reserve Panda habitats 

deteriorated faster inside the reserve than outside 36 . This contributed to the decline in numbers of wild 

Pandas from 145 in 1974 to 72 in 1986, and probably further declines after 1986. Studies of habitat 

deterioration have focused on Wolong National Nature Reserve but the technology could be extended 

to the Qinling where densities of Giant Pandas are higher and protected areas almost completely 

encompass the key panda distribution areas. 

v. Humans and the Protected Area System 

154. Research on human interactions with panda habitats has been carried out since the late 

1990s at Wolong National Nature Reserve (Sichuan). A model for simulating impacts of demographic 

and socio-economic parameters on panda habitats was tested in 2000 37 . Use of the model in the 

Qinling could help managers “understand the relationships among local economies, local cultural 

traditions, and habitat degradation”. This should lead to more scientific and efficient management of 

people in and near reserves. 

155. Modeling was extended in 2003 to “detect…patterns of change in land cover and panda 

habitat, to understand the mechanisms behind these patterns, and to develop new policy scenarios 

and evaluate short- and long-term consequences of different scenarios” 38 . Field work showed that 22 

new households were added to the reserve annually from 1975-98. Modeling showed that young 

villagers (17-25 year old) villagers are the key to protecting Panda habitats. If the young relocate 

outside the reserve for study, work, or marriage, the human population will fall and panda habitats will 

increase. In contrast, if nothing changes, villager populations’ increase and panda habitats decline 

sharply. Relocation of young people to enhance their social, educational, and occupational 

opportunities was found to be “socially acceptable, economically efficient, and ecologically sound”. 

36 Liu Jianguo, M. Linderman, Ouyang Zhiyun, An Li, Yang Jiang and Zhang Hemin. 2001. Ecological 

degradation in protected areas: the case of Wolong Nature Reserve for Giant Pandas. Science 292:98-101. 

37 An L., Liu J., Z. Ouyang, M. Linderman, S. Zhou and H. Zhang. 2001. Simulating demographic and 

socioeconomic processes on household level and implications for giant panda. Ecologcial Modelling 140:31- 

49. 

38 Liu J., L. An, S. S. Batie, R. E. Groop, Z. Liang, M. A. Linderman, A. G. Mertig, Z. Ouyang and J. Qi. 2003. 

Human impats on land cover and panda habitat in Wolong Nature Reserve: Liinking ecological, 

socioeconomic, demographic and behavioral data. Chapter 9 in People and the Enviornment: Approaches for 

linking household & community surveys to remote sensing & GIS (J. Fox, V. Mishra, R. Rindfoss and S. 

Walsh, eds.) Kluwer Acad. Pub. Boston, p 241-263.



156. Multi-disciplinary research continued at Wolong in 2002-2003 39 and predicted that human 

impacts would cause loss of Panda habitats. Roads were found to control the locations of village 

houses. Firewood collection was the main cause of forest degradation, with an average household 

using 15 m³ per year. Recommendations were to reduce firewood collection by providing alternative 

energy sources, and provide “viable means and incentives to encourage emigration” 40 . 

157. A recent model helps managers predict the effects on Panda habitats of changes in 

demographic and socioeconomic factors of villagers 41 . Recommendations for conserving Panda 

habitat included provision of cheaper and more reliable electricity to reduce firewood collection, 

provision of off-site educational opportunities to encourage emigration, delaying age of marriage, and 

prolonging interbirth intervals to reduce birth rates. No change was recommended in the family 

planning policy that currently permits more than one child per family among the cultural minorities. 

4. Development Lending Initiatives 

a. World Bank National Afforestation Project 

158. In 1990-1997 the World Bank Group (WBG) began implementation of the $300 million 

National Afforestation Project (NAP) in 14 provinces in China (Table 13). Although Shaanxi Province 

was not included, NAP developed technologies and approaches that led to the next WBG forestry 

project, which not only included Shaanxi Province, but also addressed nature conservation (see 

below). 

b. World Bank Forest Resource Development and Protection Project 

159. The WBG-funded Forest Resource Development and Protection (FRDP) Project of 1994- 

2001 was implemented in the 14 provinces of NAP and also included Shaanxi, Shanxi, and 

Heilongjiang Provinces (Table 13). This $333 million project extended NAP technologies and included 

an important new component to address forest biodiversity conservation that ultimately became the 

associated Nature Reserves Management Project (NRMP) (see below). 

c. World Bank Nature Reserves Management Project 

160. NRMP supported conservation of nature reserves that are rich in biodiversity of global 

significance. It supported new approaches to organization, planning, skills development, information 

management, and the integration of local communities into conservation efforts. 

161. NRMP was the first World Bank Group or GEF investment in biodiversity in China. It drew 

on project experience from other countries under the GEF Pilot Phase and from NGOs in China. The 

key lessons include: (a) the importance of a national strategic framework for biodiversity investments; 

(b) the need to build in financial sustainability and long-term commitment from the government; (c) the 

need to involve local people in design and implementation; and (d) the key role of macroeconomic and 

sector policies in establishing an appropriate incentive framework for resource conservation. It also 

draws on the implementation experience of the GEF PRIF in China over the past two years, 

particularly the importance of twinning domestic and international technical assistance to ensure 

effective transfer of new ideas and technologies. Similarly, the project draws on related lessons from 

the 1991 Board paper on forestry, the 1991 Operations Evaluation Department report on forestry, and 

the 1994 Board paper on forestry project implementation: (a) the importance of integrating the 

management of protected and unprotected natural forest areas into regional forest management 

plans; (b) the importance of developing restructuring programs for inefficient state forestry enterprises; 

and (c) the need to expand the protected area system and improve management technologies for 

forests with high biodiversity and environmental services values. Finally, the community participation 

39 Linderman, M. A., A. Li, S. Bearer, G. He, Z. Ouyang and J. Liu. 2004. Modeling the spatio-temporal dynamics 

and interactions of households, landscapes and giant panda habitat. Ecologial Modelling (detail not available). 

40 Liu, J., Z. Ouyang, Z. Yang, W. Taylor, R. Groop, Y. Tan and H. Zhang. 1999. A framework for evaluating the 

effects of human factors on wildlife habitat: The case of giant pandas. Conservation Biol. 13(6):1360-1370. 

41 An, L., G. He, Z. Liang and J. Liu. 2006. Impacts of demographic and socioeconomic factors on spatiotemporal 

dynamics of panda habitat. Biodiversity and Conservation 15:2343-2363. 

39

40 



program supported under the project incorporates lessons learned from several on-going pilot 

activities in China managed by NGOs and the government, particularly (a) the importance of 

integrating local villagers into the assessment of community needs through participatory rural 

appraisal techniques; and (b) the need to establish clear, mutually agreed contracts that identify the 

respective rights and responsibilities of reserve staff and local communities in resource use within 

reserves. The Enterprise Restructuring Component (34 percent of total costs) would introduce a pilot 

program for resolving biodiversity land-use conflicts adjacent to the Qinling Reserve Group. Two stateowned 

forest farms under the Changqing Forestry Bureau have aggressively harvested timber outside 

the reserve boundaries over the past two decades, significantly reducing the forest cover and 

degrading a small but important corridor for the movement of Giant Pandas. The component would 

introduce more sustainable management by reducing harvesting and transferring workers to more 

environmentally sustainable employment. This program -- the first of its kind in China -- is expected to 

establish a model for sustainable land-use management and enterprise restructuring that would be 

disseminated to other protected areas in China. 

d. World Bank China Sustainable Forestry Development Project 

162. The Sustainable Forest Development Project (SFDP) was implemented from 2002 through 

2009 (Table 13). It was implemented in three components: (i) Plantation Establishment (PE); (ii) 

Natural Forests Management (NFM); and (iii) Protected Area Management (PAM). Project funding 

totaled $242.34 million. The PAM and NFM components were co-financed by grants from GEF and 

Europe Aid, respectively. The PE component was financed by a World Bank loan. 

163. The SFDP was conceived based on lessons learned from the two previous World Bank 

projects 42 . Key issues for effective natural forest management were listed as follows: 

(i) Forestry must be fully integrated into land use planning; 

(ii) Successful management is only possible with a defined and enforced permanent 

forest area; 

(iii) Accurate inventory of multiple forest resources is needed to guide forest planning; 

(iv) Management objectives need to be tailored to specific sites and the needs of local 

communities; 

(v) Linkages between conservation and development should be explicit; 

(vi) The interests of all stakeholders must be taken into account in decisions on forest 

management; 

(vii) All management options for forests -- even total protection -- incur financial and 

economic costs; the options selected must have long-term financial and economic 

sustainability; 

(viii) Commercial timber plantations and trees in farmlands must help secure sustainable 

management of natural forests and need to be planned and monitored to appropriate 

standards; and 

(ix) Institutions and agencies charged with forest management must raise technical 

standards and provide structures that are conducive to the outputs sought. 

42 World Bank. 2001. China-Sustainable Forestry Development Project. Project Information Document, Report 

No. PID8659, East Asia and Pacific Region, Forestry Sector, Natural Resources Management, Project ID 

CNGE60029, 21 April 2001.

41 



Table 13: World Bank Forestry and Nature Reserve Projects 

Sustainable Forestry 

Development Project (SFDP) 

Nature Reserves 

Management Project 

Forest Resource Development & 

Protection Project (FRDP) 

National 

Afforestation Project 

Project 

name 

(NAP) 

(part of FRDP) 

Start 29 May 1990 June 1994 1996 April 2002 

End 31 Dec 1997 Dec 2001 2002 August 2009 

Status closed closed closed continues 

Total cost $300 million $333 million $23.6 million $230 million 

IA Forestry Forestry Forestry Forestry 

Location 14 provinces excluding Shaanxi 14 provinces of NAP plus Shaanxi, Shanxi, 

Natural Forest Management in 

and Heilongjiang 

Sichuan, Hainan, Hunan; 

Protected Areas Management in 

four adjacent provinces of Gansu, 

Hubei, Yunnan and Guizhou 

Xishuangbanna, Yunnan Province; 

Poyang Lake, Jiangxi Province; 

Wuyishan, Fujian and Jiangxi 

Provinces; Qinling of Shaanxi 

Province (Foping, Niubeiliang, 

Zhouzhi, and Taibaishan) and 

surrounding natural forests where 

giant pandas reside; and Shennongiia, 

Hubei Province 

ensure that viable, participatory, 

and locally-managed system for 

conservation, management, and 

sustainable use of forest 

resources and associated 

biodiversity are developed and 

adopted to promote sustainable 

development and management of 

forest resources and protect the 

natural environment. Provide 

models for wider replication under 

the government's Natural Forest 

Protection Program (NFPP). 

The global objective is to foster 

improved conservation and 

sustainable management of 

biodiversity in remaining natural 

forest areas by ensuring effective 

in situ protection of threatened 

and globally important forest 

habitats and rare and endemic 

species. 

enhance biodiversity conservation 

through innovative approaches to 

organization, planning, skills 

development, information 

management, and the integration of 

local communities into reserve 

management; focus on developing 

skills, human resources, and systems 

for improving protection and 

management at the field level; Key 

activities include: (a) preparation and 

implementation of new management 

plans; (b) strengthening of field-level 

protection through financing of guard 

posts, new communications systems, 

field kits and other miscellaneous 

equipment: and (c) expanding the role 

of local communities in and adjacent 

to nature reserve sites in the planning 

and management of reserves. 

enhance productivity of forest resources, 

efficiency of resource use, and institutional 

capacity for sustainable management in the 

three major forest types in China: commercial 

plantations, watershed protection forests, and 

nature reserves. Expand the supply of 

commercial timber and pulpwood through 

establishment of 620,000 ha of intensively 

managed plantations; (b) develop improved 

models for watershed management through 

establishment of 280,000 hectares of 

protection forests; (c) enhance biodiversity 

conservation through improved management 

of nature reserves and natural forests; (d) 

strengthen the operating efficiency of 

technical support services in the forestry 

sector, particularly planting materials, 

research, and extension programs; and (e) 

strengthen the capacity of forest sector 

institutions in planning and management. 

Objectives 1) expand forest resources and reduce 

the gap between timber production and 

consumption; 2) improve quality of 

forest plantations through use of 

superior planting stock; 3) introduce 

financial and economic analysis for 

forestry investment; 4) strengthen 

research and extension programs that 

support plantation forestry; 5) initiate an 

accelerated tree breeding program that 

increases productivity of planting stock 

within 2 to 3 years; and 6) create the 

organizational and managerial 

infrastructure to plan, appraise, finance, 

implement, and evaluate plantation 

programs.

42 



164. The Nature Reserves Management component of the Sustainable Use of Forests project 

focused on three locations, two in Hainan Province and one on the Sichuan-Gansu boundary area. 

Hainan activities are not reviewed here. The Gansu-Sichuan project site was at Baishuijiang and 

Tangjiahe NNRs, an area of 2,537 km 2 . These are priority reserves for giant panda conservation and 

they support viable populations of Giant Panda and Sichuan Golden Monkey, Clouded Leopard, 

Golden Takin, Temminck's Tragopan and Blue-eared Pheasant. Main threats are hunting, NTFP 

harvesting, fuelwood collection and fire. Key interventions are (1) Participatory NR Planning and 

Management: Nature reserve management plan development, preparation of ecological baseline 

maps, improvement of field level management systems, provision of equipment and a small amount of 

civil works, and research; (2) Community-based nature conservation, including co-management, 

conservation education and public awareness, energy conservation, delivery of sustainable 

technologies, and demonstration of wildlife management systems to reduce crop depredation; (3) 

training and capacity building, including in-service training, building local capacity for training delivery 

and institutional capacity building; (4) management, monitoring and evaluation, including project 

management training, regular patrolling and periodic sampling as well as policy studies. 

165. Key recommendations for World Bank-financed natural forest management projects were 

listed as: 

(i) Support modernization and implementation of more appropriate legislation, regulation, 

and resource rights; 

(ii) Support alternative resource control systems, such as deconcentration, 

decentralization, and co-management with government agencies, local communities, 

the private sector, NGOs, and others; 

(iii) Closely coordinate technical training with the timing and needs of institutional change 

and development for locally responsible resource management agencies; 

(iv) Give priority to effective policy analysis and development, since policy and market 

failures have been more serious than technical problems of forest management, 

silviculture, and conservation; 

(v) Support investments in boundary demarcation, resource assessment and inventories 

and growth and yield studies; and 

(vi) Strengthen systems for monitoring resource management and audit of institutional 

performance. 

166. Two key WBG recommendations for the biodiversity portion of the China forestry program 

were to: (i) continue to support commercial plantation development to reduce pressure on natural 

forests and expand domestic wood supply while generating environmental benefits; and (ii) expand 

the GEF program because China's global biodiversity resources warrant a larger share of international 

support than is presently received. 

D. Threats analysis 

167. General threats to biodiversity in the Qinling were identified in 1998 as 43 : (i) intensive 

commercial timber harvesting near the nature reserves; (ii) agricultural encroachment; (iii) illegal taking 

of natural resources; (iv) fragmentation by construction of national highways and reduced potential for 

gene exchange; (v) unregulated development of tourism. 

168. Commercial logging (threat number 1), was addressed in 1998 by the Natural Forest 

Protection Program 44 , which banned logging in natural forests nationwide. While this stopped 

commercial logging (except in plantations), it did not regulate household use of timber for construction, 

cooking, and/or heating. Household use of timber remains a threat to NRs nationwide because 

villagers live either within or near all reserves. Household timber harvest threatens habitats at 

43 Zhang Jingliang, Li Huanfang , Zhang Mingxia , Hou Lingyu. 1998. Some of the main problems of the Qingling 

Nature Reserves and managing strategies. Chinese Biodiversity 6(4):312-315. 



and Grasslands. China Forestry Publishing House, Beijing, 98p.



Wolong 45 , the most famous and largest of panda reserves, and certainly does so in NRs in the Qinling 

as well even though some reserves have no villagers within their boundaries. 

169. Agricultural encroachment onto wildlands (threat number 2) began when people first settled 

southern Shaanxi Province at least 6,000 years ago. While the flat lands with easy access to water 

were quickly settled, the remote and rugged terrain in the Qinling was ignored except as a source of 

natural resources. But in modern times, population pressures pushed farmers further into the 

mountains in search of arable lands. Farming on the steep slopes of the Qinling caused soil erosion 

that washed away valuable soils and choked waterways. In an effort to reverse this trend PRC 

instituted the Sloping Land Conversion Program (or “grain for green” program) beginning in 2000. The 

program provides grain, cash and saplings to farmers who convert their steeply sloping farmlands to 

grassland or woodland 46 . The program has been implemented on 600,000 to 800,000 ha in the 

Qinling as a whole, and on an undetermined portion of the Project Area. 

170. Strategies were proposed in 1998 to counter threats number three through five: 

(i) establish co-management to enhance relations with villagers living in and around NRs; 

(ii) establish biological corridors to counter impacts of highways and railways; 

(iii) strengthen management of nature reserve along highways to counter illegal entry by 

villagers and livestock and blockage of wildlife movements by fences installed to 

protect natural forests; 

(iv) enhance the administration and increase investment in nature reserves (particularly 

Zhouzhi Laoxiancheng NNR); 

(v) improve management of tourism; and 

(vi) diversify villager commercial enterprises. 

171. To some extent these recommendations by national specialists have been implemented. 

Co-management (recommendation 1) is now standard operating procedure in Taibaishan and Foping 

NNRs, and seems to be working well. The manager of Taibaishan NNR noted that villagers are now 

the first to detect and report violations of nature reserve regulations. He attributed this to the 

innovative policies implemented through co-management that required: (i) all NNR visitors to hire 

locals as guides and porters; and (ii) all construction projects in the NNR to be implemented using 

local labor and management personnel. The impact of these co-management policies has been that 

the villagers now consider protection of the nature reserve and its natural resources as not only their 

right and responsibility, but also their most reliable means of achieving increased standards of living. 

172. Biological corridors (recommendation 2) have been established in part by an aggressive 

campaign by government and WWF to establish new nature reserves (see above section on Protected 

Areas). Two significant issues appear to remain outstanding with respect to linkages between critical 

habitats. These are re-forestation projects of the 1950s and 1960s that involved two non-native 

species of larch (Japanese Larch Larix kampfera and North China Larch Larix princi), which have 

grown in mono-species stands that block natural colonization by other species. The result is large 

expanses of forest that lack understory vegetation and have little floristic diversity. These are referred 

to as “green deserts” by ecologists because from a distance they appear as beautiful natural forests 

but on closer inspection, they are ecologically barren. The inability of bamboo and other plants to 

colonize these plantations precludes their use by pandas and many other species. The forests cannot 

be logged because national law prohibits felling of trees in nature reserves. The exotic trees were 

planted to compensate for prior excesses in timber exploitation but now stand in the way of effective 

nature conservation. Selective logging and planting of bamboo and other indigenous species of 

known forage or other value to wild animals would yield a long-term conservation gain and a shortterm 

economic gain as well. WWF is attempting to plant bamboo beneath the exotic larch canopy. 

The project is in its early stages, so the effectiveness of this effort is not yet known. 

45 Liu Jiangluo, M. Linderman, Ouyang Zhiyun, An Li, Yang Jian and Zhang Hemin. 2001. Ecological 

degradation in Protected Areas: The case of Wolong Nature Reserve for giant pandas. Science 292:98-101. 




43

44 



173. The second outstanding issue related to linkage of habitats is the growing number of 

highways and railways through the Qinling. While roads and rails themselves do not absolutely 

preclude movements of wild animals, some of the associated infrastructure does. For example, chainlink 

fences have been erected along highways adjacent to NRs to prevent access to the NR by 

livestock and people. The fences are effective in their intended role but also cause the unintended 

impact of preventing wildlife movement (especially mammals) across roads and railways. Thus the 

fence is more damaging than the road itself in terms of habitat fragmentation and this is especially true 

for mammals such as giant panda, other threatened carnivores such as leopard and clouded leopard, 

and Golden Takin. Resolution of this issue might require a combination of: (i) modification of the 

fences; (ii) construction of wildlife under-passes or over-passes; and (iii) stronger management of 

those NR areas lying alongside rail and road corridors (recommendation 3). 

174. Management of NRs is improving and investment in NRs is increasing (recommendation 4) 

due to a number of PRC and international initiatives. With respect to administration, it is widely 

acknowledged that the existing institutional arrangement is not optimum. 47,48 SEPA is responsible for 

coordinating nature reserve issues but SFA manages most nature reserves. SFA is the wildlife 

conservation authority while SEPA is the biodiversity authority. One proposal for change in nature 

reserve administration calls for establishment of an “environmental protection commission”, possibly 

on the model of the seven river basin commissions, to enhance coordination for planning and 

administration of the nature reserve system 49 . A more ambitious proposal calls for centralized 

management and coordination under the State Council, through establishment of a new “State 

Administration for Nature Reserves”, and support for the new administration in the form of increased 

authority, funding and a new National Nature Reserve Law 50 . 

175. With respect to investment, PRC is spending more to establish NRs in the Qinling (and in 

other regions of Shaanxi as well). Second, international development lending has greatly increased 

investment in and improved the quality of management at some Qinling NRs, particularly those 

involved in the World Bank-GEF FRDP project and the WWF Giant Panda projects. Although these 

short-term projects (up to 5 years) are a bonus for underfunded reserves, they typically do little to 

solve the long-term shortage of funding for reserve operations. 

176. As documented by 22 Chinese Academy of Sciences professionals in 2002, the nature 

reserve system in China remains under-funded 51 . Virtually all stakeholders in conservation in China 

note that funding is seldom adequate, even in national-level reserves, for anything more than paying 

salaries. China’s national nature reserves receive around one eighth of the world average budget 

allocation per unit area ($113 vs. $893/km 2 ), and even less than the average allocation for reserves in 

developing countries ($157/km 2 ). Provincial and local reserves receive even less ($57/km 2 ). In 

general, nature reserves in China receive government funding adequate to meet about one third of 

their spending requirements: The balance must be met by entrepreneurial efforts that are often 

antagonistic to the conservation mandate of the reserves. 

177. Under-funding causes an additional problem that is seldom discussed but very important, 

which is its impact on public perception of nature conservation as a career. It should be no surprise 

that students in conservation curricula are numerous and keen in countries where conservation 

provides attractive career prospects. Aspiring conservation biologists in many countries eagerly 

anticipate the opportunity to work in remote, challenging, outdoor environments because salaries, 

benefits, and budgets for equipment and materials are adequate to support a high standard of living. 

This is not true in China where low salaries, poor benefits and inadequate budgets discourage 

47 

Xie Yan et al. 2004. China’s Protected Areas. Tsinghua University Press, Beijing. 604p (in Chinese and 

English). 

48 

Liu Jianguo, Ouyang Zhiyun, S. L. Pimm, P. H. Raven, Wang Xiaoke, Miao Hong and Han Nianyong. 2003. 

Protecting China’s Biodiversity. Science 300(5673):1240-1241. 

49 

Xie Yan et al. 2004. China’s Protected Areas. Tsinghua University Press, Beijing. 604p (in Chinese and 

English). 

50 

Liu Jianguo, Ouyang Zhiyun, S. L. Pimm, P. H. Raven, Wang Xiaoke, Miao Hong and Han Nianyong. 2003. 

Protecting China’s Biodiversity. Science 300(5673):1240-1241. 

51 

Anon. 2002. Starving Nature Reserves. Science and Technology Daily, 27 June 2002 (in Chinese). 

Reviewed in: Beijing Environment, Science and Technology Update. American Embassy In China. 

Environment, Science and Technology Section. 18 October 2002.



students from pursuing careers in conservation other than in academia or government posts in large 

urban areas. 

178. Tourism in China is growing at rates seldom seen in other parts of the world. Nature tourism 

is often seen as a “golden goose” that can fill the funding gap caused by under-funding of NRs by 

governments. Regulation of tourism is needed to ensure that natural resources are not further 

degraded in the interest of economic gain (recommendation 5). This issue has not been fully 

addressed in the Qinling but is increasingly urgent because of the increased mobility of people in large 

cities such as Xi’an, which are located within comfortable driving distances of Qinling protected areas. 

179. Recommendation 6 has been partially addressed by the WWF “homestay” program in which 

farmers near NRs use micro-credit to convert rooms of their homes to tourist lodges. The first of the 

homestay operators in Taibaishan NNR realized a 500% increase in household income after adopting 

the homestay model. The homestay market at Houzhenzhi Station of Taibaishan was quickly flooded 

by 56 additional entrants hoping to repeat the commercial success of the founder. Today’s market is 

based on the “golden week” holidays at First of May and First of October, and the six months of late 

spring, summer and early autumn between these dates. Facilities at homestays are good (clean 

rooms, locally grown food, solar hot water, and satellite TV) and there should be room for growth in 

the industry if it focuses on “watchable wildlife” as is the case in major nature tour destinations 

worldwide. The increasing abundance of wild boar, Golden Takin, giant panda and golden snubnosed 

monkey should provide wildlife watching opportunities for tourists, especially in winter when 

these species migrate to lower elevations. 

180. Poverty of villagers is a cause of many conservation problems. WWF has begun to address 

poverty through alternative livelihoods including honey production, animal husbandry and tourism 

homestays. 

181. Over-exploitation of natural resources was most severe in the years before the 1998 logging 

ban in natural forests. In the late 1990s excessive logging at the periphery of nature reserves was 

degrading ecosystems in the Qinling. While logging has been regulated, use of timber for firewood 

continues to degrade forests. The severity of this problem in Wolong was highlighted by research that 

pointed out several socially and culturally acceptable remedies. 

1. China Government Plans 

a. New Nature Reserves 

182. Shaanxi Provincial Forestry Department announced in June 2006 its plans to build five new 

nature reserves (Table 14) to protect habitats for the Giant Panda 52 . The new nature reserves would 

enlarge the area of protected panda habitat by 114,658 ha from the 323,411 ha coverage in 2001 

(35% increase) to a total of 438,069 ha by 2010. Coverage would then include an estimated 72% 

percent of panda habitat in the Qinling range. The remaining 28 percent of panda habitat is found in 

small, isolated patches located outside the 19 panda reserves. Shaanxi Province will also improve 

and complete construction of its Giant Panda protection and management system, and build a panda 

information management and patrol inspection and monitoring system by the end of 2010. 

52 China Daily, 23 June 2006 

45

46 



Table 14: Forestry Department of Shaanxi Plans for New Nature Reserves by Year-End 2010 

No. Name Level* Year* 

Location 

(county) 

Area (ha) 

1 Huanboyuan Province 2006 Taibai 25,409 

2 Pingheliang Province 2006 Ningshaan 17,275 

3 Niangniangshan N/D N/D Foping 17,000 

4 Panglong N/D N/D Chenggu 18,844 

5 Banqiao N/D N/D Yang 36,130 

Total 114,658 

N/D = not decided 

b. Sloping Land Conversion Program (Grain for Green) 

183. The Sloping Land Conversion Program (SLCP; also known as Grain for Green program) was 

implemented in 1999 by PRC as a cropland set-aside program to increase forest cover and prevent 

soil erosion on sloped croplands. Farmers discontinue farming on all or part of their steeply sloping 

croplands and instead plant seedlings to grow trees. In return, government compensates participating 

farmers with in-kind grain allocations, cash payments, and free seedlings. 53,54 The program covers 25 

provinces and over 2,000 counties, and continues in 2007. The steepness criterion in southwest 

China targets croplands on slopes of 25 degrees or more and in northwest China the target is 

croplands on slopes of 15 degrees or more. The total SLCP budget exceeds $40 billion and the goal 

is to set aside or rehabilitate 146,700 km 2 of farmland to forest by 2010 55 . This would affect 40-60 

million rural households. A second goal is to convert an equivalent area of degraded or “wasteland” to 

forest by 2010. 

184. By 2003, the program had converted a cumulative 7.19 million ha of cropland and farmers 

had afforested 4.92 million ha of barren land. In general, farm incomes did not fall due to 

intensification of farmer effort on non-SLCP plots. Farmers use better seed, switch from single to 

multi-cropping, and/or increasing livestock production on non-SLCP plots. 

185. SLCP was found by Xu et al. (2005) to account for less than 10% of the decline in national 

grain production in 1999-2003 and less than 1% of the subsequent rise in grain prices during that 

period. SLCP impacts on grain production and grain prices are considered too small to merit 

consideration when evaluating whether to continue the set-aside program. Early reports concluded 

that environmental benefits of SLCP on a national scale (improved water quality, reduced siltation, 

carbon sequestration in planted trees) vastly exceed any national economic costs due to slight rises in 

grain prices 56 . Later reports (Bennet and Xu 2006) concluded that SLCP suffers many fundamental 

problems and that if it is not restructured and extended beyond the initial eight year duration, the 

planned environmental benefits will not be realized. 

53 Xu, J., E. Katsigris and T. A. White (eds.). 2002. Implementing the natural forest protection program and the 

sloping land conversion program: Lessons and policy implications. CCICED-WCFGTF. Beijing: China Forestry 

Publishing House. 

54 Xu Zhigang, Xu Jintao, Deng Zheng, Huang Jikun, E. Uchida and S. Rozelle. 2005. Grain for Green versus 

Grain: Conflict between Food Security and Conservation Set-Aside in China. World Development 34(1):130- 

148. 

55 Bennett, M. T. and J. T. Xu. 2006. China’s Sloping Land Conversion Program: Institutional innovation or 

business as usual? Workshop on “Payments for Environmental Services (PES) – Methods and Design in 

Developing and Developed Countries”, Chinese Center for Agricultural Policy, Chinese Academy of Sciences, 

Beijing 

56 Xu, J., E. Katsigris and T. A. White (eds.). 2002. Implementing the natural forest protection program and the 

sloping land conversion program: Lessons and policy implications. CCICED-WCFGTF. Beijing: China Forestry 

Publishing House.



2. Giant Panda Conservation Lessons Learned 

186. Researchers have used methods including systematic interviews, remote sensing, and 

computer modeling to assess approaches to and results of conservation of China’s preeminent 

flagship species, the Giant Panda. Key conclusions of recent research projects are described below. 

a. Paying for Conservation 

187. Securing funding for nature reserves and conservation is problematic world-wide. But for 

charismatic and flagship species such as the Giant Panda people are willing to pay more to fund 

conservation providing that conservation objectives are met and that the living conditions of wild 

animals are improved 57 . Some people are willing to pay three times more for conservation of Giant 

Panda in its natural habitats than in captivity. The biodiversity conservation concept of “flagship 

species” applies to Giant Panda because it is globally associated with the bamboo and broadleaf 

deciduous forests of Sichuan, Gansu, and Shaanxi. Because Giant Panda is charismatic, globally 

recognized, and a flagship species, it plays an important role in conservation of the Qinling ecosystem. 

In contrast to some flagship species whose ranges do not include biodiversity hotspots (areas 

unusually rich in biodiversity), Giant Pandas in Shaanxi occupy one of the most biodiverse 

ecosystems in China. Thus effective conservation of panda habitats in the Qinling leads directly to 

conservation of many other species, some of which are also globally threatened and charismatic 

Examples are the Golden Takin (Endangered), Red Panda (Vulnerable) , Golden Snub-nosed Monkey 

(Vulnerable), Asiatic Black Bear (Vulnerable) and Clouded Leopard (Vulnerable). “Willingness-to-pay” 

for conservation has been investigated among foreigners (ibid.) and this research could well be 

extended to include Chinese tourists who account for 98% of tourist arrivals in Xi’an. There appears 

to be a large but untapped reservoir of potential funding for Giant Panda conservation. If successfully 

exploited, this could lead to removal of some of the most pressing threats to survival of some Qinling 

species. 

b. Monitoring Conservation Effectiveness 

188. Panda habitats should be better protected in nature reserves than outside nature reserves. 

However, at least in the first 22 years of the history of Wolong National Nature Reserve, this was not 

true 58 : The best panda habitats declined in coverage as they were converted by human activities into 

unsuitable habitats. This is a surprising outcome that at least in part caused a decline in numbers of 

wild pandas from 145 in 1974 to 72 in 1986, and probably further declines after 1986. This 

assessment of change in habitat conditions over time was made possible in part by the availability and 

quality of analytic tools used to interpret land cover from satellite imagery. As the range of Giant 

Pandas is increasingly included within the boundaries of new or enlarged nature reserves, this type of 

analysis is extremely important to understand the impacts of nature reserve operations on panda 

habitats. The Liu et al. (2001) study focused on Wolong National Nature Reserve. The technology 

could profitably be extended to the Qinling where densities of Giant Pandas are high, the total 

population is estimated at over 273, and the coverage of the protected area network has almost 

completely encompassed the key panda distribution areas. 

189. A second and potentially important application of remote sensing technology to conservation 

management in the Qinling is evaluation of the effectiveness of the National Forest Protection 

Program (NFPP) and the Sloping Land Conversion Program (SLCP). In 1998, NFPP banned timber 

harvest in natural forests and closed plantations to commercial uses in the upper Changjiang and 

upper to middle Yellow River. Degraded lands were to be restored by planting of grasses and trees. 

In 1999, SLCP began to provide grain, cash, and tree seedlings to farmers in exchange for 

discontinuance of farming on slopes steeper than 25 degrees. NFPP was implemented throughout 

the 50,500 km 2 of the Qinling, 13,635 km 2 (27 percent) of which is mature closed-canopy forest. 

SLCP was implemented on 2,056,747 ha in Shaanxi Province, of which about 30-40 percent applied 

to the Qinling (617,000 to 823,000 ha). To date there has been no systematic monitoring of the 

57 Kontoleon, A. and T. Swanson. 2003. The willingness to pay for property rights fo the Giant Panda: Can a 

charismatic species be an instrument for nature conservation? Land Economics 79(4):483-499. 

58 Liu Jianguo, M. Linderman, Ouyang Zhiyun, An Li, Yang Jiang and Zhang Hemin. 2001. Ecological 

degradation in protected areas: the case of Wolong Nature Reserve for Giant Pandas. Science 292:98-101. 

47

48 



outcome of NFPP of SLCP in the Qinling. Use of remote sensing in combination with ground-truthing 

and sampling of revegetated plots would enable assessment of the effectiveness of these two 

projects, and could lead to modifications that would be beneficial for conservation and for the 

participating farmers. 

c. Humans and the Protected Area System 

190. Research on human interactions with panda habitats has been carried out since 2000 with 

leadership by Michigan State University in USA. Research focused on demography and socioeconomics 

of villages (4,320 people in 942 households in 1998) in and near Wolong National Nature 

Reserve, the largest panda reserve in China (2,000 km 2 ). A model for simulating impacts of 

demographic and socio-economic parameters on panda habitats was tested in 2000 59 . Use of the 

model in the field could help reserve managers to “understand the relationships among local economy, 

local cultural traditions, and habitat degradation”. This knowledge should lead to more scientific and 

efficient management of people in and near reserves. 

191. The above work was extended in 2003 to “detect…patterns of change in land cover and 

panda habitat, to understand the mechanisms behind these patterns, and to develop new policy 

scenarios and evaluate short- and long-term consequences of different scenarios” 60 . Several 

important conclusions were drawn from the combination of field interviews, remote sensing, and 

computer modeling. Field work showed that 22 new households were added to the reserve annually 

from 1975-98. 

192. Modeling predicted that if 22% of 17-25 year old villagers relocated outside the reserve (e.g. 

for study, work, marriage), the human population of the reserve would fall from 4,300 in 1997 to 700 in 

2047, and panda habitats would then increase by 7%. In contrast, if nothing changes, the human 

population would increase to 6,000 (40%) and about 40% of panda habitats would be reduced by 

2047. Most importantly, relocation of young people was found to be “socially acceptable, 

economically efficient, and ecologically sound”: By providing access to opportunities outside the 

nature reserve this type of voluntary relocation rapidly reduces the adult child-bearing population of 

the future. It is this segment of the population that has the most severe adverse impact on panda 

habitat. 

193. A final and surprising conclusion was a reiteration of a finding from the 2001 report 

discussed above: “high-quality panda habitat in the reserve had been lost and had become 

fragmented more rapidly after the reserve was established”. 

194. Under leadership of the same researchers as above, multi-disciplinary research continued at 

Wolong in 2002-3 61 . Human impacts were predicted to result in loss of up to 16% of remaining panda 

habitat in Wolong Nature Reserve by 2034. Not surprisingly, in the rugged terrain of Wolong, 

accessibility largely controlled the spatial distribution of village houses. This supports the contention 

that roads accelerate and intensify human impacts on landscapes. Firewood collection was the 

primary agent of forest degradation: the average household used 15 m 3 of firewood per year. 

Firewood collection was predicted to further reduce forest cover unless efforts are made to reduce 

firewood collection, provide alternative energy sources for existing households, and provide “viable 

means and incentives to encourage emigration” as reported in 1999 62 . 

59 An L., Liu J., Z. Ouyang, M. Linderman, S. Zhou and H. Zhang. 2001. Simulating demographic and socioeconomic 

processes on household level and implications for giant panda. Ecologcial Modeling 140:31-49. 

60 Liu J., L. An, S. S. Batie, R. E. Groop, Z. Liang, M. A. Linderman, A. G. Mertig, Z. Ouyang and J. Qi. 2003. 

Human impats on land cover and panda habitat in Wolong Nature Reserve: Liinking ecological, 

socioeconomic, demographic and behavioral data. Chapter 9 in People and the Enviornment: Approaches for 

linking household & community surveys to remote sensing & GIS (J. Fox, V. Mishra, R. Rindfoss and S. 

Walsh, eds.) Kluwer Acad. Pub. Boston, p 241-263. 

61 Linderman, M. A., A. Li, S. Bearer, G. He, Z. Ouyang and J. Liu. 2004. Modeling the spatio-temporal dynamics 

and interactions of households, landscapes and giant panda habitat. Ecologial Modelling (detail not available). 

62 Liu, J., Z. Ouyang, Z. Yang, W. Taylor, R. Groop, Y. Tan and H. Zhang. 1999. A framework for evaluating the 

effects of human factors on wildlife habitat: The case of giant pandas. Conservation Biol. 13(6):1360-1370.



195. The most recent publication under the same leadership (Dr. Jianguo Liu, Michigan State 

University) provided a model that enables prediction of the effects on panda habitats of changes in 

demographic and socioeconomic factors of villagers in Wolong Nature Reserve 63 . Habitats preferred 

by pandas were often the same as those used by people for firewood collection, thus the impacts to 

pandas from firewood collection threatened panda survival. Recommended strategies for 

conservation of panda habitat included provision of cheaper and more reliable electricity to reduce 

firewood collection, provision of off-site educational opportunities to encourage emigration of young 

people (17-25 year age group), delaying age of marriage, and prolonging interbirth intervals to reduce 

birth rates. Significantly, no change was recommended in the family planning policy that currently 

permits more than one child per family among the cultural minorities. 

3. Unresolved Conservation Issues 

a. Institutions 

i. Communication – Qinling Stakeholder Association 

196. The Qinling protected area system is outstanding in terms of its coverage of critically 

important habitats for Giant Panda and many other, often globally threatened, species. This 

represents many years of difficult and painstaking yet innovative work by many stakeholders to plan 

and establish various types of protected areas in one ecosystem. SFD and WWF have led this effort 

and deserve recognition for their successes. 

197. One detractor from the effectiveness of the protected area system is the limited frequency of 

interaction between the many stakeholders. WWF has worked hard to involve more stakeholders in 

management of the Qinling and these efforts have achieved positive results. However, there is a need 

for more communication among stakeholders to improve management of the system as a whole and 

there is a need for a more formal venue for interaction of individuals, groups, and agencies. 

198. For example, professional managers and scientists at nature reserves do not have adequate 

interaction with colleagues at other Qinling nature reserves. Similarly, researchers often interact with 

a single nature reserve to carry out a given project, but seldom extend their results to other nature 

reserves. Tourism, land management, and water resource agencies are stakeholders in Qinling 

resource management but there is no formal venue for exchange and discussion of their contributions. 

Village, township, and county leaders have limited opportunities to interact with resource managers in 

the Qinling. 

199. A new association of Qinling stakeholders could help to facilitate communication and resolve 

resource management problems by overcoming institutional barriers. The goal of the association 

would be to achieve sustainable management of Qinling natural resources. Membership would 

include all the stakeholders listed above and others. The association would convene an annual 

meeting and produce an annual report. Working groups would be formed to address issues such as 

tourism development and regulation, habitat management, wildlife management, research and others. 

ii. Reforestation – Exotic Species Management 

200. Two species of exotic larch were planted in mono-cultures in the Qinling beginning in the 

1950s and accelerating in the 1980s. In addition to introducing exotic species that are ecologically 

inappropriate to the Qinling, these plantations have also formed dense stands of trees with little or no 

understory vegetation. WWF has begun a program to plant indigenous bamboo species beneath the 

larch canopies for restoration of foraging habitat of the Giant Panda. This program is hampered by the 

institutional restriction against felling of trees on the Qinling (NFPP) and in protected areas (State 

Council regulation on activities permitted in nature reserves). This institutional barrier blocks removal 

of unwanted, inappropriate trees that were planted during an era when introduction of exotics was not 

viewed as an ecological threat. Retaining such trees precludes efficient planting of indigenous 

63 An, L., G. He, Z. Liang and J. Liu. 2006. Impacts of demographic and socioeconomic factors on spatiotemporal 

dynamics of panda habitat. Biodiversity and Conservation 15:2343-2363. 

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bamboos that are preferred by the Qinling flagship species, Giant Panda, and would contribute directly 

to continued recovery of Panda populations in the Qinling. 

b. Monitoring and Adaptive Management – NFPP and SLCP 

201. NFPP and SLCP have not been adequately monitored to determine their ecological or socioeconomic 

effectiveness. Natural forests have not been studied after the logging ban of NFPP in 1998 

to assess recovery rates or ecological aspects of forest and vegetation recovery. Use of timber by 

villages in and around protected areas has not been assessed. Comparative analyses of remote 

sensing data have not been undertaken to assess NFPP impacts on total forest cover. 

202. SLCP was applied to 6,000-8,000 km 2 of the Qinling and the program continues through 

2007. No monitoring has been undertaken to quantify effectiveness in terms of vegetation cover, tree 

survival, or outcomes in terms of farm economics. 

203. Monitoring of both programs would be useful to achieve the following: 

(i) determine the extent of forest recovery following the NFPP logging ban of 1998; 

(ii) identify sites of continued forest degradation and determine causal factors; 

(iii) initiate remedial actions as needed to improve the ecological and socio-economic 

performance of NFPP; 

(iv) detailed monitoring of SLCP plots in the proposed Project Area to determine plot 

condition, the species of trees planted, survival rates, and growth rates; 

(v) detailed assessment of outcomes of SCLP in the Project Area for local farmers; and 

(vi) initiate remedial actions as needed to improve the ecological and socio-economic 

performance of SCLP. 

c. Species Recovery 

i. Crested Ibis 

204. The captive populations of Crested Ibis have grown to unmanageable levels at the Yang 

County (over 200 birds) and Zhouzhi County (over 220 birds) breeding centers. Maintenance of such 

large numbers of captive birds of any species is ill advised, particularly in the era of SARS and avian 

influenza. China’s increasing network of wetland nature reserves provides a wealth of potentially 

suitable release sites for some of the captive birds. PRC is planning a release program as is IUCN- 

SSC through its Stork, Ibis and Spoonbill Specialist Group. Japan is also developing a release 

program at Sado Island based on recent successes in natural reproduction of captive birds (young 

fledged from nests built and tended by captive adult birds). Nature reserves in Russia and the Koreas 

have expressed interest to participate in a release program. 

205. The technical gap appears to be assessment of the suitability of habitats for release of 

Crested Ibis. Field work is needed to assess the suitability of habitats near the Zhouzhi facility for 

release of captive Crested Ibis. The results should be contributions to a release program that could be 

extended beyond the Project Area to the north slope of the Qinling as a whole. 

ii. Non-“Big Four” Globally Threatened Species 

206. Biodiversity inventories of Qinling protected areas are generally thorough except for 

invertebrate taxa. Of the 38 globally threatened species in the Qinling, 34 species are non-migratory. 

Four of these receive the most research and conservation attention: Giant Panda, Golden Takin, 

Sichuan Golden Monkey, and Crested Ibis. The remaining 30 species have been little studied and are 

seldom the target of conservation programs. These include 11 species of indigenous plants, six 

species of wetland vertebrates (four amphibians and two reptiles), one upland bird and one wetland 

bird, and eleven mammals. 

207. Study of the 11 indigenous plants should be a priority for simultaneous species recovery and 

ecosystem restoration. One plant species (Brown Moccasin Flower) is Critically Endangered, the most 

threatened of IUCN Red List categories. The globally threatened amphibians include Chinese Giant 

Salamander (Critically Endangered), a flagship species for mountain wetlands in China. While



restoration of forests will indirectly benefit Qinling wetland habitats of Chinese Giant Salamander, 

more direct intervention is needed because of the pressure on Qinling rivers for gold mining and 

abstraction for transfer to other basins. Great investments have been made in commercial rearing of 

Chinese Giant Salamander, but these have not been matched by investments in field conservation. 

The 11 mammals include two species that will not directly benefit from habitat protection for Giant 

Panda: Desert Cat (Vulnerable) and Asian Wild Dog (Endangered). These species have different 

habitat needs and these will require dedicated study and management projects. 

iii. Captive Propagation 

208. Conservation biology increasingly focuses on science-based management of people, 

habitats, and ecosystems. The most successful conservation project in Shaanxi Province is probably 

the collaborative effort of SFD and WWF to conserve the Giant Panda by protecting and restoring its 

forest habitats and movement corridors in the Qinling mountain ecosystem. There is, however, a 

tendency to approach conservation of wildlife in China from the perspective of captive propagation. 

Examples are Giant Panda, Crested Ibis, species of sturgeon and other fishes, and two sub-species of 

tiger. While successes have been achieved in captive breeding of some of these species, none of 

these programs has yet led to significant conservation gains for wild populations. Giant Panda and 

Crested Ibis numbers are increasing in the Qinling because of successful habitat management---not 

because of release of captive bred animals. Fisheries biologists world-wide have concluded that 

release of captive-bred fish from hatcheries can cause more problems than it solves. Russia has 

shown that habitat protection is the key to tiger conservation and all efforts are made to avoid taking 

Siberian Tigers into captivity. The captive rearing approach is taken world-wide only as a “last 

chance” strategy when numbers of a species have declined to a level where extinction in the wild is 

certain. The Qinling ecoregion does not need more captive rearing and breeding programs to save 

threatened wildlife. Rather, as in the case of the Giant Panda, habitat protection and restoration is 

needed, and it must be based on scientific knowledge of the requirements of the species targeted for 

conservation. This applies to terrestrial, aquatic, and amphibious species as well. 

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E. Potential Priority Investments 

1. Communication, Education and Public Awareness 

a. Pilot Schools 

209. GEF support to broader Public Awareness Campaign – including a Communication, 

Education and Public Awareness Center (location to be determined) directed to: (i) increased public 

knowledge of QM ecosystem, habitat, and wildlife ecology through on-site display and interpretation; 

(ii) conducting educational outreach programs based on delivery of training programs and materials to 

selected teachers and administrators in Shaanxi primary, secondary, and tertiary schools. To include 

preparation and distribution of Education and Training Modules on biodiversity conservation and the 

history, culture and eco-systems of the PA and QM – for use in primary and middle schools and 

relevant adult education and vocational training in the project’s target population area of nearly 44,000 

(including the fringe) and later after modification to other QM areas. 

b. Qinling Stakeholder Association 

210. Funding is needed in the Project Area for establishment of an association of Qinling 

stakeholders. A new association of Qinling stakeholders would help to facilitate communication and 

resolve resource management problems by overcoming institutional barriers. The goal of the 

association would be to achieve sustainable management of Qinling natural resources. Membership 

would include professional managers and scientists at nature reserves, researchers, tourism, land 

management, and water resource agencies, village, township, and county leaders. The association 

would convene an annual meeting and produce an annual report. Working groups would be formed to 

address issues such as tourism development and regulation, habitat management, wildlife 

management, research and others. 

2. Wildlife Management 

a. Recover Wild Populations of Crested Ibis 

211. Document the status and trend of captive and/or wild populations in Yang County and 

Zhouzhi County, Shaanxi, and in Japan; (ii) Develop (or update) in concert with SFA and Shaanxi 

Forest Department (SFD) a national and international recovery plan for wild populations through 

release of captive birds to minimize risk of catastrophic loss to disease; (iii) Further research and then 

implement release into the wild (building on and coordinated with the more general research in 2); (iv) 

Within the context of the international species recovery plan, design and implement research on the 

conditions (ecosystems and habitats; protected areas; technical and institutional capacities) needed to 

support release into the wild in former range states Russia, Koreas, and Japan; (v) Liaise with 

SFA/SFD, research institutes, the IUCN Species Survival Commission, Stork, Ibis & Spoonbill 

Specialist Group, the Sado Island Breeding Center and Yamashina Institute of Ornithology in Japan, 

and International Crane Foundation in USA to initiate interventions to realize the conditions needed for 

national and international species recovery through release of captive birds; and (vi) Implement the 

release program in cooperation with the Yang County captive breeding facility and in concert with the 

IUCN SSC Stork, Ibis & Spoonbill Specialist Group plan for Crested Ibis re-introduction (in preparation 

in early 2007). 

b. Develop Technology for Release of Giant Panda 

212. The captive population of Giant Panda at the Zhouzhi breeding center numbers around 12 

animals and the long-term target is 40. There is no conservation justification for keeping such large 

numbers of Pandas in captivity other than economic return from display or lease to other facilities. 

The wild populations in the Qinling and in Gansu and Sichuan are increasing through natural 

recruitment and release is not necessary either to augment the wild populations or improve their 

genetic fitness. Indeed, it is not known whether release of Pandas would actually benefit wild 

populations and the known risks are substantial (from disease in particular). The IUCN Species 

Survival Commission concludes that there is not adequate justification for releasing captive Pandas to 

the wild.



213. Because evidence from field studies shows that release of captive Pandas is not necessary 

and specialists conclude that release carries greater risk than potential return, there is reason to 

question the justification for striving for an even larger captive population. However, given the 

extremely high economic returns from lease of Pandas ($1.6 million per individual per year at current 

world market prices); it is unlikely that China would discontinue captive breeding. Current Panda 

conservation plans call for increasing funding for captive facilities and continued development of 

captive breeding programs. Based on the assumption that this is the most likely outcome, investment 

is proposed to develop technologies appropriate for “soft-release” of Giant Pandas in the proposed 

Project Area. 

214. The objectives would be to prepare habitats suitable for Giant Pandas by planting of suitable 

bamboo and other plant species. These habitats would then be enclosed by fence and Pandas would 

be released into the large enclosures. Investments would fund the required studies of Panda 

adaptation to these enclosures and management to adapt the program as needed. The resulting 

technologies would be suitable for extension to the Qinling as a whole should SFD determine at some 

time in future that release of captive-bred Pandas to the wild in the Qinling is a priority. The one 

notable advantage of developing this technology at the Project Area is that it is geographically isolated 

from known Panda distribution. Geographic isolation minimizes the risk of transmission of disease 

from the captive to the wild populations. 

c. Golden Takin and Wild Boar 

215. Management of Wild Boar and Golden Takin: (i) Quantify status and trend in populations of 

Wild Boar and Golden Takin, and document daily and seasonal movements through long-term 

systematic sampling programs; (ii) Quantify boar and Takin damage to crops through interviews with 

farmers and photographic and quantitative monitoring of reported damage -- quantify seasonal and 

spatial trends in crop damage; (iii) Design and implement deterrent measures with input from affected 

farmers; (iv) Investigate trends in Wild Boar and Golden Takin populations throughout the QM by 

interview with NR personnel and through these interviews, identify QM regional strategies for 

management of populations of Wild Boar and Golden Takin; and (v) Implement non-destructive 

deterrent measures for Golden Takin; Implement deterrent measures for Wild Boar, possibly to include 

sustainable harvest for use in ecotourism lodges; Integrate development with SFA/SFD policies, in 

particular, any policies or operating procedures related to sport hunting of Golden Takin. 

3. Habitat Management 

a. Adaptive Management of NFPP and SLCP 

216. Document vegetation and habitat recovery using three approaches: (i) analyses of remote 

sensing data to track changes in Qinling vegetation over the last 50 years and into the future; (ii) 

establishment of one permanent, long-term, large-scale, forest vegetation monitoring station to track 

changes in the Qinling deciduous broadleaf forest as part of a national program on forest vegetation 

monitoring; (iii) systematic, small-scale, quadrat sampling of SLCP plots combined with socioeconomic 

and demographic sampling of participating households to assess SLCP performance and 

contribute to adaptive management of SLCP in future. Make recommendations for program 

modification based on research outcomes. Address issues including extension of the program, 

planting of bamboo for Panda habitat restoration, inter-cropping with species of economic value 

particularly as Chinese traditional medicines. 

b. Protected Corridors 

i. Zhouzhi NNR to Project Area 

217. Shaanxi Academy of Science has begun investigation of the feasibility of connecting Zhouzhi 

NNR to the Project Area by establishing a corridor measuring approximately 8 x 16 km = 128 km 2 . 

The corridor would link the core zone of the propose Project Area with the core and experimental 

zones of Zhouzhi NNR. Issues to be addressed include villagers who live in the proposed corridor 

area, roads that cross the proposed corridor, and habitat restoration that is needed to recovery habitat 

value. The proposed investment would be to increase the biodiversity component of the feasibility 

study and to integrate the feasibility study with issues including transport planning and tourism. 

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ii. Niubeiliang NNR to Project Area 

218. The Nature Reserves Management component of the World Bank FRDP project 

recommended that Niubeiliang NNR be connected by corridor with Zhouzhi NNR: 

“The project will also finance the demarcation and revegetation of a 60 km wildlife corridor 

between the Zhouzi and Niubeiliang Reserves. The corridor is presently uninhabited as a 

result of the harsh and hilly terrain. For most of its length, a width of 2 kilometers will be 

adequate to allow animal movements and exchange between the two reserves, but the 

width of the corridor will be widened at each end where it is crossed by major highways 

and where habitat continuity is weakest. The exact method of establishment - whether 

through natural regeneration or reforestation -- will be determined during the preparation of 

nature reserve management plan.” 

219. This proposal was not fully implemented, possibly due to the length of the proposed corridor. 

However, the corridor proposed to connect Zhouzhi NNR to the Project Area would shorten the 

proposed World Bank corridor from 60 km to around 45 km because the proposed botanical garden 

Project Area lies between the two NNRs and would serve as a link connecting the two protected 

areas. 

220. The investment would support updating and/or completing the feasibility study and 

developing a proposal for review by SFD and SFA to link the reserves. 

c. Vegetation Restoration 

221. In cooperation with QM nature reserves identify tracts where plantations of exotic larch (or 

other exotic species) have degraded habitat quality for Giant Panda and other globally threatened 

herbivores; (ii) In cooperation with SFD and QM nature reserves develop a habitat management plan 

to restore such sites to native vegetation using indigenous species known to provide forage for 

globally threatened herbivores including Giant Panda and Golden Takin; (iii) Among such indigenous 

plant species prioritize for planting those that are threatened and/or endemic trees and shrubs ; 

prioritize by species, location, and micro-habitat (e.g. slope, slope aspect, elevation); (iv) Identify and 

map sites for planting of bamboo species preferred by Giant Panda; (v) Develop plant nurseries in the 

Ex-situ area to supply seedlings of threatened endemic trees, shrubs, and bamboos for contract 

planting and maintenance by residents in the In-Situ area; (vi) Develop funding mechanisms based on 

earnings from Ex-situ tourism – see Eco-fund and other sustainable livelihood proposals below; (vii) 

Design and implement a monitoring program to track plant survival, growth, and reproduction. 

4. Biodiversity Survey 

222. Design and implement (a) a biodiversity inventory of the Project Area and the unprotected 

gap between the Project Area and Zhouzhi NNR (about 8 x 16 km = 128 km 2 = 12,800 ha) to be 

carried out by local and regional specialists, mainly those from QM nature reserves; (b) Include 

interviews with villagers to (i) determine their knowledge of local biota; and (ii) train them in some 

survey methods such as systematic sampling for key species such as Golden Takin and other 

threatened species, and Wild Boar. Surveys should include synchronized counts and camera-trapping 

using digital auto-trigger traps; (c) develop proposals on how this survey method can be tailored and 

extended to and applied in other parts of the QM. 

5. Protected Area Management 

223. Longer-term science, research and demonstration on biodiversity, land degradation and 

rehabilitation, and eco-system trends (single species and communities of plants and animals), water 

resource management trends and issues (management of riparian systems), recreating lost habitats 

and representative QM ecosystems to support sustainable livelihoods, and related environmental and 

sustainable livelihood issues important to the Design and Monitoring Framework for this PA and 

Project and for subsequent QM projects – applying the Ecological Function Conservation Area (EFCA) 

approach (see above Section 7.1.3).



ANNEXES 

ANNEX 1: REGULATORY FRAMEWORK FOR BIODIVERSITY AND FOREST CONSERVATION 

Biodiversity Provisions of the National Constitution 

Two articles of China's National Constitution address biodiversity conservation: 

� Article 9 requires that the "State ensure rational utilization of the natural resources, protect 

rare animals and plants, and prohibit any forms of encroachment and damage of the natural 

resources by any groups or individuals". This article provides a useful foundation for 

promulgation of regulations on use of natural resources. 

� Article 26 dictates that "the State shall protect and improve the people's living environment 

and ecological environment and control pollution and other public nuisance; organize and 

encourage afforestation and protection of trees." This article provides for protection and 

restoration of forests. 

China Laws Relevant to Biodiversity Protection 

The laws listed below are relevant to biodiversity protection in China. 

� Environmental Protection Law (1989) 

� Environmental Quality Standard for Surface Water (SEPA 1988) 

� Fishery Law (1986) 

� Flood Control Law (1984, amended 1996) 

� Forest Law (1984) 

� Grasslands Law (1985) 

� Plan for National Ecological Environment Construction 

� Standard for Fisheries Water Quality 

� Standard for Field Irrigation Water Quality 

� Supplementary Rules about Punishing Crimes for Hunting Rare and Endangered Wild 

Animals of National Priority Protection 

� Water and Soil Conservation Law (1991) 

� Wild Animals Protection Law (1988) 

China Administrative Regulations 

The administrative regulations listed below are relevant to biodiversity protection in China. 

� River Course Management Regulations 

� Implementing Regulation of Aquatic Wild Animal Protection 

� Regulations about Aquatic Resources Conservation (1979) 

� The State Council's General Order Strictly Protecting Rare Wild Animals (1983) 

� Temporary Regulations on Management of Scenic Spots (1985) 

� Regulations for the Implementation of the Forest Law (1986) 

� Regulations of the Implementation of the Fishery Law (1987) 

� Regulations about Protection and Administration of Wild Medicinal Material Resources (1987) 

� Regulations about Control of Forest Fires (1988) 

� Regulations about Control of Forest Pests (1989) 

� The State Council's Decision on Further Strengthening Environmental Protection (1990) 

� Regulations Regarding the Protection of Terrestrial Wild Animals (1992) 

� Regulations Regarding the Protection of Aquatic Wild Animals (1993) 

� Regulation Concerning Nature Reserves (State Council, Sep. 1994) 

� Regulations Concerning Protection of Wild Plants (State Council, Sep. 1996) 

� The State Council's Decision on Several Environmental Protection Issues (1996) 

Rules from State Environmental Protection Administration 

� Notice on Strengthening Ecological Management of Natural Resource Exploitation Activities 

(1994) 

� Notice on Strengthening Wetland Conservation (1994) 

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� Method of Land Management for Nature Reserves (SEPA & State Land Administration, 1995) 

� Notice on Strengthening Management of Nature Reserves (August 1997) 

Rules from State Forestry Administration 

The State Forestry Administration (SFA) responsibility for nature reserves in Shaanxi Province is 

administered through Shaanxi Forestry Department, the provincial nature reserve and wildlife 

conservation authority. SFA is the national authority for flora and fauna conservation and is the CITES 

authority and Ramsar authority in China. SFA shares responsibility for nature reserves with SEPA and 

other agencies. Some of the rules promulgated by SFA are listed below. 

� Methods for Management of Forests and Wildlife Reserves (1985) 

� Regulation Concerning Protection of Terrestrial Wild Animals (1992) 

� Provisional Regulation Concerning Management of Forest Land (Aug. 1993) 

� Regulations about Some Issues Concerning Strengthening Management of Forest Resources 

� Rules for the Implementation of the Plant Quarantine Regulations (June 1994) 

� List of Wild Animals of National Priority Protection (with Ministry of Agriculture) 

Rules from the Ministry of Foreign Trade and Economic Cooperation 

� Circular about Ceasing Purchasing and Exporting Rare Wild Animals 

Rules from the Supreme People's Court 

� Circular Regarding Cracking Down on Crimes of Illegal Hunting, Purchasing and Selling Wild 

Animals (with Supreme People's Procuratorate, SFA, Ministry of Public Security and the State 

Administration for Industry and Commerce) 

� 

Regulations on nature reserves 

Although the pace of nature reserve establishment in China has been rapid, the effectiveness of 

protection of natural resources both within and outside the reserves has been limited. This is due to a 

number of factors, most important of which are: (i) conflicting land-use and/or resource-use priorities 

that lead to continued degradation of nature reserves; (ii) low levels of funding provided for nature 

reserve operations (especially compensation of personnel) and resulting poor career prospects; (iii) 

lack of professional qualifications among nature reserve personnel; (iv) and poor relationships 

between nature reserves and local communities. 

PRC recognizes this problem and responded in 2006 by requesting the National People's Congress 

(NPC) Committee for Environment and Resource Protection to draft a law covering the country's 

nature reserves. This legislation was pending at the time of this writing. 

Nature reserves are currently administered according to the Nature Reserves Regulations 

promulgated by the State Council in September 1994. One important provision of these regulations is 

the legal definition of the core, buffer and experimental zones of China’s nature reserves. Definitions 

of the three zones are listed in the “Environment and Natural Resource Protection Legal Handbook” 

(ISBN7-80056-439-8/D 511; 1998) as follows: 

� Core Area: Designated for intact and natural ecosystems, or where rare or endangered plant 

species are concentrated. Any entry of a unit or person into a core area is prohibited. Apart 

from scientific research approved by the nature reserve authority, any other scientific activity 

in a core area is prohibited. Entrance to the core area of a national level nature reserve must 

be approved by the relevant state authority. 

� Buffer Area: The buffer area encircles the core area. Only scientific research is allowed 

within the buffer area. 

� Experimental Area: The experimental area is the outer portion of the nature reserve 

surrounding the buffer zone. Permitted activities include scientific research, education, field 

trips, tourism, and cultivation of rare or endangered plants or rearing of such animals. 

These definitions do not permit farming, grazing, and taking of wild plants and animals within any zone 

of any nature reserve in China. One important provision with respect to the proposed Project is that 

tourism is permitted in the Experimental Zone of nature reserves in China but not in the core or buffer 

zones. This provision enables integration of strict nature protection (in the core and buffer zones) with



low-impact nature tourism in the experimental zone. To this system of zoning some Qinling nature 

reserves have added a Tourism Zone (see Foping NNR), a part of the experimental zone dedicated to 

nature tourism. 

China's National Plans and Policy Papers 

China's Biodiversity Conservation Action Plan was approved in 1994 (SEPA 1994). It lists and 

describes priority projects for biodiversity conservation. Project 18 is “Establishment of Integrated 

Nature Reserve [Network] in the Sanjiang Plain, Heilongjiang Province. This has been accomplished 

in part by establishment of the HNNR and SNNR. Other natural wetlands are progressively being 

added to the protected area network at Bachadao, Qindeli, Naoli River, Yalu River and others. 

Increasing the protected area at HNNR will contribute to achievement of this national priority project. 

China's National Wetland Conservation Action Plan (NWCAP) was published in September 2000 

(SFA 2000). It complements China's Biodiversity Conservation Action Plan, and is the key guidance 

document on conservation, use, management, and exploitation of wetlands in China. 

The Priority Programme for China's Agenda 21 was adopted in response to the United Nations 

Conference on Environment and Development held in Rio de Janeiro in 1992. It called for 

development of a National programme for sustainable development. In response, China produced the 

White Paper described below. 

The Agenda 21 White Paper on China's Population, Environment, and Development in the 21 st 

Century presented policies for sustainable development and conservation of natural resources. 

Those policies require, among other issues, holistic treatment of drainage basins, which is 

fundamental to wetland management. Specific goals of the White Paper are listed below with 

reference to their identifying section numbers. 

Section 2.3: A target of 7% of the national land area is to be devoted to nature 

conservation, or 100 million hectares. This compares with the current level of 

XX% in _______ Province. 

Section 2.16: Fees are to be levied for the use of natural resources 

Section 2.18: Protect and utilize natural resources in a rational manner, and encourage the 

use of renewable resources 

Section 3.15-3.26: Strengthen enforcement of legislation through community education, 

better training of enforcement staff, better administrative procedures, 

improved monitoring, increased international cooperation, and other 

measures 

Section 4.22: Improve agricultural production not through expansion of farmed area, but 

through technology and financial inputs to raise yields and broaden the scope 

of products 

Section 4.44: Integrate environment into the economic accounting system, and include at 

least one supplementary accounting system for natural resources 

Section 6.21: Educate about natural resources, ecology, the environment and sustainable 

development throughout the whole educational system. 

Section 6.25: Use mass media for conservation education on sustainable development 

Section 6.51: Establish information networks to disseminate information on sustainable 

development 

Section 7.5: Family planning and environmental protection are basic national policies 

Section 8.12: Guide and help farmers to take advantage of local resources and develop 

high value-added products and contaminant-free green food to meet market 

demands 

Section 10.27: Use solar energy and new energy-saving stoves in rural areas to reduce 

reliance on timber and reeds as fuels 

Section 10.72: Improve thermal conditions of rural housing through demonstration and 

experimental projects 

Section 11.11: Develop a legal-policy system to integrate agriculture and the ecological 

environment 

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Section 11.39: Enhance the system of protective forests to improve degraded farmlands and 

rural energy supplies, and to increase the capacity to deal with disasters 

Section 11.41: Continue to establish the northeast protective forest belt by growing trees and 

grass 

Section 11.46: Develop renewable energy sources including wind and solar to increase rural 

energy supplies 

Section 11.48: Develop a pricing system for natural resources to curtail waste 

Section 11.49: Control abuse of fertilizers and pesticides to improve the agriculturalecological 

environment and increase production 

Section 11.50: Protect farmlands, forests, grasslands, wetlands, water resources, and 

domestic and wild animals by 2000 

Section 13.30: Expand rural electrification, spread technology for use of energy-saving stoves, 

solar, wind power. 

Section 13.57: Develop solar energy and wind power to include large-scale generating 

stations 

Section 14.48: Survey land resources; develop databases; release and share information; 

involve women in these tasks 

Section 14.49: Prevent careless cultivation of wetlands; enforce protective legislation; draft 

laws where needed; incorporate wetland protection into land use planning; 

eliminate dykes that conflict with wetland biodiversity conservation; engage in 

research to classify, delineate, utilize wetlands, and to develop management 

plans 

Section 14.57a: Prevent forest destruction and deterioration; enhance management; 

educate the public; plant mixed forests; implement felling quotas; draft and 

enforce laws; use "family contracting responsibility system" in rural areas 

Section 14.57b: Develop a forest management surveying center in Northeast; create 

and maintain databases; implement pricing; abolish subsidies 

Section 14.57c: Reinforce the Northeast shelterbelt; develop alternative and renewable 

energy sources 

Section 14.58: Integrate wildlife protection into forest management; establish natural forest 

reserves for rare and endangered biota; advocate protection of natural 

forests 

Section 14.88: Reverse the trend of degrading grasslands 

Section 14.89: Develop wind and solar energy in rural areas 

Section 15.22: Develop tourism to nature reserves, enhance conservation education, 

combine natural resource use with conservation by limiting harvest quotas 

Section 15.24: Enhance nature reserve management by increasing the proportion of scientists 

and technicians to not less than 60% of the staff; establish a national 

biodiversity monitoring center and database. 

Section 15.25: Develop conservation education using mass media, schools, exhibits, holidays, 

training programs 

International Biodiversity Conservation Treaties 

In addition to the legal framework within China there are numerous international conventions, treaties 

and agreements to which China is a signatory and which are also relevant to conservation. These are 

described in detail below. 

The Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES, 

China acceded in 1981, see www.cites.org) bans or restricts trade in listed wild animals and plants. 

Species listed under CITES Appendix 1 may not be traded under any circumstances. Species listed 

under Appendix 2 may be traded only under authority of permits issued by government. 

The Ramsar Convention and the Wise Use Guidelines of the Ramsar Convention require preparation 

of detailed management plans for each of the listed wetlands in China (see www.ramsar.org). The 

Wise Use Guidelines oblige China to practice wise use of wetlands as defined in publications of the 

Ramsar Convention authority. The Convention requires parties to conserve and make wise use of 

wetland areas, particularly those supporting waterfowl populations (Article 3.1). "Wise use" of



wetlands is defined as "their sustainable utilization for the benefit of mankind in a way compatible with 

the maintenance of the natural properties of the ecosystem". The primary concern of the Convention 

is the welfare of wetlands and the waterfowl dependent on them. Article 1 of the Convention defines 

wetlands as 'areas of marsh, fen, peatland or water, whether natural or artificial, permanent or 

temporary, with water that is static or flowing, fresh, brackish or salt, including areas of marine water 

the depth of which at low tide does not exceed six meters'. All river, stream, pond, marsh, sandflat 

and mudflat habitats upstream of, within and downstream of the study area, whether natural or 

artificial, qualify as wetlands under this definition. 

The Convention on Biological Diversity (CBD) resulted from the United Nations Conference on 

Environment and Development held in Rio de Janeiro in 1992 (see www.biodiv.org). The Convention 

called for drafting of a national biodiversity conservation strategy. The Standing Committee of the 

People's Congress approved the Convention in June 1993, and China's Biodiversity Conservation 

Action Plan (BCAP) was promulgated on 13 June 1994. BCAP listed priority projects for immediate 

action, one of which was development of a nature reserve in the Sanjiang Plain. 

Multi-lateral Agreements 

Numerous agreements have been reached between China and other countries to protect and manage 

biodiversity. The list below includes some of those agreements. 

� Sino-Japanese Agreement on the Protection of Migratory Birds (1981) protects birds from 

sale, over harvest, and habitat destruction; 

� Protocol on Exchange and Cooperation in Nature Conservation between SFA and US 

Department of Internal Affairs (1986); 

� Sino-Australian Agreement for the Protection of Migratory Birds and their Environment (1 

September 1988) protects birds from sale, over harvest, and habitat destruction; 

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Count English name 

ANNEX 2: PROTECTED AREAS IN SHAANXI PROVINCE 

Location 

(county) 

Gazettal 

year 

Agency 

1 Jingweishidi Gaoshan 2001 Forest 6,353 

2 Zhouzhi Zhouzhi 1984 Forest 56,393 

3 Zhouzhi Laocheng Zhouzhi 1994 Forest 12,611 

4 Xiangshan Tongchuan 2004 Forest 37,823 

5 Tai'an Yijun 2004 Forest 25,872 

6 Yehe Fufeng 2004 Forest 10,996 

7 Xiaoqinglingyuangujiepomian 2004 Water 6,559 

8 Wuliangshan Feng 2002 Forest 13,684 

9 Taibaishan Taibai, Hu, Zhouzhi 1965 Forest 56,325 

10 Taibaixushuihe Taibai 2001 Water 5,740 

11 Niuweihe Taibai 2004 Forest 13,492 

12 Cuipingshan 2003 other 19,200 

13 Shimenshan Xunyi 2001 Forest 33,000 

14 Chunhuayetaishan Chunhua other 

15 Dalishayuan Dali 2000 Environment 5,000 

16 Heyangshidi Heyang 1996 Environment 57,348 

17 Ziwuling Fu Xian 1982 Forest 40,621 

18 Chaisong Fu Xian 2004 Forest 17,640 

19 Huanglongshan Hemaji Huanglong, Yinchuan, Hancheng 1998 Forest 60,439 

20 Huanglongshan Huanglong 2004 Forest 35,563 

21 Changqing Yang 1994 Forest 29,906 

22 Hanzhongzhuhuan Yang 2001 Forest 37,549 

23 Longchi Xixiang 2002 Forest 34,192 

24 Qingmuchuan Ningchang 2002 Forest 10,200 

25 Baofengshan Lueyang 2002 Forest 29,500 

26 Motianling Mianxian 2002 Forest 8,520 

27 Sangyuan Liuba 2002 Forest 13,806 

28 Foping Foping 1978 Forest 29,240 

29 Guanyinshan Foping 2002 Forest 13,534 

30 Yuyang Choubai Yuling Prefecture 2000 Forest 25,966 

31 Hongjianzuo Shenmu 1996 Environment 21,700 

32 Shenmuchoubai Shenmu 1986 Forest 7,902 

33 Fugudusong Fugu 1985 Forest 6,368 

34 Yinghushidi Ankang 2002 Forest 19,800 

35 Tianhuashan Ningshaan 2002 Forest 25,485 

36 Hualongshan 

Huanglongpu- 

Pingli, Zhengping 1982 Forest 28,103 

37 Shimendizhipoumian Luonanj, Lantian 1987 Land 100 

38 Luonan Da'e 1999 other 5,715 

39 Xinkailing Shangnan 2004 Forest 14,963 

40 Tianzhushan Shanyang 2004 Forest 21,685 

41 Zhenanyingzuishi Zhen’an 2004 Forest 11,462 

42 Niubeiliang Zhashui, Chang’an, Ningshaan 1980 Forest 16,418 

43 Dongqinglingnipengxiyangpo Zhashui, Zhen’an 1990 other 25 

44 Weinansanheshidi Weinan 1996 Forest 39,000 

45 Xiaoqinlingluonandizhi Luonan, Huanglong 1987 other 0 

46 NingshanDaxiongmao Ningshaan 2001 Forest 12,372 

47 Huangshuihedani Taibai 1986 Agriculture 5,740 

48 Nanzhengmihou Nanzheng Bibaqu 1982 Forest 1,000 

49 Qianhu Wetland Qianyang Forest 7,156 

Area 

(ha)



50 Pingheliang Ningshaan Forest 15,578 

51 Lintonglishan 

Total area (ha) 1,007,644 

61

62 



ANNEX 3: FLORA ENDEMIC TO THE QINLING MOUNTAINS 1 

No. Genus Species2 Distribution 

1 Beesia 

(Ranunculaceae) 

2 Biondia 

(Asclepiandaceae) 

3 Bolbostemma 

(Cucurbitaceae) 

4 Chimonanthus 

(Calycanthaceae 

5 Clematoclethra 

(Actinidiaceae) 

6 Cunninghamia 

(Taxodiaceae) 

7 Cyclocarya 

(Juglandaceae) 

8 Emmenopterys 

(Rubiaceae) 

9 Eucommia 

(Eucommiaceae) 

10 Dipelta 

(Caprifoliaceae) 

11 Dipteronia 

(Aceraceae) 

1/2 Gansu, Guangxi, Guizhou, Hubei, Hunan, Sichuan, Xizang, Yunnan, 

(northern Burma) 

3/6 Gansu, Guangxi, Guizhou, Henan, Jiangsu, Shaanxi, Shandong, 

Sichuan, Yunnan, Zhejiang 

1/2 Gansu, Guizhou, Hebei, Henan, Hubei, Hunan, Shaanxi, Shandong, 

Shanxi, Sichuan, Yunnan, 

1/3 Anhui, Fujian, Guangxi, Henan, Hubei, Hunan, Jiangsu, Jiangxi, Shaanxi, 

Shandong, Sichuan, Yunnan 

1/1 Gansu, Guangxi, Guizhou, Hubei, Hunan, Shaanxi, Yunnan 

1/2 South of Qinling range and Dabashan 

1/1 Anhui, Fujian, Guangxi, Guizhou, Hubei, Hunan, Jiangxi, Shaanxi, 

Sichuan, Yunnan, Zhejiang 

1/1 east to south China (northeast India) 

1/1 Anhui, Fujian, Guangxi, Guizhou, Hubei, Hunan, Jiangxi, Shaanxi, 

Sichuan, Zhejiang 

3/3 Gansu, Guizhou, Hubei, Hunan, Shaanxi, Sichuan, Yunnan 

1/2 Anhui, Gansu, Guangxi, Henan, Hubei, Hunan, Shaanxi, Sichuan, 

Yunnan, Zhejiang 

12 Fargesia (Poaceae) 1/1 Shaanxi, Sichuan, Yunnan, 

13 Fortunearia 

(Hamamelidaceae) 

1/1 Anhui, Henan, Hubei, Jiangsu, Shaanxi, Zhejiang 

14 Ginkgo 

(Ginkgoaceae) 

15 Heserolamium 

(Lamiaceae) 

16 Ischoogyne 

(Orchidaceae) 

17 Isometrum 

(Gesneriaceae) 

18 Kingdonia 

(Ranunculaceae) 

19 Kinostemon 

(Lamiaceae) 

20 Kolkwitzia 

(Caprifoliaceae) 

21 Loxocalyx 

(Lamiaceae) 

22 Myripools 

(Asteraceae) 

23 Nannoglottis 

(Asteraceae) 

24 Notopteryglum 

(Apiaceae) 

25 Ploiothyrgis 

(Flacourtiaceae) 

1/1 Cultivated, probably extinct in the wild 

1/1 Henan, Hubei, Hunan, Shaanxi, Sichuan, Yunnan 

1/1 Guizhou, Shaanxi, Sichuan 

1/13 Gansu, Guangxi, Hubei, Shaanxi, Sichuan 

1/1 Gansu, Shaanxi, Sichuan, Yunnan 

1/2 Guangxi, Guizhou, Sichuan 

1/1 Anhui, Gansu, Henan, Hubei, Shaanxi, Shanxi 

1/2 Gansu, Guizhou, Henan, Hubei, Hunan, Shaanxi, Sichuan, Yunnan 

1/1 Hebei, Henan, Nei Mongol, Shaanxi, Shanxi 

1/8 Gansu, Guizhou, Qinghai, Shaanxi, Sichuan, Xizang 

2/3 Anhui, Gansu, Guizhou, Henan, Jiangxi, Nei Mongol, Qinghai, Shaanxi, 

Shanxi, Sichuan, Xizang 

1/1 Guangdong, Guizhou, Henan, Hubei, Hunan, Jiangsu, Shaanxi, Sichuan, 

Zhejiang 

26 Poncirus (Rutaceae) 1/1 Anhui, Fujian, Guangdong, Guangxi, Guizhou, Henan, Hubei, Hunan, 

Jiangsu, Jiangxi, Shaanxi, Sichuan, Yunan, Zhejiang 

27 Pterpoeltis 

(Ulmaceae) 

1/1 Anhui, Fujian, Guangdong, Guangxi, Guizhou, Hubei, Hunan, Jiangsu, 

Jiangxi, Shaanxi, Shandong, Sichuan, Zhejiang 

28 Pteroxygonum 1/1 Gansu, Hebei, Henan, Hubei, Nei Mongol, Shaanxi, Shanxi, Sichuan



No. Genus Species2 Distribution 

(Polygonaceae) 

29 Rostrinucula 

(Lamiaceae) 

30 Sargentodoxa 

(Sargentodoxaceae) 

31 Sacuma 

(Aristolochiaceae) 

32 Sheareria 

(Asteraceae) 

33 Sinnuculix 

(Asteraceae) 

34 Sinojohnstonia 

(Boraginaceae) 

35 Sinofranchetia 

(Laroizabalaceae) 

36 Sinowilsonia 

(Hamamelidaceae) 

37 Speranskia 

(Euphorbiaceae 

38 Tetrapanax 

(Araliaceae) 

39 Thyrocarpus 

(Boraginaceae) 

1/2 Guangxi, Guizhou, Hubei, Hunan, Shaanxi, Sichuan, Yunnan 

1/2 Anhui, Fujian, Guangdong, Guangxi, Guizhou, Hubei, Hunan, Jiangxi, 

Shaanxi, Sichuan, Yunnan, Zhejiang 

1/1 Guizhou, Henan, Hubei, Jiangxi, Shaanxi, Sichuan 

1/1 Anhui, Guizhou, Hubei, Hunan, Jiangsu, Jiangxi, Yunan, Zhejiang 

2/4 Gansu, Hebei, Hubei, Ningxia, Qinghai, Shaanxi, Shanxi, Sichuan, 

Xizang, Yunnan 

1/3 Gansu, Henan, Hebei, Ningxia, Shaanxi, Shanxi, Sichuan, Yunnan, 

Zhejiang 

1/1 Gansu, Hubei, Jiangxi, Shaanxi, Sichuan, Yunnan 

1/1 Gansu, Henan, Hubei, Shaanxi, Shanxi, Sichuan 

2/2 Gansu, Guangdong, Guangxi, Guizhou, Hebei, Henan, Hubei, Hunan, 

Jiangsu, Jiangxi, Jilin, Liaoning, Nei Mongol, Shaanxi, Shandong, 

Sichuan, Yunnan 

1/2 Guangdong, Guizhou, Henan, Hubei, Hunan, Shaanxi, Sichuan, Xizang, 

Yunnan 

2/2 Guangdong, Guangxi, Guizhou, Henan, Hubei, Hunan, Jiangsu, Jiangxi, 

Shaanxi, Sichuan, Yunnan, Zhejiang 

1 Source: Tsun-shen Ying and David E. Boufford. 1998. Phytogeography of the Qinling Mountains and a 

Comparison with the Flora and Vegetation of Japan. In: Sino-Japanese Flora, its Characteristics and 

Diversification, Boufford, D. E. and H. Ohba (eds), 1998, The University Museum, The University of Tokyo, 

Bulletin No. 37, Tokyo. 

2 Species: number of species endemic to Qinling / number endemic to China 

63

64 



ANNEX 4: QINLING MOUNTAINS SEED PLANTS OF CONSERVATION CONCERN 

The following list contains all plant species of conservation concern recorded in Qinling Mountains in 

Shaanxi Province. The sources of this information are: China Species Red List: Vol.1 Red list (Wang 

Sung & Xie Yan, 2004); Shaanxi Nature Reserves (Zhang Jin-liang et al. 2004); Synthesis Science 

Research Report of Changqing National Nature Reserve in Shaanxi (Li Zhan-gang et al. 2006); 

Biodiversity Research and Protection of Foping National Nature Reserve in Shaanxi (Liu Shi-feng et 

al. 2003); Biodiversity, Conservation and Management of Taibaishan Nature Reserve (Ren Yi et al. 

2006); An Analysis of The Flora of Qinling Mountain Range: Its Nature, Characteristics and Origins 

(Ying Tsun-shen 1994); and The Rare and Endangered Plants of Seed Plant Flora at Qinling 

Mountain (Zhang Qin-wei 2002). 

The list presented here gives an overview of the status of the rare and endangered plant species 

occurring in Qinling Mountain. Literature on the flora of the Qinling Mountain, including many Chinese 

publications, has not yet been reviewed. Nor has there been correspondence with botanist and 

ecologist to discuss records in detail. 

The composition of seed plant flora in the Qinling is very rich. There are 198 families, 1,007 genera 

and 3,446 species. There are 16 large and major families in the Qinling, they account for 50 percent 

of all genera and 57 percent of all species. The large and major families are the foundation of the 

flora of the Qinling, and most are characteristic of temperate climates. The dominant families of flora 

composition of the vegetation are Pinaceae, Fagaceae, Betulaceae, Salicaceae, Rosaceae, 

Ericaceae, Gramineae and Cyperaceae. The phytogeography of the represented families are global 

or sub-global, tropical, temperate, discontinuous distribution, East Asia distribution and China endemic 

distribution, and the origin of the flora is clearly ancient. 

In total 127 species or sub-species, one genus (Ranunculaceae family, Coptis genus) and one family 

(Paeoniaceae or Peonies) of plants recorded in the Qinling were found to be globally threatened or 

near threatened, protected at province or national level, and/or listed in China’s Red Data Book as 

species of conservation concern. 

Fifty-four species are protected in Shaanxi Province. Sixty-seven species are listed as globally 

threatened in the China Red Data Book and by IUCN World Conservation Union (listed as Critically 

Endangered, Endangered, or Vulnerable). Six additional species are listed in the China Red Data 

Book and by IUCN as globally Near Threatened and the status of one species cannot be determined 

because data are insufficient. Six species are listed as China National Class I protected species, 40 

species are China National Class II protected species, and nine species are protected at China 

National Class III. 

Of the 67 species listed by China’s Red Data Book and IUCN World Conservation Union as globally 

threatened (listed as Critically Endangered, Endangered, or Vulnerable), 35 species are not protected 

in China at any national level. Of these, five are listed as globally Critically Endangered, eight are 

globally Endangered, and the remaining 22 species are globally Vulnerable. 

Of the 67 species listed by China’s Red Data Book and IUCN World Conservation Union as globally 

threatened (listed as Critically Endangered, Endangered, or Vulnerable), one of seven Critically 

Endangered species is protected in Shaanxi Province, two of 14 Endangered species are protected in 

Shaanxi Province, and three of 46 Vulnerable species are protected in Shaanxi Province. 

Of the 54 species protected in Shaanxi Province, 32 are not protected in China at the national level or 

considered globally threatened or near threatened by IUCN World Conservation Union. 

None of the plant species of conservation concern is protected from international trade by listing in 

CITES.



Key to columns (left to right) 

Column 1: Vernacular names. The taxonomy follows Cronquist (James L. Reveal, 1998) 

Column 2: Scientific name. The taxonomy follows Cronquist (Reveal 1998) 

Column 3: Species protected in Shaanxi Province 

Column 4: Global threat status adapted from IUCN (2004). 

G = Globally threatened 

CR=Critically Endangered 

EN=Endangered; 

VU=Vulnerable 

NT=Near Threatened 

LC=Least Concern; and 

DD=Data Deficient. 

Column 5: RDB: China Red Data Book / Gymnospermae and Angiospermae (WANG SUNG et al. 

2004). Note that the China Red Data Book was updated to match IUCN World 

Conservation listing standards in 2004. 

Column 6: China: Class of national protection in China (List of the wildlife under special state 

protection, approved by the State Council on 10 December 1988, announced to the 

public by the Ministry of Forestry [now SFA] and the Ministry of Agriculture on 14 

January 1989; Zhang Lei & Wang Hong Xiang 2001). 

Family 

English Common Name (Chinese) 

Gymnospermae 

Ginkgoaceae 

Scientific Name Shaanxi IUCN RDB China CITES 

Ginkgo tree Ginkgo biloba EN EN 

Pinaceae 

Qinling Fir Abies chensiensis VU 

Bashan Fir Abies fargesii var. fargesii VU 

Taibaishan Larch Larix chinensis EN 

Big-fruit Spruce Picea neoveitchii EN 

Maidiao Spruce Picea brachytyla � VU VU � 

Cupressaceae 

Frank-leaf Juniper Juniperus pingii var. carinata NT 

Fork Juniper Juniperus sabina VU 

Taxaceae 

Yew Taxsus chinensis VU � II 

Southward Yew Taxsus chinensis var. mairei � 

�� Torreya fargesii � 

Angiospermae 

Salicaceae 

Alp hair Willow Salix permollis CR 

Alp Willow Salix pseudotangii VU 

Juglandaceae 

Green Money Willow Cycloearya paliurus � 

Wild Walnut Juglans regia EN 

65

66 



Family 



Long Fringe Walnut Juglans mandshurica � 

Betulaceae 

China Nut-tree Corylus chinensis EN VU � 

�� Carpinus shensiensis � 

Ulmaceae 

Blue Sandal Wood Pteroceltis tatarinowii NT � 

Stick Elm Hemiptelea davidi � 

�� Zlcova schneideriana � 

Olacaceae 

�� Schoepfia jasminodora � 

Aristolochiaceae 

�� Aristolochina manshuriensis VU � 

Caryophyllaceae 

�� Arenaria giraldii VU 

Taibaishan Arenaria Arenaria taibaishanensis VU 

�� Cerastium limprichtii EN 

Huashan Stone Flower Gypsophila huashanensis VU 

Tetracentraceae 

�� Tetracentron sinensis � 

Cercidiphyllaceae 

�� Cercidophyllum japonium � 

Ranunculaceae 

Single Leaf Grass Kingdonia uniflora VU � 

Star Leaf Grass Circaeaster agrestis � NT � 

Pistache Coptis chinensis VU � 

All Pistache Coptis spp. � 

Big Flower Thalictrum Thalictrum grandiflorum VU 

Qinling Aconitum Aconitum lioui � 

Shaanxi Aconitum Aconitum shensiensis � 

Taibaishan Aconitum Aconitum taipaiensis � 

Cakyces Reverse Anemone Anemone reflexa � 

Paeoniaceae 

All Peony Paeonia sect. moutan spp � 

Taibaishan Purple Speck Peony Paeonia rockii ssp. taibaishanica EN � 

Lardizabalaceae 

�� Sinofranchetia chinensis � 

Berberidaceae 

�� Sinopodophyllum hexandrum VU � 

Magnoliaceae 

Polyanthus Magnolia Magnolia multiflora � CR 

Schisandraceae 

Chinese Schisandra Schisandra chinensis � 

Papaveraceae 

�� Corydalis anethifolia EN



Family 



�� Meconopsis quintuplinervia � 

Saxifragaceae 

Qinling Rock Cabbage Bergenia scopulosa � VU 

�� Chrysosplenium qinlingense EN 

�� Chrysosplenium taibaishanense CR 

�� Ribes mandschuricum � 

Hamamelidaceae 

�� Sinowilsonia henryi � VU � 

�� Fortunearia sinensis � 

Eucommiaceae 

�� Eucommia ulmoides VU � 

Rosaceae 

�� Rhodotypos scandena � 

Qinling Rosebush � 

Qinling Mountain Ash Sorbus tsinlingensis � 

Leguminosae 

�� Astragalis henryi � 

Astragalis membranaceus � � 

Astragalis taipaishanensis � 

Wild Soybean Glycine sojia � � 

�� Hedysarum dentate-alatum � VU 

Hedysarun taipeicum � 

Huashan Saddle Tree Maackia hwashanensis � VU 

Taibaishan Vetch Vicia taipaica VU 

Rutaceae 

�� Zanthoxylum molle � 

�� Phellodendron chinensis � 

Staphyleaceae 

�� Tapiscia sinensis VU NT 

Aceraceae 

Tapisceae sinensia � 

Yellow Hair Maple Acer fulvescens VU 

Miaotai Maple Acer miaotaiense � VU VU � 

Qinling Maple Acer tsinglingense VU 

Coin Maple Dipteronia sinensis NT � 

Taibaishan Coin Maple Dipteronia sinensis var. taipeiensis � 

Tiliaceae 

Long Round Leaf Tilia Tilia oblongifolia � 

Actinidiaceae 

Chinese Gooseberry Actinidia chinensis � 

Red Flesh Chinese Gooseberry Actinidia chinensis var. rufopulpa � 

Theaceae 

Elaeagnaceae 

Stewartia shensiensis � EN 

67

68 



Family 


Nyssaceae 

Araliaceae 

Umbelliferae 

Ericaceae 

Sryracaceae 

Primulaceae 

Oleaceae 


Elaeagnus mollis EN � 

Davidia involucrata VU � 

Eleutherococcus brachypus EN EN 

Eleutherococcus senticosus VU � 

Eleutherococcus stenophyllus EN EN 

Notopterygium incisum VU 

Ferula licentiana � 

Rhododendron dekatanum DD 

Rhododendron purdomii VU 

Rhododendron tsinlingensis � 

Pterostyrax psilophyllis � VU 

Primula filchnerae � EW 

Primula giraldiana VU 

Primula tupestris � 

Fraxinus hupehensis VU � 

Leatherleaf Clove Syringa pinnatifolia � VU � 

Genitanaceae 

Emmenopterys heenryi � 

Taibaishan Gentian Gentiana apiata VU 

Asclepiadaceae 

Boraginaceae 

Solanaceae 

Cynanchum biondioides VU 

Trigonotis giraldii VU 

Huashan Panax ( ) Physonchlaina infundibularis � 

Scrophulariaceae 

Gesneriaceae 

Caprifoliaceae 

Cucurbitaceae 

Camapanulaceae 

Theligonaceae 

Pedicularis latirostris CR 

Petrocosmea qinlingensis CR � 

Kolkwitzia amabilis � 

Symphoricarpos sinensis � 

Gynostemma pentaphyllus � 

Echinocodon lobophyllus EN � 

Adenophora petiolata � 

Codonopsis tsinlingensis �



Family 


Compositae 


Theligonum macranthum � 

Qinling Edelweiss Leontopodium giraldii VU 

Fleuret Edelweiss Leontopodum micranthum VU 

Gramineae 

Araceae 

Liliaceae 

Saussurea acrophila VU 

Psathyosachys huashanica CR � 

Trisetum hainanense VU 

Arisaema brevipes VU 

Diuranthera chinglingensis VU 

Paris wenxianensis CR 

Taibaishan Fritillaria Fritillaria taipaiensis � 

Notholorion bulbuliferum � 

Trillium Trillium tschonoskii � � 

Dioscoreaceae 

Dioscorea niponica � 

Shield Leaf Yam Dioscorea zingiberensis � 

Orchidaceae 

Androcorys ophioglossoides � VU � II 

Brown Moccasin Flower Cypripedium calcicolum � CR VU � II 

Habenaria glaucifolia � NT � II 

Holopogon smithianus � EN EN � II 

Neottianthe pseudo-diphylax � VU � II 

Platanthera minutiflora � VU � II 

Tipularia szechuanica � VU � II 

Vexillabium yakushimense � VU � II 

69

70 



ANNEX 5: PROJECT AREA SEED PLANTS OF CONSERVATION CONCERN 

[Source for species in Project Area: Shen, M. C. and S. S. Zhang. 2003. General Plan on Qinling 

Botanical Garden of Shaanxi (Qinling Ecological Demonstration Garden).] 

Family 

English Common Name 

(Chinese) 

Gymnospermae 

Ginkgoaceae 


Ginkgo tree Ginkgo biloba EN EN 

Pinaceae 

Qinling Fir Abies chensiensis VU 

Taibaishan Larch Larix chinensis EN 

Taxaceae 

Yew Taxsus chinensis VU � II 

Southward Yew Taxsus chinensis var. mairei � 

Bashan Yew Torreya fargesii � 

Angiospermae 

Salicaceae 

Alp Willow Salix pseudotangii VU 

Juglandaceae 

Wild Walnut Juglans regia EN 

Betulaceae 

China Nut-tree Corylus chinensis EN VU � 

�� Carpinus shensiensis � 

Ulmaceae 

Blue Sandal Wood Pteroceltis tatarinowii NT � 

Stick Elm Hemiptelea davidi � 

Olacaceae 

�� Schoepfia jasminodora � 

Aristolochiaceae 

�� Aristolochina manshuriensis VU � 

Caryophyllaceae 

�� Arenaria giraldii VU 

Tetracentraceae 

�� Tetracentron sinensis � 

Cercidiphyllaceae 

�� Cercidophyllum japonium � 

Ranunculaceae 

Single Leaf Grass Kingdonia uniflora VU � 

Star Leaf Grass Circaeaster agrestis � NT � 

Shaanxi Aconitum Aconitum shensiensis � 

Taibaishan Aconitum Aconitum taipaiensis � 

Paeoniaceae 

All Peony Paeonia sect. moutan spp � 

Taibaishan Purple Speck Peony 

Lardizabalaceae 

Paeonia rockii ssp. 

taibaishanica 

EN �



Family 


(Chinese) 


�� Sinofranchetia chinensis � 

Berberidaceae 

�� Sinopodophyllum hexandrum VU � 

Schisandraceae 

Chinese Schisandra Schisandra chinensis � 

Papaveraceae 

�� Meconopsis quintuplinervia � 

Saxifragaceae 

Qinling Rock Cabbage Bergenia scopulosa � VU 

�� Ribes mandschuricum � 


�� Sinowilsonia henryi � VU � 

Eucommiaceae 

�� Eucommia ulmoides VU � 

Rosaceae 

Shaanxi Rosebush Rosa giraldii � 

Leguminosae 

�� Astragalis henryi � 

Astragalis membranaceus � � 

Astragalis taipaishanensis � 

Wild Soybean Glycine sojia � � 

Aceraceae 

Hedysarun taipeicum � 

Qinling Maple Acer tsinglingense VU 

Coin Maple Dipteronia sinensis NT � 

Actinidiaceae 

Chinese Gooseberry Actinidia chinensis � 

Theaceae 

Elaeagnaceae 

Nyssaceae 

Umbelliferae 

Ericaceae 

Cucurbitaceae 

Camapanulaceae 

Compositae 

Stewartia shensiensis � EN 

Elaeagnus mollis EN � 

Davidia involucrata VU � 

Notopterygium incisum VU 

Rhododendron purdomii VU 

Gynostemma pentaphyllus � 

Adenophora petiolata � 

Qinling Edelweiss Leontopodium giraldii VU 

Saussurea acrophila VU 

71

72 



Family 


(Chinese) 

Liliaceae 


Taibaishan Fritillaria Fritillaria taipaiensis � 

Notholorion bulbuliferum � 

Trillium Trillium tschonoskii � � 

Dioscoreaceae 

Orchidaceae 

Dioscorea niponica � 

Calanthe fimbriata 

Cephalanthera erecta 

Cremasta mitrata 

Coeloglossum virilde II 

Cypripedium franchetti II 

Epipactis mairei II 

Gastrodia elata II 

Gymnadenia conopsea II 

Herminium monorchis II 

Linaris japonica 

Microstylis monophyllus 

Neottia acuminata 

Neottianthe cucullata II 

Orchis chusua II 

Platanthera minutiflora 

Platanthera minutiflora � VU � II 

Spiranthes sinensis 

Tulotis ussuriensis II 

Totals 22 EN 2 

EN 6 

VU 

18 

NT 3 

I 5 

II 20 

I 0 

II 11



ANNEX 6: QINLING MOUNTAINS VERTEBRATE FAUNA OF CONSERVATION CONCERN 

1. Mammals of Conservation Concern Recorded in the Qinling 


Column 1 Family name, Chinese name, Scientific name and English name. The taxonomy follows (Liu Mingyu, Xie Yuhao, Ji Daming, Liaoning University Press, 2000). 

Column 2 CITES: Convention on the Trade of Endangered Species. Appendices I and II as adopted (valid 

from 14 June 2006). 

Column 3 CSRL: China Species Red List----Vol.1 Red List (Wang Sung and Xie Yan, Higher Education Press, 

2004). CR( ):Critically Endangered, EN( ):Endangered, VU( ):Vulnerable, NT( ):Near 

Threatened, LC( ):Least Concern, NE( ):Not Evaluated. 

Column 4 China: Class of Protection in China (List of the wildlife under special state protection, approved by 

the State Council on 10 December 1988, announced to the public by the Ministry of Forestry [now 

SFA] and the Ministry of Agriculture on 14 January 1989; Liu Mingyu, Xie Yuhao, Ji Daming, 

Liaoning University Press, 2000). 

Column 5 Shaanxi: Class of Protection in Shaanxi Province, China (Protection List of the Wildlife in Shaanxi 

Province; Xu Taoqing, Cao Yonghan, Shaanxi Science and Technology Press, 1996; Zhang 

Youming, Liu Xinglian, Sun Changming, Xi’an Map Press, 2006; Xi’an Evening Newspaper, 

December 12, 2001) 

Family / Chinese / English 

Name 

Erinaceidae 

Scientific Name CITES CSRL China Shaanxi IUCN 

Forest Hedgehog 

Talpidae 

Hemiechinus hugh VU 

Long Nosed Mole Talpa (Euroscaptor) 

longirostri 

VU 

Chinese Eared Shrew-mole Uropsilus soricipes VU EN 

Gansu Mole Scapanulus owen VU 

Soricidae 

Dusky Shrew Sorex sinalis VU VU 

Tiny Musk Shrew Crocidura suaveolens VU 

Horsfild’s Shrew Crocidura horsfildi VU 

Horsfild’s Shrew Crocidura vorax VU 

Salenski’s Shrew Soriculus salenskii EN CR 

Vespertilionidae 

Eastern Barbastella Barbastella leucomlas VU 

Painted Bat Kerivoula picta VU 

Cercopithecidae 

Golden Monkey Rhinopithecus roxellana VU I VU 

Canidae 

Wolf Canis lupus II VU � 

Red Fox Vulpes vulpes hoole NT � 

Raccoon-dog Nyctereutes procyonoides VU � 

Dhole (Asian Wild Dog) Cuon alpinus II EN II VU 

Ursidae 

Asiatic Black Bear Ursus thibetanus I VU II VU 

Ailuridae 

Red Panda Ailurus fulgens I VU II EN 

Ailuropodidae 

Giant Panda Ailuropoda melanoleuca I EN I EN 

Mustelidae 

73

74 




Name 


Hog Badger Arctonyx collaris VU � 

Common Otter Lutra lutra I EN II 

Masked Palm Civet Paguma larvata NT � 

Felidae 

Lynx Lynx lynx EN II 

Leopard Cat Prionailurus bengalensis II VU � 

Asia Golden Cat Profelis temminckii I CR II 

Clouded Leopard Neofelis nebulosa I EN I VU 

Leopard Panthera pardus I CR I 

Cervidae 

Forest Musk Moschus berezovskii EN I 

Cervidae 

Chinese Muntjac Muntiacus reevesi reevesi VU � 

Tufted Deer Elaphodus cephalophus VU � 

Bovidae 

Takin Budorcas taxicolor 

bedfordi 

II EN I 

Serow Capricornis sumatraensis NE II VU 

Goral Naemorhedus goral I EN II 

Petauristidae 

Complex-toothed Fly Squirrel Trogopterus xanthipes 

xanthipes 

Muridae 

Vernay’s Climbing Mouse Vernaya fulva EN VU 

Hystricidae 

Short-tailed Porcupine Hystrix hodgsoni 

subcristata 

Total 35 

8 I 

4 II 

VU 

VU 

3CR 

9EN 

21VU 

2NT 

6 I 

8 II 

8 

VU 

EN 

VU 

1 CR 

4 EN 

9 VU



2. Birds of Conservation Concern Recorded in the Qinling 


Column 1 Family name, Chinese name and Scientific name. The taxonomy follows 

(Liu Mingyu, Xie Yuhao, Ji Daming, Liaoning University Press, 2000). 

Column 2 English name: The name Follows < China Vertebrate Atlas >(Liu Mingyu, Xie Yuhao, Ji Daming, 

Liaoning University Press, 2000 > and < China Species Red List----Vol.1 Red List, Wang Sung and 

Xie Yan, Higher Education Press, 2004> . 

Column 3 CITES: Convention on the Trade of Endangered Species. Appendices I and II as adopted (valid 

from 14 June 2006). 












Table 3 Threatened and/or Protected Birds of Qinling Mountains 

Family /Chinese/Scientific 

Name 

Common Name CITES CSRL China Shaanxi IUCN 

�� Ardeidae 

�� Ardea cinerea Grey Heron LC � 

�� Ardea purpurea Purple Heron LC � 

�� Egretta alba Large Egret LC � 

�� Nycticorax nycticorax Night Heron LC � 

�� Cicoiidae 

�� Ciconia nigra Black Stork II LC I 

�� Threskiornithidae 

�� Nipponia nippon Crested Ibis I CR I EN 

�� Platalea leucorodia Spoonbill II II 

�� Anatidae 

�� Anser fabalis Bean Goose LC � 

�� Anser indicus Bar-headed Goose LC � 

�� Cygnus cygnus Whooper Swan NT II 

�� Tadorna ferruginea Ruddy Shelduck LC � 

�� Anas falcata Baikal Teal VU VU 

�� Anas platyrhynchos Mallard LC � 

�� 

Anas poecilorhyncha 

Spot-billed duck LC � 

�� Aix galericulata Mandarin Duck NT II 

�� Accipitridae 

75

76 




Name 


� Milvus korschum Black Kite NE II 

�� Accipiter soloensis Chinese Goshawk LC II 

�� Accipiter nisus Eurasian Sparrowhawk LC II 

��Accipiter virgatus Besra LC II 

��Buteo buteo Common Buzzard LC II 

��Buteo lagopus Rough-legged Buzzard LC II 

��Butastur indicus 

Grey-faced Buzzard 

Eagle 

LC II 

�� Aquila chrysaetos Golden Eagle LC I 

�� Aquila heliaca Imperial Eagle I VU I VU 

��Aegypius monachus Eurasian Griffon LC II 

��Circus cyaneus Northern Harrier LC II 

��Falconidae 

��Falco cherrug Saker Falcon LC II EN 

��Falco subbuteo Eurasian Hobby LC II 

��Falco vespertinus Red-footed Falcon LC II 

��Falco columbarius Merlin LC II 

��Falco tinnunculus Common Kestrel LC II 

��Phasianidae 

��Ithaginis cruentus Blood Pheasent II LC II 

��Tragopan temminckii Chinese Tragopan NT II 

��Syrmaticus reevesii 

White-crowned Longtailed 

Pheasant 

��Chrysolophus pictus Golden Pheasant LC II 

��Gruidae 

��Grus grus Common Crane LC II 

��Otidae 

VU II VU 

��Otis tarda Great Bustard VU I VU 

��Cuculidae 

��Clamator 

coromandus 

��Columbidae 

��Treron sieboldii 

��Strigidae 

Chestnut-winged 

Cuckoo 

White-bellied Green 

Pigeon 

LC � 

LC II 

�� Otus scops Scops Owl LC II 

�� Otus bakkamoena Collared Scops Owl LC II 

�� Bubo bubo Eagle Owl LC II




Name 


�� Ketupa blakistoni Blakiston’s Fish Owl EN II EN 

�� Glaucidium brodiei Collard Pigmy Owlet LC II 

�� Glaucidium 

cuculoides 

Barred Owlet LC II 

�� Ninox scutulata Brown Hawk Owl LC II 

�� Athene noctua Little Owl LC II 

�� Strix aluco Tawny Wood Owl LC II 

�� Asio otus Long-eared Owl LC II 

��Muscicapidae 

�� Paradoxornis 

paradoxus 

Three-toed Parrotbill NT � 

�� Garrulax canorus Hwamei II LC � 

�� Leiothrix lutea Red-billed Leiothrix II NT � 

��Fringillidae 

�� Carpodacus vinaceus Vinaceous Rosefinch LC � 

�� Pyrrhula erythaca Beavan’s Bullfinch NE � 

�� Emberiza elegans Yellow-throated Bunting LC � 

�� Emberiza siemsseni Slaty Bunting LC � 

��Total 56 

2 I 

5 II 

1CR, 1EN, 

4VU,4NT 

5 I 

33 II 

17 

77 

3 EN 

4 VU

78 



3. Amphibians of Conservation Concern Recorded in the Qinling 


Column 1 Family name, Chinese name, English name. The taxonomy follows (Liu 

Mingyu, Xie Yuhao, Ji Daming, Liaoning University Press, 2000). 

Column 2 Scientific name; Taxonomy follows (Liu Mingyu, Xie Yuhao, Ji Daming, 













Class/Family/Chinese/English Name Scientific Name CSRL China Shaanxi IUCN 

Amphibia 

Hynobiidae 

Stream Salamander Batrachuperus pinchonii VU VU 

Taibai Stream Salamander Batrachuperus taibaiensis NE 

Qinba Salamander 

Cryptobranchidae 

Pseudohynobius 

(Ranodon) tsinpaensis 

Chinese Giant Salamander Andrias davidianus CR II CR 

��Pelobatidae 

�� Lesser Megophrys Megophrys minor LC � 

�� Baoxing Toothed Toad Oreolalax popei LC � 

�� Ningshan Alpine Toad Scutiger ningshanensis EN � EN 

��Ranidae 

�� Ventral-spined Frog Paa boulengeri VU II EN 

�� Chinese Forest Frog Rana chensinensis LC � 

Total 

VU 

1 CR 

1 EN 

3 VU 

3 LC 

1 NE 

2 II 7 

CR 1 

EN 2 

VU 1



4. Reptiles of Conservation Concern Recorded in the Qinling 


Column 1 Family name, Chinese name, English name. The taxonomy follows (Liu 


Column 2 Scientific name; Taxonomy follows (Liu Mingyu, Xie Yuhao, Ji Daming, 













Class/Family/Chinese/English Name 

Reptilia 

Emydidae 

Scientific Name CSRL China Shaanxi IUCN 

Reeves Turtle 

Trionychidae 

Chinemys reevesii EN EN 

Chinese Soft-shelled Turtle 

Gekkonidae 

Pelodiscus sinensis VU VU 

Taibai Wall Gecko 

Colubridae 

Gekko taibaiensis LC 

Taiwan Stink Snake Elaphe carinata VU 

Round-spot Beauty Snake Elaphe davidi VU 

Jade-spot Beauty Snake Elaphe mandarina VU 

Black Long Worm Elaphe schrenckii VU 

Taiwan beauty Snake Elaphe taeniura VU 

Ningshan Small-head Snake Oligodon ningshanensis VU 

Big-eye Snake 

Viperidae 

Zaocys dhumnades VU 

Fea’s Viper Azemiops feae VU 

European Viper Vipera berus VU 

Single Pit Viper Agkistrodon brevicaudus VU 

Qinling Pit Viper Agkistrodon qinlingensis NE 

Total 

0 CR 

1 EN 

11 VU 

1 LC 

1 NE 

0 6 

EN 1 

VU 1 

79

80 



5. Fishes of Conservation Concern Recorded in the Qinling 


Column 1 Family name, Chinese name and Scientific name. The taxonomy follows 

(Liu Mingyu, Xie Yuhao, Ji Daming, Liaoning University Press, 2000). 

Column 2 English name: The name Follows < China Vertebrate Atlas >(Liu Mingyu, Xie Yuhao, Ji Daming, 

Liaoning University Press, 2000 > and < China Species Red List----Vol.1 Red List, Wang Sung and 

Xie Yan, Higher Education Press, 2004> . Few fishes English name haven’t been recorded. 










Youming, Liu Xinglian, Sun Changming, Xi’an Map Press, 2006) 

Family / Chinese/Scientific Name Common Name CSRL China Shaan 

xi 

Salmonidae 

Hucho bleekeri Sichuan Taimen EN II 

Brachymystax lenok tsinlingensis Qinling Lenok VU II 

Cobitidae 

Leptobotia orientalis Oriental Spined Loach NE � 

Cyprinidae 

Luciobrama macrocephalus Duck-bill Carp VU � 

Ochetobius elongates NE � 

Elopichthys bambusa NE � 

Xenocypris fangi Fangi Nase VU � 

Erythroculter oxycephalus Sharp-head Culter NE � 

Erythroculter ilishaeformis Top-mouth Culter NE � 

Coreius septentrionalis Northern Bronze-gudgeon EN � 

Spinibarbus sinensis NE � 

Scaphesthes macrolepis NE � 

Schizothorax prenanti Prenant’s Schizothoracin NE � 

Gymnodiptychus pachycheilus weiheensis Pachycheiln’s 

Schizothoracin 

Gymnodiptychus pachycheilus 

Bagridae 

Pachycheilns 

Schizothoracin 

NE � 

Pseudobagrus pratti Slendel-body Bagrid Fish NE � 

Serranidae 

Siniperca kneri Kner’s Mandarin Fish NE � 

Total 17 

EN 

0CR 

3EN 

3VU 

11 NE 

2 II 14 0 

IUCN



ANNEX 7: PROJECT AREA VERTEBRATE FAUNA OF CONSERVATION CONCERN 

[Source for species in Protected Area: Shen, M. C. and S. S. Zhang. 2003. General Plan on Qinling 

Botanical Garden of Shaanxi (Qinling Ecological Demonstration Garden).] 

1. Mammals of Conservation Concern on the the Project Area 


Column 1 Family name, Chinese name, Scientific name and English name. The taxonomy follows 

(Liu Mingyu, Xie Yuhao, Ji Daming, Liaoning University Press, 

2000). 

Column 2 CITES: Convention on the Trade of Endangered Species. Appendices I and II as 

adopted (valid from 14 June 2006). 

Column 3 CSRL: China Species Red List----Vol.1 Red List (Wang Sung and Xie Yan, Higher 

Education Press, 2004). CR(��):Critically Endangered, EN(��):Endangered, 

VU(��):Vulnerable, NT(��):Near Threatened, LC(��):Least Concern, 

NE(��):Not Evaluated. 

Column 4 China: Class of Protection in China (List of the wildlife under special state protection, 

approved by the State Council on 10 December 1988, announced to the public by the 

Ministry of Forestry [now SFA] and the Ministry of Agriculture on 14 January 1989; Liu 


Column 5 Shaanxi: Class of Protection in Shaanxi Province, China (Protection List of the Wildlife 

in Shaanxi Province; Xu Taoqing, Cao Yonghan, Shaanxi Science and Technology 

Press, 1996; Zhang Youming, Liu Xinglian, Sun Changming, Xi’an Map Press, 2006; 

Xi’an Evening Newspaper, December 12, 2001) 


Name 

�� Talpidae 


Chinese Eared Shrew-mole Uropsilus soricipes VU VU 

Salenski’s Shrew Soriculus salenskii EN CR 

�� Cercopithecidae 

�� Golden Monkey Rhinopithecus roxellana VU I VU 

�� Canidae 

� Dhole (Asian Wild Dog) Cuon alpinus II EN II EN 

�� Ursidae 

�� Asiatic Black Bear Ursus thibetanus I VU II VU 

Viverridae 

�� Masked Palm Civet Paguma larvata NT � 

�� Felidae 

�� Leopard Cat Prionailurus bengalensis II VU � 

�� Cervidae 

�� Forest Musk Deer Moschus berezovskii EN I 

�� Chinese Muntjac Muntiacus reevesi reevesi VU � 

81

82 




Name 


�� Tufted Deer Elaphodus cephalophus VU � 

��Bovidae 

�� Takin Budorcas taxicolor bedfordi II EN I VU 

�� Serow Capricornis sumatraensis NE II VU 

��Hystricidae 

�� Short-tailed Porcupine Hystrix hodgsoni subcristata VU VU 


1 I 

3 II 

0 CR 

3 EN 

7 VU 

1 NT 

1 NE 

2. Birds of Conservation Concern in the Project Area 


6 I 

8 II 

4 

1 CR 

1 EN 

6 VU 

Column 1 Family name, Chinese name and Scientific name. The taxonomy follows (Liu Mingyu, Xie Yuhao, Ji Daming, Liaoning University Press, 2000). 

Column 2 English name: The name Follows < China Vertebrate Atlas >(Liu Mingyu, Xie Yuhao, Ji 

Daming, Liaoning University Press, 2000 > and < China Species Red List----Vol.1 Red 

List, Wang Sung and Xie Yan, Higher Education Press, 2004> . 

Column 3 CITES: Convention on the Trade of Endangered Species. Appendices I and II as 

adopted (valid from 14 June 2006). 


Education Press, 2004): CR = Critically Endangered; EN = Endangered, VU = 

Vulnerable; NT = Near Threatened; LC = Least Concern, NE = Not Evaluated 




Mingyu, Xie Yuhao, Ji Daming, Liaoning University Press, 2000) 




Xi’an Evening Newspaper, December 12, 2001)



Family /Chinese/Scientific Name Common Name CITES CSRL China Shaanxi IUCN 

�� Ardeidae 

��Ardea cinerea Grey Heron LC � 

�� Nycticorax nycticorax Night Heron LC � 

�� Accipitridae 

� Milvus korschum Black Kite NE II 

�� Accipiter soloensis Chinese Goshawk LC II 

�� Accipiter nisus Eurasian Sparrowhawk LC II 

�� Accipiter virgatus Besra LC II 

�� Circus cyaneus Northern Harrier LC II 

�� Falconidae 

�� Falco tinnunculus Common Kestrel LC II 

�� Phasianidae 

�� Tragopan temminckii Chinese Tragopan NT II 

�� Chrysolophus pictus Golden Pheasant LC II 

�� Strigidae 

�� Otus scops Scops Owl LC II 

�� Glaucidium cuculoides Barred Owlet LC II 

�� Muscicapidae 

�� Garrulax canorus Hwamei II LC � 

��Fringillidae 

�� Emberiza elegans Yellow-throated Bunting LC � 


0 I 

1 II 

0 CR 

0 EN 

0 VU 

1 NT 

12 LC 

1 NE 

0 I 

10 II 

4 

0 CR 

0 EN 

0 VU 

83

84 



3. Amphibians of Conservation Concern on the Project Area 


Column 1 Family name, Chinese name, English name. The taxonomy follows (Liu Mingyu, Xie Yuhao, Ji Daming, Liaoning University Press, 2000). 

Column 2 Scientific name; Taxonomy follows (Liu Mingyu, Xie Yuhao, Ji 

Daming, Liaoning University Press, 2000). 













Class/Family/Chinese/English 

Name 

��Cryptobranchidae 


�� Chinese Giant Salamander Andrias davidianus CR II CR 

Total 1 

1 CR 

0 EN 

0 VU 

1 II 0 

1 CR 

0 EN 

0 VU



4. Reptiles of Conservation Concern on the Project Area 


Column 1 Family name, Chinese name, English name. The taxonomy follows (Liu Mingyu, Xie Yuhao, Ji Daming, Liaoning University Press, 2000). 

Column 2 Scientific name; Taxonomy follows (Liu Mingyu, Xie Yuhao, Ji 

Daming, Liaoning University Press, 2000). 













Class/Family/Chinese/English 

Name 

Testudinata 

��Trionychidae 


�� Chinese Soft-shelled Turtle Pelodiscus sinensis VU � VU 

Serpentiformes 

��Colubridae 

�� Taiwan Stink Snake Elaphe carinata VU � 

�� Taiwan Beauty Snake Elaphe taeniura VU 

��Total 3 

0 CR 

0 EN 

3 VU 

0 2 

0 CR 

0 EN 

1 VU 

85

86 



5. Fishes of Conservation Concern on the Project Area 


Column 1 Family name, Chinese name and Scientific name. The taxonomy follows (Liu Mingyu, Xie Yuhao, Ji Daming, Liaoning University Press, 2000). 

Column 2 English name: The name Follows < China Vertebrate Atlas >(Liu Mingyu, Xie Yuhao, Ji 

Daming, Liaoning University Press, 2000 > and < China Species Red List----Vol.1 Red 

List, Wang Sung and Xie Yan, Higher Education Press, 2004> . Few fishes English 

name haven’t been recorded. 











Press, 1996; Zhang Youming, Liu Xinglian, Sun Changming, Xi’an Map Press, 2006) 

�� Salmonidae 

��Qinling Lenok 

(Manchurian Trout) 

�� Cyprinidae 

Common Name CSRL China Shaanxi IUCN 

Brachymystax lenok tsinlingensis VU II 

�� Scaphesthes macrolepis NE � 

�� Total 2 

0 CR 

0 EN 

1 VU 

1 NE 

1 II 1 

0 CR 

0 EN 

0 VU



ANNEX 9: ACCOUNTS OF 15 OF 37 GLOBALLY THREATENED SPECIES IN THE QINLING 

(i) All globally threatened species on the Project Area are included. 

(ii) All records are adapted in part from the IUCN RedList of Threatened Species and the 

World Conservation Monitoring Center. 

(iii) Brown Moccasin Flower Cypripedium calcicolum (smithii) 

(iv) Chinese Giant Salamander: Andrias davidianus 

(v) Ningshan Toad: Scutiger ningshanensis 

(vi) Soft-shelled Turtle Pelodiscus sinensis 

(vii) Crested Ibis Nipponia nippon 

(viii) Chinese Eared Shrew-mole Uropsilus soricipes 

(ix) Salenski’s Shrew Soriculus salenskii 

(x) Short-tailed Porcupine Hystrix hodgsoni 

(xi) Golden Snub-nosed Monkey Rhinopithecus roxellana 

(xii) Giant Panda Ailuropoda melanoleuca 

(xiii) Red Panda Ailurus fulgens 

(xiv) Asiatic Black Bear Ursus thibetanus 

(xv) Serow Capricornis sumatrensis 

(xvi) Golden Takin Budorcas taxicolor 

(xvii) Dhole Cuon alpinus 

87

88 



BROWN MOCCASIN FLOWER -- CYPRIPEDIUM CALCICOLUM (SMITHII) 

Global Range: China endemic 

China Range: Qinling Mountains but not the project area 

Habitat and ecology: an orchid; flowering in June; growing at 2,400-3,300 m asl in Sichuan 

Biomes: terrestrial 

Habitats: forest – tropical to temperate 

shrubland – temperate 

grassland – upland, mountainous 

Conservation Status: 

Global status: Critically Endangered 64 

CITES: II 

China Red Data Book: 

National protection: 

Shaanxi protection: 

Threats & constraints: 

Research, survey and management recommendations 

Conservation: Prepare and implement a Conservation Plan for 

Research & monitoring: Assess the status of Cypripedium calcicolum in the Qinling and the 

Project Area; 

Protection: Encourage actions to ensure that the species receives the fullest 

possible national and Shaanxi Province legislative protection. 

Capacity building: Develop capacity to identify the species in the field and use GPS to 

record locations 

64 adapted from IUCN World Conservation Union Species Survival Commission Red List of Threatened Species



Geographic distribution 

CHINESE GIANT SALAMANDER: ANDRIAS DAVIDIANUS 

Global: Endemic to central, south and southwest China at elevations from 

100 - 1,500m asl. 

China: found in scattered, fragmented habitats in large streams usually in 

forested areas; Qinling Mountains and the proposed Project Area 

Habitat and Ecology: Largest of all amphibians (can exceed 1 m in length). Found in/near 

large streams in forest. Generation length 15 years; long-lived slowly 

increasing populations in the wild 

Biomes: terrestrial, freshwater 

Habitats: forest - temperate 

wetlands (inland) - permanent rivers/streams/creeks 


Red List Category: Critically Endangered (CR) 

Red List Criteria: A2ad 

Red List Rationale: Listed as Critically Endangered due to sharp population decline due 

to over-exploitation. 

Population size & trend: size unknown; wild population is decreasing rapidly; over 100,000 in 

captive breeding programs for market use 

Protection Status 

CITES: not listed 

China Red Data Book: Critically Endangered (CR) 

National protection: II 

Shaanxi protection: n/a 

Threats & constraints 

Main threats are over-exploitation and wetland habitat degradation/destruction due to development 

and water quality degradation. Habitats are highly fragmented. 


Research & monitoring: Population size and trend in the wild is not well studied. Monitoring 

programs are needed to track populations and habitat suitability. Where 

new PAs have protected riverine habitats and reforestation has been 

successful, feasibility of re-introduction should be investigated. 

Conservation: Based on outcomes of above studies, consider options for expansion 

of the existing range of the species by experimental re-introduction of 

captive-bred animals. 

Species survival develop and implement a species recovery plan for the Qinling 

Capacity building Train personnel in habitat suitability assessment and species recovery 

planning and implementation; provide field protection, monitoring and 

research equipment as needed. 

89

90 



Public awareness Carry out public awareness campaigns to alert the public to the 

conservation program and elicit public support for conservation of 

Chinese Giant Salamander and its habitats.




NINGSHAN TOAD: SCUTIGER NINGSHANENSIS 

Global: Recorded only in Ningshaan County, southern Shaanxi Province, 

China at elevations from 1,970 - 2,550m asl. Only two specimens 

have ever been collected. 

China: endemic to Ningshaan County, Shaanxi Province; known range lies 

just outside Niubeiliang National Nature Reserve 

Habitat and Ecology: Found near streams among grasses in mixed forest. The breeding 

habitat is unknown, but it is presumably in streams by larval 

development. 


Habitats: forest - temperate 

shrubland - temperate 

wetlands (inland) - permanent rivers/streams/creeks (includes 

waterfalls) 


Red List Category: Endangered (EN) 

Red List Criteria: B2ab(iii) 

Red List Category Rationale: Listed as Endangered in view of its area of occupancy of less than 

500 km 2 , with all individuals in only one location, and a continuing 

decline in the extent and quality of its habitat. 

Population size & trend: size unknown; population is thought to be decreasing 



China Red Data Book: Endangered (EN) 


Shaanxi protection: � 


Main threats are a highly restricted range, human disturbance (including disturbance caused by 

human recreation, tourism, and possibly collecting). Key management constraints are lack of 

scientific knowledge of the ecology of the species, its distribution, habitat requirements and reasons 

for population decline. 


Research & monitoring: Initiate field study to describe biology, ecology, and geographic 

distribution by season; prepare GIS databases and maps of locations; 

identify habitat preferences and delimit critical habitats with reference to 

the boundary of Niubeiliang NNR; quantify the trend of the wild 

population; identify and quantify threats to species survival. 

91

92 



Conservation: Assess the extent of coverage of critical habitats by Niubeiliang NNR; 

make recommendations for extensions of Niubeiliang NNR to enhance 

protection; prepare a conservation action plan for implementation in 

and near Niubeiliang NNR; based on outcomes of studies of 

population numbers and distribution, consider options for expansion 

of the existing range of the species by translocation. 

Species survival Urgently assess existing threats, focusing on agricultural and other land 

uses; plan and implement short- and long-term measures to reduce or 

eliminate threats; develop and implement a species recovery plan. 

Capacity building Train Niubeiliang NNR personnel in habitat requirements of Ningshaan 

Toad and in the planned species protection and recovery 

methodologies; provide field protection, monitoring and research 

equipment as needed. 



Ningshaan Toad and its habitats. 

Bibliography 

Fang, R.S. 1985. A new species of Scutiger from Shaanxi, China. Acta Herpetologica Sinica. 

4(4):305-307. 

Fei, L., Ye, C.-Y., Huang, Y.-A. and Liu, M.-Y. 1999. Atlas of Amphibians of China. Henan Science 

and Technical Press. Zhengzhou. 

MacKinnon, J., Meng, S., Cheung, C., Carey, G., Zhu, X. and Melville, D. 1996. A Biodiversity Review 

of China. World Wide Fund for Nature International. Hong Kong.




CHINESE SOFTSHELL: PELODISCUS SINENSIS 

Global: Native to China, Japan. Introduced in Hawaii and Guam 

China: throughout eastern and central China from south to north 

Habitat and Ecology: Found near shallow streams among riparian vegetation. Clutch size 

3-28. Eggs hatch in 48-68 days. Up to 4 clutches annually. 

Sexually mature in 5-6 years; eats fish, crayfish, molluscs; 

benthic, burrows in stream banks 


Habitats: wetlands (inland) - permanent rivers/streams/creeks 


Red List Category: Vulnerable (VU) 

Red List Criteria: A1d+2d ver 2.3 (1994) 

Red List Category Rationale: Listed as Vulnerable based on pressures on the wild populations due 

to collection for food and to replenish captive populations 

Population size & trend: population in the wild is unknown, thought to be decreasing; captive 

production is millions annually 


CITES: not listed; Pelodiscus axenaria, Pelodiscus maackii, and Pelodiscus 

parviformis are all listed in Appendix III 

China Red Data Book: Vulnerable (VU) 




Main threats are collecting from the wild for captive propagation and sale in food markets, and 

destruction or degradation of riverine habitats. 


Research & monitoring: quantify the trend of the wild population 

Conservation: Assess the extent of coverage of critical habitats by the protected area 

system; increase coverage as needed; increase patrol and 

enforcement; restore freshwater habitats 

Species survival plan and implement short- and long-term measures to reduce or 

eliminate threats; develop and implement a species recovery plan for 

the wild populations 

Capacity building Train personnel to identify and protect critical habitats; provide field 

protection, monitoring and research equipment as needed. 

93

94 





Chinese Softshell and its habitats. 

Bibliography see http://www.natureserve.org for description of species



CRESTED IBIS NIPPONIA NIPPON 

Global Range: Regional endemic re-discovered in May 1981 in Yang County, 

Shaanxi. 

China Range: Wild population only in Yang County, Shaanxi on the south slope of 

the Qinling. Does not occur in the wild on the proposed Project Area 

but captive birds are held at the Wild Animal Breeding and Rescue 

Center on the Project area. 

Habitat and Ecology: Feeds on fish and other aquatic organisms, worms, terrestrial 

invertebrates; nests in broadleaf deciduous trees near wetlands in 

Yang County of southwestern Shaanxi; foraging habitats include 

paddy, river shallows and reservoirs. Studies of nesting behavior and 

breeding success covered 24 breeding seasons 65 . Average clutch 

size was 2.84 ± 0.77; (n = 271) and varied probably due to variation 

in food abundance. Mean hatching success was 80.2% (range 35.7- 

100%). Egg losses were caused by infertility or eggs being addled, 

predation, and human disturbance. Chick deaths were due to 

shortage of food, predation, and disturbance by villagers. Overall 

breeding success (65.6%) was high due in part to human 

conservation measures. Higher numbers of nest failures at altitudes 

between 500-900 m was caused by human activities, predation and 

lower stability of nest-trees. 


Habitats: forest – temperate, broad-leaf deciduous wetlands (inland) - 

permanent rivers, streams, creeks, reservoirs, fishponds, paddies 


Global status: Endangered (EN) 

CITES: I 

China Red Data Book: E 

National protection: I 


Population size & trend: Known global population size has grown from seven in May 1981 to 

over 1,000 in 2006, over 920 in Shaanxi and 98 in Japan; first 

captively reared in 1981; first captive reproduction in 1989 at Beijing 

Zoo; Louguantai breeding center received 60 birds on 4 May 2002; 

population trend is positive, estimated at over 13% in the first 16 

years of research 66 ; population in Japan (98 birds in June 2006) 

included many natural-bred birds; wild population in China in 2006 

was around 500 birds; captive population in China exceeded 420 

birds in 2006; total population in China exceeded 920 birds in 2006. 

65 Xiaoping Yu, Naifa Liu, Yongmei Xi, and Baozhong Lu. 2006. Bird Conservation International 16: 325-343 

Cambridge University Press, published online 13 Dec 2006. 

66 Lu Baozhong, Fu Wenkai, Zhai Tianqing, Zhang Yueming, Xi Yongmei and Huang Li. 1999. Study on 

population structure and population dynamics of Crested Ibis. In: Rare Bird---Crested Ibis, Proc. International 

Workshop on the Crested Ibis Conservation ’99. China Wildlfie Conservation Assoc., China Ornithological 

Soc., Shaanxi Wildlife Conservation Assoc. (eds). China Forestry Publishing House, Beijing. 

95

96 



The rapid population increase in recent years is due to protection, 

including legislation, management of population and habitat, and 

regular surveys and monitoring. A reintroduction programme has 

been started to protect the population from a chance catastrophe 

such as communicable diseases within its limited range 5 . 

Threats & constraints: Main threats are habitat loss, human disturbance (including 

disturbance caused by human recreation, tourism, and hunting). The 

captive population at Louguantai Rescue & Breeding Center numbers 

over 220 and is at risk of high losses due to disease. 


Update knowledge: Continue long-term field study to describe Crested Ibis biology, 

ecology, and regional distribution on seasonal and spatial bases; 

compile a database of all historic roost and nest records and locations. 

Prepare GIS databases and maps of locations and other records; 

identify habitat preferences and delimit critical habitats. Describe the 

status of the captive and wild populations. 

Conservation: Prepare a review of protection actions, plans, methods and results. 

Prepare a National Crested Ibis Conservation Action Plan for 

implementation in the proposed Project area, in the Qinling nature 

reserves, and in other prospective re-introduction sites within the 

former range of the species; assess the extent of coverage of critical 

habitats (foraging, roosting, and nesting habitats) by the protected area 

system; make recommendations for extensions of protected areas to 

enhance protection 

Species survival: The captive population of over 420 birds is excessive for breeding 

needs, increases disease risk, and calls for urgent implementation of a 

re-introduction program. Accelerate dialog with IUCN World 

Conservation Union, Species Survival Commission, Stork, Ibis & 

Spoonbill Specialist Group for release of captive birds: Cooperate with 

IUCN SSC to prepare national and international re-introduction plans. 

Target sites should be the best protected wetlands in northeast China 

and in former range states Russia and North and South Korea. 

Capacity building: Train reserve wardens and researchers to record and report nest and 

roost locations using GPS equipment, and to record locations and group 

sizes/compositions. Provide field study equipment as needed. 

Public awareness: Carry out public awareness campaigns to alert the public to the 


Crested Ibis and their habitats.



CHINESE EARED SHREW-MOLE UROPSILUS SORICIPES 


China Range: species known only from a small area in Sichuan Province; records 

from the Project Area should be confirmed 

Habitat and ecology: a shrew, foraging on invertebrate fauna in mature forests; ecology 

unknown 


Habitats: forest – sub-tropical to temperate 


Global status: Endangered 67 ; evaluated in 1996 

CITES: 

China Red Data Book: Vulnerable 



Threats & constraints: known only from one small area in Sichuan; threats presumed to be 

habitat destruction; constraint is lack of knowledge of the species; 


Conservation: pending outcome of field studies 

Research & monitoring: Determine status on Project Area through capture-mark-release field 

study; determine species range on the Project Area and in the Qinling 



Capacity building: Work with CAS and SFD specialists on field study methods and 

research design 

67 adapted from IUCN World Conservation Union Species Survival Commission Red List of Threatened Species 

97

98 




SALENSKI’S SHREW SORICULUS SALENSKII 

China Range: species known only from the holotype in Sichuan Province; records 

from the Project Area might be incorrect 

Habitat and ecology: a shrew, foraging on invertebrate fauna in mature forests; ecology 

unknown 




Global status: Critically Endangered 68 ; evaluated in 2000 

CITES: 

China Red Data Book: Endangered 



Threats & constraints: known only from one small area in Sichuan; threats presumed to be 

habitat destruction; constraint is lack of knowledge of the species; 


Conservation: pending outcome of field studies 

Research & monitoring: Determine status on Project Area through capture-mark-release field 

study; determine species range on the Project Area and in the Qinling 




research design 




MALAYAN PORCUPINE HYSTRIX BRACHYURA 

Global Range: Cambodia, China, India, Indonesia, Lao People's Democratic 

Republic, Malaysia, Myanmar, Nepal, Singapore, Thailand, Vietnam 

China Range: throughout central and eastern China 

Habitat and ecology: Nocturnal, remaining in underground burrows during the day; feeds 

on vegetation including tree bark 




Global status: Vulnerable (VU); A1d ver 2.3 (1994) 

CITES: 




Threats & constraints: loss of forest habitat; hunting for food and markets 


Conservation: conserve forest habitat; reduce impacts of hunting through patrol and 

enforcement 

Research & monitoring: determine status on Project Area through field study; determine 

species range on the Project Area and in the Qinling; determine 

population trend on Project Area and in Qinling 

Protection: species is not protected at province or national level; ensure that 

species receives the fullest possible national and Shaanxi Province 

legislative protection. 


research design to estimate or index population numbers and trends 

99

100 



SICHUAN GOLDEN MONKEY RHINOPITHECUS ROXELLANA 

Global Range: There are four species of golden monkey in the world, the Sichuan 

golden monkey, the Guizhou golden monkey, the Yunnan golden 

monkey and the Tonkin golden monkey. The former three species are 

endemic to China. The Sichuan golden monkey is considered to 

include three subspecies but these are now disputed pending more 

methodical geographic assessment of variation. 

Chinese Range: endemic to Sichuan, Gansu, Shaanxi, and Hubei provinces. Except 

for the Shennongjia area in Hubei, they share habitat with giant 

pandas. 

Habitat and ecology: forested mountains of the Qinling; mainly feed on wild fruits, leaves, 

and buds/sprouts of trees and shrubs; typically live in deciduous 

broadleaf forest and move to the mixed coniferous and deciduous 

broadleaf forest; seldom occupy coniferous forest; altitude range is 

limited to 1400-2500 m; 57 species of plants are eaten, including four 

deciduous broadleaf, three evergreen trees and shrubs; different 

parts and kinds of plants are eaten according to season based on the 

seasonal phenology of plants 69 . 


Habitats: forest – temperate, broad-leaf deciduous 


IUCN Red List status: Vulnerable (VU) 


China Red Data Book: E 

National protection: I 


Population size & trend: In 1994 there were 39 troops and about 3800 individuals. Recent 

population is estimated at 4,000 in Zhouzhi, Ningshaan, Yangxian, 

Taibai, and Foping counties in Shaanxi Province, China; trend is 

thought to be stable. 

Threats & constraints: Main threats are high market price for body parts, illegal hunting, 

habitat loss, human disturbance (including disturbance caused by 

human recreation and tourism); At least one troop in the Qinling was 

displaced from its home range by human disturbance 70 ; constraints 

are lack of budget for patrol personnel, anti-poaching, and 

enforcement. 

69 LI Baoguo and YANG Xingzhong. 1994. Recent Development in Studies of Sichuan Golden Monkey in Qinling 

Mountains. Chinese Primate Research and Conservation News Volume 3 (2). 

70 Li Baoguo. 1999. Folia Primatologica 70:269-273.




Update knowledge: Continue long-term field study to describe biology, ecology, and 

regional distribution on seasonal and spatial bases; identify roosting 

and foraging sites and plot using GPS/GIS technology; identify habitat 

preferences and delimit critical habitats; prepare GIS databases and 

maps; plot boundaries of PAs in relation to critical habitats of wild 

populations. 

Conservation: Prepare a review of protection actions, plans, methods and results; 

prepare a Golden Monkey Conservation Action Plan for 

implementation in the proposed Project Area, in the Qinling NRs, and 

in other prospective re-introduction sites within the former range of 

the species; make recommendations for extensions of protected areas 

to enhance protection of critical habitats. 

Species survival: Assess status of captive populations; identify prospective sites for 

release of captive-bred monkeys considered surplus to needs for 

display in zoos; plan and implement a release program 

Capacity building: Train reserve wardens to record and report monkey and roost locations 

and using GPS receivers, to record group sizes/compositions; provide 

field monitoring and research equipment as needed; train NR wardens 

in patrol and enforcement technologies. 

Public awareness: Carry out public awareness campaigns to alert the public to 

conservation programs and elicit public support for conservation of 

Golden Monkeys and their habitats. 

101

102 




GIANT PANDA AILUROPODA MELANOLEUCA 

Global: recorded only in Sichuan, Gansu and Shaanxi Provinces, China at 

elevations from 1,300 – 3,000 m asl 

China: formerly endemic to a wide crescent of south, middle, and north 

China extending east-to-west from Sichuan to Zhejiang and south-tonorth 

from Guangxi nearly to Beijing; currently restricted to nature 

reserves in Sichuan, Gansu, and Shaanxi Provinces 

Habitat and Ecology: occupies mixed broadleaf and conifer forests with abundant bamboo; 

forages almost entirely on bamboo, consuming different species 

seasonally; migrates seasonally between higher elevation summer 

ranges and lower elevation winter ranges. Solitary except during 

brief mating season in late March-mid April and adult females with 

immature young; females produce one young every two years; 

populations increase naturally when habitats and animals are 

protected 

Biomes: palearctic, indo-malayan 

Habitats: forest – temperate/sub-tropical 



shrubland – temperate/sub-tropical 

Red List Category Rationale: continuing decline in the extent and quality of its habitat; isolated 

small populations 

Population size & trend: 1,596 in the wild in 2004; 212 in captivity world-wide at year-end 2006 

(up from 188 at year-end 2005); wild population is thought to be 

increasing after the second of three nation-wide censuses in 1977, 

1989, and 2004 


IUCN Red List: Endangered (EN) 

CITES: Appendix I 


National protected species: I 

Shaanxi Province protection: � 

Threats & constraints: Primary threats are habitat loss/degradation due to farming, timber 

and other forest product harvest, infrastructure development, 

residential development, illegal hunting/trapping/snaring, accidental 

mortality, low population densities and fragmentation of populations 

by topography, roads, farms and other human activities.




Research & monitoring: Long-term field studies show that species survival in the Qinling is 

highly probable if critical habitats and Giant Pandas are protected. 

Further basic research is not as important as urgent action to implement 

conservation recommendations made by leading experts. 

Conservation: China’s leading experts advise that population management measures 

should focus on the boundary between the farmlands at lower 

elevations and the lower forest habitats, or the zone of Giant Panda 

winter range. In this area it is important to assess the extent of 

coverage of critical habitats by existing nature reserves and extend 

reserve boundaries accordingly; Conservation action planning is 

needed at three scales 71 : Qinling reserves with Giant Pandas should 

develop species action plans as described below; Qinling nature 

reserves should also participate in preparation of a joint, landscapescale 

conservation action plan for implementation in and around 

existing protected areas; finally, Qinling nature reserves should join 

reserves in Gansu and Sichuan to draft and implement an ecoregion 

conservation action plan for the Giant Panda. 

Species survival Urgently assess threats to habitats on Giant Panda winter ranges, 

focusing on habitat degradation due to agricultural, forestry, and other 

land uses; plan and implement short- and long-term measures to 

reduce or eliminate threats; develop and implement winter habitat 

enhancement and recovery plans. 

Capacity building Train NR personnel in habitat requirements of Giant Panda and in the 

planned species protection and recovery methodologies; train NR 

personnel and villagers in operation of homestay lodges and pandafriendly 

tourism practices. 

Public awareness Carry out public awareness campaigns to alert the public to winter 

range conservation programs for Giant Panda and elicit public support 

for sustainable agriculture and forestry practices that reduce or eliminate 

impacts to panda winter habitats. 

71 Dinerstein, E., C. Loucks and Lu Zhi. 2004. Biological framework for evaluating future efforts in Giant Panda 

conservation. Pages 228-231 in Lindburg, D. and K. Baragona (eds.) 2004. Giant Pandas: Biology and 

Conservation. University of California Press. Berkeley and Los Angeles, CA. 

103

104 




RED PANDA AILURUS FULGENS 

Global: occurs from Himalayan India through Nepal to Bhutan, Myanmar, 

China, and Lao People's Democratic Republic 

China: from Yunnan northward through Sichuan to Gansu and Shaanxi 

Provinces 

Habitat and Ecology: occupies mixed broadleaf and conifer forests with abundant bamboo; 

forages almost entirely on bamboo, consuming different species 

seasonally. 

Biomes: Palearctic, Indo-malayan 

Habitats: forest – temperate/sub-tropical 



shrubland – temperate/sub-tropical 

Red List Category Rationale: continuing decline in the extent and quality of its habitat; isolated 

small populations 

Population size & trend: population size unknown, trend presumed declining 


IUCN Red List: Endangered (EN) 

CITES: Appendix II 


National protected species: I 

Shaanxi Province protection: � 

Threats & constraints: Primary threats are habitat loss/degradation due to farming, timber 

and other forest product harvest, infrastructure development, 

residential development, illegal hunting/trapping/snaring, accidental 

mortality, low population densities and fragmentation of populations 

by topography, roads, farms and other human activities. 


Research & monitoring: Long-term field studies have not been conducted in China; basic 

biology is not well known and population sizes and distribution are not



studied; research projects are needed to establish basic biology and 

develop specific conservation plans. 

Conservation: protection of Giant Panda winter and summer habitats would 

conserve habitats for Red Panda; until research information clarifies 

the ecology of Red Panda it is not appropriate to specify additional 

conservation measures. 

Species survival Implement conservation action plans to remove threats to habitats of 

Giant Panda; plan and implement long-term studies of Red Panda to fill 

information gaps. 

Capacity building Train NR personnel to identify and record locations of Red Panda; 

provide research funding together with equipment and materials for field 

study of Red Panda. 

Public awareness Carry out public awareness campaigns to alert the public to winter 

range conservation programs for Giant Panda and elicit public support 

for sustainable agriculture and forestry practices that reduce or eliminate 

impacts to Giant Panda winter habitats: This will have spill-over benefits 

for Red Panda. 

105

106 



ASIATIC BLACK BEAR URSUS THIBETANUS 

Global Range: Afghanistan, Bangladesh, Bhutan, Cambodia, China, India, Iran 

(Islamic Republic of), Japan, Korea, Democratic People's Republic of, 

Korea, Republic of, Lao People's Democratic Republic, Malaysia?, 

Mongolia, Myanmar, Nepal, Pakistan, Russian Federation, Taiwan, 

Province of China, Thailand, Viet Nam 

China Range: throughout non-desert western China and central and eastern China 

Habitat and ecology: tropical rainforest and oak forests are preferred habitats 




Global status: Vulnerable (VU); A1cd ver 2.3 (1994) 

CITES: I 




Threats & constraints: Habitat loss due to logging, expansion of human settlements and 

roadway networks, and over-hunting for skins, paws and gall 

bladders are the main threats to the species. 


Conservation: conserve forest habitat; reduce impacts of hunting through patrol and 

enforcement 




Protection: species is not protected at province level; ensure that species receives 

the fullest possible Shaanxi Province legislative protection. 


research design to estimate or index population numbers and trends



GOLDEN TAKIN BUDORCAS TAXICOLOR 

Global Range: Regional endemic with subspecies in Bhutan, China, India, and 

Myanmar; IUCN lists four subspecies, two of which occur in China, B. 

t. bedfordi and B. t. tibetana, the former in Qinling. 

China Range: Qinling and Daba ranges southwestward through Sichuan to the 

mountains of eastern Yunnan and western Tibet (Xizang Autonomous 

Region); occupies the proposed Project Area and the greater Qinling 

region. 

Habitat and ecology: an herbivore that occupies temperate shrublands and grasslands 

including edges of mountain forests; feeds mainly on wild fruits, 

leaves, and buds/sprouts of trees and shrubs; grazes on grass only to 

a limited extent 


Habitats: shrubland – temperate 



Red List status: Endangered (EN) 

CITES: II 

China Red Data Book: ? 



Population size & trend: total population size is not known; population trend is undocumented 

but thought by local authorities (Forestry Department) and villagers to 

be increasing 

Threats & constraints: Main threats are habitat loss and degradation caused by humans, 

illegal hunting, and disturbance caused by human recreation and 

tourism. Remaining wild predators are limited to wolf, leopard, and 

clouded leopard, the latter two only preying on young. 


Update knowledge base: Information on Golden Takin was compiled by Wu Jiayan 72 . Song 

Yanling et al. 73 estimated winter Takin carrying capacity in Foping 

NNR at around 1,000 animals on 29,240 ha, or around 29 ha per 

head. Zeng Zhigao 74 reported a new distribution record for the 

Sichuan Golden Takin in Majiashan NNR in far western Shaanxi. 

72 Wu Jiayan. 1990. The Chinese takin. China Forestry Publishing House, Beijing, 192p. 

73 Song Yanling, Dang Gaodi, Li Junsheng, Wang Xuejie, Zeng Zhigao, Wang Tiejun and Zhao Leigang. 2003. 

Estimating the carrying capacity of the Golden Takin at Foping National Nature resrve, Shaanxi, China. Acta 

Zoologica Sinica 49(4):445-450. 

74 Zeng Zhigao, Gong Huisheng, song Yanling, Miao Tao and Ma Shunrong. 2005. A new distribution record of 

Sichuan takin Budorcas taxicolor tibetana in Qinling Mountains in Shaanxi, China. Acta Zoologica Sinica 

51(4):743-747. 

107

108 



Although the species is listed as Endangered, there have been few 

studies of its ecology in the wild. Populations in the Qinling are 

informally reported to be increasing but this might be due to 

increasing frequency of complaints from farmers about crop damage 

as farmland increasingly encroaches on Takin habitat. Long-term 

field study of Golden Takin is needed to describe biology, ecology, 

and regional distribution on seasonal and spatial bases and to 

estimate population sizes and trends; the status of the population on 

the proposed Project Area and in the greater Qinling needs to be 

quantified; assess the frequency and economic impacts of depredation 

on crops and/or orchards by Golden Takin. Prepare GIS databases and 

maps of Golden Takin distribution; identify habitat preferences and 

delimit critical habitats. 

Conservation: Conduct review of protection actions, plans, methods and 

recommend improvements based on results of field studies; prepare 

and implement a Golden Takin Conservation Plan for implementation 

in the Project area and in the Qinling nature reserves; assess the 

extent of coverage of critical habitats by the protected area system; 

make recommendations for extensions of protected areas to enhance 

protection 

Capacity Building: Train reserve wardens and researchers to report Golden Takin locations 

and use GPS equipment to record locations and group 

sizes/compositions. Provide field study equipment including cameratraps 

and radio-telemetry equipment for Golden Takin studies. 

Public Awareness: Carry out public awareness campaigns to alert the public to the 


Golden Takin and their habitats.



SEROW CAPRICORNIS SUMATRAENSIS 

Global Range: Bangladesh, Bhutan, Cambodia, China, India, Indonesia, Lao 

People's Democratic Republic, Malaysia, Myanmar, Nepal, Thailand, 

Viet Nam (subspecies C. s. milneedwardsi found only in China) 

China Range: dry forested regions of central and eastern China 

Habitat and ecology: sub-tropical dry shrub forests 


Habitats: forest – sub-tropical to temperate 


Global status: Vulnerable (VU); A2cd ver 2.3 (1994) 

CITES: 

China Red Data Book: 



Threats & constraints: habitat loss/degradation, logging, hunting for food and medicinal use, 

regional international trade 


Conservation: conserve dry forest habitat and forest edge; reduce impacts of 

hunting through patrol and enforcement 




Protection: species is not protected at province level; ensure that species receives 

the fullest possible Shaanxi Province legislative protection. 


research design to estimate or index population numbers and trends 

109

110 



DHOLE CUON ALPINUS 

Global Range: Central Europe to Indochina 

China Range: A Dhole was recently reported captured in Jiangxi Province, south 

China. Dholes were once present in western China in the Tian Shan, 

but the species' current status in this area is unclear. Still found in 

Tibet, particularly in areas bordering the Ladakh region of India. Tibet 

Forestry Bureau has reported that dholes are still "common" in parts 

of south-east Tibet. 

Habitat and ecology: habitats include primary, secondary and degraded forms of tropical 

dry and moist deciduous forest; evergreen and semi-evergreen 

forests; dry thorn forests; grassland-scrub-forest; and alpine steppe 

(above 3,000 m), but not desert regions; habitat selection influenced 

by availability of medium to large ungulate prey, water, presence of 

other large carnivores, human population levels and suitability of 

breeding sites (proximity to water, presence of suitable boulder 

structures and sufficient prey) 75 

Biomes: Palearctic, Indo-Malayan 



shrubland – temperate 

IUCN Red List status: Endangered 

CITES: Appendix II 

China Red Data Book: Vulnerable 

National protected species: – 

Shaanxi Province protection: n/a 


Population size & trend: Fewer than 2,500 mature individuals remain in the wild and the 

declining population trend is expected to continue. Limited numbers 

throughout its range but poorly studied; population estimates not 

available. 

Threats & constraints: Main threats include habitat loss, depletion of prey, interspecific 

competition, persecution and possibly disease transfer from domestic 

and feral dogs. There is no widespread exploitation for fur or other 

purposes, though medicinal use should be investigated in China. 

Research, survey and management recommendations: 

Research & monitoring: Compile a GIS database and plot maps of historic distribution; plan and 

implement a Dhole research program to describe ecology, biology, 

identify prey species, identify and locate dens and record locations of 

sightings or tracks; assess impacts on Dhole population of human 

activities. 




Conservation: Prepare and implement a Dhole Conservation Plan in the proposed 

Project Area and the Qinling based on results of the above research 

program. 



Capacity building: Train reserve wardens and researchers to identify Dholes and use GPS 

equipment to record locations of sightings, dens, tracks, and scats. 

Provide field study equipment including camera-traps and radiotelemetry 

devices for Dhole studies. Carry out public awareness 

campaigns to alert the public to the conservation program and elicit 

public support for conservation. 

111

Numbers of Species by Life Form in Qinling Nature Reserves 

Total 

Total 

Vegetation Insect Fish Amphibians Reptiles Birds Mammals Vertebrate 

Fauna 

Fauna 

Taibaishan NNR 2,081 2,007 8 10 26 218 72 334 

Foping NNR 1582 1,354 15 12 26 217 68 338 

Zhouzhi NNR 800 (seed plant) 556 5 9 20 160 74 268 

Changqing NNR 1,615 636 18 8 20 202 63 311 

Zhouzhi 

Laoxiancheng 1,146 5 5 15 188 70 263 

NNR 

Ningshan 

Daxiongmao 1,178 (seed plant) 13 20 168 72 273 

PNR 

Guanyinshan 

1,305 (seed plant) 15 12 26 217 68 338 

PNR 

Tianhuashan 

700 (seed plant) 13 20 155 72 260 

PNR 

Sangyuan PNR 2,000 (seed plant) 12 59 30 101 

Wuliangshan 

1,300 (seed plant) 23 93 47 163 

PNR 

Motianling PNR 1,800 (seed plant) 10 19 161 65 255 

31 

Niuweihe PNR 1,500 (seed plant) 7 families 

14 families 270 sp. 

families 

Yingzuishi PNR 1,300 (seed plant) 15 32 74 69 190 

406 (woody plant) 7 10 95 21 133 

1,375 (seed plant) 5 5 15 188 50 263 

1,235 (seed plant) 479 6 16 171 49 252 

Qingmuchuan 

(Majiashan) 

PNR 

Huangboyuan 

PNR 

Pingheliang 

PNR 

Niangniangshan 

8 12 139 32 191 

389 

(rare/endangered 

plant) 

Panlong PNR 

23 families 248 sp. 

36 

families 

Banqiao PNR 1,500 (seed plant) 12 families 

Baofengshan 

1,600 110 30 

PNR 

Lueyang Dani 

1,700 

PNR 

Niubeiliang NNR 950 (seed plant) 7 20 123 60 210 

Zhuhuan PNR 321 (woody plant) 18 8 20 205 63 314 

Xushuihe PNR 1,500 100 

Lingkou Dani 

PNR 32 

Huashan PNR 2,500 (seed plant) 14 68 59 141 

Longxian PNR 1,500 (seed plant) 40 200



No. Name Level* Location* 

ANNEX 11: FOREST PARKS IN THE QINLING MOUNTAINS 

Management 

Agency* 

Area 

(ha) 

113 

Forest Farm Name* 

1 Louguantai N Zhouzhi County Shaanxi FD 27,487 Louguantai Experimental FF 

2 Lishan N Lingtong District Xi'an Pref 2,359 Lishan FF 

3 Taibaishan N Hu County Baoji Pref 2,949 Taibai Fengjin FF 

4 Muwang N Zhen'an County Shangluo Pref 3,616 Muwang FF 

5 Guiguling N Shiquan County Ankang Pref 5,135 Yunwushan FF 

6 Wulongdong N Lueyang County Hanzhong Pref 5,800 Jinchiyuan FF 

7 Tianhuashan N Forest Industry Dept Shaanxi FD 6,954 Ningxi FD 

8 Taiping N Hu County Xi'an Pref 6,085 Taping FF 

9 Tongtianhe N Matoutan Baoji Pref 5,235 Matoutan FD 

10 Tiantaishan N Xingjiashan Baoji Pref 8,100 Xinjiashan FD 

11 Jinsidaxiagu N Shangnan County Shangluo Pref 1,794 Sanjiaochi FF 

12 HanzhongTiantai N Wentai District Hanzhong Pref 3,674 Wuxiang FF 

13 Wangshunshan N Lantian County Xi'an Pref 3,633 Wangshuanshan FF 

14 Zhuque N Hu County Xi'an Pref 2,621 Louyu FF 

15 Zhongnanshan N Chang'an District Xi'an Pref 4,799 Zhongnanshan FF 

16 Ningdong Prov Ningdong Dept Shaanxi FD 3,000 Ningdong FD 

17 Cuifengshan Prov Zhouzhi County Xi'an Pref 3,918 Yonghong FF 

18 Yushan Prov Lantian County Xi'an Pref 1,393 Qingyu FF 

19 Heihe N Zhouzhi County Xi'an Pref 4,941 Houzhenzi FF 

20 Taixingshan Prov Chang'an District Xi'an Pref 6,016 Dayu FF 

21 Hongqingshan N Baqiao District Xi'an Pref 678 Collective FF 

22 Fengyu Prov Chang'an District Xi'an Pref 6,273 Fengyu FF 

23 Honghegu Prov Hu County Baoji Pref 2,314 Yingtou FF 

24 Huashan Prov Huaying Pref Weinan Pref 10,043 Huashan FF 

25 Shigushan Prov Linwei District Weinan Pref 1,420 Huayuan FF 

26 Qiaoyu Prov Hua County Weinan Pref 6,615 Collective FF 

27 Shahuashan Prov Hua County Weinan Pref 4,022 Collective FF 

28 Shangshan Prov Danfeng County Shangluo Pref 1,720 Shangshan FF 

29 Canglongshan Prov Shanyang County Shangluo Pref 1,551 Hongqi FF 

30 Tianzhushan Prov Shanyang County Shangluo Pref 71 Tianzhushan FF 

31 Yuhuangshan Prov Shangnan County Shangluo Pref 7,490 Shuangshan FF 

32 Yuxudong Prov Luonan County Shangluo Pref 88 Shipo FF 

33 Leigutai Prov Ziyang County Ankang Pref 585 

34 Lingyasi Prov Xunyang County Ankang Pref 101 Xunyang County Forestry Station 

35 Shangbahe N Ningshaan County Ankang Pref 4,526 Shangbahe FF 

36 Baohe Prov Hantai District Hanzhong Pref 3,312 Baohe FF 

37 Zibaishan Prov Liuba County Hanzhong Pref 4,662 Liuba County Forest Station 

38 Xiangyu Pref Chang'an District Xi'an Pref 1,914 Collective FF 

39 Queshandong Pref Chencang District Baoji Pref 1,335 Panjiawan FF 

40 Qingfengxia Pref Taibai County Baoji Pref 4,360 Jingkou FF 

41 Taipingyu Pref Hua County Weinan Pref 560 Collective FF 

42 Tianliushan Pref Lingwei District Weinan Pref 439 Collective FF 

Total 173,588 

* Prov = province; Pref = Prefecture (or City); Dept = Department; FD = Forest Department FF = Forest Farm

114 



ANNEX 12: FOREST FARMS IN THE QINLING MOUNTAINS 

Forest 

Area 

(km 2 ) 

Area of 

industrial forest 

(km 2 ) 

Total 

Public 

use 

forest 

Personnel employed 

Total Managers 

Tech 

School 

Grads 

Total 39,694 37,064 28,856 21012 2833 5506 

Xi'an Prefecture 

Zhouzhi County 528 512 433 227 39 19 

Zhouzhi County 220 156 157 108 22 28 

Hu County Taiping Forest Farm 121 119 81 171 58 17 

Hu County 121 120 81 480 26 24 

Lantian County Wangshunshan Fengjing Forest Farm 10 10 10 61 4 5 

Lantian County Qingyu Forest Farm 13 11 19 39 7 4 

Lantian County Zhongnan Forest Farm 62 47 47 80 13 9 

Chang'an District Nanwutaifeng 89 69 63 80 18 30 

Chang'an District 144 140 101 139 2 22 

Chang'an District Da 92 83 75 32 10 9 

Lingtong District Lishan Fengjing Forest Farm 24 18 20 241 30 61 

Xi'an Prefecture Xiaowang 120 119 119 42 14 11 

Baoji Prefecture 

Xinjiashan Forestry Department 256 256 189 288 40 53 

Matoutan Forestry Department 347 347 256 188 21 106 

Chencang District Panjiawan Forest Farm 303 299 90 54 7 18 

Chencang District Balizhuang Forest Farm 114 108 69 62 5 5 

Chencang District Pingtou Forest Farm 194 184 131 53 6 5 

Chencang District Fengjiahe Forest Farm 184 163 118 58 7 12 

Chencang District Fenggelin Forest Farm 148 148 99 54 4 13 

Qishan County Wuzhangyuan Forest Farm 48 48 33 98 4 23 

Feng County Huangniupu Forest Farm 180 176 127 60 8 33 

Feng County Hekou Forest Farm 169 163 129 56 4 34 

Feng County Fengzhou Forest Farm 109 104 88 27 8 17 

Feng County Liufengguan Forest Farm 171 167 136 54 8 32 

Taibai County National Jingkou Forest Farm 51 51 35 80 3 12 

Weibin District Guanyinshan Forest Farm 28 27 27 12 4 4 

Mei County National Yingtou Forest Farm 77 76 57 96 14 32 

Mei County National Taibaifengjing Forest Farm 193 191 174 215 116 

Weinan Prefecture 

Lingwei District Huayuan Forest Farm 28 26 26 28 5 3 

Hua County National Jindui Forest Farm 103 101 94 54 4 2 

Huayin Huashan Forest Farm 108 108 107 30 17 

Huayin Huayangchuan Forest Farm 37 37 29 40 3 13 

Hanzhong Prefecture 

Wuxiang Forest Farm 51 42 30 125 15 11 

Baohe Forest Farm 94 77 86 90 9 30 

Dapan Forest Farm 99 96 71 41 8 6 

Xiaohe Forest Farm 197 192 138 65 8 9 

Zhongping Forest Farm 67 67 46 49 39 11 

Qinglongsi Forest Farm 26 25 18 27 1 4 

Xixiang Longchi Forest Farm 323 286 271 66 13 27 

Madao Forest Farm 123 123 55 45 5 9 

Huoshaodian Forest Farm 99 99 5 42 7 12 

Miaotaizi Forest Farm 44 44 37 21 4 8 

Zhakoushi Forest Farm 124 123 79 68 6 16 

Sangyuan Forest Farm 125 125 115 50 7 43 

Pingdu Forest Farm 56 56 54 82 7 9 

Hanwangshan Forest Farm 52 52 51 109 5 3 

Tiechangba Forest Farm 123 122 122 106 13 106



Jinchiyuan Forest Farm 58 58 47 85 10 73 

Sanchalin Forest Farm 52 52 42 67 9 48 

Xihuaiba Forest Farm 30 30 26 21 6 19 

Guanyinsi Forest Farm 27 27 27 19 6 15 

Taposi Forest Farm 20 20 1 16 3 10 

Zhangjiahe Forest Farm 69 69 45 58 6 46 

Heitanzi Forest Farm 69 69 50 66 6 43 

Foping County National Forest Farm 16 16 16 12 1 11 

Ankang Prefecture 

Ningshaan County National Shangbahe Forest Farm 83 79 75 90 14 26 

Xunyang County National Forest Farm 89 87 69 59 8 19 

Hanyin County Fenghuangshan Forest Farm 96 89 60 24 5 7 

Shichuan County Fenghuangshan Forest Farm 17 16 12 15 15 6 

Shichuan County Yunwushan Forest Farm 32 32 22 18 4 8 

Shangluo Prefecture 

Shangnan County Gucheng Forest Farm 88 81 58 96 31 

Shangnan County Shipo Forest Farm 37 37 28 46 18 

Shangnan County Shutangshan Forest Farm 31 31 23 51 23 

Shangnan County Bao'an Forest Farm 68 60 46 38 13 

Zhashui Yingpan Forest Farm 24 24 18 46 6 24 

Zhashui Shizhen Forest Farm 33 33 26 21 4 4 

Zhashui Fengzhen Forest Farm 160 160 113 20 5 4 

Zhashui Jiujianfang Forest Farm 3 3 3 11 2 4 

Shanyang County Hongqi Forest Farm 162 156 127 95 10 25 

Shanyang County Tianzhushan Forest Farm 131 129 112 71 8 23 

Shangnan County Sanjiaochi Forest Farm 103 90 34 61 11 10 

Shangluo Erlongshan Forest Farm 93 93 63 52 5 10 

Danfeng Shangshan Forest Farm 89 89 64 52 12 40 

Danfeng Liuling Forest Farm 457 360 255 23 2 21 

Zhen'an County Muwang Forest Farm 113 113 66 117 19 66 

Zhen'an County Heiyaogou Forest Farm 39 39 27 179 13 47 

Zhen'an County Tiechang Forest Farm 65 61 51 13 2 2 

Shangnan County Shuangshan Forest Farm 52 52 33 137 7 11 

Shaanxi Province Louguantai Experimental Forest Farm 682 580 298 237 71 55 

Xibei Ag-Forestry Univ. Huoditang Teaching Exp. FF 20 20 20 14 4 2 

Provincial Resource Department 

Gaoqiao Forest Farm 170 169 136 95 37 44 

Shagou Forest Farm 153 150 125 101 42 40 

Xunyang Forest Farm 155 151 139 111 47 56 

Huoditang Forest Farm 158 158 152 105 46 46 

Xinquang Forest Farm 201 200 175 102 37 32 

Caiziping Forest Farm 355 352 268 336 44 109 

Lianghe Forest Farm 304 302 230 353 48 95 

Puhe Forest Farm 338 334 254 327 32 87 

Huashuping Forest Farm 116 115 88 350 34 105 

Zhongnan Forest Farm 129 127 71 188 35 63 

Baiyun Forest Farm 133 133 80 154 30 47 

Taochuan Forest Farm 458 455 339 158 28 46 

Sujiagou Forest Farm 303 301 269 163 22 39 

Huangbaiyuan Forest Farm 118 116 105 171 30 59 

Erlangba Forest Farm 136 135 57 165 25 41 

Taibaihe Forest Farm 104 103 96 168 24 43 

Xiaonanping Forest Farm 91 89 77 106 15 38 

Xiaogouhe Forest Farm 76 75 58 114 12 35 

Donghetai Forest Farm 158 156 128 120 27 38 

Miaoping Forest Farm 181 181 143 92 7 45 

Xindianzi Forest Farm 119 118 94 76 4 36 

Shangnanhe Forest Farm 105 101 64 83 5 37 

13,164 12,590 9,499 9,861 1,450 3,038 

115

116 



ANNEX 13: STATUS OF FLORA IN THE QINLING MOUNTAINS 

The research history of Flora in Qinling Mountains 

The scholars of China and foreign countries have paid close attention to the abundant flora, long 

history of geological evolution and complicated natural environment in the Qinling Mountains. 

According to the most recent research data (Zhang Qin-Wei 2002), approximately 3446 species, 1007 

genera and 198 families of seed plant occur in the Qinling mountain range. The characteristics of the 

native flora are outstanding. There are five endemic families, Ginkgoaceae, Sargentodoxaceae, 

Eucommiaceae, Staphyleaceae and Kingdoniaceae, and 44 genera in China. The geographic 

distributions of flora are complex and are related to other regions, and have evident temperate zone 

characteristics as well as strong transitional character. 

For around 100 years, the flora of the Qinling region has been the subject of close attention by 

scholars in China and foreign countries. From the end of the 19 th century to the early 20 th century, 

many western scholars traveled to China to engage in various projects of science, culture and religion 

and these included plant resource investigation in China and Qinling region. 

During the 149 years from 1800 to 1949, 232 persons of 14 western nations studied in 26 provinces, 

cities or municipalities of China, collecting plant specimens and investigating plant resources (Bi Liejue, 

1983). Of these scientists, 19 persons visited Gansu Province, 14 traveled to Hubei Province, 10 

persons visited Shaanxi Province and 3 persons visited Henan Province. Most of the scientists that 

visited Shaanxi Province for collection of specimens traveled to the Qinling region. The visiting 

scholars represented various disciplines, including botanist, zoologist, geologist and geographer, 

collector, doctor and priest. At the end of the 19 th century, J. Giraldii, an Italian priest, regarded his 

missionary duties as secondary but collected a great number of plant specimens in the Qinling region. 

He went deep into the Guangtoushan area and indiscriminately collected plant specimens for 11 years 

from 1890 to 1990. The plant specimens were later taken to Italy and Germany. A majority of the 

vascular plant specimens were identified and published by a German named L. Didls. The specimens 

are now archived in many large botanical specimen museums in Europe, with the majority of 

specimens housed in Berlin (Fu Kun-jun, 1983). A Russian, T. H. ��, also collected plant 

specimens in the Qinling region on many occasions and the specimens are archived in Russia. 

Since the 20 th century, an American named F. N. Meyer was dispatched by the USA Department of 

Agriculture and he investigated agricultural plants in China from 1905 to 1908. He carefully 

researched soybean, and arrived Qinling region and many places in Shaanxi and Gansu Province. He 

came again later to Shaanxi Province and collected specimens in 1914. From 1914-1923 a 

Frenchman named E. Licent collected plant specimens in the Qinling region and many places in 

Gansu Province (Wang He-sheng 1997). These specimens were sent to every national specimen 

museum or collection where they were identified by western botanists. For this reason many Qinling 

plants were named by western botanists and much of the literature was first published overseas. This 

causes great difficulty in researching botanical taxonomy and the flora of China for Chinese scholars. 

Before the 1930s research on flora of the Qinling was limited to accumulating general information. 

After this, additional research gradually began. A German named H. Handel Mazzetii (1931) first 

divided China into 8 regions, not including Xinjiang and Xizang, and deal with plant flora in Qinling 

region on the basis of plant species and genera. 

Professor Hu Xian-Su (1933) divided Chinese plants into six parts in �World Plant Geography�, of 

which the China north region included Shaanxi Province. The primary tree species of representative 

upland is listed in the book, and compared with tree species in same latitude region of Eurasia, and 

indicated the cold climate is a limiting factor of plant communities in north China where growth the 

North Temperate Zone plant and plant communities is summer green broadleaf forest. 

Prof Liu Shen-E made important contributions to plant flora research in north China. The Northwest 

Botany investigating place of state-run Peiping Academy was established at Shaanxi Wugong (now 

Yangling demonstration section) in first 30 years of the 20 th century. Here Prof Liu Shen-E, Prof Lin



Rong, Prof Kong Xian-Wu, Prof Zhong Bu-Qiu and Prof Cui You-Wei worked early or late. They 

collected how many ten thousand plant specimens, and in succession published a series of papers or 

monographs about plant flora and vegetation in the Qinling Mountains. Prof Liu Shen-E (1934) 

published �Plant Geography Generality in North and West China�, in which phytogeography was 

categorized in north and west China into 5 sections, of which the southwest borderline of Chinese 

north section was aligned along the main ridge of the Qinling Mountains. He noted that the south 

slope of the Qinling was like a southern plant churchyard. The southeast border was aligned along 

the Funiu Mountains and Huaihe River. This viewpoint has become a fundamental concept of 

phytogeography in north and west China. 

Prof Huang Bin-Wei (1940, 1944) published “List of Plants of Huashan�Shensi, with Keys of Genera 

and Species”, in which the detailed research was made for species, morphology, habitat and 

distribution of plants in the Huashan Mountains. 

In a word, early researches on phytogeography in Qinling are compared briefly, and researches on 

many basic problems are in their early stages. Phytogeography has been explored in the Qinling, and 

many researches on community composition, basic flora characteristics, plant species origin, and 

geographic components of flora have been carried out. These researches establish a solid foundation 

for later detailed research on plant flora geography in Qinling. 

Since 1949, researches on botany have developed more quickly. To provide a facility for research 

development, Northwest Agriculture and Biology Research School, Chinese Academy of Sciences 

were re-established at the original Northwest Plant Research School in 1950. The Northwest 

Agriculture, Biology and Soil Research School was rebuilt in 1953, and included a Geo-botany 

Research Laboratory that began research on phytogeography. Since that time, Northwest Botany 

Research School and Northwest Water and Soil Research School, Chinese Academy of Sciences reestablished 

and founded the Eco-geography Research Laboratory. 

Beginning in 1952 botany researchers came from Chinese Academy of Sciences, Northwest 

University, Lanzhou University, Northwest Normal University, Northwest Botany Research School and 

Northwest Water and Soil Research School, Chinese Academy of Sciences, and penetrated deep into 

the Qinling region. They reviewed scientific research and carried out research, and disseminated 

information on botany, flora, and vegetation in the Qinling while producing a great lot of research 

results. 

From the 1950s to 1970s, Qinling biological resource investigating group which compose with many 

experts collected tens of thousands of plant specimens early or late providing a basis for botany 

research in the Qinling, and creating conditions for development and use of resource plants in Qinling. 

In this period, primary results included: “Research on Forest Vegetation on the North Slope of the 

Qinling” was published by the Forestry Office, Northwest Farming and Forestry Ministry (1958); Zheng 

Mian (1958) published his “Botany Survey in Shaanxi Province”; Wang Wei-Jie (1963) published 

“Research on Primary Forest Communities and Ecological Characteristics on Nanwutai Region in 

Qinling North Slope”; Zhang Zhen-Wan and Cui You-Wei (1963) raised “Draft of Vegetation Divisions 

in Qinling Region” and Qian Guo-Xi (1964) published “Analysis on Vertical Distribution of Forest Plant 

in Qinling”. 

Besides the results, some special papers also were published which did not deal with phytogeography 

in the Qinling region, but stimulated further research on botany, flora, and vegetation. For example, 

“Viewpoint of Vegetation Division in China” was published by Nature Division Committee, Chinese 

Academy of Sciences (1960); Prof Wu Zheng-Yi (1965) published “Tropic Blood Relations of botany 

flora in China” which showed in-depth analyses of the origin and character of the botany of China and 

become required reading for students of Chinese botany. A series of research monographs was 

published in succession at one time, in which the “Handbook of Wildness and Available Plants in 

Chinese Northwest” was written by Northwest Biology and Soil Research Institute, Chinese Academy 

of Sciences (1954); “Geographical Researches in Hanjiang River Drainage Area” was written by 

Geography Research Institute, Chinese Academy of Sciences (1957); Prof Huo Xue-Yu (1960) write 

“Chinese Vegetation”; “Geography Dictionary in Hanzhong, Shaanxi Province” was written by 

geographical Department, Shaanxi Normal University (1966); and Prof Cheng Rong (1962) write 

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“Forest Botany Geography in China”. These monographs analyzed and studied botany and flora in 

the Qinling region from different points of view. 

It is especially worth noting that the “Botany Dictionary of Qinling”, published by the Science 

Publishing Company, was written by the Northwest Botany Research Institute in 1974-1985. The 

dictionary detailed records and narrates the botany resource in the Qinling region for the first time and 

three volumes have been published, of which first volume has 5 books. The dictionary detailed 

morphological characteristics, geographical distribution, and primary application of 1,000 genera and 

3,000 species of seed plants and created the right conditions for encouraging further study of botany 

and flora. Based on these publications the research of the seed plant flora gradually tend towards 

completeness in the Qinling region. 

At the beginning of the 1980s, “Chinese Vegetation” (1980) and “Chinese Natural Geography---- 

Botany Geography” (1983), by Prof Wu Zheng-Yi were published in succession. The botany and 

floras, and especially the basic character of seed plant flora, are profoundly discussed in the two 

monographs which represent the highest level of research on botanical geography in China. Since 

that time, research on phytogeography in the Qinling has come into a new era and voluminous 

research on botany flora and vegetation appeared and monographs on flora and vegetation were 

published. For example, “Drawing and Dictionary of Farmland Weed in Shaanxi” (1984) was written 

by Weinan Farming and Forestry Scientific Research Institute, Agropastoral Office, Shaanxi Province; 

“Forest in Shaanxi” was published by forest editor committee of Shaanxi (1989); “Comprehensive 

Survey of the Taibai Mountain Preserve” was published by Forestry Office, Shaanxi Province (1989); 

Prof Niu Chun-Shan (1990) compiled and published “Tree Dictionary in Shaanxi”; Di Wei-Zhong and 

Yu Zhao-Ying (1989) compiled “First Rare and Endangered Protected Plants in Shaanxi Province”. 

At that time, many scholars reviewed and studied many aspects of botany and flora in different regions 

of the Qinling. For example, Ying Jun-Sheng and Zhang Zhi-Ying studied the Taibaishan Mountain 

region; Fu Sheng-Jun investigated the Guangtoushan Mountain region; Lei Ming-De, Tian Lian-Shu 

and Zhang Qin-Wei investigate Shuihe river valley on the Qinling south slope; Kang Mo-Yi studied the 

Xunhe river valley; Northwest University investigate in Nanwutai region; Shaanxi Normal University 

investigate in Xunyangba region; Northwest Forestry University investigate in Huodidang region. From 

these investigations and studies, many papers on botany and flora were published.



ANNEX 14: STATUS OF VEGETATION IN THE QINLING MOUNTAINS AND PROJECT AREA 

1 Area and Range of Qinling Mountains 

Qinling Mountains can be viewed on two different scales, a broad scale and a narrow scale, as 

described below. 

The broad scale Qinling Mountains lie across middle China, is east and west tend to towards great 

mountain chain, from Xiqing Mountain in Qinghai province and after south of Gansu province and mid 

of Shaanxi province to Dabie Mountains across Hubei province, Henan province and Anhui province. 

The Qinling Mountains span four provinces (Shaanxi province, Gansu province, Henan province and 

Hubei province) and 74 counties or cities (Table 1), and are located at 104°30��112°52� E and 

32°50��34°45� N. The overall length of Qinling Mountains is 1,600 km; the breadth from south to 

north is from tens of kilometers to 200-300 km. The acreage of Qinling Mountains is over 50,500 km 2 , 

the vigor is boundless and pageantry is magnificent. The broad Qinling Mountains is a divide between 

the drainage areas of the Yangzi and Yellow Rivers. The south slope of the Qinling lies in the subtropic 

climate, where natural conditions are typical of southern latitudes. The North Slope lies in the 

warm temperate zone, where natural conditions are typical of northern latitudes. The characteristics 

of agriculture production have marked differences on the south and north slopes of the Qinling 

Mountains. Therefore in a period of time, people consider the Qinling Mountains as the geographic 

boundary of southward and northward in China. 

Province 

Shaanxi 

Gansu 

Henan 

Table 1: City and County in Broad Qinling Mountains 

Area (City, 

State) 

Shangzhou 

Hanzhong 

Ankang 

Baoji 

Weinan 

Xiàn 

Longnan 

Gannan 

Tianshui 

Dingxi 

Sanmenxia 

Luoyang 

Pingdingshan 

Nanyang 

County (City, District) all in 

Qinling Mt. 

Shangxian, Luonan, Shanyang, 

Danfeng, Zhenan, Zhashui and 

Shangnan 

Lueyang, Liuba and Foping 

Ningshan 

Fengxian and Taibai 

Tanchang, Wudou, Wenxian, 

Kangxian, Chengxian, Lixian, 

Xihe, Liangdang and Huixian 

Zhouqu 

Wushan 

Zhangxian and Minxian 

Lingbao and Lushi 

Luanchuan 

Xixia, Xichuan, Neixiang and 

Nanzhao 

County (City, District)part in 

Qinling Mt. 

Mianxian, Hanzhong, Chenggu, 

Yangxian, Xixiang and 

Ningqiang 

Ankuang, Xunyang, Hanyin and 

Shiquan 

Weibin, Baoji, Meixian and 

Qishan 

Linwei, Huaxian, Huayin and 

Tonggua 

Zhouzhi, Huxian, Changan, 

Lintong and Lantian 

Diebu 

Tianshui and Gangu 

Shaanxian, Yima and Yanchi 

Luoning, Songxian, Wuyang, 

Yichuan and Yiyang 

Lushan, Wuzhou and Baofeng 

Fangcheng and Zhenping 

Hubei Shiyan Yunxi Yunxian 

Sum 15 34 40 

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The narrow scale Qinling Mountains cover only the mid section of the Qinling Mountains, which lie 

in southern Shaanxi Province in the mountainous region between the Wei River and the Han River. 

Its eastern boundary is Ba River and Dan River, and its western boundary is Jialing River. 

The Shaanxi Qinling Mountains make up most of the broad scale Qinling Mountains, and lie 

between the Guanzhong plateau and the Han River valley. The Shaanxi Qinling Mountains have four 

apices, one whose north point is south of Tongguan County seat, a south point at Xunyang County 

seat, an east point at Fushui of Shangnan County and the west point is Guojiaba of Lueyang County. 

The geographic coordinates are 32°40’–34°35’N and 105°30’–110°05’E. The acreage is 55,000 km 2 , 

account for about 25% of the total area of Shaanxi Province and including all of 13 counties and part 

of 22 counties in Shangzhou City, Hanzhong City, Ankuang City, Baoji City, Xianyang City, Weinan 

City and Xiàn City (Table 2). The population is about 5,000,000, accounting for 1/7 of the total 

population of Shaanxi Province. 

City 

Shangzhou 

Table 2: City and County in Shaanxi Qinling Mountains 

Whole area of county 

in Shaanxi Qinling Mountains 

Shangxian, Luonan, Shanyang, Danfeng, 

Zhenan, Zhashui and Shangnan 

Part area of county 

in Shaanxi Qinling Mountains 

Hanzhong Lueyang, Liuba and Foping 

Mianxian, Hanzhong, Chenggu, Yangxian, 

Xixiang and Ningqiang 

Ankuang Ningshan Ankuang, Xunyang, Hanyin and Shiquan 

Baoji Fengxian and Taibai Weibin, Baoji, Meixian and Qishan 

Xi’an 

Zhouzhi, Huxian, Changan, Lintong and 

Lantian 

Weinan Linwei, Huaxian, Huayin and Tonggua 

Sum 13 23 

2 Vegetation in Qinling Mountains 

The vegetation in the northern Qinling Mountains is deciduous-broadleaf forest in the warm temperate 

zone and the vegetation in the south is the northern sub-tropic type or evergreen broadleaf. Because 

the hypsography of Qinling Mountain is rising, there is evidence of peak distributions of forest 

vegetation. 

The vegetation of Qinling Mountains has a unique character. For example, red birch forest can form a 

distinct forest zone, the species and genus of red birch are relatively complex and the peak altitude 

zone flora is relatively rich in the mountain region. Besides the character of the flora, the nature of 

vegetation transition is marked. For example, Pinus tabulaeformis, Quercus liaotungensis and 

Quercus aliena in Chinese north flora have a wider distribution, but many evergreen broadleaves, 

Pinus massoniana, Cunninghamia lanceolata, Vemicia fordii and Sapium sebiferum in subtropical 

latitudes are very abundant. Otherwise, there are vegetation component in southwest mountain 

region of China also. 

There are many similar things in the peak distribution law of vegetation between the south and north 

slopes in the Qinling. But because of the influence of the warmer and wetter climate on the south 

slope, the breadth height of vegetation zone on south slope is lower than on the north slope, a 

discrepancy of about 100-150m. The basal zone is controlled by level distribution of climate 

vegetation. There is the deciduous-broadleaf forest and arborvitae forest at 500–800m on the north 

slope, but there is the deciduous-broadleaf forest with evergreen broadleaf at 500–800m on the south 

slope. 

According to the vertical distribution of vegetation in Taibaishan, the vertical distribution law of 

vegetation in Qinling Mountain is as shown in Figure1.



2400 m 

A 

3767 m 

I 

H 

G 

3500 m 

3000 m 

F 2700 m 

D 

C 

E 

2200 m 

1500 m 

B 800 m 

South slope North slope 

Fig 1 Vegetation vertical distribution in Qinling Mountains 

500 m 

(a) A: Thin-broadleaved forest zone with evergreen broadleaf 

(b) B: Drought-enduring deciduous broadleaved and Platycladus orientalis forest 

zone 

(c) C: Quercus variabilis Bl. forest zone 

(d) D: Pine and deciduous broadleaf mixed forest zone 

(e) E: Red birch (Betula albo-sinensis) forest zone 

(f) F: Cowhide birch (Betula albo-sinensis var. septentrionalis) forest zone 

(g) G: Fir (Abies fargesii) forest zone 

(h) H: Taibaishan larch (Larix chinensis) forest zone 

(i) I: Alpine shrub meadow zone 

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2.1 Alpine Shrub Meadow Zone 

Above 3,400 m elevation in the Qinling, the shrub-meadow vegetation replaces forest. There is 

generally meadow vegetation above 3,500 m. There is a mosaic distribution of shrub and meadow at 

3,400-3,500 m. There is obvious glacier relic vegetation above 3,400 m. Falling rock has caused a 

rubble surface in some areas and riprap sands are the main physiognomy feature of this zone. The 

soil is alpine meadow soil and annual precipitation is 750-800 mm. The height of shrubs is less than 

50 cm and the shrubs display mainly prostrate growth forms. The most frequent species are 

Rhododendron fastlgiatum, Salix cupularis and Salix fructuosa; and the other species are Spiraea 

alpine and Rhododendron fortunei. The distribution of meadow vegetation is even and frequent 

species are Kobresia spp., Carex spp., Rhodiola spp., and so on. There are Stephanachne 

nigrescens, Deyeuxia langsdorffii, Poa spp. and Ranuanculaceae species distributed evenly 

throughout the region. Exclusion phanerogam, there are many lichen species that are used as 

medicinal plants including Cladoia vermiculata, Cladoia alpestris and others. The primary plant 

communities are Form. Rhododendron capitatum and Form. Salix cupularis. There is the distribution 

of Form. Spiraea mongolica at lower elevations. There is Form. Kobresia graminifolia and Form. 

Polygonum sphaerostuchyum in flat areas. 

2.2 Taibaishan larch (Larix chinensis) forest zone 

Taibaishan larch (Larix chinensis) forest is found mostly at 3000-3400 m. The soil is sub-alpine 

meadow-forest soil; the soil layer is barren and 20-30 cm. Annual precipitation is 800-900mm. The 

larch grow slowly, the height of plants of 150-200 years in age is only a few meters and the diameter 

at breast height is 10-18 cm. The plant growth is fine at the lower edge of the forest zone, the height 

of plants 140 years old is 10-12 m and the diameter at breast height is 20-25cm. 

There are ten additional shrubs in the forest which have sprawl, mat-shape or upright growth forms but 

all plants are dwarf forms. The familiar shrubs are Spiraea mongolica, Lonicera webbiana, Lonicera 

hispida, Salix cupularis, Acanthopanax giraldii, Potentila arbuscula var. veitchii, Lonicera szeshuanica, 

Ribes glaciale, Rosa tsinglingensis, Salix wangiana, Sabina squamata var. wilsonii, Rhododendron 

capitatum, Berberis sp. and Rubus flosculosus. The familiar families are Compositae and Cyperaceae 

which account for 30% of all plant species. They are Carex capoliformis, C. schneideri, Kobresia 

graminifolia, Saussuria iodostegia, Anaphalis aureopunctata, Polygonum sphaerostachyum, Allium 

prattii, Pedicularis muscicola, Galium var. hoffmeisteri and Fragaria gracilis. 

2.3 Fir (Abies fargesii) forest zone 

The basic species is Bashan fir (Abies fargesii). The distribution of the fir forest is at elevations of 

2,800-3,000 m on the north slope and 2,650-3,000m on the south slope. Because the landform is 

strongly wind-eroded and denuded by movement of sand and rock, the glacial physiognomy is not 

evident, and the soil is hilly ash-palm soil. 

Fir forest occurs in a belt around the hillside and its distribution is wide. There are wildwoods in many 

places which are over-mature forests. Taibaishan larch forest is found above the fir forest and the 

distribution of both forests frequently overlap. There is red birch (Betula albo-sinensis), spruce (Picea 

sp.) and Huashan pine (Pinus armandii) in the lower limit of the fir forest zone. 

The fir forests are nearly mono-specific, single-age forests with little variation in age and few other 

species. The numbers of species vary with altitude change. Arrow bamboo (Sinarundinaria nitida) 

only occurs below 2,800 m. The familiar shrub species are Rebis glaciale, Fraxinus mafeisii, Lonicera 

saccata, Rhododendron clementinae subsp. aureodorsale, Lonicera webbiana, Abelia dielsii and 

Lonicera trichantha in the highest elevation fir forests. The familiar shrub species are Sinarundinaria 

nitida, Malus teringoides, Prunus polytricha, Rosa xanthina, Sorbus koekneana, Spiraea capcscoeme 

var. myrtifolia in lower forest. 

2.4 Cowhide birch (Betula albo-sinensis var. septentrionalis) forest zone 

The cowhide birch forest zone occurs mostly at elevations of 2,400-3,100 m on south slope and is a 

type of deciduous broadleaf forest at the highest elevation for this type. The forest meets the fir (Abies 

fargesii) forest zone at upper elevations forest and the red birch (Betula albo-sinensis) at lower



elevations. Glaciation reached areas near the Qinling and at such sites the morrain deposits of gravel 

and rock are evident. 

Many birch forests are single-species stands, but mixed forests are formed with Bashan fir (Abies 

fargesii) and Taibaishan larch (Larix chinensis). There are 40 shrub species in the forest, which are 

Rhododendron clementinae subsp. aureodorsale, Rhododendron concinnum, Rhododendron 

purdomii, Sinarundinaria nitida, Sorbus koehneana, Acanthopanax giraldii, Ribes glaciale, Rosa 

omeiensis, Lonicera szeshuanica and others. 

There are more than 40 herbaceous plants which are mostly species of Ranunculaceae, Compositae 

and Cyperaceae. The dominant species have Carex capiliiformis var. major, Phlomis umbrosa var. 

stenocalyx, Saussurea oligantha var. parvifolia, Ajuga ciliate, Carex capiliiformis, Phlomis megalantha, 

Carex scabrirostris, Carex filamentosa, Cardamine macrophylla and others. Because mean 

temperatures are cool, the liane in the formation has about 10 species, which are mostly species of 

Ranunculaceae and Actinidiaceae. The evergreen lianes include Clematoclethra actinidioides, 

Clematis obscura, Clematis macropetala, and Rubus pileatus and others. Because of the wet 

environment in the forest, lichens develop well beneath the forest, generally covering 20-80% and the 

thickness is 2-15 cm. 

2.5 Red birch (Betula albo-sinensis) forest zone 

Qinling Mountain is the main distribution zone of red birch. The red birch zone is mainly at elevations 

of 2,200-2,700 m on the north slope and 1,900-2,600 m on the south slope. On the south slope, the 

upper elevation of the red birch zone meets the cowhide birch forest zone. The lower elevation meets 

the Quercus aliena var. acuteserrata forest zone below. On the north slope, the forest zone meets the 

Quercus liaotungensis forest zone below. Red birch forest is the transition vegetation type between 

temperate deciduous broadleaf forest zone and cold-temperate coniferous forest zone. Red birch 

forest is relatively stable and was originally a main component of the natural forest. The red birch 

forest is widespread in the Qinling. 

The forests are pure forest or mixed forest with red birch as the dominant species. Canopy closure 

reaches 0.6-0.8. The canopy average height is about 16 m, average DBH (diameter at breast height) 

is 40 cm and canopy age is about 60-110 years. Red birches develop well. Companion species of 

the canopy layer number more than 20, including Pinus armandii, Abies fargesii, Tsuga chinensis, 

Cowhide birch (Betula albo-sinensis var. septentrionalis), Quercus liaotungensis, Populus davidiana, 

Tilia laetevirens, Acer giraldii, Aver robustum, Sorbus tapashana, Sorbus discolor, Carpinus 

turczaninowii and others. 

The dominant species is Sinarundinaria nitida. The familiar species include about 40 which are Rosa 

omeiensis, Philadelphus incanus, Viburnum betulifolium, Spiraea japonica var. acuminate, Berberis 

dielsiana and others. The lianes develop well in birch forest, and familiar species include about 10 

which are Actinidia chinensis, Clematoclethra actinidioides, Clematis Montana, Schisandra 

sphenanthera. 

The herbaceous layer is affected by the canopy and shrub layers. The sum coverage of the 

herbaceous layer is 30-60%. The familiar species are more than 50 including Carex capiliiformis, 

Carex schneideri, Thalictrum brevisericeum, Phlomis megalantha, Chamaenerion angustifolium, 

Cardamine macrophylla, Oxylis griffithii, Impatiens notolopha and others. 

2.6 Pine and red birch forest zone 

2.6.1 Pine and deciduous broadleaf forest sub-zone (1,500-2,200 m) 

The distribution area of this sub-zone is widest and the breadth is greatest in the Qinling. The form 

members are complex. The physiognomies are characteristic of middle elevations with erosion in 

modern times. The relatively high difference is 500-700 m in this forest sub-zone. The soil is hill palm 

soil. There are more than 40 canopy species, various shrubs and herbs in the forest. Again there is 

distribution of climbing plants. The arbor species forming forest include Pinus armandii, Pinus 

tabulaeformis, Tsuga chinensis, Populus davidiana, Quercus aliena var. acuteserrata, Betula 

luminifera, Betula platyphylla, Quercus dentate, Populus cathayana. Again there are Quercus aliena, 

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Quercus variabilis, Quercus liaotungensis, Cyclobalanopsis glauca var. gracilis, Picea wilsonii, Salix 

kansuensis, Betula chinensis, Carpinus cordata, Carpinus cordata var. mollis, Carpinus fargesii, Tilia 

fictyoneura, Tilia chinensis, Acer davidii, Acer fulvesccns, Acer tinglingense, Cercidiphyllum 

japonicum, Kalopanax pictus. There is still a frequent green arbor Castanopsis sp. below the subzone. 

The floristics of the undergrowth, which includes about 200 species, are varied. 

2.6.2 Quercus variabilis Bl. forest sub-zone (800-1,500m) 

The physiognomy of this sub-zone, which relatively high difference is 200-300 m, and is largely open. 

Slopes are steeper and the soil is hilly yellow-palm soil on the south slope and hilly brown soil on the 

north slope. 

The plant community is simpler than in the pine and deciduous broadleaf forest sub-zone. The basic 

species are the main canopy species including Qcuercus variabilis, besides there is still Castanea 

mollissima, Castanea seguinii, Quercus aliena. The remaining canopy trees are Populus davidiana, 

Quercus aliena var. acuteserrata, Liquidabar formosana, Sinowilsonia henryi, Aesculus chinensis, 

Fraxinus sogdiana, Quercus fabri, Pterocarya hupehensis, Cunninghamia lanceolata, Vemicia fordii, 

Platycladus orientalis, Pistacia chinensis, Cyclobalanopsis glauca, Quercus gilliana, Ligustrum 

lucidum, Magnolia denudate. 

2.7 Thin-broadleaved forest zone with evergreen broadleaf on the south slope of Qinling 

Mountain (500-800m) 

This forest zone occurs on low mountains as they change from hills to basins. The characteristics are 

that the hill shape is round, water erosion is very strong, the gradient between hill and river floodplain 

is large, and the height of the mountains is less than 200 m. The soil in forest zone is hill yellow brown 

soil. 

There are various tree species in the forest zone, but the basic species are Quercus acutissima, Pinus 

massoniana and Platycladus orientalis. The distribution of Quercus acutissima forest, which is highly 

regarded for producing charcoal, is more abundant, but forests are cut repeatedly and are re-sprouting 

young trees at present. The distribution of Pinus massoniana forest at present is scattered about 

villages. Platycladus orientalis forest occurs mostly below elevation of 600 m and the forest area is 

large. 

The scattering canopy trees are Cyclobalanopsis glauca, Quercus gilliana, Quercus acrodonta, 

Quercus soathulata, Lllicium henryi, Acer oblongum, Celtis biondii, Lindera megaphylla, Sapindus 

mukorossi, Paliurum hemsleyanus, Xylosma japonicum, Pterocarya stenoptera, Liquidabar formosana, 

Robinia pseudoacacia and Albizzia kalkora. Again there are common species from the sub-tropics 

and warm temperate zone, some of which are of economic value or rare canopy trees such as Sapium 

sebiferum, Eucommia ulmoides, Trachycarpus fortunei, Cunninghamia lanceolata, Eriobotrya 

japonica, Ziziphus jujuba, Hovenia dulcis, Diospyros kaki, and Cupressus funebris. 

Because of the influence of human activities, the original composition of the forest vegetation has 

changed, the forest over 30 years old appears robust and the young forest is patchy. The forest has 

many patches with no vegetation. 

2.8 Drought-tolerant deciduous broadleaf forest and Platycladus orientalis forest zone on 

the north slope of Qinling Mountain (500-800m) 

Because of the influence of vegetation growth on flat topography, the forest vegetation and crop 

species are similarity with those on the low mountains of north China. The soil is hilly brown soil in the 

zone. 

The small hill areas have been reclaimed for farmland where the landform is quite level and the soil 

quality is better. There are the live scattered canopy trees, including Qeurcus variabilis, Platycladus 

orientalis, Ailanthus altissima, Juglans regia, Pistacia chinensis and others, and shrubs include 

Ziziphus jujube var. spinosa and many Lespedeza spp. in the open country.



There are drought-tolerant canopy forests, Platycladus orientalis forest and mixed forest of canopy 

and other broadleaf species on steep hills with more stone. The canopy species are mainly Qeurcus 

variabilis, Qeurcus aliena, and Qeurcus baronii. The other broadleaf canopy species are Ulmus 

parvifolia, Celtis bungeana, Prunus davidiana. Because trees fall frequently, the forests have become 

sprouting sites and their compositions are very different; the common shrubs include Cotinus 

coggygria var. pubescens, Prunus tomentosa, Pistacia chinensis, Campylotropis sp., Cotoneaster 

multiflorus, Spiraea fritschiana, and Lespedeza spp.. Platycladus orientalis forests occur with a bit 

shape on steep slopes, the canopy height is about 5 m and closure is 0.4. Common shrubs include 

Euonymus schensianus, Cotoneaster multiflorus, Indigofera pseudotinctoria, Cotinus coggygria var. 

pubescens beneath the forest. The poplar (Populus spp.) and willow (Salix spp.) forests are found 

commonly on the river bottomland. 

3 The General Situation of the Project Area 

3.1 Limits of the Project Area 

The area covered by the Project of Biodiversity Conservation in Qinling Mountains ranges from 

108°13�–108°29�Eand 33°43'–34°04'N, and administratively belongs to Zhouzhi County under the 

administration of Xi’an municipality (by 2010, the county will have been transformed into an urban 

administrative district of Xi’an city to be called Zhouzhi District). The Project Area borders on the 

Provincial Mountain-perimeter Tourism Highway S107 to the north, on Qinlingliang (the summit of 

Qinling Ranges) to the south , on Hanyuhe river, a branch river of Heihe River, and Xishanji to the 

west and on the boundary between Zhouzhi and Huxian counties to the east, covering 458 square 

kilometers. According to its overall plan approved by the government of Shaanxi Province, the project 

area will be divided into the Central Zone, Gengyu River Nature Reserve, Jiuyu River Nature Reserve, 

Louguantai Zone of Historical Cultures, and the Ecological Holiday Zone (see the maps in the 

appendix). 70 km away from Xi’an, the project area has convenient communication conditions 

because Xi’an-Baoji Expressway and Southern Xi’an-Baoji Highway access to it and mountainperimeter 

Provincial Tourism Highway S107 directly accesses its Central Zone. 

3.2 Conditions of the Project Area 

3.2.1 Climate 

The project area has a climate that varies with elevation and its southern climate differs much from its 

northern climate. Flatland and hilly regions have a warm temperate climate while alpine regions have 

a cool temperate mountain climate. There are four clearly defined seasons with the flatland region 

sultry in summer and rarely seeing snow cover in winter, and with its mountainous region experiencing 

a short and cool summer and a long and cold winter. Annual rainfall gradually increases from north to 

south, averaging at 800-900 mm and amounting to 900-1000 mm in high precipitation years. Average 

annual temperature ranges from 8-10° in July, and average minimum and maximum temperatures are 

12°-18° and 20°-28°, respectively. In January, minimum and maximum temperatures are -8°-12° and 

0°-3°, respectively. The frost-free period ranges from 200-240 days and annual sunshine varies from 

2000-2200 hours. Dominant wind direction is from the north. 

3.2.2 Geology and Topography 

The project area contains five geomorphic units: high mountain, middle mountain, low mountain, hill, 

and flatland. Its major mountain peaks are Shouyangshan, Nanshoushan, Jinfengshan, Sifangtai and 

Yinpingshan. Yinpingshan (Guangtoushan) is the highest peak with its elevation reaching 2,997 

meters and the elevation of its flatland region standing at 480 meters, and as a result, its elevation 

difference is 2,417 meters. In terms of microtopography, diverse rock types and strong fluviation 

cause Tianyuhe River to have a high stream gradient which reaches 22‰ in the downstream and 56‰ 

in the upper stream. There are awful and majestic mountains and plentiful, grand waterfalls, deep 

gorges with sharp walls, and rocks and stones with various shapes and stances. All these provide 

conditions for constructing Qinling Botanical Garden as a scenic garden. 

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3.2.3 Water Systems 

The project area is rich in water resources, as indicated by the ancient saying that “there are seventy 

two waterways to wade so that foot passengers rarely need to put on their own shoes while traveling 

across the streams”. There are 13 rivers flowing through the project area. Tianyuhe River, one of the 

thirteen rivers, has a catchments area of 262 square kilometers and flows 57.6 km. Runoff is 2.6 

m 3 /sec and the flow is stable and its water is slightly alkaline, belonging to sodium bicarbonate type of 

water. The stream has no chemical pollution and water quality is good. Its rich water resources 

provide good conditions for constructing special gardens for hydrophytes and exploiting tourism. 

3.2.4 Soils 

The soils of the project area are mainly Luvic cinnamon soil, skeletal soil, brown soil, loess soil and 

mountain meadow soil. Lou soil, mainly occurring in the zone of plant ex situ conservation, has such 

advantages as light texture and loose structure in its upper part and heavy texture and compact 

structure in its lower part, and high water- and fertilizer-retaining capacities and high drought-resistant 

and high waterlogging-tolerant capacities. In addition, because it has a thick soil layer, a flat 

topography and a high fertility, it is suitable for the plants in the zone of plant ex situ conservation to 

grow and develop. 

3.3 Brief Biodiversity Description 

Because of its unique geographic location, diverse climatic types and rich topographical types, the 

project area will provide suitable habitats and conditions for various biota to live, reproduce and 

survive. At the same time, it has diverse ecosystems typical of forest ecosystems, perfect natural, 

historical and topographical evidence of the Quaternary Period glaciers and very striking natural 

landscapes, so it is usually referred to as “the gene bank of living things” and “the biodiversityenrichment 

zone”. 

3.3.1 Diverse Ecosystems 

The project area will mainly contain three parts, water ecosystems, forest ecosystem and meadows. 

Because it has rich water resources and fertile land, it is suitable for aquatic animals and plants, 

microorganisms and terrestrial plants to grow and reproduce. It contain rich forest ecosystems which 

distribute in the order of minor fruit tree forests and secondary shrubs, Platycladus orientalis forest, 

Quercus aliena var. acuteserrata forest, broadleaf and needleleaf mixed forest, Betula albo-sinensis 

forest, Abies fargesii forest, Larix chinensis forest and subalpine scrubs from its flat regions to its 

subalpine mountains with an elevation 3000 meters above sea level. Meadows mainly occur in the 

subalpine regions. 

3.3.2 Diverse Species 

Qinling Mountains has 3,100 species of seed plants, which belong to 892 genera and 158 families. 

The 3,100 species of seed plants include 192 seed plants endemic to the Qinling, 44 seed plants such 

as Larix chinensis and Kingdonia uniflora that are listed as precious, rare and endangered species of 

national priority conservation and 49 seed plants that are in severe danger of extinction. The Qinling 

has more than 600 kinds of wild animals of which there are precious giant panda, crested ibis, snubnosed 

monkey and takin of national conservation. In addition, Qinling Mountains is rich in edible and 

medicinal fungi. The animals and plants listed above are found in the project area. The animals and 

plants show a clear vertical distribution and the details about their distribution are shown in the figure 

of the vertical variations of natural factors on the northern side of the Qinling. 

3.4 Vegetation of the Project Area 

The project area lies on the north slope of the Qinling Mountains at N 33°43’–34°04’ and E 108°13’– 

108°29’. The landform is complex and ecological conditions vary greatly over the project area. Based 

on surveys that are incomplete, there are 1,230 seed plant belonging to 128 families, which account 

for about 42% of all seed plants of the Qinling Mountains. Many species are nationality protected rare 

plants. There are peak vegetation zones which have structures intact from the deciduous broadleaved 

forests of the warm temperate zone to the coniferous forests of the cold temperate zone.



3.4.1 Vegetation Type 

Based on the color, species composition and structure of plant communities, and environmental 

characteristics, the vegetation is categorized into five types basically consistent with the vegetation 

type of North Slope in Qinling Mountains, (1) secondary growth shrubland, (2) deciduous broadleaved 

forest, (3) coniferous broadleaved mixed forest, (4) coniferous forest and (5) subalpine shrubland. 

3.4.1.1 Second Growth Shrubbery 

The vegetation type located at the foot of the mountains and on low hills at elevations below 700 m 

near the exit of Tianyu River. Because of frequent human activity, natural vegetation has disappeared 

and the existing vegetation, which is second growth shrubs and cultivated sundry fruit forests, 

developed after the original vegetation was destroyed. Main plants include Ziziphus jujuba var. 

spinosa, Deutzia discolor, Lonicera hispida, Jasminum nudiflorum, Periploca sepium, Lespedeza 

floribunda, Salix caprea, Ulmus pumila, Broussonetia papyrifera, Neillia sinensis, Pyrus betulaefolia, 

Cephalotaxus sinensis. Main herbaceous plants are Phragmites communis, Poa annua, Bromus 

japonicus, Melica scabrosa, Alopecurus aequalis, Setatia viridis, Carex leucochlora, Carex giraldiana, 

Belamcanda chinensis, Polygonum aviculare, Chenopodum glaucum, Arenaria serpylifolia, 

Ranunculus japonicus, Macleaya microcarpa, Corydlis edulis, Descurainia Sophia, Capsella bursapastoris, 

Duchesnea indica, Potentilla chinensis, Agrimonia pilosa var. japonica. 

3.4.1.2 Deciduous Broadleaved Forest 

Quercus aliena var. acuteserrata forest 

This forest occurs at elevations from 1400-2000 m, where forest soil is hill brown soil, the soil layer is 

deeper and humidity is higher. The forest color is uniform; canopy cover is about 0.8; the basic 

species is Quercus aliena var. acuteserrata and the species composition is simpler. Sometimes mixed 

growth species are Castanea mollissima, Corylus siediana, Acer grosseri, Pinus armandii and Populus 

davidiana. There are Symplocos paniculata, Berberis dolichobotrys, Sorbaria arborea var. glabrata, 

Spiraea uratensis, Rosa giraldii and Viburnum betulifolium in the shrub layer. The species of the 

herbaceous layer are many and the most common are Aquilegia yabeana, Ranunculus japonicus, 

Thalictrum sp., Rheum palmatum, Polygonum multiflorum and other tens of species. 

The life-type registers of Quercus aliena var. acuteserrata forest give priority to the phaenerophyte; 

the geophyte take second place and the proportion of hemicrytophyte is lower than geophyte which 

reflect climate character of warm, wet summers and long winter. The synusia of forest is basic 

homology with common deciduous broadleaved forest in temperate zone. 

Betula albo-sinensis forest 

The forest type occurs mainly on Shouyang Mountain and Guangtou Mountain and at elevations from 

2100–2500 m, near the mountain top. The soil is hill dark palm soil in forest communities. 

The structure of plant communities is simple; color of the community is uniform and the canopy closure 

degree is about 0.6. The basic species are Betula albo-sinensis and Betula utilis, but Betula albosinensis 

is dominant and forms single-species stands. Betula utilis only grows in mixed communities 

or in pure stands in narrow belts at the upper elevation edge of the forest zone. Betula utilis forest is a 

connecting forest zone between the Betula albo-sinensis forest and the Abies fargesii forest. 

All composing species are deciduous except Abies fargesii, Tsuga chinensis and Rhododendron 

purdomii. There are Lonicera serreana, Viburnum betulifolium, Lonicera webbiana and Rribes 

acuminatum in the shrub layer. The species of the herbaceous layer are many and the common are 

Carex kwangtoushanica, Arisaema consanfuineum, Smilax menispermoides, Aletris glabra, Clintonia 

udensis, Convallaria keiskei, Streptopus obtusatus, Polygonatum verticillatum, Allium prattii, Iris 

goniocarpa, Perularia ussuriensis, Herminium monorchis, Liparis japonica, Asarum himalaicum, 

Rheum officonale, Cerastium arvense, Paeonia veitchii, Aquilegia ecalcarata, Souliea vaginata, 

Delphinium henryi, Cardamine engleriana, Draba layginii, Rhodiola dumulosa and Saxifraga 

giraldiana. 

The life-type registers of Betula albo-sinensis forest give priority to the phaenerophyte and the 

geophytes take second place. 

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3.4.1.3 Coniferous Broadleaved Mixed Forest 

Coniferous broadleaved mixed forest is a special vegetation type with transitional character and 

unstable composition in which the invading of coniferous canopy species form after the deciduous 

broadleaf forest is destroyed. The vegetation type occurs at elevations from 900–2300 m. The 

dominant coniferous canopy species are Pinus armandii, Pinus taebulaeformis and Platycladus 

orientalis. The broadleaved canopy species are mainly Populus davidiana, Castanea mollissima, 

Quercus aliena var. acuteserrata, Litsea pungens, Toxicodendron vernicifluum, Juglansca thayensis, 

Sorbusa lnifolia and Quercus dentate. Quercus aliena var. acuteserrata is in the ascendant of the 

canopy, with abundant trees and young seedlings. The characteristic explanation is that the 

population of Quercus aliena var. acuteserrata is well adapted to seed dispersal and is a colonizing 

type. The second dominant species is Populus davidiana which is a pioneer species in succession 

course of plant community. 

There are Spiraea fritsichiana, Rubus sp., Rosa sp., Euonymus alatus, Berberis sp., Smilax sp. and 

Viburnum betulifolium in the shrub layer. Because it colonizes after the original forest is damaged, 

Sinarundinaria nitida may affect the renewal of mostly tree. 

3.4.1.4 Coniferous Forest 

Platycladus orientalis forest 

This forest type occurs at elevations from 500–1100 m where the soil is typical brown soil and pH 

value is 7�8. The annual temperature is 7.6 and annual precipitation is 886 mm in the forest zone. 

Platycladus orientalis commonly form second natural pure forests which present patchy distribution, 

continuous or discontinuous strap shape and are commonly associate with farmland. Platycladus 

orientalis mixed growth with deciduous broadleaf on lightly degraded lands, but forms clumps of pure 

forest on severely degraded sites. 

The forest cover is sparse; forest structure is simple and canopy closure is 0.35�0.50. The basic 

species is Platycladus orientalis growing to about 4 m. The companion tree species are Quercus 

variabilis, Quercus acrodonta, Hemiptelea davidii, Quercus baronii and Pteroceltis tatarinowii. There 

are Campylotropis macrocarpa, Acer grosseri, Cephalotaxus sinensis, Litsea pungens, Deutzia 

discolor, Pittosporum rehderianum, Euonymus venosus, Lespedeza bicolor, Rosa multiflora var. 

cathayensis, Rubus corchorifolius, Viburnum shensianum and Amorpha fruticosa in the shrub layer. 

The herbaceous species are richn and dominated by Arthraxon hispidus, Cyperus diformis, Allium 

senescens, Polygonum alatum, Gypsophila oldhamiana, Epimedium sagittatum, Sanquisorba 

officinalis, Anthriscus sylvestris, Trachelospermum jasminoides, Lithospermum zollingeri and 

Teucrium tsinlingense. 

Abies fargesii forest (dark coniferous forest zone) 

Abies fargesii occurs at elevations from 2500–2900 m in Guangtou Mountain and Shouyang Mountain. 

The humidity is high; the humus layer is deeper and the soil is hill cineration dark palm. The 

superstratum canopy species are Abies fargesii and Betula utilis, but Abies fargesii is dominant and its 

color is dark green. Canopy closure is about 0.8. There are all levels big trees and young seedlings 

of Abies fargesii, which show the population of Abies fargesii is stabile. Because there are only large 

trees and no young seedling of Betula utilis, the population is declining. There are few shrubs in the 

forest including Rosa tsinglingensis, Spiraea alpine, Sinarundina rianitida. 

The life-type registers of Abies fargesii forest give priority to the geophytes which number more than 

phaenerophytes and hemicrytophytes. This reflects that the environment is colder and wetter. 

Larix chinensis forest 

Larix chinensis occurs at the peak of the north slope in Guangtoushan Mountain and at elevations of 

2900 m and above. There are mostly rocks on the ground on these sites. The forest soil is hill dark 

palm soil and the community is single species. The forest is mostly found on shaded slopes and semishaded 

slopes. Generally some Larix chinensis trees have died in any stand. There are few shrubs. 

The herbaceous species are Androsace sp., Oxalis sp., Cardamina sp., Gentiana sp..



3.4.1.5 Subalpine Shrub 

Subalpine shrub mostly occurs on Guangtoushan Mountain where the hypsography is higher; the 

climate is cold; the weather is more varied; the wind is strong and solar radiation is intense. Shrubs in 

the alpine zone have special shapes because of the long-term adaptation to low temperature, strong 

winds and cold climate. The special shapes are low plant, prostrate stalk, cutin leaf and hair or 

squama adjunct. The dominant species are Spiraea alpine, P otentilla arbuscula var. veitchii, Salix 

paraplesia, Salix cupularis, Rhododendron capitatum, Rhododendron purdomii, Rosa tsinglingensis, 

Berberis circumserrata. In subalpine shrub, dominant species are Rhododendron capitatum, which is 

most abundant, and most widespread. The life-type registers of subalpine shrub gives priority to the 

hemicrytophyte; the geophyte is second; the low phaenerophyte and the annual account for very little. 

The character reflects that there is more long-time severe winter season in this environment. 

3.4.2 Vertical Distribution of Vegetation 

From the foot of mountain to the mountaintop and along with the elevation rise, temperatures decline, 

precipitation increases, wind speed increases solar radiation increases, soil conditions change and 

the growth season is shortens. Because of the combined action of these factors, the growth and 

distribution of vegetation changes and the vertical distribution of vegetation is formed. 

In Tianyu River valley of the Project Area, the vegetation is second growth shrubland, Platycladus 

orientalis forest zone, Quercus aliena var. acuteserrata forest zone, birch (Betula spp.) forest zone, 

Abies fargesii forest zone, Larix chinensis forest zone and subalpine shrub zone from the foot of the 

mountain to the mountaintop (Fig. 2). The second growth shrubland is severely disrupted by human 

action, but Platycladus orientalis forests and birch (Betula spp.) forests are evident transitional types. 

The second growth shrubland is the result of cut Quercus aliena var. acuteserrata forest, but 

Platycladus orientalis forest and birch (Betula spp.) forest is the result of cutting of the coniferous 

forest. If forest destruction is stopped and the remaining stands are protected, renewal of natural 

vegetation is possible. 

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G 

2800 F 

2700 

E 

2400 

2000 

1000 

700 

D 

C 

A 

B 

Fig.2 Vegetation vertical distribution in Tianyuhe river valley 

(a) A: Mixed fruit forest and Second growth shrubbery zone 

(b) B: Platycladus orientalis forest zone 

(c) C: Quercus aliena var. acuteserrata forest zone 

(d) D: Betula albo-sinensis forest zone 

(e) E: Abies fargesii forest zone 

(f) F: Larix chinensis forest zone 

(g) G: Subalpine shrubbery zone 

The primary species are Actinidia chinensis, Prunus davidiana, Prunus armeniaca, Juglans regia, 

Castanea mollissima, Broussonetia papyrifera and Euonymus alatus in the mixed fruit forest and 

second growth shrub zone (A). The constructive species of Platycladus orientalis forest zone is 

Platycladus orientalis and the associated species are Cercis chinensis, Acer grosseri, Cephalotaxus 

sinensis, Quercus spathulata (B). The constructive species of Quercus aliena var. acuteserrata forest 

zone is Quercus aliena var. acuteserrata and the associated species are Castanea mollissima, 

Carpinus sieboldiana var. mandshurica, Toxicodendron vernicifluum, Pinus armandii and Abelia dielsii 

(C). The constructive species of Betula albo-sinensis forest zone are Betula albo-sinensis and Betula 

utilis, and there are primary Sinarundinaria nitida, Berberis cicumserrata, Viburnum betulifolium, 

Euonymus phellomanus and Lonicera webbiana below the forest (D). The constructive species of 

Abies fargesii forest zone is Abies fargesii and the shrub below forest are primary Rhododendron 

purdomii, Lonicera webbiana, Ribes glaciale and Spiraea alpine (E). There are fewer shrubs and the 

herbage species are Androsace sp., Oxalis sp., Cardamina sp., Gentiana sp. And so on in Larix 

chinensis forest zone (F). The dominant species of shrub layer are Rhododendron capitatum, 

Rhododendron clementinae subsp. aureodorsale, Spiraea alpine and Berberis cicumserrata, and the 

dominant species of herbage layer are Kobresia graminifolia, Carex spp., Gentiana apiata and Poa 

spp. in Subalpine shrub zone (G).



If we take a broad view of the vegetation distribution, the community color and the species component, 

we can see that the vegetation in Tianyu River valley have the basic character of North Slope 

vegetation in Qinling Mountain. 

131

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ANNEX 15: ECOLOGICAL RESEARCH AND HABITAT RESTORATION AT SHAANXI QINLING 

BOTANICAL GARDEN 

The overall Project plan, including design, performance targets, risks of design, and monitoring 

framework in the Shaanxi Qinling Botanical Garden, are reasonable and feasible. The following 

paragraphs describe proposals for long-term monitoring and recovery of forest vegetation in the in-situ 

and ex-situ areas of the Project Area. Some of the monitoring and recovery programs can be applied 

in the Qinling mountains to aid in restoration of lost or degraded forest cover there. 

(i) A vegetation species and coverage survey is completed and a detailed vegetation 

map is drafted for the Project Area. The objective is to produce an accurate 

representation of the baseline situation at the outset of the Project. 

(ii) The status of globally threatened species, special and medicine plants is investigated 

in the Project Area. The objective is to describe the population biology, distribution 

patterns, population size, age structure, characteristics of propagation, and threats to 

species survival. This investigation will provide a practical basis for planning 

measures to remove threats. 

(iii) In the ex-situ area, samples of globally threatened species and special and medicinal 

plants will be collected and preserved as scientific specimens. The specimens will be 

archived at an on-site museum to provide a basis for study of vegetation in the Qinling 

Mountain region. The museum collection will be useful for scientific research, 

conservation education and public awareness, and species conservation. 

(iv) In the ex-situ area, the vegetation is restored using indigenous species and trees 

characteristic of the dominant canopy cover, and mixed forest is restored by planting 

conifer and broadleaf species. The mixed-species plantation promotes formation of 

complex habitats suitable for diverse communities of wildlife species. 

(v) In the in-situ area, previously dominant canopy species of the pre-logging natural 

forest are planted in degraded areas in multi-species stands. The natural secondary 

forests will be left intact to restore itself naturally and/or species composition will be 

modified in the interest of conservation of endemic and indigenous species by 

implementing a plan for patch planting and/or felling. 

(vi) Representative sites will be chosen in the in-situ area for long-term monitoring of 

forest succession in logged or otherwise degraded stands. Fixed sampling plots will 

be established on areas of 500 × 500 m (0.25 ha). The plots will be fenced as needed 

for protection against grazing of domestic livestock to enable and study of natural 

vegetation succession. The canopy tree species within the 0.25 ha plot will be 

sampled. All trees with diameter at breast height (DBH) greater than 1 cm, will be 

measured (DBH, height, crown spread), tagged for identification, and their locations 

will be recorded by serial number using GPS. Data will be recorded in a GIS database 

for mapping and comparison with results from future sampling. Every five years the 

fixed plot will be re-sampled and results will be compared with data collected earlier. 

Parameters to be analyzed will include: (i) survival; (ii) growth rate; (iii) recruitment; (iv) 

frequency; (v) density; (vii) standing timber volume and increment, among others. 

Results will be entered into the database of national Forest Research. Nationwide, 

there are four such long-term sampling programs in China: Dinghushan National 

Nature Reserve (sub-tropic evergreen broadleaf forest, 500 × 400 m = 0.2 ha); 

Changbaishan National Nature Reserve (cold temperate zone conifer forest, 

500m×500m); Xishuangbanna National Nature Reserve (tropical rain forest, 500 × 500 

m = 0.25 ha); and Gutianshan National Nature Reserve (sub-tropical evergreen 

broadleaf forest, 500 × 500 m = 0.25 ha). The Project Area would represent the first 

long-term forest succession study in the Qinling and the first at the boundary between 

temperate and sub-tropical deciduous broadleaf forest. Because of its location in a 

known biodiversity hotspot (see WWF Global 200 Ecoregions) this forest research 

project has great potential to contribute to understanding of forest succession and 

forest habitat recovery in relation to overall biodiversity. 

(vii) Although the differences in climate between the north and south slopes of the Qinling 

are known, there is no monitoring station on the north slope in the vicinity of the 

Project Area. The Project would install a weather monitoring station in the in-situ area. 

The tower would be constructed and outfitted to China national standards for weather



and climate monitoring. Eight parameters (temperature, humidity, wind speed, 

illumination and precipitation) would be monitored at intervals to be set on installation. 

The weather data will be important to evaluate the influence of climate change on 

plant growth rates and distribution patterns. 

(viii) In the in-situ area, medicinal plants would be sustainably cropped in by farmers. The 

technology for identification and sustainable harvest of medicinal plants would be 

transferred to farmers by specialists who would work individually with each family. 

Researchers would assist farmers to engage in sales contracts with herbal medicine 

companies. This would increase incomes of farmers and result in increased 

standards of living. Increased incomes would encourage farmers to join the work of 

biodiversity conservation to protect future income streams. 

(ix) Taibaishan larch (Larix chinensis) is the only canopy species at the upper forest line 

within the Qinling Mountains. At hill tops and ridge lines it naturally occurs in a singlespecies 

forest. The role of larch forests is very important in stabilizing mountain 

slopes, replenishment of water resources by encouraging infiltration of rain and 

snowfall, reducing evaporative water loss, and minimizing soil erosion. But 

Taibaishan larch is an economically valuable species that has been cut over much of 

its former distribution in the Qinling. It is now found only at a few hill-top locations in 

the Qinling; natural colonization is slow and the species is now endangered. 

Research on the ecology and biology of Taibaishan larch is needed to develop 

methods to encourage recovery of the species. The research project would 

investigate the influence of climate change on the extent of the forest line; investigate 

the causal factors preventing natural recovery of the species; and aid protection and 

recovery Taibaishan larch. Protection and recovery of Taibaishan larch on the Project 

Area will promote biodiversity conservation in the Qinling botanical garden, and have 

important implications for habitat restoration in all nature reserves in the Qinling 

Mountains. 

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ANNEX 16: QINLING MOUNTAINS FAUNA ASSESSMENT REPORT 

A. Part One The Qinling Mountains Fauna Biodiversity and Conservation 

The Qinling Mountains are famous in our country and even in the world, and they are one of the very 

important biological resource places in our country. The Qinling Mountains are parts of the Yangtze 

and Yellow River system watershed in physical geography and Chinese south-north climate boundary. 

They also mark the biogeographic barrier between the Oriental and Palaearctic zones and are a 

transitional zone in zoogeography. The Qinling area has an abundant botanical resource and distinct 

elevational vegetation distribution. In its north slope most of the botany is the element of the North 

China botanical system, but in the south slope most of the botany is the element of the Central China 

and the South China botanical system. So the Qinling Mountains are the joint and transition belt of the 

south-north botanical system. The above characters determine the particularity and the exclusive of 

the Qinling Mountains in China, at the same time they also determine the Qinling area as one of the 

most abundant area of the Biodiversity in the global scope. 

As the Qinling Mountains has a special geographical position, diverse vegetation environment and 

continental climate and wet condition, it supply fauna and wildlife a perfect place to inhabit and breed. 

There are unknown but abundant invertebrates and also many other wildlife resource in addition to the 

557 species of vertebrate known at present, such as Qinling Panda (Ailuropoda melanoleuca), Takin 

(Budorcas taxicolor bedfordi), Golden Monkey (Rhinopithecus roxellana), Crested Ibis (Nipponia 

nippon), Chinese Giant Salamander (Andrias davidianus) and Qinling Lenok (Brachymystax lenok 

tsinlingensis )(Table 1). 

Table 1: Number of Vertebrates in Qinling Mountains 


Fish 6 13 67 109 



Birds 17 49 166 308 

Mammals 7 27 81 115 

Total 35 104 462 577 

The 557 species of vertebrates known at present in the Qinling area represent 35 orders, 104 families 

and 462 genera. Among these, there are 109 species of fish in the Qinling area of 6 orders, 13 

families, 67 genera, and accounting for 83% of the 132 species of fish in Shaanxi Province and 11% of 

the 1,010 species in the entire country. There are 19 species of amphibians, of 2 orders, 7 families, 

12 genera, representing 73% of the 26 species of amphibians in Shaanxi Province and nearly 9% of 

the 220 species in the entire country. There are 26 species of reptiles of 3 orders, 8 families, 26 

genera, accounting for 51% of the 51 species of reptiles in Shaanxi Province and nearly 7% of the 380 

species in the entire country. There are 308 species of birds of 17 orders, 49 families, 166 genera, 

accounting for 84% of the 368 species of birds in Shaanxi Province and 26% of the 1,186 species in 

the entire country. Finally, there are 115 species of mammals of 7 orders, 27 families, 81 genera, 

accounting for 78% of the 147 species of mammals in Shaanxi Province and nearly 23% of the 509 

species in the entire country (Tables 1, 2). From these totals it is clear that the Qinling area is a 

biodiversity hot-spot in Shaanxi Province and even at the national level it is one of the most biodiverse 

areas. As a result of this, the Chinese government has already listed the Qinling Mountains region as 

one of the 17 national biodiversity protection areas, which received resource priority in China.



Table 2: Fauna Species Numbers in Qinling Mountains as Proportions of Shaanxi and China 

Totals 

Qinling 

Mountains 

Shaanxi 

Province 

China 

Qinling Mt. 

percent in 

Shaanxi (%) 

135 

Qinling Mt. 

percent in China 

(%) 

Fish 109 132 1,010 82.6 10.8 

Amphibians 19 26 220 73.1 8.6 

Reptiles 26 51 380 51.0 6.8 

Birds 308 368 1,186 83.7 26.0 

Mammals 115 147 509 78.2 22.6 

Total 577 724 3,305 79.7 17.5 

In recent years, the Chinese population has increase steadily and the national western development 

strategy has begun implementation. Economic activity has intensified rapidly and progressively, 

causes the Qinling Mountains ecological environment to worsen, and the need for biodiversity 

protection to increase unceasingly. In order to strengthen to the ecological environment as well as 

biodiversity protection, government authorities at the national and Shaanxi Province levels increase 

the protection funds and enlarge protection dynamics unceasingly. In 1965, Shaanxi Province began 

conservation in the Qinling Mountains by establishing the first nature reserve----Taibaishan Nature 

Reserve, and have since established 51 nature reserves of each kind of type throughout the province. 

The nature reserve total area has reached 10,076.44 km 2 , covering 5.2% of the 195,800 km 2 of 

Shaanxi Province's total area. The Qinling Mountains have 27 nature reserves covering 5,572 km 2 or 

11% of the total Qinling Mountain area in Shaanxi of 50,500 km 2 and 2.9% of the 195,800 km 2 of 

Shaanxi Province. Because establishment of nature reserves accelerates and the management level 

steadily improves, conservation effectiveness is increasing. Fauna which is rare and precious and 

endangered in the Qinling Mountains, such as Qinling Giant Panda, Takin, Golden Monkey, Crested 

Ibis, Chinese Giant Salamander and Qinling Lenok has begun to recover population numbers. 

Moreover, most Qinling Mountains nature reserves are now adjoining and have formed a nature 

reserve group. This enables gene exchange between the nature reserves to safeguard genetic 

diversity. 

In the aspect of saving and protecting the wild animal which is rarely and preciously and endangered, 

the most typical example is Crested Ibis. Crested Ibis is the birds which is accepted as the most 

endangered in the entire world, once was widespread distributes in the northern area of our country, 

as well as Japan, North Korea, former USSR and so on in the beginning of the 20th century. As a 

result of the human large scale production and the life activity, the natural environment for Crested Ibis 

declines continuously, the population dropped sharply, and the Crested Ibis faced extinction. Once 

some people thought Crested Ibis had already become extinct in the open country. But, in May, 1985 

the scholars of our country discovered 7 Crested Ibis (4 adult birds and 3 baby birds) in Yaojiagou of 

Yang county in the Qinling Mountains area, they were the only open country survival population in the 

global scope (at that time Japan has only then 5 Crested Ibis which is under artificial raising condition, 

moreover they have already lost reproduction ability, and die one after another afterwards). After 

Crested Ibis was discovered in China, all levels of government took saving and protection of Crested 

Ibis as a top priority. Simultaneously the Japanese, German government and other international 

organizations also cared very much about saving Crested Ibis. The Japanese environment 

department even endorsed "The Research Plan Certificate of Confirmation for China and Japan to 

Protect Crested Ibis Together" with the Chinese government, and the Chinese government has 

established �The Shaanxi Crested Ibis National Nature Reserve� in Yang county. Through more than 

20 years’ laborious endeavors, the work of saving and protecting Crested Ibis obtains the achievement 

which attracted worldwide attention. Now Crested Ibis has developed to had more than 920, and 

forms the Qinling Mountains north and south two artificial cultivation populations (420) and a Qinling 

south slope wild population (approximately 500), from which the initially discovered wild population 

included only 7 birds. In addition, the Chinese country leaders has also presented 4 (2 male and 2 

female) Crested Ibis to Japan as a country gift, to strengthen the people's friendship between the two 

countries and Japan uses these 4 Crested Ibis as parents to breed the number of Crested Ibis, and 

also formed one population which have 98 Crested Ibis at present.

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B. Part 2: The Qinling Mountains Fauna Protecting Existent Problem 

Although biodiversity protection in the Qinling Mountains has already achieved some success, which 

draws world attention, but for various reasons, biodiversity protection still faces some problems as 

discussed in the paragraphs below. 

1�There are many endangered animal species and/or protected animal species in the Qinling 

Mountains in Shaanxi Province (see table 3), some of them received extensive concern from the 

public. Because of Qinling Mountains special geographic position, various vegetation environments 

and weather and humidity conditions, the fauna is very special, there are many species for which the 

Qinling Mountains are the northeast boundary of their distribution in the world (for example: Giant 

Panda , Taiwan Skink Snake (Elaphe carinata), Rice Frog (Rana limnocharis) and the Ningshan 

Toothlet Toad (Scutiger ningshanensis) or the southwest boundary (for example: Qinling Lenok, 

Crested Ibis), and the Qinling Mountains still have the endangered animals of “national treasure” like 

Qinling Giant Panda, Golden Takin, Sichuan Golden Monkey, and Crested Ibis. Protecting them and 

their habitats is the requirement of the Chinese environment construction; it is also an important part of 

the world natural sources and protection, so it has been the focus of public concern. 

Table 3: Threatened and/or Protected Fauna Numbers of the Qinling Mountains 

Numbers CITES 1 CSRL 2 China 3 Shaanxi 

Fish 109 0 0CR, 2EN, 3VU 2� 14 

Amphibians 19 0 1CR, 1EN, 3VU 2� 7 

Reptiles 26 0 0CR, 1EN, 11VU 0 6 

Birds 308 2�, 5� 1CR, 1EN, 4VU 5�, 33� 17 

Mammals 115 8�, 4� 2CR, 10EN, 21VU 6�, 8� 8 

Total 577 10�, 9� 2CR, 15EN, 42VU 11�, 45� 52 

Note: 1. =CITES Appendix , �= CITES Appendix ; 2. CR=Critically Endangered, 

EN=Endangered, VU=Vulnerable; 3. = Protection class in China, = Protection class in China. 

2. The Qinling area supports 27 nature reserves whose total area covers 5,572 km 2 . But the 

protection capacity and development vary widely between reserves. Because of social concerns, the 

funding levels for species protection and recovery vary. High-profile species (“charismatic megafauna”) 

receive disproportionately large budgets. Examples include the endangered species of 

"national treasure" such as Qinling Giant Panda, Golden Takin, Sichuan Golden Monkey, Crested Ibis. 

While protection of these species and their habitats yields benefits to other endangered animal 

species, in some cases the benefits are not direct or adequate to bring about reversals in declining 

habitat area or quality, and declining population numbers. For example, although the Qinling Lenok is 

a special species in Qinling Mountains, which is the national two-class of keystone protection aquatic 

wild animal, its numbers have not been restored and its habitat (cold, clear rivers) has not been 

protected. Although the Long County Qinling Lenok Nature Reserve has already been established on 

paper for 3 years, funding has been inadequate, and only limited artificially raising facilities have been 

built in the Bada area. They haven't set up a protection station in the 6,559 ha nature reserve. When 

the GEF consultants visited the management bureau of the Long County Qinling Lenok Nature 

Reserve at Long County on February 8, 2007, they learned it is the area with the largest population of 

the Qinling Lenok in Qinling Mountains. But from 1960 to now more than 40 year the Qinling Lenok 

distribution scope has already retreated about 10 km, that is from originally lowest distributed altitude 

1,000 m going up to 1,200 m. In addition, because of the shortage of the protection facilities, there are 

incidents of illegal poisoning and bombing fish inside the nature reserve. This degrades habitats, 

constricts the distribution of Qinling Lenok and causes population numbers to decline. To reverse this 

situation and recover the species it is urgent to increase the outlay to the Long County Qinling Lenok 

Nature Reserves. 

3. Though we have already formed a nature reserve group in the Qinling Mountains, the Niubeiliang 

Nature Reserve in the east of Shaanxi Province hasn’t been linked with the other reserves. The 

absence of a connection restricts gene exchanges between the Niubeiliang Nature Reserve and other



nature reserves of the west of Qinling Mountains. This can compromise fauna conservation in terms 

of genetic diversity in the Qinling Mountains. 

4. Although the Qinling area has already established 27 nature reserves, every nature reserve lacks 

the monitoring data of fauna diversity and population numbers and the trends of populations of 

ecological indicator species over time. This is impedes objective evaluation of the conservation result 

of the nature reserve. 

C. Part 3: Potential Role of the Project Area 

The Qinling National Botanical Garden construction project will have a positive impact on biodiversity 

conservation, and will have the enormous potential effects in the entire Qinling Mountains. 

1. The Qinling National Botanical Garden will occupy an area of 458 km², which between E108°13’– 

108°29’. It will basically link the Zhouzhi Nature Reserve on its west (E108°19’) and the Niubeiliang 

Nature Reserve on its east (E108°45') together. Completion of the Qinling National Botanical Garden 

is propitious to fauna gene exchange between the two nature reserves; enable the Qinling Mountains 

fauna genetic diversity to be effectively protected. 

2. The Chinese government has already listed the Qinling Mountains as one of the 17 biodiversity 

essential areas and it will be among the first to be protected in China. The implementation of the 

project will be advantageous to further promote the protection enterprise of the Qinling Mountains 

biodiversity. 

3. The implementation of the project will be advantageous to the improvement of the inhabitants’ 

livelihood that live in the project area, and will reduce the pressure which the local resident will create 

to project area environment. 

4. The implementation of the project will be advantageous to strengthen the scientific research about 

Qinling Mountains biodiversity and protection, and will be advantageous to the popularization of 

scientific knowledge on wild animals and plants, and also will enhance the Xi'an city inhabitants 

protection consciousness on the ecological environment. 

5. The implementation of the project will be advantageous to establish the first monitoring station on 

the dynamic change of biodiversity and the population quantity development change of the ecological 

indication species in the Qinling Mountains, and later will bring the monitoring station into the National 

and/or Global Ecosystem Monitoring Program. 

6. The implementation of the project will be advantageous to first explore the successful and 

unsuccessful experiences from the Qinling Mountains biodiversity conservation projects, and later will 

copy the succeed conservation experience to the entire Qinling Mountains and the Daba Mountains 

area even the whole world’s similar area. 

D. Part 4 Qinling Mountains Priority Fauna for Future Conservation 

In the past more than 50 years, Chinese all levels governments as well as the international nongovernment 

organization (e.g., IUCN, WWF, GEF), have already given enormous support and the 

attention to the biodiversity conservation in Qinling Mountains, especially in the aspect of the 

protection of “the national treasure level” species, such as Qinling panda, Golden Monkey, Crested 

Ibis, Takin and so on. Construction of nature reserve has made the achievement which focuses 

attention all over the world. However, the support and attention to the small and/or the unique and/or 

the endangered and/or ecological indicator species which live in the Qinling Mountains is still weak. 

Therefore, based on the present situation of the Qinling Mountains fauna protection, and for the sake 

of protecting the unique and/or the endangered wild animal in the Qinling Mountains more 

comprehensive in future, and finally achieving goals of protecting the Qinling Mountains biodiversity, 

suggested this project should first to protect these wild animal as follows. 

1. Fish 

��Hucho bleekeri�Sichuan Taimen 

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138 



��Brachymystax lenok tsinlingensis�Qinling Lenok 

2. Amphibians 

�� (Andrias davidianus ) Chinese Giant Salamander 

�� (Batrachuperus taibaiensis) Taibai Mountain-brooked Salamander 

�� (Scutiger ningshanensis) Ningshan Toothlet Toad 

��Paa boulengeri�Ventral-spined Frog 

��Paa quadranus�Lump-anused Frog 

3. Reptiles 

��Gekko Taibaiensis�Taibai Wall Gecko 

��Scincella tsinlingensis�Qinling Smooth Skink 

��Lygosoma indicum�Bronze Skink 

��Oligodon ningshanensis�Ningshan Small-head Snake 

��Agkistrodon brevicaudus�Single Pit Viper 

��Agkisriodon qinlingensis�Qinling Pit Viper 

4. Birds 

��Nipponia nippon�Crested Ibis 

��Tragopan temminckii�Chinese Tragopan 

��Chrysolophus pictus�Golden Pheasant 

��Glaucidium cuculoides�Barred Owlet 

��Garrulax canorus�Hwamei 

��Emberiza siemsseni�Slaty Bunting 

5. ��Mammals 

Rhinopithecus roxellana Golden Monkey 

��Selenarctos thibetanus�Asiatic Black Bear 

Ailurus fulgens Red Panda 

Ailuropoda melanoleuca Qinling Panda 

Neofelis nebulosa Clouded Leopard 

Moschus berezovskii Forest Musk Deer 

Budorcas taxicolor bedfordi Takin



ANNEX 17: SUGGESTED FAUNA PROGRAM IN THE QINLING MOUNTAINS & PROJECT AREA 

A. Part 1: Chinese Giant Salamander Population Re-establishment 

Chinese Giant Salamander (Andrias davidianus) belongs to Amphibia, Caudata, Cryptobranchidae. It 

is the unique and the ancient and the biggest body and the longest living wild amphibian in the world. 

It is listed as a protected aquatic wild animal in China. Considering its threatened condition, Chinese 

Giant Salamander is listed as Critically Endangered in IUCN/SSC and . There are only three species of Cryptobranchidae in the world. Besides Chinese 

Giant Salamander, there are Japanese Giant Salamander (Andrias japonicus) in Japan and 

Hellbender (Cryptobranchus alleganiensis) in USA. Chinese Giant Salamander is a rare species 

existing in the Carboniferous period 350 million years ago and is a vertebrate transforming from an 

aquatic animal (gill respiration) to terrestrial animal (pulmonary respiration). Therefore, it is called 

“living fossil”, having epoch-making significance in the history of evolution and important value in 

scientific research. 

Chinese Giant Salamander distributes in ravine streams in Yangtze River area and the middle and 

lower reaches of the Yellow River and Pearl River in 17 provinces in China. Because the Qinling 

Mountains (including the Qinling National Botanical Garden ) in Shaanxi Province have a rich and 

diverse flora, suitable climate and moisture and other nature ecological conditions, the area became 

the major habitat of Chinese Giant Salamander in China. Before the 1970s’, Chinese Giant 

Salamander was widely distributed in the hidden rivers or springs and caves along the ravine streams 

in the limestone layers at elevations above 600 m. Because of its high edible and medical value as 

well as certain ornamental value, it is illegally captured. More important, in recent years, the habitat of 

Chinese Giant Salamander has been fragmented, destroyed, and degraded and the species ability to 

naturally repopulate habitats has been reduced. As a result, the population of Chinese Giant 

Salamander declines rapidly, its distribution area declines, and individual Salamanders are smaller. 

Chinese Giant Salamander is now extinct in many parts of its former range. The ecological 

environment of its breeding areas is destroyed and its habitats are highly fragmented. These factors 

have driven Chinese Giant Salamander to near extinction. 

To save and conserve the resources of Chinese Giant Salamander, 13 provinces in China started 

captive breeding experiments in the late 1990s’ and made essential progress toward a project to 

protect and save Chinese Giant Salamander. Among them, Shaanxi Normal University has carried 

out a program----The Bionical Captive Breeding Chinese Giant Salamander Research. According to 

Chinese Giant Salamander biological habits and characteristics, this program first established a model 

that captive breeding and training Chinese Giant Salamander in a simulated natural ecological 

environment in China, and successes in breeding Chinese Giant Salamander for 3 years. Each of the 

program’s technical criteria is at the top of the same trade in China. On March 2, 2007 at the 

achievement appraising meeting organized by Science and Technique Department of Shaanxi 

Province, the program gained high praise. It is considered to be in the leading position among similar 

research in China. Carrying out this program is significant for protecting and recovering Chinese Giant 

Salamander as well as improving the consciousness of nature resources protecting and financial 

condition in countryside. 

Basing on the fact of resources of Chinese Giant Salamander in China including Qinling Mountains 

and the recent technical achievements, Chinese Giant Salamander re-introduction and population reestablishment 

program should be developed in the Qinling National Botanical Garden (the Project 

Area). To complete this program, we suggest it be supervised and organized by Shaanxi Province 

Fishery Administration Department and the Qinling National Botanical Garden, participated by the 

project area farmers who are trained and directed by professional staff from Shaanxi Normal 

University. If the program gets the financial support from GEF, Chinese Giant Salamander population 

will resume to 5,000 in the Project Area in 3-5 years and copy to the whole Qinling area making 

Chinese Giant Salamander population in Qinling area resume to 100,000 or more in 5 years. 

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B. Part 2: Fauna Monitoring Program in the Project Area and Qinling Mountains 

The Qinling Mountains are one of 17 biodiversity key regions that are given priority conservation. 

They have the rare and endangered national treasure mega-fauna like the Qinling Giant Panda 

(Ailuropoda melanoleuca), Golden Monkey (Rhinopithecus roxellana), Takin (Budorcas taxicolor 

bedfordi), Crested Ibis (Nipponia nippon), Forest Musk (Moschus berezovskii), and Clouded Leopard 

(Neofelis nebulosa). There are also many lesser known but also unique and/or endangered wildlife 

such as Taibai Stream Salamander (Batrachuperus taibaiensis), Oinba Salamander (Pseudohynobius 

tsinpaensis), Ningshan Alpine Toad (Scutiger ningshanensis), Qinling Tree Toad (Hyla tsinlingensis), 

Lump-anused Frog (Chaparana quadranus), Taibai Wall Gecko (Gekko taibaiensis), Qinling Smooth 

Skink (Scincella sinlingensis), Ningshan Small-head Snake (Oligodon ningshanensis), Qinling Pit 

Viper (Agkistrodon qinlingensis), Qinling Lenok (Brachymystax lenok tsinlingensis) and others. For 

some species the Qinling Mountains represent the northern limits of their geographic distribution (e.g. 

Giant Panda, the Alpine Toad family). For other species the Qinling marks their southern boundary 

(for instance, Lenok). So the Qinling Mountains is an important natural barrier in the geographic 

distributions of many species. So we should select a few common representatives of these smaller 

and lesser known species from the Qinling Mountains to monitor their population numbers, changes 

and habitat changes for many years, and provide all the concerned authorities of Chinese 

governments and international biodiversity conservation organization with the protection monitoring 

data. It may be play an important role for the Qinling Mountains and the whole world biodiversity 

conservation. 

The relationship is very close between vertebrate and the vegetation. People believe that the first 

environment factor is the vegetation which affects the vertebrate’s distribution and diversity. With the 

fact that the vegetation recovering and succession, vertebrate species diversity and distribution trend 

will change. Many studies indicate that vertebrate diversity varies in different plant communities. The 

forests in which vegetation succession has proceeded to climax communities that are mature and 

those that are interrupted the least by human activities are often the richest in terms of vertebrate 

species diversity. In contrast, in habitats that are degraded and highly disturbed, vertebrate species 

diversity is lower. Since vertebrates are sensitive to environment changes, they are often regarded as 

the indicator species of environment changes. For instance, in 1972 USA has ascertained that birds 

and amphibian were the indicating animal which have significance to the environment changes. That 

the vertebrate is used for environmental monitoring is mainly in two sides, one is to monitor 

environmental pollution, the other is to monitor habitat overall and minute changes. 

Considering the practical difficulties existing in monitoring large-bodied rare wild birds and mammals, 

we suggest selecting larger populations of fish (Qinling Lenok Brachymystax lenok tsinlingensis), 

amphibians (Lump-anused Frog Chaparana quadranus or Chinese Forest Frog Rana chensisensis), 

reptiles (Bronze Skink Lygosoma indicum or Qinling Pit Viper Agkistrodon qinlingensi), birds 

(Plumbeous Water Redstart Rhyacornis fuliginosus or Slaty Bunting Emberiza siemsseni), and 

mammals (Field Mouse Apodemus peninsulae) in the Project Area (the Qinling National Botanical 

Garden) and the other region of Qinling Mountains at the same time. By monitoring their population 

quantity and the habitats environment changes (from water, land and air adding the vegetation 

monitoring data), our goal is to monitor the ecology environment of the Project Area, even the Qinling 

Mountains, in order to protect the Qinling Mountains biodiversity. 

C. Part 3 Fauna Research Program in the Project Area or Qinling Mountains 

Since the first nature reserve was established in the Qinling Mountains in 1965, with the help of efforts 

over 50 years, there have been 27 nature reserves of various kinds established in Qinling Mountains. 

And most of them are joined together in a contiguous nature reserve group. The establishing of these 

nature reserve not only gives an effective protection to the rare and endangered animals such as 

Qinling Giant Panda, Takin, Golden Monkey, Crested Ibis, Chinese Giant Salamander, Qinling Lenok 

and their habitats, but also helps a lot with the all-around research to Qinling Giant Panda, Takin, 

Golden Monkey, Crested Ibis, which are “national treasure level” rare and endangered wild animals, 

using the methods of Ecology, Morphology, Reproductive Biology, Genetics, Cytology, Taxonomy and 

Behavior Science. Many monographs on these 4 species have been published and distributed in 

public.



However, in biodiversity conservation position in Qinling Mountains, there are still some small-sized 

rare and endangered or unique wild animals which can not be protected effectively. And the research 

of them is almost blank. Take Qinling Lenok (Brachymystax lenok tsinlingensis) for example: it is a 

typical cold water fish kept in the stream of river end ��, which is the national � class 

protected wildlife as well as a unique species in Qinling Mountains. Qinling Mountains is the most 

southern part of Lenok (Brachymystax lenok) distribution area, spread narrowly and split to dots in the 

end of the tributary of Wei River which flows from Gansu Province to Shaanxi Province altitude 1,000- 

2,300 m. But from 1960 to now more than 40 year the Qinling Lenok distribution scope has already 

retreated about 10 km, that is from originally lowest distributed altitude 1,000 m going up to 1,200 m in 

Shaanxi Province Longxian County. Although the Qinling Lenok nature reserve was founded in 

Longxian County, the Qinling Lenok are caught and killed crazily because of its large figure, delicious 

flesh, high nutritional and ornamental value as well as seriously lacking of funds for protection, making 

the Qinling Lenok population reduces rapidly. Except for the description of its outside shape and 

distribution in Qinling Mountains, we know almost nothing about the rare and endangered fish. If the 

power of the protection and scientific research were not strengthened, the Qinling Lenok would 

possibly extinct in the near future. Basing on above analysis and from biodiversity conservation view, 

we suggest GEF strengthen financial support power to protection and scientific research to the middle 

and small sized fauna which are rare and endangered or unique in Qinling Mountains. 

(i) Establishing a program called “Chinese Giant Salamander reproductive biology 

research” in-situ area in the Qinling National Botanic Garden (the Project Area). 

Suggesting the research work be done on Chinese Giant Salamander in reproductive 

ecology, reproductive physiology, reproductive behavior and conservation biology and 

so on. 

224. Establishing a programs called “the Qinling Lenok biology research” in-situ area in the 

Qinling National Botanic Garden and the Shaanxi Longxian Qinling Lenok Nature Reserve at the same 

time. Suggesting the research work is done in conservation biology (for example�the primary 

endangered factors), reproductive ecology, reproductive behavior (for example, breeding migration 

time) and population biology (for example�the population age structure relationship, relationship 

between number and environment) and so on. 

D. Part 4 The Inhabitant Livelihood and the Nature Reserve Construction Program in the 

Project Area or Qinling Mountains 

(i) The inhabitant livelihood is difficult at present in the Project Area (the Qinling National 

Botanical Garden). Their production and living action have great pressure on the 

environment. So improving the inhabitant livelihood is the main task for the Project 

Area biodiversity conservation. With the WWF financial and technical aid, the 

inhabitant livelihood in The Foping National Nature Reserve has been improved by 

breeding bee and horse. Suggesting GEF learn from WWF achievement, support the 

inhabitant breeding bee and Chinese Giant Salamander in order to improve their 

livelihood. 

(ii) The Shaanxi Longxian Qinling Lenok Nature Reserve is a place which has the Qinling 

Lenok the largest population and distribution the most concentrated. Because of 

serious lacking of funds for protection and management, now the most basic 

equipments for protection (for example, patrol equipment) and handle official business 

work appliance are lacked in the nature reserve. 

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ANNEX 18: NATIONAL & PROVINCIAL WILDLIFE CONSERVATION & ENDANGERED SPECIES 

MANAGEMENT 

A. Part I Outline of Current National Wildlife Conservation Program 

1. National Forestry Nature Reserve Development Program 

China is one of the richest biodiversity countries in the world. China’s land area is large, terrain 

complex, and the nation has diverse climatic and ecological environments that lead to development of 

rich species resources. The PRC seriously addresses biodiversity conservation, at present taking 

such two main measures as in-situ and ex- situ conservation. Among these, nature reserve is the 

most important measure for in-situ and biodiversity conservation. The PRC established the first nature 

reserve in 1956, with experience growing from and reserves growing from weak to strong in the 

developing process. By year-end 2004, the PRC already established nature reserves of many types 

numbering 2,194 and covering 14,822,300 km 2 (not including Taiwan, Hong Kong and Macao), or 

approximately 14.4% of the national land area. In national nature reserve construction, the forestry 

department is the main organization. The State Forestry Administration (SFA) system has already 

established each kind of type and rank of nature reserve that number 1,674 and account for 76 

percent of national nature reserves by number, and cover 11,869,500 km 2 , or 80 percent of national 

nature reserve area. 

After 50 years of development, there are some big achievements in the national nature reserve 

construction and the management, but there are some problems at present. Among these, the nature 

reserves lack balance in development, not only is insufficiently in the macroscopic layout, but also 

lacks the system instruction and the standard, while some rare and precious wildlife and ecosystem 

existence protection are vacant. The identical biogeography unit or the ecosystem nature reserve 

construction which lack of the unification coordination and higher protection has not formed a whole 

protection function. For the purpose of solving the problem mentioned above and further more 

definition about the next national forestry nature reserve construction and the management goal duty, 

the work mentality and the work key, the SFA has established . The Program includes 6 chapters: Nature reserve present situation and 

appraisal; Nature reserve program guiding ideology, principle and goal; Nature reserve layout and 

construction key; Nature reserve facility and ability construction; Benefit analysis; Program 

implementation safeguard measure. 

In third chapter “Nature reserve layout and construction key”, dividing the nature reserve system 

program in the region into 8 construction regions, they are the Northeast mountainous-plain region, 

the Mongolian and Xinjiang plateau wilderness area, the North-China plain-loess plateau area, the 

Qinghai-Tibet Plateau cold area, the Southwest mountain-canyon area, the South-China west 

mountain-hill area, the East-China and Central-China hill-plain region, the South-China mountain-hill 

area. Among them, the South-China west the mountain-hill area including the Qinling 

Mountains, the area as the subtropics to the tropics transition region, is the world evergreen forest 

central distribution area and the fauna is complex. The area is the main distribution area for the 

national unique ancient animal-----Panda, Golden Monkey, Takin, Crested Ibis, and Gibbon. At 

present the area has already established nature reserves numbering 275 and covering 413,500 km 2 , 

accounting for 3.5 percent of the national nature reserve area and 4.5 percent of the regional national 

territory area. The program brings the number of nature reserves to 450 and the national nature 

reserve number from 18 to 49. The total area of nature reserve area reached 550,000 km 2 , 

accounting for more than 6 percent of national territory area. The 175 new nature reserves will be 

gazetted as 45 reserves in 2005-2010, 86 in 2011-2020 and 44 in 2021-2030. One guideline will be to 

establish many small to medium sized nature reserves and to form groups of adjacent reserves and 

construct biological corridors. This will strengthen protection of national key wildlife and their habitats-- 

--Panda, Golden Monkey, Crested Ibis, national unique pheasant class, wild Sika Deer (Cervus 

nippon), Black-necked crane (Grus nigricollis), Cycad and Forest Musk (Moschus berezovskii). 

In the fourth chapter “the nature reserve facility and ability construction”, it is mainly planned five 

construction contents-----the basic conservation facility construction, the talented person and 

management troop construction, the scientific research and monitoring system construction, the 

propaganda education system construction and the information platform construction and so on.



2. Biodiversity – Priority Areas Protected First 

China is one of the richest global biodiversity countries as well as one country where there are the 

most serious threats to biodiversity. To protect the precious biological resources, in 5 to 10 years, 

China will contentiously increase biodiversity conservation abilities, and will take the special measure 

to protect Chinese 17 biodiversity key areas at first. 

China will preferential protect 17 biodiversity key areas. The areas are Traverses Mountains southern 

region, Minshan Mountains-Traverses Mountains northern region, Plateau region of Xinjiang-Qinghai- 

Tibet province border, Yunnan Xishuangbanna region, Mountains region of Hunan-Guizhou–Sichuan- 

Hubei province border, Hainan Island south-central mountains region, Guizhou Southwestern 

limestone region, Zhejiang-Fujian-Jiangxi border mountains region, Qinling Mountains, Yili western 

section Tianshan Mountains; Changbaishan Mountains, Coastal shallow seas and tidelands wetland 

(including Lao River mouth sea area, Yellow River delta near sea area, Yancheng coast, Shanghai 

Chongming island eastern beach), Northeastern Songhua River Nen River Heilong River - three river 

plain region, Yangtze River downstream lake region, from Min River mouth to southern Macao Island 

sea region, Bohai Sea channel and sea region, from Zhoushan to Nanji island sea region. 

According to Ecology Department of the National Environmental Conservation Bureau leader 

introduced that the protective measures of the biodiversity key areas are: establishing the nature 

reserve, caring on the biodiversity and the environmental effect appraisal system to the items of basic 

construction, a ban on constructing polluting projects, strengthening biodiversity research, monitoring, 

and appraisal, having the choice to construct one batch of different types the state-level biodiversity 

protection demonstration base. The leader indicated that 17 biodiversity key areas which have not yet 

established nature reserves, should take the rescue measure to establish as soon as possible; the 

nature reserve having been established, should then strengthen the management and supervision, 

and as occasion requires, it might be advanced management rank, be promoted for national nature 

reserve, and be managed directly by the country. 

B. Part II National and Shaanxi Province Endangered Species Management Initiatives 

1. Qinling Giant Panda Conservation Program (source: China Network, 12 June 

2006) 

“Qinling Giant Panda conservation and development strategy seminar” have been held in Xi’an city in 

2006, SFA and Shaanxi province government indicated that the Qinling Mountains will not only 

consolidate the Qinling Giant Panda nature reserve network in order to increase the national nature 

reserve area to 31,000 km 2 . Furthermore, China and Shaanxi province government also will establish 

the Qinling Giant Panda captive breeding centre and enhance Qinling Giant Panda monitoring station. 

The measures will protect Qinling Giant Panda more effectively. 

The Qinling Mountains support around 300 Qinling Giant Pandas at the northernmost latitude for 

Pandas in China. SFA noted that, Qinling Giant Panda numbers are declining, distribution is 

narrowing, habitat area is not adequate, as well as the habitat does not provide adequate food, the 

conservation difficulty is one on top of another, the conservation duty is urgent and arduous. The 

conference has determined Qinling Giant Panda protection goal and program. In the near future, the 

goal will consummate Qinling Giant Panda nature reserve network system, increasing the national 

nature reserve area from 17,000 km 2 to 31, 000km 2 . The strengthened Qinling Giant Panda habitat 

nature resume ability and the biological corridor belt construction, enable 95% Qinling Giant Panda 

habitat to obtain the protection and restoration of 90% latent habitat, and reduce habitat fragmentation. 

At the same time, Qinling area also will establish the Qinling Giant Panda captive breeding centre 

which will attack and resolve Qinling Giant Panda breeding difficulty and expand captive population 

quantity. Qinling Giant Panda will also be wild trained in order to supply wild population. 

2. Shaanxi Rare Wild Animals Rescue and Breeding Center 

Shaanxi Rare Wild Animals Rescuing and Raising Research Center (hereinafter called “center”) is the 

only national key protection center in Shaanxi Province. It mainly deals with “field rescue for wild 

animals of the first and second level, wild animals raising and breeding, science research, propagating 

and education and usage development”. The preparations for construction of the “center” started in 

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1978, and it was set up in 1993 under the approval of Ministry of Forestry (now SFA). It was also built 

as an institution on the basis of county level approved by Shaanxi Editor Committee in 2001. “The 

Center” was belonged to and run by Shaanxi Forestry Department and managed by its agent Forestry 

Center of Louguan Temple. 

Since the establishment of “the center”, it has rescued the animals more than 300 times in the field 

and saved the life of about 190 animals, cured and freed about 160 wild animals, captive bred 659 

animals and among which are 32 first level protection rare animals. There are 557 wild animals in the 

corral and among which are 131 rare animals. 

“The center” has kept cooperating with Northwest Farming and Forestry Science College, the Fourth 

Military and Medical Academy, Xi’an Jiaotong University, Northwest University, Shaanxi Normal 

University, Shaanxi Animal Research Institute, Sichuan Wolong Giant Panda Breeding Center, 

Chengdu Giant Panda Breeding Base to effectively study on the field of animal rearing and breeding 

and disease prevention and curing. The research technology of Sichuan Golden Monkey captive 

breeding and the abandoned infant of Golden Takin manual raising have reached the highest 

technical level in China. 

The experts from America, England, Germany, Australia and Belgium have been invited to visit the 

center. Besides, those professional technical personnel have been assigned abroad to more than 10 

countries such as America, Germany, and Japan to study this international technology and make a 

research on this special field. The staff of “the center” has also kept business contacting and 

cooperating with more than 20 national zoos and wild animal zoos in the long time. 

The propagating activities have been launched in “the center” such as “Animals and Human kinds 

coexist on earth” and “Protecting animal means protecting our human”. This thought was 

propagandized through different propagating media by sending workers abroad and inviting experts 

from outside. This has made great and active contribution on wild animal and ecological environment 

protection. 

We have started to carry out the second construction project in the advantage situation of western 

China development. The original surface area of “the center” has been enlarged from 5.3 hm 2 to 

140.7 hm 2 and divided into three different functional sections------the rescuing and breeding section, 

field feeding and domesticating section and feedstuff base. After this reconstructing, the condition of 

raising, arrangement, nursing and scientific research in “the center” will be better improved.



A. Background 

IMPLEMENTING AGENCY - MANDATES AND ARRANGEMENTS 

1. The draft final report had included proposals for essential institutional reforms which the SPG 

had indicated could not be achieved prior to Project start up. Subsequent to this the SPG and ADB 

agreed to the institutional reforms to be completed before Loan Negotiations. The reforms are those 

suggested by the PPTA and involve the amalgamation of the Qinling Botanic Garden, SARC, and 

Louguantai Forest Farm into a single institution to be responsible for the Project Area. Within this 

organization the Qinling Botanic Garden, SARC, and the Louguantai Forest Farm will form divisions 

for the implementation of the Project. The following summarizes the existing mandates and 

institutional arrangements as proposed in the FS presented to the PPTA. 

B. Qinling Botanic Garden (QBG) 

1. Jurisdiction and Mandate 

2. QBG is currently a government affairs unit set up by the Shaanxi provincial government in 

year 2001 and as such is a legal entity defined in ‘Civil Act of PRC’. QBG is registered as an 

independent legal entity to manage the establishment of Qinling Botanic Garden and is also referred 

to by the name Qinling Flora Research Institute. As a government unit, QGB is aligned to the Shaanxi 

Forestry Department. 

a. Mandates of QBG 

3. There is no government document to clearly define the mandate of QBG, but it has been 

acting as a management agency in the process of planning and implementing the establishment of the 

Botanic Garden. 

4. The Qinling Botanic Garden legal entity registration certificate defines the mandate to include : 

“Conduct activities of research, protection and exhibition of biodiversity; maintain ecological balance 

and achieve sustainable development”. It can operate in the following areas: research and 

development of bio-materials, biodiversity conservation and exhibition, publicity of laws and 

regulations related to the protection of wildlife, flora and environment, scientific knowledge extension 

and education, training, eco-tourism, landscaping design and implementation. It has an initial capital 

of CNY2.36 million. 

b. Function as a Government Affair Unit - Eligibility to obtain Loan and 

Commercial Operation 

5. As a government affairs unit, the provincial government only meets part of Qinling Botanic 

Garden operating costs. QBG has to meet shortfalls in its operational cost by applying for funds from 

other government projects or commercial activities. The government allows this type of unit to set up a 

company or joint venture to conduct commercial activities, provided priori approval is obtained from 

the Department of Finance (DOF). QBG has this approval and can raise loans for its own 

establishment with the loan repayment being through revenue generated by QBG. For running a 

business, QBG must follow government regulation to get a relevant approval and license. 

6. QBG has registered with the Shaanxi Provincial Business Administration Bureau in 2003 a 

company named as “Shaanxi Qinyuan Ecological Development Limited” (SQEDL). It is an 

independent legal entity. The registration certificate (license) states the scope of its commercial 

activities as research and development of biological material, implementation of biodiversity 

conservation project, landscape beautification project, landscaping project, scientific knowledge 

extension and education. The registered capital of the company is CNY120,000,000. Mr Shen Maocai 

is the representative of the legal entity. The company has not yet undertaken any business and while it 

legally exists it remains a non-revenue generating company. 

7. Some business mandates within SQEDL’s scope also require special licenses from the 

government for eligibility, such as landscaping planning, and design. SQEDL hasn’t been licensed for 

these businesses yet. 

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8. The financial governance report of the PPTA indicates that the current accounting system of 

QBG does not have the capacity to handle an ABD loan. It suggests that QBG needs to be 

commercialized. There is the possibility for QGB to restructure the SQEDL to meet the 

commercialization requirement. 

2. Implication with in Qinling Area 

9. QBG is planned to cover 458 km 2 as stated in SPG approval to the plan. It is located in the 

planned Qinling Ecological Function Management Zone. Shaanxi province Qinling National Ecological 

Function Zone Plan includes QBG as an ecological demonstration garden project. QBG as an institute 

is considered to be an implementing agency for the Qinling Ecological Function Management Zone. 

10. Importantly QBG does not have the land user right in the Project Area. For the ex-situ land 

requirements it needs to gain the land user right through acquisition, renting or shareholder 

arrangement according to the Land Management Act of PRC. Most of the land is currently owned by 

the local community. County and township government will be very important stakeholders in terms of 

land acquisition, resettlement and other government supported natural resources and community 

development activities. For operating in the QBCDA and if QBG plans to do any development on land 

of Louguantai Forestry Farm which will now be approved by the management of the QNBG institution. 

3. Conclusion 

11. QBG is eligible as government unit to raise a loan for QBG construction. QBG is able to set up 

a company or restructure the current company to complete its commercialization to meet the loan 

management and repayment requirement. QBG is an implementing agency of the Project to borrow 

and repay the loan within the scope of the feasibility study agreed with the PPTA team. 

12. QBG will only be responsible for construction and operation of the Qinling Botanic Garden 

itself. It will take responsibility of resettling villagers in Dianzhen village to meet government of PRC 

resettlement requirement. It is proposed that QBG contribute to the funding of the QBCDA through 

the revenue it earns to benefit Qinling Mountain Biodiversity conservation. 

13. QBG will collect, plant and exhibit original flora from the Qinling Mountain. It will contribute to 

conservation through maintaining genetic source material and educating the public in the Qinling 

Mountain area. QBG will conduct research on the utilization and development of indigenous flora. It 

has the potential to support biodiversity through the wise usage of resources by the local community 

and the society. There should be a mechanism for QBG to exchange experience with the rest of the 

Qinling biodiversity conservation organizations. Establishment of an association of institutions of 

biodiversity conservation in broad Qinling area can be one such option. 

4. Outstanding issues 

(i) QBG has to be able to use the Capital Construction Accounting Guideline as stated in 

the Financial Governance Report. 

(ii) QBG is proposing shareholder arrangement with local community farmers to gain the 

land user right. QBG as a government affairs unit doesn’t have the legal right to have 

shareholder arrangement under the QBG legal entity. Only a company as a legal 

entity can set up shareholder arrangement following the ‘Company Act of PRC’. 

(iii) QBG can not be fully replaced by the commercial company because of its nature as a 

government affairs management institute unless the provincial government approves a 

full restructure of QBG to become an enterprises following government guideline. 

5. Recommendation 

14. The commercialization process of QBG should be undertaken before project start up. The 

options of commercialization should be agreed in a discussion between PDRC SPFB, and QBG and a 

timetable should be agreed with SPDRC on QBG’s commercialization. A critical issue remains the 

ability of the proposed reformed QNBG to provide a shareholding to those holding land use rights as 

noted in the DFR.



C. Shaanxi Treasured Wild Animal Rescue and Research Center (SARC) 

1. Jurisdiction of SARC 

15. In 2001 the Government of Shaanxi issued a Document to approve the establishment of the 

Shaanxi Treasured Wild Animal Rescue and Research Center (SARC). It has equal status as a county 

level government in managing the government affairs as defined in the legal document. It has an initial 

capital of CNY2.48 Million and can employ 28 staff with 3 managers. The government meets all of its 

operating costs. 

16. It has registered with the Government Affairs Unit Registration Bureau of Shaanxi as an 

independent legal entity. 

2. Mandates of SARC 

17. The following mandates are assigned to the SARC: 

(i) provide services for rescuing, raising, research and protection of treasured and 

endangered wild animals 

(ii) work within Shaanxi province 

(iii) rescue endangered wild animals on the national protection animal list. For raising and 

breeding wild animals on national protection animals list, a permit has to be given by 

the Forestry Bureau. SARC has this permit. 

(iv) raise, breed, research, and raise public awareness of these animals 

(v) conduct activities of using these animals for development purposes 

(vi) establish a joint venture or commercial company for development purposes 

18. The animals in the center are open to the public with provision of extension information while 

SARC may collect entry tickets. It can borrow for establishment of facilities within its mandate. It has 

the right to repay the loan from the revenue generated through their commercial activities. 

19. SARC shares an accounting office with the Louguantai Forestry Park and Louguantai Forestry 

Farm. But SARC uses a different accounting system for its revenue. According to the PPTA Financial 

Governance Report, the current accounting system of SARC is not sufficient to meet the requirement 

of ADB loan management. It is suggested that SARC needs to be able to use the Capital Construction 

Accounting Guidelines. 

20. SARC shares the forestry land area of Louguantai Forestry Farm, and is entitled to use the 

land within in their mandates. It can use the forestry farm’s land to build a Giant Panda Base and Ibis 

Base. It is eligible to use the forestry farm’s land to establish an exhibition zoo and education center 

but requires approval to use the land for other construction from the Forestry Department and Land 

Management Department. 

3. Link to the Qinling Mountain area 

21. It is planned in the Qinling National Ecological Function Management Zone Plan that there will 

be five wildlife rescue centers established under the plan. SARC is the first one established in the 

province. 

4. Conclusion 

SARC will be eligible as a borrower of the ADB loan under the Project. It will implement ex-situ 

activities and some in-situ strategy activities. It will be one of the implementing agencies of the project. 

SARC will need to adopt the Capital Construction Accounting Guidelines to be able to handle the loan 

monitoring and repayment requirements. 

22. SARC is proposing to contract a company to manage its tourism commercial activities. They 

will use the revenue generated from the tourism operation to repay the loan, and they will serve as an 

example of promoting conservation eco-tourism described in the design document of the project. 

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23. The animal breeding bases and extension and education center will serve as an important 

public awareness facility for wildlife protection. SARC will contribute its net revenue from tourism 

operation including eco-lodges to the eco-fund to benefit Qinling biodiversity conservation. 

5. Recommendations 

(i) Monitoring measures need to be in place to ensure that SARC will follow the principles 

of the PPTA team’s design when it conducts project activities. 

(ii) An association or a network of animal rescue centers or natural reserves needs to be 

in place, for exchanging information and sharing experience between these key field 

operators in the conservation field. 

(iii) SARC needs to adopt the enterprises accounting policy for the accounting of the 

project and tourism operation component to meet ADB loan management 

requirement. 

(iv) SARC can promote its experience through an association or a network whose 

members meet regularly. 

D. Louguanfudi Tourism Development Limited (LTDL) 

1. Jurisdiction of LTDL 

24. Louguanfudi Tourism Development limited (LTDL) is a commercial legal entity set up following 

the ‘Company Act of PRC’. It is a joint venture between LFF and the Shaanxi Tourism Development 

Group Limited. LTDL was registered at the Shaanxi Commercial Administration Bureau in 2006 with 

indefinite business duration. It has an initial capital of CNY10 million. 

2. Mandates of LTDL 

25. LTDL has been registered to conduct business in the following fields: Tourism development, 

tourism project design and investment, property management, tourism souvenir production and 

trading. 

26. LTDL has been managing the hot spring tourism development project after it was approved by 

SPDRC in year 2003. LTDL has the hot spring water abstraction permit from Water Affair Bureau of 

Zhouzi County, and has land use rights of the development through a renting arrangement with LFF. 

Shaanxi Tourism Development Group Limited has invested some funds for the hot spring 

development. 

27. According to the PPTA team Financial Governance Report, LTDL is using the enterprises 

accounting rule and its accounting system meets ABD loan management and repayment requirement. 

28. As a commercial legal entity, LTDL is able to borrow and repay loans from the revenue 

generated. It is able to take obligations independently in terms of operation within legal boundaries, 

getting revenue, borrowing and repaying, and taking legal action. 

3. Conclusion 

(i) LTDL is eligible to borrow loan funds from ADB and can repay the loan as an 

implementing agency of SQIEM project. 

(ii) LTDL will contribute a certain share of net revenue to the Eco-fund to benefit the 

broad Qinling Mountain in terms of biodiversity conservation. 

E. Louguantai Forestry Farm (LFF) 

1. Jurisdiction 

29. Louguantai Forestry Farm is a government affairs unit approved by the Shaanxi Forestry 

Department. The most recent confirmation of its legal status is in 1986. It is a government affairs unit 

but the government meets only part of its operation costs.



30. LFF is an independent legal entity registered with Shaanxi Province Government Affair Unit 

Registration Administration which can manage forestry land under the ‘Forestry Act of PRC’. It has the 

use rights for the area stated in the forestry land certificate of 37,163 hectares. 

2. Mandates 

31. Its mandates include: management of the state owned forestry farm, management of the state 

owned forestry nursery, forging forestry development, rescuing wildlife, and the maintenance of 

ecological balance. LFF can plan supply and production of seedlings, and conduct forestry farm 

management and state owned forestry nursery management. They will manage tree seedlings supply, 

forests, forestry fire prevention and control, selection of quality genes and seeds, extension of new 

technique. LFF can conduct training on relevant techniques and management practices. They can 

provide services on forests related tourism. They can rescue, keep and raise sick and injured wild 

animals. They can conduct publicity and education on wild animal protection affairs. They can 

research on animal protection related issues. They can raise and bread wild animals. It has initial 

capital of CNY21,330,000. 

32. Rescuing and breeding wildlife on the national protected animal list requires approval and 

permit. Louguantai has the relevant permits. 

33. The regulation allows them to borrow money for LFF development and they will be responsible 

to repay the loan. 

3. Relationship with SARC and Louguantai National Forestry Park 

34. SARC and LFF are government affairs units sharing staff resources and forestry resources. 

The government provides different funds to different units for the affairs they are managing for the 

government. There are different deputy chief managers for different unit, but one chief manager for all 

of the three units. 

4. LFF’s role in the Project Area 

35. LFF holds the user rights for the forests of part of the project in-situ and ex-situ areas. The 

activities proposed in the in-situ strategy - such as restoration of wild animal habitats - will be on the 

forestry land managed by them. Management of the forests is in their mandates so the biodiversity 

conservation philosophy and integrated ecosystem management introduced by this project will benefit 

them. LFF should logically be one of the implementing agencies for the in-situ strategy. 

5. LFF’s role in the Qinling Mountain area 

36. Louguantai Culture and Ecology Tourism Area Development is one of projects planned under 

the Qinling National Ecological Function Zone Plan. The plan has listed 15 development projects 

under eco-tourism and ecological environment protection. If LFF develops a conservation sensitive 

tourism model, it will give impact to other development through an appropriate channel. It can organize 

an association with other forestry parks to disseminate the useful experiences. 

F. Local Collectives 

1. Background Information 

37. The term “Local Collectives” hereafter refers to the administrative villages inside the in-situ 

and ex-situ areas of the project. There are 15 administrative villages in the in-situ area, three of them 

in the ex-situ area and 32 fringe villages (adjacent to, but not within, the Project Area). 

2. Jurisdiction and Mandates of the Administrative Village 

38. They are autonomous organizations regulated by ‘Villager Autonomous Governance Act of 

PRC’. The administrative village owns land and some water in the ponds built by them. It can also 

own forests on their land. It can have its own property and money. It can also set up joint adventure 

through investing the collective’s property, and is a legal entity by law. 

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39. The Village Committee is the collective’s representative appointed by election at a Village 

General Meeting or a general meeting of village representatives. The Village Committee manages 

village affairs and represents the collective to deal with village affairs in connection with outside 

organizations or individuals. The Party Secretary plays an important role in the collective’s affairs. For 

significant issues such as contracting land and trading the collective property, the decision must be 

made through a meeting of all villagers (Village General Meeting). 

40. The Village cannot change its land use type without approval from the Land Management 

Authority. It cannot change its forestry land use type to another land use type without approval, and it 

cannot log trees without approval. However, it can trade their forests under the forestry regulation 

through legal processes. It can also trade their idle land or barren land to improve the land quality as 

agriculture land or forestry land. It can trade its cropping land user right, but can only sell their crop 

land to the state. By selling land to the state, landownership will be changed from collective to the 

state. 

41. The ex-situ villages in the project area will participate in the QBG and SARC development 

project by contributing their land through acquisition. Some individual households will rent out land or 

put their land user rights in some other trading form to transfer land user right to QBG. The 

householders will become beneficiaries of QBG development through financial returns determined by 

the land use contracts signed in the future. The individual households will have opportunity to 

participate in QBG ‘s construction work and tourism service in future as stated in the QBG feasibility 

study Report and Resettlement Report. 

42. The in-situ village will participate in conservation activities and community development 

activities designed in the project’s in-situ strategy. Therefore the village as a whole will be an important 

organization for implementing the project. 

43. Individual households can organize a legal entity for cooperative production or trading 

purposes. There is the possibility to set up such organizations during the project implementation. 

3. Conclusion 

44. Ex-situ villages will be project stakeholders by participating in the QBG and SARC activities, 

but they will not be a project implementing agency since they will not be an independent organization 

to implement project activities. 

45. In-situ villages are the communities who will directly implement project activities. It is proposed 

to work with village groups in the project in-situ strategy. It will be appropriate to work with the village 

community when setting up these groups. In-situ villages will be project implementing agencies in 

terms of implementing the in-situ strategy. 

46. The in-situ villages well represent the typical community through out the Qinling Mountains. 

They have few resources to use, limited public infrastructures and services. Their attitude and 

activities will give direct impact on Qinling biodiversity conservation. Their livelihood is influenced by 

the government conservation program and needs help to improve. A lot of communities inside Qinling 

Mountain have traditional ties through marital or blood connection. Their experience of conservation 

will be easy to disseminate as a project achievement to the remainder of Qinling Mountain area, giving 

impact on other communities. 

G. Daoism temple sites 

47. There are two Daoism temple sites within the broad project area. One is the Louguantai 

Daoism Temple located inside the forestry farm. The other is the Daoism Temple ruins located on the 

proposed QBG site. 

1. Louguantai Daoism Temple 

48. Louguantai is recognized as the oldest Daoist temple in the world with several thousand years 

of history, and is the site of the origins of Daoism. The temple is registered with the Zhouzi Religions



Affair Management Bureau with a license to conduct religious activities. All of the Daoshi (religious 

practitioners) are registered with the Zhouzi County Religious Affair Bureau. 

49. The temple has the user rights to the land the temple is built on, and owns the buildings and 

other properties. Their activities are regulated by the ‘Regulations of Religious Affairs Management 

Act of PRC’. It allows the Daoist temple to conduct religious activities, collect entry tickets on tourism 

sites, and sell religious books, goods and souvenirs with the license. It also allows the temple to 

collect donations from believers and other legal sources. Louguantai Daoism Temple does not collect 

entry tickets directly, but gets a CNY5 share from the CNY30 paid for each entry ticket to the 

Louguantai Forestry Park. 

50. According to the chief Dao Shi of the temple, the Louguantai Daoist Temple is historically the 

chief Temple on the north face of Qinling Mountain. It still maintains its chief position because the 

Zhouzi County Religious Affairs Management Bureau recognizes its position to make other Daoist 

Temples its subordinates. This requires Daoshi to be registered with Louguantai Daoism Temple and 

to obtain more practice before they are sent out to other subordinate temples to manage religious 

activities. To build or restore other Daoist sites around the northern slope of Qinling, the Louguantai 

Daoism temple needs to initiate the process through application to Zhouzi Religious Affairs 

Management Bureau. The rebuilding or building of a temple can start after the application is approved. 

51. The Louguantai Daoist Temple plays a key role in leading a China Daoism and Conservation 

Workshop supported by ARC, EMF and WWF international. It resulted in a Qinling Statement to 

initiate a Daoist Temple Conservation Education Association and to announce the actions taken by the 

temples for conservation. 

2. The Daoism Temple Ruins on the Planned QBG Site 

a. Background Information 

52. It is proposed in the feasibility study to rebuild temples, although it is not clear at this point 

whether there are any Daoshi who will conduct Daoism Religious activities. However the building of a 

religious temple should go through the application process required by ‘Methods of Approval and 

Registration of Setting Religious Sites’. If the temple is regarded as a subordinate of the Louguantai 

Daoism Temple, it does not need to have a separate unit registration, but it needs to be licensed to be 

able to conduct any religious function. 

b. Mandates 

53. It is not clear at this stage what mandate the Daoism Temple Ruin will have in the future. This 

depends on the approval and license it will have. But it is clear that, if it can get an approval and 

license, it will have same mandate as the Louguantai Daoism Temple - except for the degree of 

religious influence and religious power. QBG has stated that it will only restore the religious building 

and no religious activities will be conducted in the restored temple, and it will not collect a separate 

ticket for visiting the temple site. Therefore they do not need to ask for a separate license for running a 

religious site. 

c. Conclusion 

54. Louguantai Daoism Temple is a great cultural attraction to tourists and its principle of 

conservation will have great potential to add value to the project. It is an important stakeholder in the 

project. 

55. Louguantai Daoism Temple has extensive religious influence within the Qinling Mountain area. 

There is potential for the project to cooperate with the Temple to disseminate conservation knowledge 

and principles promoted by the project. Restoration of the Daoism Temple Ruins will set up a new 

religious site if any religious activities are conducted, in which case it must be licensed. It is located 

within the tourism site, and the temple itself can charge an entry fee to the tourists, but not to 

believers. How or whether the QBG will get a share of the ticket price from the Daoism temple in this 

case, depends on the agreement of QBG with Daoist temple. 

7

8 



56. Under QBG’s Feasibility Study, it will not restore the temple as a religious site with religious 

activity, but a building for tourists to visit. It is recommended that QBG should discuss with Zhouzhi 

County Religious Affair Bureau to determine the legal status of the restored Daoism Temple Ruin. A 

written statement from Zhouzi Religious Affair Bureau is required to clarify the legal status.



A. Project Impact 

DETAILED PROJECT DESCRIPTION 

1. The Project impact will improve rural wellbeing based on sustainable conservation and use 

of QM resources. The project seeks to address the inter-relationship between sustainable biodiversity 

conservation and livelihoods through introducing market-based approaches to biodiversity 

conservation. The key performance indicators include: reduction in land area experiencing land 

degradation and soil erosion; expansion of critical habitats within protected areas or landscapes with 

effective conservation plans, successful protection endangered and non-priority species; employment 

creation, increased rural incomes and poverty reduction; and increased tourism revenues and 

business opportunities in both high volume activities in the ex-situ zones, and high value/ low volume 

and impact activity in the QBCDA zone. 

2. Poverty reduction over the longer term, especially in the QBCDA area, will be strongly 

related to the non-farm full-time employment opportunities and the extent that QBCDA residents can 

gain access and rights to use forested landscapes. Direct full time employment generated by the 

Project investments in the QBCDA area is estimated to reach 500 by 2020 – based on the home-stay 

facilities, small business generation and maintenance of conservation forests, the road and path 

improvements. Additional jobs could result from other investments identified through implementing the 

QBCDA strategy such as enterprise development, and the indirect employment from the Project 

financed sustainable livelihood activities and job opportunities within the ex-situ zone. 

3. Direct and indirect employment creation in the QBCDA area is conservatively estimated to 

be 1,000 by the early 2020s. If the majority of these jobs are filled by QBCDA residents or QBCDA 

residents with land rights the potential exists that most poverty households will benefit from or be able 

to exit from poverty as a direct and indirect consequence of the Project. 

4. Based on current estimates of number of poverty households in the QBCDA zone could fall 

from more than 900 or 74% of the registered resident population in 2005 to about 200 in the early 

2020s which would represent a decline from 70% to 20% of the QBCDA households. In addition, the 

non-farm jobs provide substantial increases to existing income levels in the in-situ. 

5. The Project’s long term impact on employment and poverty reduction in the ex-situ zone and 

the total PA would be less dramatic but still quite impressive – associated again with a small 

population, limited full-time non-farm employment and low net farmer incomes in the ex-situ zones and 

the total PA. Potential longer term benefits for the ex-situ zone, include direct employment estimated 

at 870 full-time jobs in the ex-situ tourism enterprises but this number could more than double to about 

1,800 to the extent that planned follow on investments take place. 

6. If 40% of these jobs target the poverty households in the ex-situ zone, the ex-situ poverty 

household count would fall from 980 to 260, with the result that the ex-situ poverty rate would decline 

from the 2005 rate of 28% to 7%. Combining the ex-situ and QBCDA estimates, the number of poverty 

households in the PA would fall from the 2005 number of 1,890 – or about 40% of the PA households 

– to 460 or 10% of the 2005 number as a consequence of the direct, indirect and demonstration 

impacts of the Project on employment. 

B. Project Outcome 

7. The Project outcome in 2013 will be an effective integrated landscape management system 

providing sustainable livelihoods for the population of the Project Area that can be demonstrated to the 

wider QM. The project outcome emphasizes how the Project will demonstrate medium term success 

in e.g. integrated landscape management, habitat protection, the protection of endangered species, 

increasing income from tourism as visitors increase from 300,000 to approximately 1.2 million, 

treatment of tourism waste streams, the number of farmer households and villages in the QBCDA and 

ex-situ areas participating in and benefiting from project activities, and tourism revenues sufficient to 

generate a surplus for transfer to QBCDA biodiversity conservation. 

8. The investments provide the foundation for the replication of the Project models and 

approaches to the wider Qinling Mountains. The sustainable financing mechanisms will derive 

revenue from the commercial tourism enterprises that will finance selected investments in the PRoejct 

Area and in other parts of the Qinling. 

1

2 



C. Summary of Project Outputs 

9. The project outputs are associated with three components. Component I has the following 

output statement: “Tourism to support biodiversity conservation”. The output from Component I 

emphasizes commercial and functional success for the ex-situ enterprises enabling the enterprise to 

transfer a profit share into biodiversity conservation, modified habitat restoration and sustainable 

livelihoods in the QBCDA zone. Three enterprises will be developed including: 

(i) Qinling Botanical Garden – being the 269 ha botanic garden site only 

(ii) Shaanxi Animal Rescue Center 

(iii) Shaanxi Forest Bureau (Louguantai Forest Park) and Shaanxi Tourist Development 

Group Ltd Joint Venture Hot Springs Development 

10. The second Component implements the agreed QBCDA strategy (see Supplementary 

Appendix 2). The output from Component II is improved livelihoods from sustainable management 

and conservation of QBCDA natural resources. As such, the output prioritizes the interactions 

between village empowerment, sustainable livelihoods and improved conservation habitats as follows: 

(i) Improved Village and Forest-based Livelihoods 

(a) Establishing rights to forest land for conservation forestry 

(b) Introducing improved agricultural and other technology 

(c) Small business development for value addition 

(d) Community Based Tourism 

(e) Infrastructure Support – road, pathways, water supplies and renewable energy 

(ii) Biodiversity Conservation Demonstrated 

(a) Habitat Restoration on Forest Land 

(b) Endangered Species Management Program 

11. Component III will establish create the Institutional arrangements for sustainable 

management systems of QM natural resources and to replicate the lessons learned. The Component 

will support: 

(i) Effective Project Management 

(ii) Strengthened institutional arrangements 

(a) Legal Reforms for biodiversity conservation 

(iii) Biodiversity conservation demonstrated and replicated 

(a) Landscape Planning – Conservation and tourism landscape management 

planning 

(b) Conservation monitoring 

(c) Conservation Awareness and Dissemination 

D. Detailed Description – Component I: Commercially Successful Ex-Situ Enterprises 

12. The project area covers 458 km2, with an QBCDA zone occupying 400 km2, and an ex situ 

zone of 58 km2. Land types in the ex-situ area include rural cropping and forestry land, rural 

residential land and rural idle land. Land tenure includes state owned forestry land and collective 

owned cropping land, forestry, residential, infrastructure constructive and idle land. The project 

implementing agencies will get access to land use right through different approaches within the legal 

framework of PRC. 

1. Ex-situ Qinling Botanic Garden 

a. Proposed Intervention 

13. The Project will develop a new botanic garden to be known as the Qinling National Botanic 

Garden that will be 2.693 sq. km (269 ha) within the ex-situ portion of the Project Area about 50km or 

one hours drive from Xian 1 . The proposed Botanic Garden will utilize land that is currently under the 

1 Here the term botanic garden refers to the physical site of the botanic garden of 269ha and should not be 

confused with the QBG government unit that has been officially approved by the SPG to prepare and design



administrative villages of Dianzhen and Jinfeng in Jixian Township, Zhouzhi County. The site 

comprises three land types (i) the southern area of the site against the mountain is an upland forest 

vegetation cover zone, (ii) the northern area near the highway is flat cultivable land, and (iii) the middle 

area between the two is a hill zone, which lacks vegetation and has severe water and soil loss. The 

middle or hill area accounts for 176 ha or 65% of the site, while the flat cultivable land is only about 

10-15% of the site area. 

b. Outstanding Land Use Issues 

14. Existing land use rights are held by the collectives and individual households and will need to 

be transferred to the Botanical Garden and the QNBG through acquisition of land use rights that 

incorporate the required compensation requirements. The Qinling Botanic Garden proposes two 

procedures for establishing land use rights depending on the proposed use of land. Land that is to be 

built on for structures and or infrastructure shall be purchased outright whilst land to be used for 

gardens and landscaping will be rented. Land rental will be priced using two payment systems, The 

first involves an annual rental payment (in advance) that will apply from Project effectiveness.with the 

value of the rental differing for three categories of land. The rent will increase by CNY 20 per mu per 

annum. The second payment system is based on offering existing land owners equity in the Botanic 

Garden and that the equity share would be remunerated through Profit distribution forecast to start in 

year three or four. The reason for the dual payment system is to reduce the cashflow requirement for 

the Qinling Botanic Garden enterprise especially during the initial construction period where under 

usual circumstances the existing right holder would require to be paid out in full. 

15. The PPTA does not support an equity based profit share due to (i) the extreme risk to rural 

households given the projected initial cash flows, (ii) there remains uncertainty over the full equity 

structure of the botanic garden and the likely roles of individuals in these joint ventures enabling 

control over financial distribution, (iii) the proposal is illegal according to a recently imp[lamented 

Provincial regulation 2 and also given the structure of the QNBG organization which is not fored under 

the Company Act to enable it provide a shareholding, and (iv) the ability of an enterprise to manipulate 

a net profit figure to meet its own objective and not the requirements of the rural household 

shareholders. 

16. The botanic garden will be developed along with other exhibitions and attractions including 

several Daoist temples, cable car, food and beverage, science and education centers. These will 

provide an attraction to increase visitors in the interim stage while the garden is established and grows 

out. 

II. INVESTMENT OUTCOME 

17. The purpose of this subcomponent is to build a world-class botanic garden supporting a 

commercial tourism and education business. The target market for visitation includes both general 

visitors and specialized tourism groups with interests in botany, bio-resources, biodiversity 

conservation, culture, history and religions of the Qinling Mountains. The proposed Project investment 

represents Phase I of a proposed ongoing construction program and focuses on tourism, public 

education and biodiversity conservation aspects of the facility. 

18. The Botanic Garden is being developed to: 

� provide a world class tourism and educational experience for local residents and 

visitors; 

� provide an international standard science and research facility on the QM’s bioresources 

and biodiversity management that will add to the education features of the 

tourism attraction and support biodiversity conservation and restoration in the rest of 

the PA and the wider QM; 

� build knowledge, appreciation and understanding of the Qinling experience and 

culture in particular the Daoist culture and religion which emphasizes harmony 

between people and nature; 

the Project Feasibility for the whole Project Area. During the PPTA the project was restructured to include 

additional enterprises altering the singular role of QBG – the enterprise. 

2 

THE SPG has indicated that it feels the QBG is not affected by these regulations and will provide an official 

document to ADB that to this effect. 

3

4 



� generate a financial surplus, so that a portion is reinvested into the QBCDA 

development program to support habitat restoration, sustainable biodiversity 

conservation and sustainable livelihoods 3 ; 

� expand and diversity the tourism base of Xi’an and Shaanxi through constructing and 

operating an international standard eco-tourism facility that increases visitor choice 

and extends the average stay within Shaanxi by ½ to 1 day of those visiting the site ; 

and 

� provide sustainable livelihoods to local people through employment at the BG, through 

the sale of goods and services by local firms to the tourism facility, and through the 

generation of indirect impacts including future tourism investments in (e.g.) home-stay 

restaurants and accommodation facilities and handicraft production workshops 

located in the Jixian Township villages near the site to the south and north of 

provincial highway South 107. 

19. The Project shall result in: 

III. INVESTMENT OUTPUT 

� A commercially successful tourism enterprise that markets and operates the QBG 

project site 

� Designs and constructs a total of 57ha of constructed gardens for 18 different plant 

groups 

� Construct greenhouses for displays and propagation 

� Constructs a museum and exhibit hall for ancient Qinling Biodiversity 

� Restores 7 Daoist temples sites and 12 minor Daoist sites using historical and 

religious architectural styles 

� Install and operate a cableway linking the lowland gardens to the Daoist temple sites 

� Constructs a multipurpose hall including restaurant and reception center 

� Provides a comprehensive infrastructure program for the entire 269ha site 

� Purchases 293.63mu of land (19.64 ha) 

� Establishes land use rights for a further 3,746mu (249.66ha) 

� Completes a comprehensive resettlement program for a total of 143 households 

� Compensates a total of 3,780 affected persons 4 

I. Project Activities 

20. The current Feasibility Study still represent a concept design and requires significant detailed 

design input including architectural design choices agreed during the PPTA. The current concept 

brings together and capitalizes on the linkages between: 

(i) the constructed botanic garden whose appeal will expand through the years as the 

garden matures; 

(ii) the natural scenery, walking and Qinling biodiversity experience provided in the 

modestly sloped hills in the back of the flatland area – which allow the QM’s QBCDA 

biodiversity experience to be brought to the ex-situ area (and thus reduces tourism 

and recreation pressures on the QBCDA zone); 

(iii) the seven major Daoist temple sites restored and minor work at a further 12 sites; and 

(iv) the Qinling story, culture, religions, and history which will be told through interpretive 

signs, sculptures, pictures, and other means along the walkways from the Qinling 

biodiversity experience to the Daoist temples. 

21. The vision for the QBG is much more than a botanical garden and will allow the QBG to be 

marketed as the “the first place to visit” in order to enjoy the Louguan Tai experience which will include 

the Shaanxi Animal Rescue Center, the Louguantai Forest Park, the Hot Springs Development, Daoist 

temples, and, for some tourists, the Qinling QBCDA biodiversity experience. A particularly important 

feature is the carvings, sculptures, stories, and other interpretation methods along the pathways that 

link the gardens with the restored Daoist temples on the hills at the back of the site. 

3 

Based on applying an operational model that combines ex-situ and QBCDA biodiversity conservation and 

management. 

4 

Note that as this exceeds the potential for employment in the QNBG operation full compensation is required



22. The first is the steles and stone carvings along the paths to the Yuanshi Temple for 

displaying the culture and stories of Daoism. The second is the plates, sculptures and other 

information methods along the paths to the Liansheng Pavilion for illustrating the stories about the 

historic evolution of the terrain, physiognomy and animal and plant bioresources of the Qinling 

Mountains. The third is the plates and stone carvings along the pathways to the Mammon (Golden 

Fortune) Temple for displaying the stories of Golden Fortune/Mammon. The fourth is the plates, stone 

carvings and other information methods along the paths to the Kwan-Yin Temple and the Pudu 

Pagoda for illustrating stories about Buddhist culture and its history in China. The fifth is the animal 

sculpture complex of the Qinling Mountains that will be established along the paths between the 

Golden Fortune Temple and the Liansheng Pavilion. 

23. The following lists the major activities and their associated costs as described in the Botanic 

Garden’s revised FSR submitted in May 2007 see Table 1. 

Table 1: Major activities for the QBG 

Major QBG Activity 

1. Specialized gardens and lawns/landscaping: 18 specialized gardens with a total area of 57 ha, comprised of 

plants that are endemic or at least representative of the QM and indigenous to China, and a lawn area of 25 ha 

2. Greenhouse – 6400 sq. meters along with geothermal water use for heating 

3. Paleontology (Ancient Qinling Biodiversity) Building – 8,000 sq. m.: brings the history and evolution of the 

QM’s biodiversity and culture to the QBG visitors (reportedly the only museum of its kind in the PRC) 

4. Restoration of Temples and other Historical Sites and Buildings – 10,119 sq. m. over 19 sites – which include 

the following main restored structures 

- Liansheng Pavilion: 3,616 sq. m. 

- Kwan-Yin (Guanyin) Temple: 595 sq. m. 

- Yuqing Palace: 1,446 sq. m. 

- Daxiong Palace: 1,380 sq. m. 

- Sanqing Palace: 345 sq. m. 

- Cangjing Pavilion (Caishen Temple): 345 sq. km. 

- Pudu Pagoda/Tower 

5. Multi-function Building – 5,220 sq. m.: including offices, fast-food restaurant, and reception center (hotel and 

science research building to be built in phase 2 

6. Road, Path and Related Infrastructure – including road network of 99,166 sq. m 

7. Water Supply, Environmental Infrastructure and Drainage 

8. Electric Power and Telecom 

9. Parking Lot in Zone A – 18,000 sq. m. 

10. Central Square, Gate, Fencing, Fire Control, Other Infrastructure 

11. Cableway – 1,230 meters (see paragraph below for discussion of PPTA concerns with this estimate) 

12. Electric Battery Powered Motor Vehicles for the Gardens – 10 at CNY 150,000 each 

13. Resettlement Expropriation Fee – for permanently expropriated land of 293.63 mu; 143 households are to be 

resettled under the current proposed design, which means CNY 85,838 per household 

14. Ground Attachment (Residence) Compensation Fee – for permanently expropriated land: 245.44 mu at 

22,330 per mu 

15. Ground Attachment (Residence) Compensation Fee – for rented land: 3823.09 mu at 1,770 per mu 

16. Construction Administration (1.5% of Construction Engineering Cost) and Construction Supervision (0.8% of 

Construction Engineering Cost), for total of 2.3% of Construction Cost 

17. Design Cost – 4.5% of Construction and Engineering Cost 

18. Other Fees and Expenses 

19. Training and Capacity Development – for 149 staff in total, including 114 horticulture staff (gardeners) – total 

staff for year one of operation is estimated at 219 

20. Pre-Operation Marketing – although not included in the FS design the PPTA has assumed a similar 

investment as proposed by SARC for joint marketing of SARC, QBG and the Louguantai Forest Park 

21. Office Furniture 

5

6 



1. Investment Issues 

a. Cable car Proposal. 

24. The PPTA is concerned about the current costing for the cable car. Cable car systems in 

China have cost between CNY40-100 million per system 5 for existing often quite old cableway 

systems. The current budgeted base cost is CNY15.4 million. While costs can be reduced through the 

use of local materials and technology and the supporting infrastructure such as roads and other 

services are included in the cost of the wider botanic garden, and the shorter length of cableway could 

reduce capital costs the PPTA is concerned that the current cost is significantly cheaper than other 

systems. Further to this based on the survey capital and operating cost of existing systems financial 

viability requires 400,000 customers per year. The FS forecasts that 30% of visitors to the botanic 

garden will use the cable car suggesting that 1.2 million visitors to the botanic garden are necessary to 

achieve viability. While the reduced capital cost will reduce the 400,000 passenger requirement even if 

the requirement is 50% of this level it will be well beyond the end of the Project before sufficient 

demand to break even. A more astute approach may be to wait until there is a significant visitor base 

that enables financial viability to be achieved early in the life of the cable car. 

25. ADB should insist that (i) the QBG’s low capital cost estimate should be validated within the 

detailed design process conducted by a design and engineering institute experienced in cableway 

construction, (ii) based on that new capital cost estimate, separate financial analysis linked to forecast 

visitation to the botanic garden should be completed to ensure that the cableway contributes in a 

positive manner to the QBG’s financial bottom line, and (iii) it si also recommended that the cableway 

be operated under a management contract agreement by an experienced cableway company in the 

PRC. If the QBG fails to meet any of these conditions or if the independent capital cost estimate 

and/or financial analysis indicates that the cableway investment involves considerable financial risk 

and poor returns in phase one, the QBG and PDRC should agree to move the cableway investment to 

phase two when the QBG attendance needed to support this investment is more likely to be available. 

The implications for financial performance from removing the cableway from the capital costs, 

revenues and operating costs are described in the financial analysis section. 

b. Revenue Projections 

26. A major determinant of viability is the forecasts of realistic visitation and pricing on which 

QBG revenue forecasts can be built. Botanic gardens in PRC, typically have high attendance built on 

low entry fees and total revenues per visitor. Many existing PRC botanic gardens are older facilities 

not operated on a commercial basis and having recovered the capital investment only require low 

entry fees and revenues to cover only operating costs. The current PRC botanic gardens surveyed by 

the PPTA have entry fees of CNY30 or less per visitor. For example, the small Xi’an Botanic Garden 

near the center of the city has an entry fee of CNY10, as does the Beijing Botanical Garden. 

27. The sites of the horticultural exhibitions first at Kunming in 1999 and then in Shenyang in 

2006 were established and fully paid for as one-year world-expo events and currently charge small 

entry fees that cover operating costs. The Shenyang (Liaoning Province) International Horticultural 

Exposition of 2006, which operated for 184 days from 1 May-31 October 2006, had an entry fee of 

CNY50. One year after the Expo, the garden operates by charging an entry fee of CNY20. The 

Kunming Horticultural Landscape Botanical Garden in Yunnan also charges CNY20. 

28. The extent that domestic and international tourists visiting Xi’an – and local residents in 

southern Shaanxi reflect the visitors to other Botanic garden would suggest they are willing to pay less 

than CNY50. A small willingness-to-pay survey for Xian residents and visitors supports a price of less 

than CNY 50 with additional revenues from add-on services in food and beverage, and exhibitions. 

29. Very strong pre-opening marketing – conducted cooperatively with other ex-situ facilities -- is 

required by the Botanic Garden is needed to differentiate its tourism product from other PRC botanic 

gardens. Through promotion it is possible that potential visitors from its local resident, domestic 

market, and international market segments will know that the Qinling Botanic Garden offers a wider 

range of tourism experiences, which includes biodiversity education, natural scenery and Daoist 

culture and religion. This pre-operation marketing campaign should involve joint marketing with the 

SARC and the Louguantai Forest Park in order to encourage many international and domestic tourists. 

5 See Supplementary Appendix 1 for a detailed analysis of existing cable car systems in China.



30. Another challenge is that Xi’an and Shaanxi offer a wide range of competing and very 

attractive tourism facilities. The local competition for tourists will be significant in the early years of the 

Project until awareness is developed. With the exception of the Terra Cotta Warriors, the Xi’an Wildlife 

Park and the Xi’an Aquarium, these competing facilities typically charge an entry fee of CNY40-50 and 

the revenues per visitor appear to be in the range of CNY100-120. A “willingness to pay” survey 

conducted by the PPTA Team confirmed that an entry fee of CNY50 and revenues per visitor of about 

CNY100 is appropriate for budgeting purposes. 

31. A high entry fee forecast in the early years along with the add-revenues that result in total 

revenues per visitor being not competitive with alternative tourism facilities could result in very low 

attendance. This situation would place early financial performance and ADB loan repayment at risk. 

32. Initially the QBG FS preferred an attendance/pricing scenario which involved lower 

attendance in the early years – recognizing the immaturity of the botanic garden and the need to build 

market interest and image over time – while charging high entry fees and other prices to enter the 

Park’s attractions. While the low early attendance was justifiable, the PPTA argued that the high entry 

fees and other charges were not competitive with alternative tourism facilities in Xi’an and would not 

be affordable for many potential visitors from domestic markets especially in the first critical years of 

QBG operation. 6 

33. The QBG Design revision adopts a new visitation and pricing strategy based on high early 

attendance, high entry fees and revenues per visitor from 2011– with relatively little growth in these 

parameters throughout the period of the cashflow 7 . The Design Team used the “analogy” method by 

assessing attendance and pricing at other tourism facilities, such as the Xishuangbanna Topical 

Botanical Garden which is 527 km from Kunming, the Shenyang Botanic Garden noted earlier which is 

40 km away from the Shenyang City Center, and the Xi’an Qinling Wildlife Park which is also on the 

North Slope of the Qinling and is 40 km away from the city center. The attendance and pricing figures 

from these tourism facilities were used to justify a first year attendance of 600,000 and an entry fee of 

CNY70 for the Botanic Garden. 

34. The PPTA critically analyzed this high attendance/pricing scenario and strategy and 

concluded that these attendance and pricing figures are based on facilities that are different from the 

QBG and appear to be overly optimistic. Achieving these attendance, entry fee, and revenue per 

visitor targets would depend significantly on a highly successful pre-opening marketing campaign that 

would build tourist and local resident interest and successfully differentiate the Qinling Botanic Garden 

from competing facilities in Xi’an and other botanic gardens in China. Placing this much faith in 

marketing to ensure a financially viable facility is questionable especially when it was not included in 

the proposal. 

35. The visitor and revenue projections used in the PPTA are presented in Table 2. 

6 The Proposal has not marketing expenditure included at any stage. 

7 In fairness to the QBG Design Team, it should be stated that the financial analysis guidelines of both the PRC 

and ADB require that the financial analysis be conducted in terms of real monetary values (where the effects 

of price inflation are removed) and encourage analysts to use attendance, price and cost parameters that are 

fixed or at the very least change very little through the projection period. This static approach generally works 

well for traditional, slow-growth sectors such as agriculture/food processing, forestry and infrastructure. 

However, this static approach works less well in high-growth economies like China, and in dynamic sectors 

such as tourism, where the income elasticity of demand is high (meaning that tourism demand and revenues 

expand much faster than real per capita incomes) and where effective marketing campaigns and word-ofmouth 

advertising can move demand curves outward – allowing tourism facilities that are well run and 

differentiated from competing attractions to raise their prices through time without hurting attendance and 

revenues. 

The static approach applied by the QBG Design team leads to situations where attendance and prices appear 

much too high in the early years but are quite acceptable and even on the conservative side in the later years 

of the projection period when per capita incomes and tourism demand and revenues in China are higher and 

the tourism facility is well established within a region’s tourism network for guided and individual tourism. 

7

8 



Table 2: QBG Visitor Projection Assumptions 

Assumptions 

Entry 

Fee(CNY) 

1 BG Attendance at the first year 350000 50 

Growth Rate(Average) 5.29% 

2 Percentage of Total will visit Paleontology 85% 30 

3 Percentage of Total will visit Temple 30% 30 

4 Percentage of Total will take electric vehicle 50% 30 

5 Percentage of Total will take cableway 30% 60 

6 Percentage of Total will have fast food 30% 20 

7 Every 50 tourists will park once 50 20 

36. The following Table presents the projected visitation data for each of the proposed 

attractions detailed revenue and costs are presented in Appendix 16. 

Table 3: Projected Visitor Numbers per QBG Attraction 

Attendance 2011 2012 2013 2014 2015 2020 2035 

Total Attendance 

Growth Rate 

350,000 391,753 433,506 475,259 517,012 725,776 1,272,200 

(annual) 11.93% 10.66% 9.63% 8.79% 6.10% 2.50% 

Paleontology 297,500 332,990 368,480 403,970 439,460 616,910 1,081,370 

Temples 105,000 117,526 130,052 142,578 155,104 217,733 381,660 

Electric Vehicle 175,000 195,876 216,753 237,629 258,506 362,888 636,100 

Cableway 105,000 117,526 130,052 142,578 155,104 217,733 381,660 

Fast Food 105,000 117,526 130,052 142,578 155,104 217,733 381,660 

Parking (times) 7,000 7,835 8,670 9,505 10,340 14,516 25,444 

b. Financial Analysis 

37. The financial analysis uses construction cash flows based on the total investment base 

costs, physical contingencies and recurrent costs for the construction period from 2008 to the early 

months of 2011 before opening. The capital cost figures used in the financial analysis are as follows. 

Item 

A: Financial Costs 

Table 4: QBG Investment Costs – (CNY ‘0,000’s) 

2008 2009 2010 2011 2012 

Fixed Asset 599.7 24582.0 160.0 1710.0 

Civil Works 321.7 21762.0 682.0 

Equipments 278.0 2820.0 160.0 1030.6 

Intangible Asset 8289.3 97.0 379.0 14.0 

Total investment 8889.0 24679.0 539.0 1724.0 

38. The projected revenues and costs are detailed in Supplementary Appendix 2. The summary 

revenue and cost for the construction period through to 2015 is presented in Table 5 below. Based on 

the project models and the costs provided by the Enterprise the before tax FIRR is estimated to be 

9.5% and the after tax FIRR 8%. Both rates of return are above the WACC and are considered to be 

viable. The inclusion of the shareholders annual payout for land use based on 6% (See Appendix 16 

Table 10) of NCF reduces the FIRR to 9.07% and 7.5% respectively. The deduction of the revenue 

transfer at 8% of NCF reduces the FIRR to 8.5% and 6.8%.The major challenge for the QBG will be 

cash flow during the construction period – something that the PDRC / PPTA EA has confirmed the 

Government will underwrite cash flow short falls.



Table 5: Forecast Financial Cash Flows 2008 to 2015 

Item 2008 2009 2010 2011 2012 2013 2014 2015 

Cash in 0.0 0.0 0.0 3502.6 4586.9 5075.7 5564.6 6053.5 

Revenue 0.0 0.0 0.0 3706.5 4853.8 5371.1 5888.5 6405.8 

Sales Tax (5.5%) 0.0 0.0 0.0 203.9 267.0 295.4 323.9 352.3 

Residual Value 

Cash out 9813.2 26738.8 3062.2 4417.2 2693.2 2693.2 3618.7 3561.2 

Investment 8889.0 24679.0 539.0 1724.0 

Operating cost 831.3 2059.8 2523.2 2693.2 2693.2 2693.2 3618.7 3561.2 

Working capital 92.9 

Net Cash Flow Before Income Tax -9813.2 -26738.8 -3062.2 -914.5 1893.7 2382.5 1945.9 2492.2 

FIRR Before Income Tax 9.52% 

FNPV Before Income Tax at 10% -2105.2 

Income Tax 0.0 0.0 0.0 0.0 0.0 238.0 0.0 265.4 

Net Cash Flow After Income Tax -9813.2 -26738.8 -3062.2 -914.5 1893.7 2144.5 1945.9 2226.8 

FIRR After Income Tax 8.00% 

FNPV After Income Tax at 10% -8028.5 

39. The financial rates of returns were tested for shifts in both revenue and costs – see Table 5 – 

and found to be close to hurdle rates, however sensitivity analysis suggests that a further critical 

review of costs should be undertaken to increase the viability and reduce the risk associated with the 

investment. 

Table 6: FIRR Sensitivity Analysis 

Sensitive Analysis 

Before Income Tax After Income Tax 

FIRR NPV FIRR NPV 

Operating Cost (10% up) 8.73% -5,775.9 7.23% -11,393.5 

Operating Cost (10% down) 9.86% -633.1 8.26% -7,038.4 

Operating Cost (20% down) 10.44% 1,938.2 8.79% -4,860.9 

Revenue (10% down) 8.04% -8,507.9 6.60% -13,395.9 

Revenue (10% up) 10.45% 2,098.9 8.80% -5,036.0 

Revenue (20% up) 11.54% 7,402.3 9.80% -856.1 

40. Using data provided by the QBG Design Team, the PPTA calculated the after income tax 

FIRRs and compared these with the weighted average cost of capital (WACC), which for the QBG is 

estimated at 5.6%. The after income FIRR was above the WACC for every scenario and sensitivity 

test, with the exception of the PPTA Team Scenario with 50% higher capital costs which was just 

below the WACC at 5.4%. 

41. The application of a financial charge amounting to 8% of the net cashflow to finance 

biodiversity conservation in the QBCDA reduces the FIRR after tax to 7.4% from 8% and will 

contribute $198,000 in 2012. While the FIRR is above the WACC the financial viability of the Qinling 

Botanic Garden is marginal and risky. The potential impact on existing land users is severe with the 

risk that the return to shareholding does not eventuate which will either disadvantage the rural land 

users or will result in their resuming control over the land planted. 

42. One major concern is that, under the PPTA Team’s more conservative scenario and the 

sensitivity tests where the FIRRs are below 10%, the QBG would face difficulties repaying its ADB and 

other loans in the early years of operation up to about year six depending on the scenario and test 

being employed and the assumed debt-to-equity ratio. In those years, loan repayment may need to 

be supported at least in part from the SPG’s general revenues. PDRC has already made a 

9

10 



commitment to the PPTA Team in this regard – and this commitment will need to be part of the 

Loan Assurances. 

43. 

44. In completing detailed design, the QBG should explore other avenues to add to the revenues 

generated by projected attendance numbers. Three revenue sources not in the current design, that 

could generate additional revenues at minimal capital cost, are: (i) establishing a small gift shop in the 

reception center that sells books, handicrafts and other gifts that are strongly associated with the 

Qinling; (ii) renting audio devices to visitors (similar to the Forbidden City) that can be used by visitors 

while walking around the site, including to the restored Daoist temples; and (iii) guided tours of the 

biodiversity areas in the hill zone and of the walks to the restored temples. If attendance is lower in 

the early years, small additions to revenues in the areas of 10-20% could mean the difference 

between financial viability/loan repayment and financial difficulties in the first years after start-up. 

45. Sales of audio devices and guided tours – as well as repeat visitation and higher visitation 

from domestic and international tourists with a strong interest in the Qinling -- would be promoted by 

an international standard, state-of-the-art information and interpretation center in the reception center 

in the multi-functional building. There is a strong educational mandate for the QBG in the current FSR 

document, but the capital and operating costs of delivering on such a mandate through a world-class 

interpretation center are not evident in the project cost estimates provided to the PPTA Team. 

46. Finally, the QBG and its Design Team assumes that the QBG will operate and therefore 

generate revenues only 240 days a year, likely for the eight month period from the middle of March to 

the middle of November. In contrast, the three tourism facilities in Louguantai Zone B will be 

essentially year round operations for 360 days in a year. The QBG likely needs a longer period of 

time for maintenance and taking care of the gardens for the next tourist season, but should still 

explore whether additional days could be added to their schedule perhaps particularly around the time 

of Spring Festival through the first half of March. This could add 30-40 days to the QBG’s operating 

period. 

47. With greater emphasis on the natural scenery, interpretation, education and QM culture and 

history, the QBG could be able to operate profitability for this 30-40 day period with reduced staff and 

perhaps reduced entry fees and other prices. Joint marketing with the other ex-situ tourism 

enterprises that emphasize the lower off-season prices for the QBG and the special characteristics of 

the QM and the sites in the late winter and early spring period through to mid- to late-March could 

generate quite substantial attendance from local residents and early tourists to Xi’an who are 

attempting to miss the crowds of the later Spring months. 

c. Implementation Arrangements 

48. The investment will be implemented by the Qinling Botanic Garden division of the newly 

formed QNBG. QBG is currently a government affairs unit set up by the Shaanxi Provincial 

Government in 2001 and a legal entity defined within the scope the Civil Act of PRC. QBG is 

registered as an independent legal entity to manage the establishment of the botanic garden and is 

also referred to the Qinling Flora Research Institute. As a government unit, QGB operates under the 

supervision of the Provincial Forestry Bureau. 

49. The existing mandate is not clearly defined as there is no government document that clearly 

defines the mandate of QBG. The legal entity registration certificate defines the following mandates: 

“Conduct activities of research, protection and exhibition of biodiversity, maintain ecology balance and 

achieve sustainable development”. It can operate in: research and development of bio materials, 

biodiversity conservation and exhibition, publicity of laws and regulations related to protection of wild 

life, flora and environment, scientific knowledge extension and education, training, eco-tourism, 

landscaping design and implementation, entrust service. It has an initial capital of RMB 2.36 million. 

As a government affairs unit, the provincial government only meets part of its operational cost. 

Therefore QBG has to cover shortfalls in its’ operational cost by applying for funds from other 

government projects or commercial activities. The government allows this type of unit to set up a 

company or joint-venture to conduct commercial activities, but it has to get approval from DOF. QBG 

can also raise loans for its own establishment and repay the loan using their own revenue generated.



For running a business, QBG must follow government regulation to get a relevant approval and the 

required license. 

50. Current documentation and approvals enable the QBG to employ only 40 staff - a figure that 

will need to increase to over 250 during Project implementation. An assessment of current capacity 

has been difficult as the PPTA had little access to the whole organization at any one time. Based on 

the PPTA interactions and experiences with the QBG enterprise the only conclusion can be that there 

is a strong project champion within a unit that possesses little technical or commercial capacity to 

operate a botanical garden successfully. The PPTA proposes that should the Project proceed that 

ADB prioritse the application of funds for the strengthening of the unit as part of the QNBG reforms. In 

the opinion of the PPTA without this strengthening the Project will not succeed. 

51. Currently the QBG legal entity consists of two institutions: (i) the Shaanxi Provincial Botanic 

Gardens, a SPG institution, and (ii) Shaanxi Qinling Ecological Department, a Registered Company 

owned jointly by Shaanxi Innovation Center, which has 78.3% shareholding, valued at CNY 78.3 

million, and Shaanxi Provincial Botanic Gardens, holding the remaining 21.7% shares valued at CNY 

21.67 million. A past attempt to manage QBG through the Shaanxi Qinling Ecological Department 

was not successful and provide a clear warning for the currnet project proposal. 

52. The Director of both institutions has a dual reporting relationship to both the SPG and to the 

State Forest Administration. QBG as a whole is variously reported to employ 36– 40 people, 

including 16 scientists and 20 staff funded by SPG, 20 of whom are funded by SPG. Staff numbers 

are heavily skewed to management and administration, with over 50% of staff in these categories 

despite none possessing any commercial experience. A breakdown of current staff is as follows: 

Table 7: QBG Current Staffing Categories 

Category Number 

Management 10 

Scientist / Research 10 

Clerical 7 

Finance 4 

Engineer 4 

Gardeners 3 

Other Support 1 

Technician 1 

Total 

Source: QBG 

40 

53. Two substantially different sets of projected staffing numbers have been provided by QBG, 

based on responsibility for operating a self sustaining tourism business. QBG projections range from 

219 up to 1,717 8 , to provide input to the QBCDA area. The number of staff allocated to science and 

research is actually lower than the present number stated to be engaged in this activity. Neither 

estimate includes functions such as Finance and Accounting, Marketing and Promotions, and Human 

Resource Development. Other functional groups such as Temple Site management have no support 

staff. 

54. An analysis of the tables below indicates that the staffing levels appear low given the number 

of projected visitors, (600,000 in the first full operation year using QBG estimates). For instance, staff 

numbers for ticket sales total 4 staff for a 7 days per week operation with a number of possible 

separate locations where entry charges apply. This requires 150,000 tickets per person to be issued 

based on a one ticket system which simply can not be achieved. Even based on the PPTA visitation 

numbers of 350,000 visitors 4 people will not suffice. Despite regular discussions on staffing the PPTA 

has been unable to resolve the issue. 

55. QBG estimate that substantial additional revenue will follow from post–gate sales, but again 

there are no staff allocations to recognize associated costs. Even if this is to occur from concessions 

to third parties to operate such facilities as refreshments and gift or souvenir shops within the grounds, 

8 This includes 500 – 1,050 temporary workers to be employed on planting in the QBCDA area. 

11

12 



some staffing requirements will exist to administer such concessions. If the full potential revenue is to 

be retained in house (with the commensurate business risks) this staffing level will be even higher. 

56. 

57. In contrast to the QBG estimate of 219 employees, the current proposal estimates that 270 

staff will be required in the initial period of operations for the ex situ area only, rising to 400 – 600 as 

visitor numbers increase. The current proposal also estimates that visitor numbers will be 

substantially lower during initial operations, but will increase from this lower base at a faster rate than 

that projected by QBG. 

58. The Qinling Botanic Garden and the QNBG will offer all employment opportunities to affected 

persons prior to other candidates after which remaining positions, if any, will be offered to residents of 

the QBCDA. 

Table 8: Ex Situ Staffing Projections Provided by QBG 

Special 

Parks 

Biological 

Institute 

Greenhouse Temple 

Tram 

Rail 

Other Total 

Number Number Number Number Number Number Number 

Management 6 5 12 2 25 

Science and Research 6 6 

Casual 114 114 

Rail Car 10 10 

Repairs 4 2 6 

Repairs/Security 8 8 

Safety Examiner 4 4 

Dustman 4 10 14 

Gardener 4 4 

Driver 6 6 

Ticket Seller 4 8 12 

Parking Attendants 4 4 

Parking Management 6 6 

Total 126 27 6 12 20 28 219 

Source: QBG 

59. QBG have provided the following table showing estimated staff requirements, including the 

QBCDA area. 

Table 9: Total Staff Projections Provided by QBG 

Number Duty 

1 Management 22 

Office staff 5 

Finance Department 4 Responsible for the all financial records and cash 

Construction department 5 Planning and construction work 

Human resource department 4 

International cooperation department 4 Collection, research communications 

2 Ex-situ area 219 Maintenance and manage daily affaires 

Staff 105 

Part time worker 114 

3 QBCDA area 40 Maintenance and manage daily affaires 9 

Forest safeguarded 20 

Road maintenance 20 

9 

There are still other staff decided by what kinds of project to be active



Number Duty 

4 Other 550 Plant recovery 

Season worker for floral recovery 500 

Part time worker for assistance plant 

management 

50 

5 Research 60 10 Research on botany, ecology, environment, etc 

Total 1722 

Source: QBG 

60. QBG is not at present involved in any sales activities to the general public and therefore, 

requires substantial change to the current culture to achieve a successful tourism based business. 

This lack of experience is reflected in the significant differences between the estimates made by QBG 

and the consultant of entry prices and visitor numbers. QBG anticipate 600,000 visitors in the first 

year of operation, and average per capita revenue of CNY143.9. The consultant’s research estimates 

visitor numbers at 300,000 to 350,000 and an average per capita income of CNY105.8. 

61. There are a number of concerns regarding QBG intentions. Many of these relate to the 

capacity of the organization, and, given its limited scale at present, its ability to achieve this vision. 

Points of particular concern are that: 

(i) Unlike the Hot Springs development, and to some extent SARC, QBG lacks any 

commercial or tourism expertise. This is reflected in the scale of the initial feasibility 

study presented, and in some of the subsequent projections on visitor numbers etc. 

(ii) Not all objectives match the skill sets that one expects to see in staff of a botanical 

garden institute. For instance, research on the Giant Salamander and other animals 

will not be undertaken by the Qinling Botanic Garden but by the SARC research team 

or a proven research institution. 

(iii) There appears to be a risk that some QBG plans, such as introduction of other 

species into the Botanic Garden itself, and the use of over 1000 casual staff for 

planting in the QBCDA area run the risks of a departure from achieving GEF goals 

(iv) From discussions between other consultants and QBG, it is difficult to see a strong 

alignment of QBG research plans and those published by other Chinese Research 

Institutions. The Director has a close relationship with the Chinese Academy of 

Advancement of Science. 

(v) Mixing non commercial science and research objectives (possibly funded as a public 

good) with commercial objectives funded from public entry fees requires particular 

governance skills that are not currently in place. 

(vi) Some plans are likely to reduce, rather than promote, livelihood opportunities 

(vii) The proposed staffing levels described are inconsistent across a number of functions 

(viii) Apart from the broad principle of contracting commercial operations, little thought has 

been given to the details necessary to make this a financial success, or how ancillary 

operations, such as food stalls and refreshments or gift and souvenir operations will 

be operated and managed. Contracting out commercial operations does mean 

abdicating from responsibility for ultimate financial performance, including loan 

repayments, and leaving this to the contracted tourism operator. 

62. The underpinning design principle for the project area is to use commercialization to fund 

biodiversity, conservation and livelihood developments, through the transfer of revenue from Qinling 

Botanic Garden and SARC. If this is to be achieved then further thought must be given to 

safeguarding the revenue streams to make this possible, and to achieve an adequate return on the 

SPG contribution to the project. The financial governance report of the PPTA indicates that the current 

accounting system of QBG does not have the capacity to handle an ABD loan. It suggests that QBG 

needs to be commercialized. 

10 (including existing 16) 

13

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d. Qinling Botanic Garden Proposal – Land Access Issues 

63. QBG has no land user rights in the Project Area other than an approval to proceed with the 

Project and project area. . For the ex-situ land requirements QBG needs to gain the land user rights 

either through acquisition, renting or shareholder arrangement according to the Land Management Act 

of PRC. Most of the land is currently owned by the local community. County and Township 

government will be important stakeholders in terms of land acquisition, resettlement and other 

government supported natural resources and community development activities. For operating in the 

QBCDA zone any QBG plans involving Louguantai Forestry Farm land requires their mutual 

agreement. 

64. QBG is eligible as a government unit to raise a loan for botanic garden construction. QBG is 

able to set up a company or restructure the current company to complete its commercialization to 

meet the loan management and repayment requirements. QBG will be responsible for construction 

and operation of the Qinling Botanic Garden itself and will take responsibility of resettling villagers in 

Dianzhen village to meet government of PRC resettlement requirements. 

65. The Qinling Botanic Garden (QBG) will use 4039.5 mu (269.3 ha) of collective owned rural 

land from Dianzhen village for development under this project. Two approaches have been proposed 

to access land use rights. These include (i) land acquisition amounting to 293.63mu (19.64 ha), and 

(ii) a land shareholding agreement for 3,746 mu (249.66 ha) where current land use right holders while 

gain shares on the QBG enterprise. 

66. Within the Project area, there is rural cropping land, other rural agricultural land, rural idle 

land, rural residential land and rural infrastructure construction land – the rights for all land types are 

held by Dianzhen village. Currently the proposed use of land has no legal status and is contra to local 

regulations 11 . The following section outlines these issues and recommends a series of actions to be 

undertaken before any processing of the QBG project loan. 

I. Land Acquisition (293.63 mu) 

67. A total of 293.63 mu of land will be acquired and used for the purpose of constructing 

buildings or infrastructure. There are two principal regulations that govern changing land use types 

under the PRC legislation system. “Land Management Law of PRC” -- promulgated by the Standing 

Committee of the People’s Congress in year 1982, and amended in the year 2004. “Implementation 

Rules of Land Management Law of the PRC” -- promulgated in 1998 by the State Council. Apart from 

these two regulations, there are other detailed rules and instructions issued by the Land Ministry and 

State Council to enforce the regulations. Provincial People’s Congress in Shaanxi has promulgated 

local regulations to enforce the law. The relevant regulations are summarized in Methods of 

Implementing the Land Management Act of PRC in Shaanxi Province dated January 2007. 

68. The Qinling Botanic Garden will need to change land use on existing agricultural land for 

construction purposes under their land acquisition. The Jixian Township Basic Farming Land 

Protection Plan Map indicates that QBG will acquire about 1,500 mu (100 hectares) of basic farming 

land for construction and other purposes. It will also acquire current rural residential land and other 

agricultural land. 

Next steps and Approvals 

� QBG will provide a land use pre-checking report from a land use management 

authority as required by the law to confirm: (i) basic farming land has been relocated 

to another location. (ii) land use application of QBG is consistent with the government 

land use plan and regulation, (iii) there is a change of agricultural land quotas for 

QBG. 




11 The PPTA has been advised that this constraint does not necessarily apply to the QBG and that an official 

document to this effect will be provided to ADB.



II. Land Rental (3,746 mu) 

69. The draft contract of land shareholding provided by QBG indicates that the contract follows 

the requirement of the “Rural Land Contracting Act of PRC; The Contract Act of PRC; and The 

Forestry Act of PRC. However a recently introduced Shaanxi Land regulation states that contracted 

land management right (land user right) of collective members on the rural land may not be invested in 

an enterprise in a share arrangement. The “Implementation Methods of Shaanxi Province on Rural 

Land Contracting Act of PRC” has been in place since January 1st 2007 and as such the QBG 

proposals to put collective members’ land user rights into a shareholder arrangement is no longer 

legal.The Zhouzhi Land and Resources Bureau approval does not have the authroty to over-rule a 

Provincial statute and as such the shareholding agreement whilst very risky for the rural land use right 

holder is considered to be illegal, 

70. The contract has proposed a financial return arrangement for the land which is put into a 

shareholder arrangement. The proposal envisages two parts to the financial consideration for land use 

being: 

(i) Annual rental payment Starting from the first year of the land share establishment. 

The land is classified into three categories for the purpose of the land rental prices. (i) 

first class (irrigated land) will be paid CNY500 per mu., (ii) second class (dry land) will 

receive CNY400 Yuan, and (iii) third class (sloping land) will receive CNY300 in the 

first year. The fixed return will progressively increase by CNY20 per year for all 

classes of land. 

(ii) Shareholders Dividend : Due to the cashflow demands for a full companesion and or 

rental program the Qinling Botanic Garden is proposing to offer a capital shareholding 

to existing land users in return for their land use rights. To the existing right holder this 

will provide a dividend to their share of the capital held. From the first year that QBG 

receives ticketing income, the shareholder of land share will share in the revenue from 

the tickets. The fixed return will stop increasing, but the fixed amount will still be part of 

the return to the land share shareholders. The share value will be calculated on the 

basis of the price set up for the 50 years of the land user right. Sloping land will be 

valued at CNY7,500/mu, dryland CNY10,000/mu, irrigation land CNY12,500/mu. The 

value of the land use right from this contract will be calculated as the equivalent of the 

total dividend to be distributed by the proportion of capital held by any one 

shareholder. 

III. Land Use Change Provisions 

71. The Qinling Botanic Garden will need to change land use types of agricultural land for 

construction purposes under their land acquisition. The Jixian Township Basic Farming Land 

Protection Plan Map indicates that that QBG will acquire about 1,500 mu (100 hectares) of basic 

farming land for construction and other purpose. It will also acquire current rural residential land and 

other agricultural land. The QBG has been classified as a significant infrastructure project by the 

provincial government (SPDRC has the authority to do this, but has to follow the state level guideline), 

Enabling Zhouzhi County to revise its current land use plan to allow QBG to use the quota for changes 

of agricultural land use type. This allows reallocation of basic farming land to another location as long 

as it balances the total basic farming land amount. If this is the case, the Botanic Garden will not, in 

the meaning of the law, conduct any construction on basic farming land. No national level approval is 

needed for acquisition of the land. However, there is some conflict within the legal system to assure it. 

72. Based on the Jixian Township Basic Farming Land Protection Plan, the team discussed with 

SPDRC to agree that : 

� QBG will provide a land use pre-checking report from an appropriate level land use 

management authority as required by the law to confirm: (i) basic farming land has 

been relocated to another location. (ii) land use application of QBG is consistent with 

the government land use plan and regulation, (iii) there is a change of agricultural land 

quotas for QBG. 


acquisition of land after the project feasibility study is approved by SPG. 

15

16 



IV. Resettlement Issues 

73. The county or city level government will prepare a compensation plan and submit to the 

appropriate level land management authority for approval when the land acquisition application is 

handed in. A process of public information on the compensation plan will be held before the 

compensation plan is submitted for approval. Clear information should be given out to the affected 

public. A hearing process should be held if any request is raised by the public. 

74. QBG resettlement plan has been reviewed against the law and regulations. A discussion has 

been held with the QBG. Some revision has been proposed. The resettlement plan is basically 

consistent with the law and regulations with the exception of the shareholding issues discussed above. 

Discussion has been held with QBG on revision and additional information. The following 

recommendations require to be addressed: 

� Separate land compensation and livelihood compensation in the resettlement report. 

Adjust the orchard land compensation to a higher standard to reflect its real value. 

Adjust idle land compensation to the standard described in the justification. 

� A qualified land and building evaluation institute should provide a review on the 

compensation standard proposed in the resettlement report. Alternatively full 

explanation should be made to justifications the standard in the resettlement report 

according to the regulations. 

� Have a methodology developed for the training of the Village Committee to develop a 

livelihood rehabilitation plan during the project implementation, before the land 

acquisition is approved. The livelihood rehabilitation plan has to be approved by a 

village meeting before it can be implemented. The rehabilitation plan should indicate 

in detail how the farmers that lose their land will be arranged or assisted to recover 

their livelihood. Nominate the responsible body for rehabilitation activities listed in the 

resettlement report. Rehabilitation plan implementation should be included in the 

monitoring system. 

� There must be a commitment from QBG on providing employment opportunities for 

local people on its tourism operations after completion of the physical construction in 

the resettlement plan. 

� There should be a clear indication in the resettlement plan about the time for public 

information of the compensation plan. It should be organized before submission of the 

application for approval of land acquisition. The resettlement plan should indicate that 

the farmers who will be affected will have the right to ask for a hearing after the land 

acquisition plan is published. 

� A qualified organization on building evaluation should be requested o provide an 

opinion comparing the evaluation of building compensation provided by QBG. 

Alternatively all of the buildings that will be demolished should be compensated at the 

current commonly used rural residential building structure standard such as brick 

concrete or brick and wood. 

� The compensation standard for rural residential land will not be enough to meet the 

cost of purchasing a new piece of residential land. The standard should be raised to 

meet the full cost of new residential land. 

V. Proposed Land Rental/Share Contracts 

75. The draft contract of land shareholding provided by QBG has been reviewed and is filed in 

the project office for reference. Detailed analysis on legal framework of rural land management is 

provided in Supplementary Appendix 3. 

76. The content of the contract follows the requirement of the (i) Rural Land Contracting Act of 

PRC , (ii) Contract Act of PRC, and (iii) Forestry Act of PRC.



77. The following issues have been identified 

� The shareholder arrangement proposed by QBG is illegal in Shaanxi province. 

� It is not clear from the contract who is the legal entity from Dianzhen village who will 

sign the contract. It is implied in the contract that the administrative village will be the 

contractor. After the cropping land /forestry land that comes under the land conversion 

program has been contracted to the individual household, the administrative village 

does not have the legal authority to contract the land use right to anybody else. The 

individual household is the one holding the legal right to contract the user right of their 

land to the third party voluntarily. It is also not clear who will be the legal entity to sign 

the contract from QBG side. QBG is not a legal entity which can have a shareholder 

arrangement under the current situation. The sample contract provided uses the name 

of both QBG and Shaanxi Qinyuan Ecological Development Limited inconsistently. 

� The contract indicates a land area including the whole of the QBG land area. It is 

required by law to indicate the boundary of the land for which the user right has been 

put into share. It also confuses the whole picture by including land acquisition land 

under this contract land area. 

� The contract indicates that the land under the contract will be used for forestry, 

agriculture, research, science extension, protection and tourism. But the Rural Land 

Contracting Act of PRC requires that contracting of user rights for any farming land 

can not involve changes to the land use type. Approval is required from the Forestry 

Authority for any Forestry Land under Land Conversion Program to change to other 

land use type and change the vegetation. 

� Term of the contract is expressed as 50 years from the day of signing the contract. It 

is not consistent with the Rural Land Contracting Act of PRC which requires the 

transfer of land use right with in the term of the Land Use Contracting Term stated on 

the Land User Right Certificate. In case of Dianzhen village, it is from 1998-2027. For 

forestry land coming under Land Conversion Program, it is from 2003-2053. 

� The contract does not include a clause for compensation in the event of permanent 

damage made to the land. 

� The price for 50 year land use right proposed in the contract is low based on current 

government compensation for land acquisition. The justification for the proposed price 

is not clear. It is not clear if the villagers have been all consulted. 

� The Village Committee has been proposed to be the representative of the households 

to classify the land, determine the amount share from the fixed return and revenue 

return per mu, and distribute returns to the householders. This arrangement is not 

consistent with the Rural Land Contracting Act of PRC which requires the voluntary 

transfer of land use right from the households. The Village Committee does not have 

the authority to do this. QBG has to negotiate individually with the contracted 

households who hold the land use right. Alternatively, all households who voluntarily 

transfer their land use right to QBG through this contract have to authorize the Village 

Committee to negotiate on their behalf. 

� The contract states that arbitration will be submitted to Zhouzhi County Arbitration 

Commission and any legal suit to a Zhouzhi court to resolve any arguments of this 

contract. This is not consistent with the Act of Civil Law Suit Sue; one of the two 

approaches has to be chosen. 

� The contract does not mention the requirement of approval from forestry authority 

above the county level on transferring user right of collective forestry land and a 

logging permit for logging resulting from the transfer, which is required by Forests 

Management Rules of Shaanxi Province. 

Risks 

� Use of forestry land and farming land under this contract could be changed to other 

land use type without proper approval. 

� Village Committee could be the entity to sign the contract. This could result in some 

involuntary transferring of land use right and an increase in the need for resettlement 

compensation. 

� The capital of Shaanxi Qinyuan Ecological Development Limited should be properly 

valued and the land use right should to be properly valued for the shareholder 

arrangement, otherwise inequality between two parties could result. 

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� Basic farming land under this contract could be used for a purpose which is not 

consistent with the regulation. 

Recommendations 

78. The contract reviewed is a draft and changes will be made to it in the progress of 

negotiation. It is recommended that: 

� The contract should be revised to use a legal form of arrangement to access user right 

of contracted rural land, specified both in national legislation and provincial level 

legislations. The entity to sign the contract should be identified and the contract 

revised accordingly. 

� If the Village Committee is to be used as a representative of land user right holders, a 

written agreement signed by all of the households involved in the future contract 

arrangement should be attached to this contract. 

� Legal assistance should be arranged for households from Dianzhen village to help 

negotiate the contract. 

� The capital of Shaanxi Qinyuan Ecological Development Limited should be properly 

valued and the land use right needs to be properly valued for the shareholder 

arrangement independently. There is a system and some institutions in Shaanxi 

qualified to conduct property and equity evaluation. 

� The agreed land use arrangement from the future signed contract should be included 

in the constitution of the company. It will clearly state the land use right arrangement 

and the return arrangement to give the land use contract arrangement legal status. It 

needs to indicate that the land user right value should be re-evaluated from time to 

time to reflect the land value changes. 

� Forestry land, basic farming land or cropping land should be clearly identified in the 

contract in terms of land area and location. It must be clearly stated that the land 

under the contract will not be used for any other purpose rather than agricultural or 

forestry as required by the laws and regulations. 

� SPDRC will take the responsibility to check and monitor the future signed contract to 

make sure it is consistent with the legal requirement. 

e. Benefits and Beneficiaries 

79. Assuming that it is well designed, well constructed and operated to a high international 

standard, the ex-situ Botanic Garden is expected to: (i) significantly strengthen and diversify the 

Shaanxi and Xi’an tourism bases, (ii) attract new tourists to the province and city and further expand 

tourism revenues through extending the length of stay of some current and projected tourists, (iii) help 

to promote habitat restoration and improved biodiversity management and conservation in the PA and 

the wider QM through direct investments in science, research, demonstration and outreach and 

through the education of visitors on the importance of protecting the QM’s valuable bioresources and 

ecosystems, and (iv) generate sustainable livelihoods for the PA and target populations through: job 

creation at the ex-situ site and investments in the QBCDA area; purchasing goods and services from 

PA and target area residents, business enterprises and village groups, and demonstrating how 

improved biodiversity management can lead to higher and more sustainable livelihoods for PA and 

wider QM households and villages. 

80. The number of direct jobs at the ex-situ BG site during the Phase I construction period could 

be a total of 6,000 person years, or an average of about 1,500 per year from 2008 to 2011. After 

startup, the Botanic Garden will directly employ about 270 people and this number will increase with 

the advances in attendance. The proportion of local resident employed could be as high as 1.5% at 

the end of the projection period, while perhaps about 6% of the target area households could benefit 

from employment at this site. However, policies and programs are needed to ensure that these 

potential local employment benefits, as well as benefits for local businesses and suppliers, are 

realized. 

81. The economic analysis of the QBG estimated the EIRR to be 10.6%. Again whilst above the 

hurdle rate for the PRC it is marginally viable for ADB purposes highlighting the need for the 

previously recommended review of costs.



f. Issues to be Addressed 

82. The QBG Design Team completed a conceptual design in less than one month that was 

sufficient to meet the requirements of both PRC and ADB. However, because of the limited time 

available and the mix of skills, the design, which is based on the conceptual design provided by the 

PPTA Team in late April, is still at a conceptual design stage. It does provide a broadscale design of 

the Botanic Garden but it is very clear that much more detailed work is now required to develop the 

plans into a feasible and workable QBG project. 

83. The following Outstanding institutional issues need to be resolved. 

� QBG has to be able to use the Capital Construction Accounting Guideline as stated in 

the Financial Governance Report. 

� QBG’s access to land use rights 

� The [proposed term of contract is 50 years from the day of signing the contract. It is 

not consistent with the Rural Land Contracting Act of PRC which requires the transfer 

of land use right with in the term of the Land Use Contracting Term stated on the Land 

User Right Certificate. In case of Dianzhen village, it is from 1998-2027. For forestry 

land coming under Land Conversion Program, it is from 2003-2053. 

� QBG is proposing shareholder arrangement with local community farmers to gain the 

land user right. QBG as a government affairs unit doesn’t have the legal right to have 

shareholder arrangement under the QBG legal entity. Only a company as a legal 

entity can set up shareholder arrangement following the Company Act of PRC. 

� QBG can not be fully replaced by the commercial company because of it’s nature as a 

government affairs management institute unless the provincial government approves 

a full restructure of QBG to become an enterprises following government guideline. 

� The commercialization process of QBG should be undertaken before project start up. 

The options of commercialization should be agreed in a discussion between PDRC 

SPFB, and QBG and a timetable should be agreed with SPDRC on QBG’s 

commercialization. 

� The equity structure of the QBG needs to be independently assessed and agreed 

including the equity of the QBG and its shareholders 

� The institutional capacity for managing a commercial operation 

84. The detailed design to be completed after the ADB Loan is approved will require a wide 

range of skills, including: tourism design and layout, ancient Chinese architecture, Chinese botanic 

gardens, landscape architecture with specialized skills in ecological design of botanic gardens (and 

knowledge of GEF requirements), interpretation/visitor education specialist, marketing and promotion, 

business development and financial management expertise (at a minimum). Because of the major 

design work still to be conducted, the basis for estimating the design cost was increased from 2.5% to 

4.5% of construction and engineering costs to enable contracting of expertise on a short term basis. 

85. Some of the design issues raised by the QBG FSR and to be addressed in detailed design 

include the following. 

i. Sections 3.1-3.5 of the FSR: The Gardens: 

86. Despite concerns raised by the PPTA Team in the Inception and Mid-Term reports, the use 

of plant materials in the specialist gardens still reflects the use of plants which are not native or 

endemic to the Qinling Mountains (e.g. the ginko garden and the international gardens). This is a 

serious concern. The QBG Team was informed at the Project’s Inception Meeting and many times 

since including the briefing meetings with the Design Team (also included in the design brief provided 

by the consultant team), that introducing and using alien plants to the north slopes of the Qinling 

Mountains was a potential threat to biodiversity and was contrary to the Convention on Biological 

Diversity (CBD). 

87. The Qinling Mountains rank third in plant biodiversity out of 34 other Biodiversity Hotspots 

worldwide. Therefore, care over and above normal expectations should be made to protect this 

resource. The Botanic Garden project is linked to the GEF project. The basis of GEF lies within the 

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CBD 12 . Continued resistance by the QBG IA to remove these alien species from the design may 

jeopardize the GEF grant being provided to the Shaanxi Government. 

88. The introduction of plants in the glasshouse should be reasonable providing safety measures 

are built into the system to prevent escape of possible alien materials (seed etc). 

ii. Section 3.5 of the FSR: 

89. The need for an irrigation system for the whole of the garden area is questionable, 

especially in the hill zone where forest type planting will be used. It is not normal practice to irrigate 

plants which naturally grow in the area in which they are being planted (i.e. Qinling plants in the 

Qinling). Providing an irrigation system for the ‘hill zone areas’ should be revisited as there are two 

main issues: (i) sustainability – unnecessary use of water resources, especially given the increasing 

problems associated with water supply in Shaanxi Province (and China as a whole); (ii) cost – the cost 

of the irrigation system adds to the overall garden and capital cost. Any reasonable measures to 

reduce capital cost should be pursued in order to enhance financial viability and lower financial risk. 

iii. Section 7.1.Ecological Capacity 

90. The number for ecological capacity appears to be an arbitrary figure, and the purpose of 

this statement is not clear. If a carrying capacity study is to be undertaken, it requires three substudies: 

(i) environmental capacity -- ability of resources to support numbers; (ii) psychological 

capacity – study of visitor crowding; and (iii) physical capacity -- ability of infrastructure to support the 

numbers. 

iv. Section 3.7 – 3.11 Building Design: 

91. The preliminary designs of these elements should be provided with the FSR as requested by 

the consultants. 

v. Boundary treatment 

92. The decision on boundary form is not yet decided - QBG plans to build a wall or fence 

around the site. The capital costs include funding for only a fence. The boundary treatment is 

important as it will have a visual impact on the landscape. Barrier planting could be used for the hill 

area as this would be acceptable and unobtrusive in the landscape, it would support conservation, be 

maintenance free and would be more effective in preventing trespass than a wall. 

vi. Outstanding design standards 

93. The three broad design elements which require specific attention are: (i) use of plant 

materials; (ii) hard landscape elements; and (iii) building design. 

94. Plant Material. The current design within the Feasibility Study (May 2007) indicates the use 

of plant material which is not native or endemic to the Qinling Mountains (Ginko Garden, International 

Garden etc). The Botanic Garden is to be constructed within an internationally important ecologically 

diverse area. The planned introduction of species not native to the Qinling in a Botanic Garden whose 

stated objective is the conservation of Qinling plant biodiversity is contrary to a wide range of 

international guidelines 13 and is likely to be condemned as an irresponsible action by both the 

international conservation and botanic gardens community. 

12 A requirement of GEF grant being given is that the recipient country has signed and abides by the convention. 

13 The Convention on Biological Diversity (CBD) 1992; Cartagena Protocol on Bio-safety 2000; Global Strategy 

for Plant Conservation; Gran Canaria Declaration on Climate Change and Plant Conservation 2006; 

International Agenda for Botanic Gardens in Conservation 2000:



95. The Secretariat of the Convention on Biological Diversity states that the greatest threat to 

biodiversity is the introduction of Alien Species and Article 8(h) of the Convention on Biological 

Diversity (CBD) calls on Parties to "prevent the introduction of, control or eradicate those alien species 

which threaten eco-systems, habitats, or species". Recommendation for a loan condition - All plant 

material to be used within the Qinling Botanic Garden must be endemic to – or at the very least 

representative of -- the Qinling Mountains. 

96. To ensure that the risk of an alien species introduction is managed the Qinling Botanic 

Garden will submit its detailed plans to the biosafety protocol of SEPA prior to any field construction. 

This should include a risk management protocol that outlines what species are being propagated, or 

planted and the expected risk that these pose to the Qinling Mountains. Where data is not available 

plant material will be introduced. 

97. Hard Landscape Elements. The Qinling Botanic Garden will serve as a large botanic and 

open space facility. Its design requires a diversity of hard landscape elements to implement many of 

the planned site management strategies. These landscape elements have both vehicular and 

pedestrian functions and include signage, lighting, paths and roads, and various types of outdoor 

furniture. The landscape elements also serve an important functional role in the garden, acting as 

reference and signal points for visitor orientation and circulation, as well as contributing to the gardens 

overall appearance, character, identity and attractiveness. 

98. The hard landscape elements must positively contribute to the character and identity of the 

garden. Custom designed structures should be developed, with the design emphasis on the use of 

natural materials. The use of concrete structures is not considered appropriate within the Botanic 

Garden setting as these are more appropriate to urban street scenes. 

99. In designing the hard landscape elements the designers should: 

(a) Initiate product development, and act as industry pioneers in the development 

and use of recycled materials in hard landscape elements. 

(b) Investigate alternate energy sources for areas of new lighting etc. 

(c) Utilize environmentally sensitive design materials wherever appropriate, such 

as permeable materials for large areas of hard surfaces including paving 

areas and car parks. 

(d) Ensure consistency of design and character, materials selection and 

application of elements across the site. 

(e) Ensure the Garden’s commitment to design excellence is reflected in the 

selection of landscape elements. Promote quality in design and materials as 

well as quality through environmentally sustainable design principles. 

(f) Ensure landscape elements are designed, installed and maintained to 

promote safety for Garden staff and all Garden visitors. 

100. In addition, the hard landscape design elements should respond to different areas of the 

Garden, reflecting a diversity of settings ranging from the developed formal garden and display areas 

of the site through to natural settings of the “Qinling Experience” whilst simultaneously still being able 

to be recognized as elements which are inherently part of the overall Garden’s character. 

101. There are a number of considerations that will determine the use of landscape elements in 

different areas of the Garden, which can be depicted by landscape elements to differentiate: (i) scale - 

the physical size of the elements; (ii) siting - the way in which the element is located in the landscape, 

in either a dominant or subtle manner; (iii) materiality - the materials used to build the landscape 

elements, and (iv) intensity of use - the frequency with which the elements are used across the site, 

denoting areas of high visitation and access, through to low visitation and restricted access. 

102. Building Design. The Feasibility Study of May 2007 builds on the area’s strong Daoist 

influences and features the restoration of a number of buildings of traditional design. The Daoist / 

Chinese traditional style should be carried through all of the structures to be constructed on site 

thereby providing harmony. Any religious site or temple restoration will require the approvals of the 

Daoist community and this shall be provided to ADB to enable disbursement. 

103. The quality of the “Garden Experience” is greatly dependent on its future design and 

management. Poor design and poor management will lead to an inferior experience and detract from 

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the other tourist facilities located in the area – leading to problems with financial performance and loan 

repayment for all three proposed ex-situ tourism investments. 

104. The QBG has the opportunity to develop itself as the ‘window’ to the Qinling and should be 

marketed as the first stop on the ‘Louguan Tai Experience Visitor Circuit’. It is important that the QBG 

is designed and managed as a complementary experience to SARC, the Hot Springs and the 

Louguantai Forest Park which together provide a wider range of experiences with which the QBG 

cannot compete. Therefore, the design and operation of the QBG must be a high quality development, 

visually and educationally stimulating and price competitive. 

105. Southeastern Boundary. A major issue for the PPTA is the southeastern boundary for the 

ex-situ BG. The conceptual design proposed by the PPTA followed the contour of the slopes. The 

boundary proposed by the QBG Design Team, and recommended by PDRC, went further to the east 

along the Tianyu River. This raises two serious issues. The boundary change increased the number 

of households to be resettled from 69 to 143. This is because the current design requires the removal 

of two settlements which form satellite communities to Dian Zhen located in the west of the site. In 

design terms, there appears to be no justification for the removal of the largest of these settlements. 

Mostly the area will be converted to a lake, the proposed glasshouse is also located within this area; 

however there is space elsewhere for this facility. 

106. The current design proposal effectively “privatizes” the access road into the QBCDA area 

bringing it into the control of the botanic garden. The road is used as access by local people to 

property etc and will require them to pass through the BG. The access road into the QBG needs to be 

kept separate from the activities of the QBG as this is most likely to lead to conflict between tourist 

activities and everyday activities of local people (including mixing regular vehicular movement with 

pedestrian tourists). There is the potential for a growth in corruption against people moving both 

in and out if the road is controlled by the QBG by the collection of illegal fees and taxes.. The 

road is also the access point for the Giant Panda breeding centre / ecolodge facilities etc, and for 

access to the hydro power stations which will all generate regular movement. A separate access road 

to the QBCDA area is not possible under current designs. The proposed boundary changes are 

indicated on the QBG Design Team plans. 

107. The Botanic Garden design and construction raises serious issues regarding (i) conversion 

of land from basic cultivated land to a new land use; (ii) approvals from the Water Resources Bureau 

to use groundwater for drinking and other uses, water from the Tianyu for irrigation (when water from 

the stream is available), and geothermal water for the glasshouse/greenhouse; (iii) resettlement of 

households and compensation for affected households; and (iv) job and sustainable livelihood 

opportunities for local people. Despite prolonged discussion these issues have not been resolved to 

the satisfaction of all parties. 

108. There appears to be growing recognition from PDRC that the SPG and QBG will require 

approval from the state government in Beijing in order to convert basic cultivated land for botanic 

garden use. The necessary approvals for water use based on the new design had not yet been 

received as of late June. After the revised Resettlement Plan by the QBG was deemed to be 

inadequate by the PPTA, the QBG hired a local resettlement specialist to revise and finalize its new 

report – and to resolve the many issues regarding the number of households to be resettled, the form 

and amount of compensation, land rental, and how a shareholding system would benefit affected 

farmers, in a manner that meets PRC laws and regulations, ADB requirements and the wishes and 

needs of resettled and otherwise affected farmers. 

109. Linked to resettlement and compensation issues, farmers in both the ex-situ and QBCDA 

zones have been made promises about future jobs and incomes from construction and operation of 

the BG, but no real information has been provided e.g. on what the phased approach adopted in May 

2007 means for local job creation, and no programs are in place to ensure local employment and 

income benefits. The SPG hopes to begin full construction of the QBG soon after the loan is 

approved. Programs must be in place well before then.



110. The legal, financial and religious status of the rebuilt Daoist Temples on the QBG site needs 

to be clarified through consultations with the Daoist community. One issue is whether the 

arrangements now in place between the Louguantai Forest Park and the Daoist community will be 

applied to the whole Project Area and the QBG. A second is whether the Daoist community approves 

of the restoration program as this will require a license. The third question is whether the QBG rebuilt 

temple sites will be subordinate to the Louguantai Daoism Temple at the Forest Park, or whether the 

QBG will need to go through the application process required for the approval and registration of 

establishing religious sites, under the “Regulations for Religious Affairs Management” of the Zhouzhi 

County Religious Affairs Management Bureau. This approval allows a Daoist temple to conduct 

religious activities, collect entry fees, and sell religious books and tourism souvenirs under a license. It 

also allows the temple to collect donations from believers and other legal sources. 

111. The final question is whether in fact the QBG can charge for entry to the temple sites or 

whether agreement is first needed with the Daoist community that e.g. could involve the sharing of 

these fees between the QBG and the Daoist community, as is currently in place between the 

Louguantai Forest Park and the Daoist Temple. 14 

2. Proposal for Expanding the Shaanxi Animal Rescue (Zoological) Center (SARC) 

15 

a. Introduction 

112. The proposal is to expand and significantly modernize the Shaanxi Animal Rescue Center 

(SARC) located in the villages of Louguan Township, Zhouzhi County. The Shaanxi Animal Rescue 

Center (SARC) was founded in 1987 with approval from the State Forestry Administration, is owned 

and regulated by the Shaanxi Provincial Forestry Department, and is currently managed by the 

Shaanxi Louguantai Forest Farm. 

113. In 2001, the Government of Shaanxi issued a Document to approve the establishment of 

Shaanxi Treasured Wild Animal Rescue and Research Center (SARC). It has the status equal to a 

county level administration in managing the government affairs as defined in the legal document. At 

establishment it held initial capital of CNY 2.48 million with approval to employ 28 staff with three 

managers. The center is funded partly by Government, partly by commercial revenues and programs. 

SARC is a legal entity within the auspices of the Louguantai Forest Farm with whom it shares staff and 

land 

114. The Center is open to visitors. With no single focal point for promotion and marketing, visitor 

numbers are low, as is the entry fee, at CNY 30 per adult. 

115. The Center is managed by two Vice Directors, responsible for Science Research and 

Operations. Staff are based in five organizational groups: (i) Breeding Management Division 

(primarily panda); (ii) Ibis Management Division; (iii) Endemic Disease Division; (iv) Research and 

Dissemination; and (v) Secretarial. Present staff numbers total 40 people, including 18 professional 

staff. However, this understates the effective staff numbers since many functions, including 

accounting, human resources, construction, police, communist party affairs and labor association, are 

all shared with the Forest Farm. Relative time allocations between the two Divisions have not been 

assessed. 

116. The staff numbers originally proposed by SARC for future operations increased the number 

of professional staff from 18 to 39. Senior SARC staff feel that research workers should represent 

about 33% - 50% of total staff. The PPTA suggests that the real determinant should be the rescue, 

breeding and research targets themselves, while for other operations the cost driver will be the 

number of animals (which will also determine fodder production requirements) and visitor projections. 

14 

Under this arrangement, the Daoist Temple receives CNY5 out of the entry fee of CNY30 to enter the 

Louguantai Forest Park. 

15 

This and the next proposal on the hot springs development involve expansions and/or first or second phases 

of existing facilities. The project cost and financial analysis for these two investments have emphasized 

identifying and separating new from previous capital costs, current operating costs and current revenues to 

ensure e.g. that the Project is not being asked to finance investment costs that have already been incurred 

and that the capital costs, operating costs and revenues actually apply to the phase being considered for an 

ADB Loan. Similar approaches are applied to other proposals. 

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Initial proposals for the proposed venture omitted all reference to marketing and promotion; visitor 

services etc, on the basis that this would be sub-contracted with financial costs included for this. A 

revised staffing estimate developed by key SARC staff, and which still requires further refinement and 

additions, is given below: 

Table 10: Revised Staff Estimate 

Initial Plan Revised 

Number Designation Number Comments 

44 Keepers 

12 Researchers 8 

15 Rescue, Disease and Animal Hospital 12 Currently 4 in animal hospital 

9 Secretary / Management 4 

12 Safeguard managers 12 

7 Visitor Welcome and Education 6 

29 Other 

Includes Chief Executive; Director 

Research and Breeding; Director 

Marketing and Director Operations 

and Administration. 

Panda staff 50 16 Currently 12 for 11 Panda 

Ibis 10 For 300 Ibis – as at present 

Golden Monkey 10 40 Monkey 

Tarkin 8 

Other animals 10 

128 Sub total 38 (Compare 44 in original plan) 

Other Functions 

Animal Food production ? 

Maintenance ? 

Entry Gates 16 

Not considered. Likely to be 

purchased from Forest Farm, who will 

operate these facilities 

Parking - Self Regulating or contracted 

Gardeners ? 

Marketing Liaison 

17 

1 

Services to be provided by Shaanxi 

Province Tourism 

Catering and ancillary services ? Contract? 

Monitoring 2 To be part of Research 

Finance, Administration and Payroll ? 

Human Resources ? 

Management Information Systems ? 

Purchasing and Stores ? 

Secretarial ? 

Construction Oversight 2 Temporary positions 

128 151 + ? 

Source: SARC discussions 25 June 2007 

117. SARC is registered with the Government Affair Unit Registration Bureau of Shaanxi as an 

independent legal entity. The following mandates are assigned to the SARC: 

� provide service for rescuing, raising, research and protection of treasured and 

endangered wild animals. 

� work within Shaanxi province. 

16 Based on 60 panda 

17 Senior SARC staff have queried whether this position is necessary. In the opinion of the consultant it is vital 

that at least one representative of SARC with responsibility for a commercial focus.



� rescue endangered wild animals on the national protection animal list. For raising and 

breeding wild animals on national protection animals list, a permit has to be given by 

the Forestry Bureau. SARC has this permit. 

� raise, breed, research, and raise public awareness of these animals. 

� conduct activities of using these animals for development purpose. 

� establish a joint venture or establish a commercial company for development 

purposes. 

118. SARC currently has an animal hospital and laboratory and has on the current 140ha site 440 

animals of 29 species, of which 349 are class one state protected animals, including: 12 panda 

(including the 2 currently off-site), 257 crested ibis, 19 golden monkey, and 24 takin. There are also 

60 state protected animals of class two and 31 other kinds of animals. SARC reports that the Center 

has already saved 2,300 animals, including 35 Giant Panda and that is has established cooperative 

relationships with wild animal protection agencies in America, Japan, Germany, Australia and 

Belgium. 

119. The animals in the center are open to public viewing with provision of extension information 

while SARC may collect entry tickets. SARC is empowered to borrow for establishment of facilities 

within its mandate. It has the right to repay the loan from the revenue generated through their 

commercial activities. 

120. SARC shares an accounting office with Louguantai Forestry Park and Louguantai Forestry 

Farm, however SARC accounting system to manage its revenue is not the same. The PPTA Financial 

Governance assessment concluded the current accounting system of SARC is not adequate to meet 

the requirement of ADB loan management. It is suggested that SARC needs to be able to use the 

Capital Construction Accounting Guideline. 

121. SARC uses forestry land area of Louguantai Forestry Farm provided its use is consistent 

with the stated mandate. This is the case for the proposed satellite areas where this involves 

Louguantai Forest Farm land such as the Ibis center. It is eligible to use the forestry farm’s land to 

establish an exhibition zoo and education center but requires approval to use the land for other 

construction from the Forestry Department and Land Management Department. 

122. The current site involves approximately 140.7 ha, with a core area containing the animal 

pens covering 6 hectares that are open to the public. However, the site has not been actively 

marketed and current paid attendance is only 30,000 in a typical year with less than CNY10 million 

based revenue based on an entry fee of CNY30. 

123. SARC will have several activities under the project. The Giant Panda Breeding Center, Ibis 

Breeding Center and Animal Rescue Center will be constructed in the project using ADB loan funds. 

The exhibition and education center and other breeding centers will be started during the ADB Project 

to ensure they are brought up to international standards. SARC will need to obtain the land user rights 

for construction by land acquisition and change forestry land they have user right on to forestry 

production construction land. 

124. Louguantai Forestry Farm has a forestry right certificate issued by Zhouzhi Land Bureau to 

confirm the land area of 37,163 hectare which is owned by the state and LFF has user rights. SARC 

shares the whole land area with LFF. The land used for the construction of SARC is 971 ha in phase 

one, out of which the center has the user right over 962 ha. It will need to acquire 9 hectares of 

collective land which is currently contracted to 30 households and 125 individual farmers – a full set of 

resettlement costs and compensation is included in the FS and costings. No basic farming land is 

involved . A pre-checking report from provincial level land authority is required to confirm the land 

quota availability when submitting the feasibility study for approval. 

125. The resettlement report prepared by SARC has been reviewed. It is fully consistent with the 

law and regulation. The compensation standard is at the high end of the legal allowance and local 

practice. The remaining project activities will be constructed on forestry land where SARC has existing 

land use rights. After the plan for giant panda breeding center and Ibis breeding center is approved, 

SARC will need an approval from Shaanxi Forestry Department to using forestry land for construction. 

126. The SARC investment analysis focuses on phase one through to 2012 involving ADB loan 

financing. 

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c. Investment Outcome 

127. The expansion, modernization and enhancement of SARC to international standards is 

intended to: (i) significantly increase the personnel and material investments made in wildlife 

protection in Shaanxi to improve animal welfare and the survival rate of rescued animals; (ii) rescue 

endangered animals more efficiently and provide a better natural environment for the animals that are 

raised on site; (iii) develop a high-quality site for eco-tourism that meets the needs of the modern, well 

informed and highly demanding tourist and increases public awareness and support for the rescue, 

breeding, science, research and public awareness functions of the SARC; (iv) conduct scientific 

research on wild animal conservation and expand cooperation, information exchanges and 

partnerships with similar agencies in China and abroad; and (v) distribute information and knowledge 

on wildlife conservation to promote greater harmony between animals and people. 

128. The investment targets a number of existing problems with the SARC facility including 

inadequate rescue equipment, atrocious levels of animal welfare due to the small size and poor layout 

of the current animal exhibition area, animal pens that are overcrowded and well below international 

standards, shortage of research equipment, and weaknesses in technical capabilities. 

b. Conservation Objectives 

129. It is widely accepted that ex-situ facilities working with wild animals, especially those in range 

states, can and do play a significant role in animal conservation. This is supported by the Convention 

on Biological Diversity (Article 9) through the national biodiversity strategies and action plans, and by 

the IUCN in the Technical Guidelines for the Management of Ex Situ Populations. It is recognized that 

each of the four Missions for SARC has a conservation outcome. Rescue and rehabilitation, 

conservation (captive) breeding, scientific research and education all contribute to the conservation of 

endangered and threatened species as well as many other species. 

I. Reintroduction 

130. Reintroduction is often seen as an extension of conservation breeding however it is essential 

that the true role of reintroduction in animal conservation is understood for this programme. Species at 

risk of extinction have undergone, or are experiencing, a dramatic decline in population size which is 

driven by a number of factors influencing those wild populations. Often the complexities of the factors 

driving the species towards extinction are not fully understood so establishing a secure population of 

the species in a captive environment is crucial. Even if an ex-situ population thrives reintroduction is 

not necessarily recommended or required. Surplus animals do not justify reintroduction. The key 

conservation activity is to remove the threat to the wild population and allow it to recover naturally. If 

an extinction (local or global) has occurred and there are specimens available in captivity then 

reintroduction may be feasible if, again, the threat has been removed. 

131. The two 2 “flagship” species in the Qinling Mountains, the giant panda and the crested ibis 

the crucial activity at the centers is to ensure a secure a genetically viable population of each species 

is held in the centers. If and when it is considered necessary to reintroduce either species to the north 

slopes of the mountains, specimens are available for the programs. 

132. A crucial role for SARC for these species will be to use the exceptional facilities at both the 

satellite centers and at the main center to investigate the science of reintroductions and to contribute 

to the understanding of the biology and behavior of the species. This will allow detailed plans for 

potential reintroductions to be developed if required. Using the new facilities it may be possible to 

develop a model for reintroductions which can be tested in a semi free-ranging situation. 

133. Although reintroductions of the crested ibis are underway it is considered unlikely that it 

would be possible to release ibis at or near the satellite center because of the nature of the land 

conditions in the area and the type of agriculture practiced. However it might be possible to find a 

suitable location and the center staff should take the lead in this investigation. 

134. SARC can also investigate the status of other species in the project area or the mountains 

and determine the conservation actions required for each species deemed to be at risk (see 

Conservation Priority List). For some species establishing an ex-situ population could be seen as 

appropriate either as a safety net or to enable the species to be studied in a suitable environment.



Developing a program of conservation breeding for a number of model species could be worth 

considering in the future. 

135. IUCN is widely recognized as the leading non-governmental conservation organization in the 

world which, as such, produces policies and strategies to encourage and guide conservation activities. 

It is recommended that any release program developed in the project area adhere to the IUCN 

Reintroduction Guidelines available on the IUCN website. 

c. Investment Output 

136. To improve and strengthen the rescue and breeding work of rare wildlife, the SARC 

investment will: (i) enlarge and enhance the rescue, breeding, research and other necessary facilities, 

(ii) establishing satellite sites for breeding of endangered species in different parts of the Project Area, 

(iii) actively adopt new approaches and technologies, and (iv) construct a high quality modern, 

ecological institution that represents best practice in China and meets international standards for exsitu 

conservation, endangered species management and develops systems for potential controlled 

release. 

137. The SARC expansion and modernization is intended to capitalize on the significant growth in 

tourism particularly in niche eco-tourism market segments. Visitation will also be encouraged from 

urban residents of Xian and southern Shaanxi to financially and technically support SARCS main 

objectives and functions. By focusing on the Qinling Mountains rare and globally important animal 

species and providing facilities of international standard that meets GEF and ADB requirements, 

SARC will offer a more attractive option for general tourists and for biodiversity enthusiasts compared 

with the Xian Wildlife Park which operates successfully since it opened in 2004 18 . 

138. The investment will greatly enrich the “Louguan Experience”. The linkage of Louguantai as 

the birthplace of Daoism with the SARC provides the opportunity to view two of the world’s most iconic 

fauna, the giant Panda and Crested Ibis along with Daoist experiences provides a unique opportunity 

especially for international clientele. The interest in the giant Panda is worldwide, and holidays 

specifically to view the panda can now be arranged from most European countries and North America. 

Because of the rarity value of the animal, these holidays are sold at premium rates. International 

tourists are increasingly being offered mixed cultural and wildlife tours but none that specifically target 

Xian. 

139. These options allow tourist companies to offer holidays which meet a wide variety of tastes. 

Many tourist offers currently available link a visit to Xi’an with Giant Panda experiences at either 

Wolong or Foping 19 . At present, SARC does not feature as a place to visit. The close location of SARC 

to Xi’an, gives a strong advantage to the Louguan site. Unlike Wolong (breeding centre) or Foping 

(wild viewing), access to the SARC is easy – an hour’s drive from Xi’an -- thereby allowing visitors to 

view the Giant Panda at the SARC within one day with minimal time spent traveling. Longer Giant 

Panda experiences will be available through the QBCDA area “Wild Experience” through the ecolodges 

and through longer half-day experiences by day visitors to the QBCDA Giant Panda breeding 

center. 

d. Project Activities 

140. SARC will expand from the current 140.7 ha to 1,112 ha, through the development of areas 

adjacent to the existing site and to three satellite areas within the Louguantai Forest Farm. The Project 

will add 6,545 sq m to the existing 6,842 sq m of building. The current utilities and telecoms have 

sufficient capacity to support future expansion. 

18 In 2006, the Xi’an Wildlife Park had attendance of 1.5 million with an entry fee of CNY 80. While the Park is 

apparently a major commercial success, visits to the Park by PPTA Team members raised serious concerns 

regarding the care of the animals and the maintenance of constructed facilities at the Park. The Wildlife Park 

opened in 2004, its capital cost was CNY 390 Million, and has a land area of more than 130 ha. It is owned 

and operated by one of the seven subsidiary companies under the Xi’an Tourism Group Company, which is an 

SOE of the Xi’an Municipal Government. The SARC proposal is intended to set new standards in Xi’an, 

Shaanxi and the western PRC for animal welfare, maintenance of facilities and providing a quality tourism 

experience. 

19 See Annex 1 

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141. At Project completion, the number of giant Panda, Crested Ibis and Golden Monkey are 

expected to 80% of the planned numbers, while the forage production area will be more than 70% 

developed, rescue work in the field should service 80% of the total province and the survival rate 

should be more than 60%. 

142. Satellite Area 1 - The Giant Panda Breeding Center has been relocated to be two miles of 

the current SARC site in Hu-Bao valley.: This is a complex of animal enclosures and associated 

facilities within the project QBCDA area with the eventual capacity for up to 40 giant pandas which will 

be open to visitors. The pandas will be maintained in high quality landscaped and planted 

environments to encourage natural breeding in controlled conditions under observation. The additional 

space will enable the pandas to improve their levels of fitness. 

143. The work at the center will greatly enhance the knowledge and understanding of pandas in 

an ex-situ environment and enable scientific research to be undertaken in good quality facilities which 

will benefit the animals and staff in the future. 

144. The center will play an important role in the public awareness and education program for 

both the local communities and for domestic and international visitors, using giant pandas as the 

flagship species for the Qinling Mountains. Due to the nature of the site and the limited number of 

visitors to it, the education program will be supported by the main center in Louguantai. 

145. The center has the potential to act as a preparation site for pandas that need rehabilitation 

after a long period under care and to study the process of preparation of giant pandas bred at the 

center for reintroduction, utilizing the potential space availability and the natural landscape in the area. 

146. Some non-breeding and young pandas will be held at the main center in Louguantai in large 

naturalistic enclosures. The proposed site will need a full survey to assess the challenges for the 

construction of all the required facilities with minimal impact on the site. The detailed design should 

have the flexibility to consider the survey results and provide the required number of appropriate 

facilities. Minimum disturbance to the site is required so a landscape and plant expert may be 

advisable for the team. 

147. The detailed design should be guided by information gained from visits to other panda 

breeding centers e.g. Wolong, and from their experiences. Consideration needs to be given to the 

facilities available at the main center in Louguantai to avoid unnecessary duplication of buildings and 

equipment. It will be beneficial if the construction program can be developed to match the needs of the 

panda center population as it grows over the years. 

148. The proposal raises some concerns including: 

� The high number of pandas proposed for the location 

� Origins of current founder population and Qinling sub-species issues 

� Natural reproduction in captive pandas 

� Sourcing new founders to reach target 

� Need for a provincial conservation program for giant pandas considering ex-situ roles 

� The need to ensure giant pandas are on view to the visitors through good 

management program 

� The scale and number of the facilities needed to support the center which could 

damage the site 

� Will the individual enclosures be large enough to prevent complete destruction of the 

plant base? 

� Are there any poisonous plants in the enclosures that could present a risk to the 

pandas? 

� The impact on the river through the construction work or the development of small 

dams and potential damage to the river system in the valley if dams are built 

� The expertise of staff to manage pandas in these new facilities 

� Relatively remote location for staffing 

� Management in winter and adverse weather conditions 

� Visitor access and security 

� Are there risks from wild animals in the area that might enter the site and the panda 

enclosures?



149. The following recommendations are provided for the design process: 

� Develop a model for the captive population of pandas for optimistic and pessimistic 

scenarios (already in preparation by SARC staff) 

� Assess the role of the center for the conservation of giant pandas in the QM 

� Prepare husbandry guidelines for giant pandas in the centers 

� Develop research proposals for giant pandas including investigation into natural 

breeding 

� Undertake a vegetation survey of the site 

� Critically assess management policy for center for the year 

� Consider phased construction to match the model 

150. Providing captive bred and rescued wild giant pandas with high quality environments in the 

QBCDA area is an excellent objective of this project however it is difficult to justify the high costs 

involved for the infrastructure, the management, the potential impact on the environment and the 

number of pandas to be held in captivity without a full understanding of the role of this project within a 

wider conservation program for the giant panda and the Qinling Mountain sub-species. 

151. With a small number of pandas breeding currently at the center it is not possible to meet the 

target population without taking giant pandas from the wild either as rescued animals or captured 

specifically for the breeding program. Without a full conservation action plan making this 

recommendation, bringing wild pandas into captivity cannot be sanctioned unless it directly relates to 

the individual wellbeing of any single panda. This plan will consider the concerns about fragmented 

populations, the current relatively low wild population, the sub-species issues and the need for a 

secure population in captivity which is genetically strong. 

152. The center can become an excellent site for: 

� rehabilitation of young and rescued pandas 

� research into the behavioral aspects of reintroduction 

� continued research into panda nutrition 

� research into other fauna and flora or the QBCDA area e.g. giant salamander 

153. The Project will develop 99 internal holding pens; 10 Panda nursery facilities; Panda feeding 

areas, 32 enclosures; a research facility; food store and processing room; and all support facilities for 

staff and effective management of the centre. The centre is currently proposed to be located in the 

QBCDA area will be a breeding and research centre and will use facilities and staff at the main centre. 

It is designed to provide the pandas with an excellent environment almost replicating wild conditions 

both in weather and habitat, presumably with the associated benefits to the health and breeding of 

pandas at the centre. The center will require investment into roading that will include a tunnel and 

includes a water supply and irrigation system based on damming the adjacent river. 

154. Satellite Area Two - Crested Ibis: The center will focus on wetland species with the crested 

ibis as the flagship for this threatened habitat. The facility will be centered on a breeding colony of 

crested ibis in one of the largest free-flight aviaries of its kind in the world. This will not only provide a 

spectacular environment for the birds and visitors but it will also be an invaluable tool in the 

reintroduction program for the ibis in the Qinling Mountains and elsewhere in China. The ibis will be 

able to develop their flying and feeding skills, developing an increased level of fitness as a result. They 

will breed naturally in the woodland area and forage in the artificial pools and paddy fields developed 

at the center. 

155. A wetlands education center will inform visitors of the importance of these special habitats 

and the impact of the loss or damage of areas through drainage, pollution and climate change. The 

artificial wetland will have the capability to attract wild species as well as exhibit other aquatic animals 

and plants from the region. 

156. The new center has the potential to set new standards of care and exhibition of crested ibis, 

providing a unique opportunity to learn more about the breeding and feeding behavior of this 

internationally important species, contributing invaluable information to their future survival across their 

former range. 

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157. Initially the wetland area will be established and allowed to establish before the center and 

bird facilities are constructed in a phased approach after the completion of the current Project. This will 

ensure the system is working and the water quality and quantity is good at the time of construction. 

Crested ibis will be held in standard breeding facilities and in a large aviary in the main center in 

Louguantai. 

158. The key to the success of the project is the large free-flight aviary. This has been reduced in 

area from the original concept but it will still be a major element of the center, perhaps covering up to 

1.5 ha. Information must be gathered from other projects using such aviaries to ensure the best 

materials and design approach are incorporated. Visits to one or two models will be required plus 

visits to the ibis centers at Yangxian and Ningshan. 

159. Because of the risk from avian influenza which could be brought into the aviaries by visitors it 

is recommended that an alternative route for visitors is designed to enable them to view the ibis 

without entering the aviary. 

160. Other species to be exhibited in the center need to be identified early in the design process 

and the scale and requirements for the visitor center must be clarified, meeting the level of visitor 

numbers anticipated. 

161. As the center will be reliant on water a study has to be carried out very early to ensure there 

will be a reliable source of water for the center in the future. Management systems for this water have 

to be considered both for the quantity and quality. The use of grey water can be explored. 

162. The development area is raised above the river which may be unstable once the area is 

flooded or the ground may not be able to support the superstructure for the net. This needs 

geotechnical investigation early in the design process and action taken to find a solution within the 

designs. The planting scheme and program for the wetland area is as important as the animals that 

will be featured. It is the planting and other landscape features that will set the scene for the ibis and 

attract wild species to the site. 

163. 

164. The current proposals raise the following issues that need to addressed during the detailed 

design: 

� Water availability and the impact of the center for the communities 

� Water quality 

� Water quantity required 

� Is it possible to source the best materials for the construction? 

� Maintenance of the aviary as well as the water-based buildings – funding and 

expertise 

� The acquisition of food for the ibis in the long term 

� Satisfactory management of the ibis in the flight area 

� The over-production of ibis and the financial impact of holding too many birds 

� Maintaining good data on the breeding program on SPARKS 

� The impact of the presence of other wildlife in the flight area 

� Biosecurity issues from wild birds and visitors 

165. The following actions are recommended: 

� A full survey of the site is needed to ensure it is suitable for the plans 

� A risk assessment should be undertaken for avian influenza or other diseases that 

might be an issue 

� A conservation action plan for crested ibis needs to be prepared identifying the role of 

the new center in collaboration with the IUCN SSC SIS Specialist Group 

� Center staff to work in Yangxian to develop management techniques for large aviaries 

� Husbandry guidelines for crested ibis at the new center need to be developed 

� Liaise with other ibis centers to analyze all breeding data (on PM2000) and make 

future breeding recommendations



166. Potential risks are identified as being: 

� The ibis have difficulty is adapting to the new environment initially 

� Water availability not sufficient to meet the needs of the project 

� Avian influenza 

� The appeal of this center to visitors being insufficient to meet targets 

� High maintenance costs 

� High food costs 

167. The proposed investment is considered to be excellent with considerable benefits to both the 

crested ibis program and the protection of wetlands in the Qinling Mountains. The scale of the project 

is now such that it is feasible if issues of materials, the location and water availability are addressed. 

The primary concern relates to the on-going management and maintenance costs of the site both of 

the ibis and other species and of the physical structures. To ensure these can be met a reliable and 

large visitor base is required. 

168. It is essential that the three main breeding sites in the Qinling Mountains use this project as a 

catalyst to work more closely, especially with a coordinated breeding program. This will maximize the 

space available for ibis, ensure the strongest possible genetic make-up of the population and minimize 

any negative effects of inbreeding. It will also ensure the best use of the resources available for the 

provision of crested ibis elsewhere in China and in other countries. 

169. Satellite 3 – Golden Monkey Breeding and Raising Base. The Golden Monkey Center will 

provide a centre of excellence for the husbandry of golden monkeys in an ex-situ facility. Natural 

groupings of golden monkeys will have a large natural environment in which to live year round 

providing the center’s research team with the opportunity to study group dynamics and other 

behaviors in a relatively accessible facility. 

170. Although the center is part of the wider conservation program for all biodiversity in the area 

the focus will not be on breeding but more to demonstrate best practice in the care of these primates. 

The center will inform visitors about the forest ecosystems in the mountains and the role of some of 

the key species in that environment. Primates are very popular with visitors mainly due to their 

complex social organization and the golden monkey is an excellent species to demonstrate some of 

the behaviors that maintain social structures. 

171. The scale of the facility will enable researchers to study the behaviors of the golden 

monkeys, providing information that could be useful in ensuring their future in the wild. This research 

can link to the study of wild populations in the project area. There are a number of very effective ways 

to contain large primates in semi free-ranging environments which need to be understood to assist in 

the final design utilized in this project. The use of electric fencing can be economical but local climatic 

conditions may create problems, especially with snow fall. 

172. It is proposed to construct 10 separate units but this number needs to be evaluated before 

final design taking into consideration the number of golden monkeys to be held at the center and the 

role of these animals in the future. A phased development may be considered. 

173. Smaller units may be designed with a complete cover of wire netting to provide a convenient 

and very suitable 3 dimensional space for the primates with a relatively small footprint. A prototype for 

this design can be trialed at the main center. 

174. All the areas must have access to inside facilities both for general management and for 

security. These areas will not be on view to visitors although viewing into one inside area could be 

considered within the design for maximum flexibility. Such facilities will include animal handling 

devices. The design and location of such equipment must be agreed by the husbandry team. 

175. The current design and animal husbandry issues include: 

� Sex ratio imbalance for the establishment of compatible groups i.e. too many males 

� Breeding management 

� Determining a suitable sized enclosure to avoid destruction of the habitat 

� The potential to provide golden monkeys to zoos nationally and internationally 

� The role of the center in the conservation of the species 

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176. It is recommended that SARC should 

� Investigate options for containing large arboreal primates through an international 

expert and site visits. 

� To develop husbandry guidelines for golden monkeys at the new center 

� To develop a protocol for the rescue and rehabilitation of golden monkeys 

� To investigate the potential to establish an all male group 

177. This facility provides the potential for a long term study into the social behavior of a little 

known species with the benefits to the management of the natural environment for the golden monkey 

in the Qinling Mountains. 

178. Rare and Wild Animal Rescue District. The Wildlife Rescue Center will be one of the key 

facilities in the main center at Louguantai fulfilling one of the major roles for SARC through the 

provision of high quality care for rescued wildlife and animals at the main center and in the satellite 

centers. 

179. The rescue center will comprise of a veterinary hospital, quarantine facilities, recovery and 

treatment areas, a research section and staff facilities. Equipment will be provided to ensure quick, 

safe and effective procedures can be implemented during rescue operations in the field and the 

transfer of animals to the center. This will reduce the complications experienced in the past and 

increase the survival rate of rescued animals. 

180. The research capacity of the center will enable the staff to gain more knowledge about the 

species held in SARC and wildlife brought into the center. This could be critical in the future care of 

these species and will provide more information on the causes of the problems encountered by wildlife 

in Shaanxi and in the Qinling Mountains in particular. A better understanding of the biology of the 

endangered species in the center will be invaluable in improving their husbandry and welfare. 

181. The rescue center has the potential to become a center of excellence in this work providing 

training opportunities for other wildlife professionals, both national and international. 

182. Appropriate staff from SARC should visit wildlife veterinary centers which have good 

experience in the field to acquire the latest advice on the design of wildlife hospitals and quarantine 

facilities. It is essential to identify the equipment needed to meet all the requirements of the center to 

ensure the designs enable there installation and effective use. 

183. The animal holding areas must be in a convenient but quiet location, they will need to be 

designed with a degree of flexibility in mind to accommodate a range of species and numbers of 

animals that might be handled at any one time. 

184. There will be the need to understand biosecurity systems and how to design and install 

suitable systems within and between the complex of facilities. 

185. Good vehicle access is needed that will enable animals transport to be easily transferred into 

and out of the center. Good power and water supplies are important and there will be a need for a 

separate drainage system for the quarantine areas. Good quality lighting and ventilation systems are 

essential in the hospital and research areas. 

186. The designs for the research facilities, where needed, will be driven by the research program 

and the needs of the staff to enable them to undertake the programs determined for the center. 

187. The following issues need to be addressed: 

� Staff expertise to maximize the use of the rescue center and to operate the equipment 

� Informing nature reserve of increased capacity to rescue wildlife 

� The center can become an important center of learning for students 

� Consideration should be given to incorporating an electronic library and developing 

access to this through a web-site 

188. The following recommendations are made for the animal rescue center:



� Develop training plan for key senior staff at the rescue center 

� Develop a protocol for the rescue and rehabilitation of wild animals 

� Develop a research program for the center 

189. This project will provide an excellent opportunity for SARC to develop a facility of 

international standards in the veterinary care of wildlife which will also support the important work of 

the rescue and rehabilitation of wild animals. Knowledge and information gained through formal and 

informal research undertaken at the center will be invaluable in developing techniques and skills in the 

husbandry of the endangered and other species at the center. With the addition of the experiences 

working with critically endangered species in the satellite centers, SARC will become one of the 

leading organizations in this field of wildlife conservation. 

190. The rescue center also has the potential to become a training center for wildlife vets and 

other professionals in the skills needed to rescue, capture and manage wild animals for conservation. 

191. Animal Exposition and Display Area: The senior management team at SARC recognizes the 

need to bring the center up to international standards and it is through this element of the program that 

this will be achieved. The center will become the major attraction for Chinese wildlife with the giant 

panda as the flagship species, however the many other species that will be on display at the center 

will add significant value to the site. Visitors will be able to observe Qinling Mountain species in natural 

habitats as examples of the tremendous biodiversity of this beautiful area. Most of the animals 

exhibited will have been rescued but in the future there will be some new species brought into the 

center as part of a conservation program that require ex-situ breeding or research on aspects of their 

biology. 

192. Ultimately all the animal and support facilities will either be replaced or upgraded over a 

relatively short period to ensure international standards for animal housing are achieved as quickly as 

possible. For all species improvements will be made, where required, in the husbandry and care of 

those species which will also be to international standards. Some of these objectives will be achieved 

by developing the skills within the staff but for some species major improvements will be necessary in 

both the facilities and the husbandry. 

193. Although satellite centers will be constructed for giant pandas and crested ibis, these species 

will also be displayed in the center because of their popularity and to inform visitors of the specialist 

centers in operation. Visitors will have access to the golden monkeys and takin exhibits from the 

center. 

194. Landscaping and planting will be a key element of the site development providing a pleasant 

and relaxing environment for visitors with the benefit also to staff and the animals. 

195. The senior SARC staff will develop an institutional collection plan that will identify all the 

species to be kept long term at the center. This plan will then drive the master planning process and 

then the detailed design. Other major buildings and support facilities (Education Center, Rescue 

Center, administration, etc) will be then be incorporated into the master plan. 

196. Husbandry guidelines produced by center staff will identify the key elements required for 

each species which will assist the design team in the process of formulating the master plan and 

placing the species in the best locations. Consideration will be given to the movement of visitors 

around the site and service access to all buildings. 

197. It may be necessary to consider organized tour groups as well as standard day visitors within 

the master plan as groups may have a different requirement for and use of the site due to time 

constraints. Clustering the key species closer to the visitor center and developing a guided tour 

program may be worth considering. 

198. Within the planning process it is necessary to include the construction of the satellite areas 

where necessary (giant pandas) as this may influence the timing of the work and the capacity needed 

for that species on the site in the short and long term. 

199. The following issues are identified: 

� This is a large task, are funds sufficient to achieve the aims 

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� On-going investment and maintenance of the center will be necessary 

� Not everything can be done at once 

� Will funding be available to introduce new husbandry techniques at the outset? 

� There is a need to increase the staff capacity early in the process to achieve 

international standards 

200. During the detailed design the following steps are recommended: 

� Survey undertaken of the site 

� SARC staff to develop Institutional Collection Plan 

� Support facilities identified 

� International design experts identified 

� A business plan developed for the center that considers commercial opportunities and 

maintenance costs 

201. The scale of the new center will put considerable strain on resources during planning, 

construction and site preparation and management which could put at risk the successful completion 

of the project. The senior staff at SARC have done a great job to pull together a very exciting and 

ambitious plan for the center which can only compliment the plans for the satellite centers. Bringing 

forward the development of the animal exposition will enable the center to meet international 

standards early in the program, giving reassurance of success for the longer term program. 

202. The center has the potential to become one of the most important sites for biodiversity 

conservation in the province and nationally. The combination of wildlife rescue, conservation breeding, 

research and education on one site provides an unusual resource for visitors and wildlife 

professionals. It will support the National Conservation Strategy and Action Plan of the Convention of 

Biological Diversity. 

203. A center of this standard has the potential to attract international partners which could enable 

an exciting future for the center in their efforts for wildlife conservation. 

204. The following table summarizes the major activities based on the Chinese FS (May 2007). 

Table 11: SARC Description of Interest 

Major Activities 

1. Giant Panda breeding and raising base – to be located adjacent to the proposed Takin Satellite Area will have 

an area of 500 mu (33 ha) with slopes up to 20-35 degrees. Area offers a good natural environment, good 

vegetation, abundant water supply, a temperate climate and adequate space for breading and research – and fits 

the physical living conditions of Giant Panda in terms of landform, slope and so on. Being close to the road, the 

site as well has good access to transportation, communication and power supply systems. Officially listed as a key 

investment project in the National Government’s 11th FYP 

2. Crested Ibis breeding and raising base – to be located near Xilou Village, Louguan Township to the west of the 

current SARC site in the ex-situ Zone B on the west bank of the Jiyu River. Phase on is to be built on an area of 

300 mu (20 ha), which is a well-forested area on a 35 degree slope with 4 ha of flatland under the slope which can 

be rebuilt into wetland with irrigation facilities from the Jiyu River for feeding – and with little human activity and with 

convenient transportation. Already approved by the State Forestry Administration. 

3. Golden monkey breeding and raising base – to be located in the Dongguayu Valley to the south of the center; 

this area is a small valley of 15-25 degrees slope, with an area of 150 mu (10 ha), of which 90 mu are Chinese pine 

forest in the valley bottom and sides. The site is capable of raising 30 golden monkeys. 

4. Rare wild animal rescue district – where the saved and accepted animals are rescued, treated, quarantined, and 

cared for; district consists of the animal hospital and the rescue and quarantine center; the animal hospital is 

located in the northeast corner of the current center while the rescue and quarantine center is located in the 

northwest corner. 

5. Animal Exposition Area – where a limited number of non-breeding animals will be housed for public education 

and display purposes. The exposition area will be upgraded and enhanced to be the leading animal display site in 

China and will play an important role in providing a substantially higher income base for the QBNBG 

6. Phase one upgrade of existing animal exhibition area of 6ha to meet international standards 

7. Resettlement 

8. Environmental Protection 

9. Food/Forage Base – comprised of a plantation area for food for vegetarian animals like giant panda and golden 

monkey, and a feeding garden where food animals for Crested Ibis are raised.



10. Equipment and Instruments 

11. Vehicles 

12. Marketing and Public Education 

13. Staff Costs (Recurrent) – about 1.3% of base costs 

14. Technical Training 

15. Technical Consultancy 

16. Design and Surveying at about 2% of Construction and Engineering Costs 

17. Administration 

18. Detailed Design Costs 

Notes to Table 11: 

1. Recurrent costs are included in the SARC construction costs as staff costs. After 2010, based on the 

SARC financial projections, operating costs, including maintenance and overheads, will be covered by 

SARC revenues. 

d. Revenue Projections and Financial Analysis 

205. The projected attendance figures are based upon the assumptions in Table 12 and include a 

10% factor for nonpaying or official visitors due to the iconic nature of giant Panda and the Crested 

Ibis. 

Table 12: Assumptions for Visitor and Revenue Projections 

The attendance for the three attraction in 2011 is 280,000. 

In the first 5 year period from 2011 to 2016, the annual growth rate peaks and decreases gradually. 

The attendance of Crested Ibis in 2010 is 266,000. 

10 % of tourists will be free guests 

Panda Entry Fee 55 CNY 

Crested Ibis Entry Fee 50 CNY 

Golden Monkey Entry Fee 30 CNY 

206. The SARC Design Team projects attendance to start at a fairly low level and then to grow 

quite rapidly through the early years of the projection period. Therefore, this attendance forecast is 

used for the analysis. However the SARC prices were adjusted downward to be consistent with 

market studies to be consistent with market research and to provide a conservative base to the overall 

assessment. The SARC strategy envisages that all visitors to the SARC Animal Exhibition Center/Zoo 

would also visit the breeding centers for the three species and the animal exposition center. Visitation 

numbers are presented in Table 13. 

Attendance 

Table 13: ARC Visitor and Revenue Projection 

2010 2011 2012 2013 2014 2015 

Attendance 280,000.0 336,000.0 403,200.0 463,680.0 519,321.6 

Growth Rate Yearly 20% 20% 15% 12% 

Panda 280,000.0 336,000.0 403,200.0 463,680.0 519,321.6 

Crested Ibis 266,000.0 280,000.0 336,000.0 403,200.0 463,680.0 519,321.6 

Golden Monkey 336,000.0 403,200.0 463,680.0 519,321.6 

Revenue (‘0,000) 

Panda (CNY50/ person) 1,386.0 1,663.2 1,995.8 2,295.2 2,570.6 

Crested Ibis�CNY50 /person� 1,197.0 1,260.0 1,512.0 1,814.4 2,086.6 2,336.9 

Golden Monkey (CNY30/person� 0.0 907.2 1,088.6 1,251.9 1,402.2 

Total 1,197.0 2,646.0 4,082.4 4,898.9 5,633.7 6,309.8 

35

36 



207. The investment into SARC is presented in Table 14 and total CNY215 million (USD28.3 

million) over a four year period with nearly 84% being civil works. 

Table 14: ARC Investment Costs (CNY ‘0,000’s) 

Item 


2008 2009 2010 2011 2012 

Fixed Asset 1207.9 7236.9 10843.4 589.9 

Civil Works 1199.7 6425.4 10549.3 555.9 

Equipments 8.2 811.5 294.1 34.0 



208. The forecast financial cashflow before and after tax is presented in Table 15 with the FIRR 

before tax estimated to be 15.9% and the after tax FIRR 13.5% both of which are well above the 

enterprise WACC of capital. 

Table 15: SARC Forecast Cashflow and FIRR (CNY ‘0,000) 

Item 2008 2009 2010 2011 2012 2013 2014 2015 

0 0 1131 2500 3858 4629 5324 5963 

Revenue 0.0 0.0 1197.0 2646.0 4082.4 4898.9 5633.7 6309.8 

Sales Tax(5.5%) 


0.0 0.0 65.8 145.5 224.5 269.4 309.9 347.0 

Cash out 3496.7 8959.2 13249.2 2524.4 2015.0 2015.0 2373.1 2351.2 

Investment 2474.0 7368.0 11395.0 589.9 

Operating cost 

Working capital 

1022.7 1591.2 1854.2 1934.5 2015.0 2015.0 2373.1 2351.2 


Cash in without project 218.9 218.9 218.9 218.9 218.9 218.9 218.9 218.9 

Cash out without project 185.7 185.7 185.7 185.7 185.7 185.7 185.7 185.7 

Net Cash Flow without project 33.2 33.2 33.2 33.2 33.2 33.2 33.2 33.2 

Net Cash Flow Before Income Tax with project -3529.9 -8992.4 -12151.2 -57.2 1809.7 2581.3 2917.5 3578.3 


FNPV Before Income Tax at 10% 18085.0 

Income Tax 0.0 0.0 0.0 0.0 278.8 471.6 555.7 720.9 

Net Cash Flow After Income Tax with project -3530 -8992 -12151 -57 1531 2110 2362 2857 


FNPV After Income Tax at 10% with project 9605 

209. The Financial viability was tested for movement in cost and revenues - see Table 16 - and 

found to be robust under scenarios involving 20% movement of current projections. The proposed use 

of commercial management will reduce the risks attached to the commercial operation of the SARC. 

210. The incorporation of a 8% revenue charge for the conservation of biodiversity in the QBCDA 

reduces the after tax FIRR from to 13.5% to 12.8% and will generate $160,000 in year 2012. 

Table 16: Financial Analysis Sensitivity 




Operating Cost (10% up) 14.81% 15,621.1 12.56% 7,474 

Operating Cost (20% up) 14.20% 13,781.5 12.03% 5,970



Operating Cost (30% up) 13.61% 11,941.8 11.50% 4,466 

Revenue (10% down) 13.90% 12,076.8 11.75% 4,875 

Revenue (20% down) 12.26% 6,692.7 10.29% 773 

Revenue (30% down) 10.46% 1,308.6 8.70% -3,329 

211. The expansion and modernization of SARC to international standards with completion of 

Phase I and Phase II will further strengthen and diversify the Shaanxi and Xi’an tourism base and will 

provide a high quality tourism experience that, together with the Botanic Garden, the Louguantai 

Forest Park and other ex-situ facilities, will encourage visitors to the Project Area to spend the whole 

day there or to come back for a second day to the ex-situ sites. This will lengthen their stay and/or 

increase their spending in the city and province. 

212. Construction employment during the three-year construction period is estimated to be about 

3,800 person years or nearly 1,300 construction jobs on a full time equivalent basis each year. The 

expanded SARC site will as well increase the number of operating jobs provided to local people from 

the current number of about 40 (including casual employees) to over 200 positions after construction 

of both phases. This number will increase as the number of visitors and the SARC’s gross revenues 

expand through the projection period. Based on data earlier provided by SARC on its personnel and 

operating costs, the Team estimates that under the PPTA Team’s base case scenario, employment at 

SARC after construction of both phases, including staff servicing tourists, employees caring for 

animals and administrative staff, would likely be about 250 at start-up in 2011, and this number would 

likely increase to over 400 by 2020 and to about 500 in 2030. The expanded and modernized SARC 

facility will as well generate quite significant indirect or spin-off benefits through providing service and 

supply contracts to local companies and other suppliers of goods and services. 

213. Other benefits noted in the SARC FSR include: better care of and more healthy animals 

based on the breeding bases, animal hospital, rescuing and quarantine facilities, and the expanded 

research facilities and food/forage bases – leading through time to expansions in the population of 

rare Qinling wildlife. Better animal care, training and research to promote controlled release to the 

wild or semi-wild (to be funded perhaps in part under the GEF program) could further add to the 

benefits from the animal conservation work of SARC. This could be particularly important to Crested 

Ibis. The genetic resources associated with these rare animals will be better protected and utilized at 

project completion. 

214. Over the longer term, strong national and international interest in iconic Qinling animals such 

as giant Panda, Crested Ibis and Golden Monkey and SARC’s growing reputation for the rescue, care, 

breeding and release of these animals and for operating a well-known Animal Exhibition Area and 

Rescue Center to international standards. This reputation will generate significant funds from 

international NGOs and other donors (corporations, foundations etc.) to support the animal rescue 

center’s future activities and development. The project will provide technical support for the design 

process to ensure that the skills and experience within SARC and the international community are 

brought to bear on the detailed design. 

215. The economic cash flow for the period through to 2015 is presented in Table 13 which 

results in an EIRR of 17% based on the net cash flow for the with and without project. In reality the 

current center would be unlikely to survive past the short term given the low standards of animal 

welfare and the increasing public rejection of these standards. 

e. Implementation Arrangements 

216. The subcomponent will be implemented by the existing SARC government unit with equal 

status to a county level government for powers in its mandate. The government currently meets all of 

its operating costs. It has registered with Government Affair Unit Registration Bureau of Shaanxi as an 

independent legal entity. SARC will form a construction supervision team for the construction period of 

the Project. The commercial enterprise will be managed by an experienced tourism operation. 

217. SARC shares one accounting office with the Louguantai Forestry Park and Louguantai 

Forestry Farm. But SARC uses a different accounting system for its revenue. According to the PPTA 

Financial Governance Report, the current accounting system of SARC is not sufficient to meet the 

37

38 



requirement of ADB loan management. It is suggested that SARC needs to be able to use the Capital 

Construction Accounting Guideline. 

218. SARC shares the forestry land area of Louguantai Forestry Farm that holds the land use 

rights. It is entitled to use the land within in their mandates. It can use the forestry farm’s land to build 

a Giant Panda Base and Ibis Base. It is also eligible to use the forestry farm’s land to establish an 

exhibition and education center but requires approval to use the land for other construction from 

the Forestry Department and Land Management Department. 

219. It is planned in the Qinling National Ecological Function Zone Plan that there will be 5 wildlife 

rescue centers established under the plan. SARC is the first one established in the province and is 

considered part of the Ecological Function program. SARC is eligible to be a borrower of the ADB loan 

under the Project. It will implement ex situ activities some of which may be located in the some 

QBCDA zone. 

220. SARC will need to adopt the Capital Construction Accounting Guideline to be able to handle 

the loan monitoring and repayment requirement. SARC proposes to contract a company to manage its 

tourism commercial activities including eco-lodges 20 – see Component two. The revenue generated 

from the tourism operation will be used to repay the loan. The animal breeding bases and extension 

and education center will serve as an important public awareness facility for wildlife protection. SARC 

will contribute its net revenue from tourism operation including eco-lodges to the eco-fund. 

e. Benefits and Beneficiaries 


Phase I will further strengthen and diversify the Shaanxi and Xi’an tourism base and will provide a high 

quality tourism experience that, together with the Botanic Garden, the Louguantai Forest Park and 

other ex-situ facilities, will encourage visitors to the Project Area to spend the whole day there or to 

come back for a second day to the ex-situ sites. This will lengthen their stay and/or increase their 

spending in the city and province. 



expanded SARC site will increase the number of operating jobs provided to local people from the 

current number of about 40 (including casual employees) to over 200 positions after construction of 

both phases. This number will increase as the number of visitors and the SARC’s gross revenues 

expand. 

223. SARC data on personnel and operating costs the estimates of employment at SARC after 

construction of both phases, including staff servicing tourists, employees caring for animals and 

administrative staff, is estimated to be 250 at start-up in 2011, and increasing to over 400 by 2020 and 

to about 500 in 2030. The expanded and modernized SARC facility will generate quite significant 

indirect or spin-off benefits through providing service and supply contracts to local companies and 

other suppliers of goods and services. 

224. Other benefits noted in the SARC FSR include: better care of and more healthy animals 

based on the breeding bases, animal hospital, rescuing and quarantine facilities, and the expanded 

research facilities and food/forage bases – leading through time to expansions in the population of 

rare Qinling wildlife. Better animal care, training and research to promote controlled release to the 

wild or semi-wild (to be funded perhaps in part under the GEF program) could further add to the 

benefits from the animal conservation work of SARC. This could be particularly important to Crested 

Ibis. The genetic resources associated with these rare animals will be better protected and utilized, 

and the project after completion of phase one will add 1,500 ha of forest and greenland to the Project 

Area –improving the microclimate, reducing soil erosion and water loss, and promoting biodiversity 

conservation. 

225. Over the longer term, strong national and international interest in the iconic Qinling animals 

such as the Giant Panda, Crested Ibis and Golden Monkey -- and the SARC’s growing reputation for 

the rescue, care, breeding and release of these animals and for operating a well-known Animal 

20 

PDRC have requested that the eco-lodges be removed from the Project financing as they can be funded 

through a private sector joint venture option.



Exhibition Area and Rescue Center in a manner that fully meets international standards -- would 

generate significant funds from international NGOs and other donors (corporations, foundations etc.) 

to support the animal rescue center’s future activities and expansions. 

226. Significant staff training is needed to ensure that these potential benefits are realized. 

Training funds in Phase I are modest and may need to be increased in detailed design. As well, 

training and capacity building should be expanded in Phase II to improve existing skills and bring in 

new skills – with some of the Phase II training brought forward to support phase one development. 

Phase II design should as well address staffing and recruitment to ensure that all of the SARC’s long 

term personnel needs in management, long-term corporate development, tourism services, animal 

care, education, public awareness, communication and fund raising, are fully met. Many models for 

staffing, recruitment and training are available from existing zoos in many parts of the world. Some 

international travel to these sites should be included for key staff in the Phase II design and costing. 

Training requirements are further explored in the next sub-section. 

227. As would be expected from the financial analysis, the economic analysis provided favorable 

economic results. The economic internal rate of return (EIRR) for the PPTA team’s base case is 

14.5%, which is well above the benchmark EIRRs of 10% and 12% used in the economic analysis. 

3. Proposal for Phase II of the Hot Springs Development Center in Louguantai 

a. Overview 

228. The Hot Springs proposal finances Phase II of its construction program for the development 

of the hot springs site within the Forest Park and adjacent to the existing Animal Rescue Center in 

Louguantai. The hot spring development – which is called the Shaanxi Louguan Daoism Hot Spring 

by its owners -- covers an area of 160 mu, and is adjacent to the entrance to the Forest Park. The first 

phase of construction began approximately one year ago and is scheduled for completion in October 

2007. The first phase involves development of the hot springs plus a 200 room hotel facility. 

229. The second phase, which is the subject of this proposal, will add villas and bungalows for 

high income tourists as well as an eco-restaurant for use by both hotel and villa visitors as well as day 

visitors. Facilities at the development are being designed based on the Daoist architectural tradition. 

The project proposal was submitted by the Shaanxi Louguanfudi Travel Development Company 

(LGFD). LGFD is a joint venture of the Shaanxi Tourism Group Corporation (51%) and Shaanxi 

Louguantai Experimental Forest Farm (49%). For this development the Tourism Group provides the 

financial capital and the Forest Farm provides the land. 

b. Investment Outcome 

230. The proposed investment is designed to: (i) improve leisure tourism services in the 

Louguantai area; (ii) promote the development of the tourism industry in the Project Area; (iii) stimulate 

the growth and development of related industries in the Project Area and Zhouzhi County; (iv) provide 

a multi-purpose tourism facility that appeals to various tourism groups at different levels of income; 

and (v) promote understanding of the Daoist culture and religion. Based on this hotsprings project in 

Louguantai, LGFD is committed to integrate the tourism resources of Louguantai National Forest Park, 

expand its attraction to a larger number of tourism groups, and construct a new Culture Tourism 

District that relies largely on the market provided by the metropolitan Xi’an area. 

231. The Hot Springs development is a complementary attraction for the “Louguan Tai 

Experience” as firstly it will provide accommodation services for longer stay visits to the area. It 

provides its own specialized niche market (health tourism), and it provides an add-on service within 

the Phase II development by providing day access to the swimming facilities. A full one day ‘package’ 

can be offered which provides a wildlife-culture-recreation experience. Consultation with the Shaanxi 

Daoist Association indicated as well a potential linkage between the Hot Springs and the Daoist sites. 

The Association had discussed with the Shaanxi Forestry Bureau the potential to use the hot springs 

in Louguan to develop a bathing facility that would allow Daoists to bath and cleanse themselves 

before going to the Louguantai religious sites. This is an important part of the Daoist religion. 

39

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c. Project Activities 

232. Phase II of the Hot Springs Development encompasses the construction of 18 multi-room 

villas of various sizes and villa rates for tourists –all geared to the high-end market, the construction of 

an eco-restaurant for both Hot Springs guests and day visitors and supporting infrastructure, including 

a parking lot. The construction period in their FSR is 2007-2008 but in the project costing and 

financial analysis, the Team has assumed 2008-2009 for construction with operation beginning in 

2010. 

233. The detailed activities are presented in Table 17 below. 

Table 17: Hot Spring Development Project Costs 

Activity 

Villa A: 8 villas, each are 310.29 sq. m. in size, total cost per villa – including fittings, furniture, electrical 

appliances, and utensils – of CNY 1,090,775 (USD 143,523) 

Villa B: 6 Villas, each are 308.25 sq. m., total cost per villa is CNY 1,095,083 (USD 144,090) 

Villa C: 4 villas, each are 379.06 sq. m., total cost per villa is CNY 1,195, 050 (USD 157,243) 

Eco-Restaurant 

Bathing Pool 

External Pipe Network 

Infrastructure – Boiler Room, Cooling and Heating, Air Conditioning, Power Supply, External Lighting, 

Communications, Security System 

Landscaping 

Within Site Roads 

Parking Lot of 12,000 sq. m. 

Vehicles 

Staff Training 

Other Fees 

Design – about 5% of Construction and Engineering Costs 

Supervision – about 2.0% of Construction and Engineering Costs 

Management Fee – about 3% of Construction and Engineering Costs 

Notes to Table 17: 

d. Revenue Projections and Financial Analysis 

234. The Hot Springs Feasibility Study provides detailed attendance, pricing and financial 

analysis for Phase II of the development to be partly financed by the Project. The Design team’s 

financial analysis used a discount rate of 12% as its benchmark FIRR, reflecting their commercial 

requirements. The construction period was assumed to be 2007-2008 and the operating period was 

assumed to be 15 years from 2009-2023. The PPTA Team altered these periods to 2008-2009 for 

construction and 2010-2035 for construction to be consistent with the Project. 

235. The operating income is generated from the 18 villas, based on 70% occupancy in each year 

and different daily rates for the villas as follows: Villa A – CNY5,800 per day ($763); Villa B – 

CNY4,800 per day ($632); and Villa C – CNY3,800 per day ($500). The daily rates are based on the 

villa and not the number of people. There will be five bedrooms per villa, and the number of people 

staying over night will normally be 5-10, with a maximum of 12 overnight visitors. Therefore, when ten 

people are staying over night – two people per bedroom, the daily rate per visitor would be between 

CNY380-580. However, even if only two rent the villa for the night, the daily rate will be the same. 

236. Additional revenues are generated from the eco-restaurant and from parking. Ecorestaurant 

revenues are generated from over-night visitors to the villas and hotel (constructed in phase 

one) and from day visitors for bathing (50% of visitors at CNY30 per day visitor) and sightseeing (20% 

of visitors at CNY20 per head). The cost of sales ratios employed by the Hot Springs Design team for 

lodging, the restaurant and parking are for the most part very consistent with the ratios identified in the 

independent research by the PPTA Team. The HS Design Team analysis assumed the same 

revenues and costs for every year of operation.



Table 18: Assumptions Used for Revenue Projections 

Item 

Hot Spring Residential 

Unit 

Price 

(CNY) 

Capacity Occupancy 

Rate Daily 

Villa-A 5800 8 70% 5 

Villa-B 4800 6 70% 4 

Villa-C 3800 4 70% 3 

Catering 

Tourist guest 20 2000 20% 400 

Bathing guest 30 600 50% 300 

Parking 

Car 5 200 50% 100 

Bus 10 100 50% 50 

Daily 

guests 

237. As the investment is building on the existing development the capital construction and 

investment is expected to be complete within a construction period of one year and that the occupancy 

and therefore revenue forecasts be achieved one year following. Based on these projections the total 

revenue per year is approximately CNY30 million ($4 million). The investment costs for the proposal 

are estimated at CNY65 million – see Table 19. The mix of costs differs from the other two enterprises 

with far greater investment into the equipment budget line to outfit the villas, pool and restaurant. 

Table 19: Hot Springs Investment Costs (CNY ‘0,000’s) 

Item 


2008 2009 2010 2011 2012 

Fixed Asset 5,525.9 0.0 0.0 0.0 

Civil Works 3,202.0 

Equipments 2,323.9 

Intangible Asset 643.5 

Total investment 

B: Economic Costs 

6,477.9 

Fixed Asset 4,184.9 0.0 0.0 0.0 

Civil Works 2,954.8 

Equipments 1,230.1 


Total investment 5,016.9 

238. The financial forecasts are presented in Table 20 which highlights the strong cash-flow 

forecast which results in a FIRR before tax of 13.7% and after tax of 10.9% both above the WACC 

however the after tax operation is lower than the commercial hurdle of 12%. The enterprise has 

accepted this rate of return however that will require the construction timetable to be fully met. 

239. The incorporation of the revenue sharing agreement based on the Louguantai Forest Farm 

capital share of 49% of the percentage applied to the Qinling Botanic Garden. Based on a 8% NCF 

transfer will provide an annual transfer of $42,000. Including this in the post tax NCF reduced the 

FIRR from 10.9% to 10.4%. 

Table 20: Hot Springs Financial Cash Flow Forecast 

Item 2008 2009 2010 2011 2012 2013 2014 2015 

Cash in 0 2,640 2,640 2,640 2,640 2,640 2,640 2,640 

Revenue 0 2,794 2,794 2,794 2,794 2,794 2,794 2,794 

Sales Tax(5.5%) 0 154 154 154 154 154 154 154 

41

42 




Cash out 6,766 1,663 1,644 1,644 1,644 1,644 1,787 1,778 

Investment 6,478 0 0 0 

Operating cost 288 1,663 1,644 1,644 1,644 1,644 1,787 1,778 

Net Cash Flow Before Income Tax -6,766 977 996 996 996 996 853 861 


FNPV Before Income Tax at 10% 1,916 

Income Tax 0 157 162 162 162 162 126 128 

Net Cash Flow After Income Tax -6,766 820 834 834 834 834 727 734 


FNPV After Income Tax at 10% 450 

240. The FIRR is however quite sensitive to changes in costs or incomes suggesting that the 

Project needs to be closely assessed in terms of the assumptions that are applied. Central to these 

are (i) the construction period and the need to avoid delays, (ii) the occupancy early in the project life, 

(iii) demand for the day visitation services. 

Table 21: Hot Spring Financial Analysis Sensitivity 




Operating Cost (10% up) 10.89% 460 8.67% -649 

Operating Cost (20% up) 8.03% -997 6.34% -1,748 

Operating Cost (30% up) 5.00% -2,453 3.83% -2,846 

Revenue (10% down) 9.37% -317 7.44% -1,225 

Revenue (20% down) 4.68% -2,551 3.57% -2,900 

Revenue (30% down) -1.06% -4,784 -1.24% -4,575 

241. The Economic analysis is however somewhat stronger with a EIRR of 23.33 % suggesting a 

very good investment. Economically the investment is relatively insensitive to changes in revenues 

and costs. 

e. Implementation Arrangements 

242. The subcomponent will be implemented by the existing Joint venture between LFF and 

Shaanxi Tourism Department. Through its 51% ownership of the JV, the Hot Springs proposal brings 

considerable tourism development and management experience of the Shaanxi Tourism Group 

Corporation. The Shaanxi Tourism Group Corporation STCG is the largest single tourism stateowned 

enterprise in Shaanxi 21 . In 2000, the Shaanxi Province Branch of the Bank of China signed a 

deal with the Group to finance CNY1.8 billion ($218 million) of the Group’s major tourism investments 

over the next five years through to 2005. This Group was founded in 1998 as a state owned company 

with a registered capital of CNY3 billion ($36.14 million). 

243. The Group is an investment and capital management company authorized by the provincial 

government to engage in management and development of cultural and scenic tourism sites, travel 

services, star-class hotels, bus companies and other tourism products. In conducting these functions, 

the Group places an emphasis on servicing the tourism industry of Shaanxi Province – although the 

Group has as well invested in other provinces and cities such as Beijing. 

244. The Group and its subsidiary companies have engaged in a variety of tourism services 

including dining, accommodation, travel agencies, transportation, entertainment, and the management 

21 Information taken from: “Business Plan of Beijing Shaanxi Mansion Company Ltd. & Days Hotel & Suites 

Beijing & Regal Place Theatre Restaurant Chinese Cuisine House”, February 1, 2005 (Available on the 

Internet).



of tourist sites. In fact, the STCG operates, has developed and/or manages the facilities of some of 

China’s most famous historical sites, in particular the Terracotta Warriors site in suburbs of Xi’an, and 

its subsidiary companies include some of the most profitable tourism enterprises in the province. The 

SPG Tourism Bureau provides the Group with policy advice and guidance but there are no financial 

and staff relationships between the Bureau and the Group. The Group’s funds are raised from 

commercial markets, with the exception of some smaller subsides from the SPG for specific purposes. 

245. As of 2005, the company employed more than 6,300 staff, 14 subsidiary companies, and 

had total assets valued at over CNY3.2 billion ($385.54 million). Company investments include the 

following: hotels -- Xi’an Hotel, Tang Cheng Hotel, Xi’an Oriental Hotel, Days Hotel & Suites (Beijing), 

and the Xi’an Hyatt Regency. (J/V project with a 35% interest); entertainment and dining -- Tang 

Dynasty Xi’an, Regal Palace Theatre Restaurant, and Chinese Cuisine House (Beijing); tourist sites 

and attractions -- Terracotta Warriors Museum, Hua Shan Mountain, Guan Shan Grassland, Hua Qing 

Palace, and the Fa Men Si Museum; and services -- travel services companies, tour bus company, 

and tourist souvenirs. 

f. Benefits and Beneficiaries 

246. A number of benefits are identified. The first beneficiary of this project is certainly the LGFD, 

which would achieve a significant profit through capitalizing on Louguantai’s tourism potential and 

Daoism culture resources. 

247. The local community would be the second beneficiary. The Hotspring project itself would 

provide considerable employment opportunities for local people. The employment during construction 

is expected to total about 1,060 jobs or 530 per year. The operating employment generated after 

Phase II start-up is estimated at about 230 by the Design Team, while employment for all three 

phases combined would be in the range of 550-600 in the early years – with further growth as day 

visitation expands to approach 1,000 by the end of the projection period in 2035. And it would further 

promote related industries in the Project Area to develop, via many different industrial linkages, 

providing more opportunities to be employed and/or self-employed for local community residents in the 

project and target areas. 

248. Both domestic and international tourists would also be able to benefit from this project. Apart 

from the traditional sightseeing tourism based on natural scenery and the Daoist culture, leisure and 

hospitality services would be offered to all kinds of high-end tourists who want a high quality leisure 

tourism experience and are prepared to pay for it. For middle class and low-end tourists, they would 

have more choices to relax, recreate and travel, especially for those from the metropolitan Xi’an area. 

249. The Qinling Botanical Garden and Animal Rescue Center would also be beneficiaries. The 

successful operation of the Hotspring project in the commercial sense would produce a strong positive 

externality for the tourism businesses at the ex-situ Botanic Garden and the Louguantai Rescue 

Center. The latter two institutions, which have less business experience than the LGFD, would benefit 

not only from sharing tourist flows with the Hotspring project, but because the Hotsprings facilities are 

complementary to other two attractions. 

250. Chinese Daoism Culture will benefit from repairing and/or rebuilding traditional Daoism 

temples and related construction and leisure activities that are part of this project. In addition, this 

project would also provide quite a good location and platform for all kinds of communication, education 

and related activity regarding the Daoist religion, study and culture at excellent facilities. 

251. Related industries in the Project Area and the metropolitan Xi’an area would become the 

beneficiary. The anticipated rapid growth of the Hotspring project would offer considerable space and 

opportunity for the development of local related industries, such as transportation, retail, restaurant, 

and manufacturing of tourism souvenirs and handicrafts. Based on the above industrial linkage effect, 

more people would be involved in the development process of Louguantai natural tourism and Daoism 

culture resources. 

252. As would be expected from the financial analysis, the economic analysis provided favorable 

economic results. The economic internal rate of return (EIRR) for the Hot Springs base case is 18.1%, 

which is well above the benchmark EIRRs of 10% and 12% used in the economic analysis. 

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g. Outstanding Issues 

253. To the extent that the Hot Springs development is a commercial success some portion of its 

net income should be allocated to conservation in QBCDA. The Hot Springs will be an important 

beneficiary from the bioresources and biodiversity conservation in the Qinling. In particular, many of 

its visitors are likely to be high income Japanese tourists attracted to Louguantai for the hot springs, 

the Daoist culture and especially the Crested Ibis. Failure to protect the biodiversity and cultural 

resources of the PA and Qinling will negatively impact the financial performance of the Hot Springs 

over the longer term. 

254. The Hot Springs Group will need to explore with the other ex-situ tourism facilities how best 

to contribute to the cooperative marketing of the “Louguan Tai Experience” in a manner that will 

benefit all of the proposed tourism facilities including the eco-lodges. The Shaanxi Tourism Group 

Corporation has much greater tourism marketing experience that the other facilities and therefore has 

much to contribute to the future marketing and commercial success of the Project’s tourism 

investments.



B. Detailed Description – Component 2: Improved livelihoods for the sustainable 

management and conservation of natural resources 

255. A detailed QBCDA strategy and supporting conservation and Livelihoods Report was 

produced – see Supplementary Appendix 2. 

256. The QBCDA investment program comprises two subcomponents being that target the 

QBCDA land area of approximately 40,000ha. The first subcomponent seeks to develop village 

livelihoods through forest based resources and small and medium enterprises from collective forest 

land estimated to be between 5,000 and 8,000ha. The second subcomponent seeks to improve the 

extent and quality of forest cover on the 32,000ha to 35,000 ha of State Forest Land managed by the 

Louguantai Forest Farm. The subcomponent structure is:: 

(i) Improved Village and Forest-based Livelihoods 

(a) Village Planning 

(b) Conservation Forestry Livelihoods 

(c) Small businesses to add value 

(d) Homestay Community Tourism 

(e) Infrastructure – Roads, water supply and energy 

(ii) Demonstration of Biodiversity Conservation 

(a) Forestry management for biodiversity habitat 

(b) Endangered species management planning for 10 species based on field 

research data 

1. Village and Forest-based Livelihoods 

257. Policy reforms in 1998-99 reflected in the land conversion and forest conservation programs 

effectively terminated many of the livelihood opportunities of the communities living in the Qinling 

Mountains. These opportunities were founded on forestry, non-timber forest products (NTFPs) and 

agriculture. The policies aim to recreate a forested or treed landscape and precluded use leaving 

many people without direct sources of income and increasingly reliant on ‘handouts’ from the State as 

compensation for converting land. For many the only option is to resettle voluntarily with associated 

costs that are often beyond the means of poor rural households. 

258. For many people living in the mountains, access to resources is limited. Unlike most other 

Provinces in China, Shaanxi did not allocate collective forest land to the communities. Furthermore, 

forest farms such as Louguantai Forest Farm are strictly policing the removal of products such as 

medical herbs from the area, further reducing traditional income generating activities. 

259. Balancing the needs of the communities with the overriding objectives of forest restoration 

and biodiversity conservation is the central theme to this sub component. The current management 

policy of excluding the community from natural resources cannot be regarded as sustainable policy, or 

in the best interests of wider conservation interests. National and international experience shows that 

working with local communities and encouraging the equitable use of resources can result in major 

environmental and conservation benefits. 

260. The objective of the sub component is the restoration of forest cover and natural forest 

habitats to support biodiversity conservation whilst enabling sustainable livelihoods to emerge. 

261. The investment will result in both biological and livelihoods outcomes. These are: 

(i) Biological 

� Habitat restoration to create a balanced forest structure based on the natural 

ecological systems and habitats of the project area. All age classes of tree are 

represented and in the medium / long term the forest will be allowed to revert to the 

natural process without human interventions (wild forest) 

� Explore the ecological consequences of past woodland management on habitats and 

to investigate the natural succession of trees and broader habitats; 

� Explore ecological effects of management for habitat improvement, including removal 

of inappropriate species and use various forest systems such as those of analog 

45

46 



forestry systems, silvicultural systems suitable for habitat restoration, low and middle 

forest systems for small timber production and conservation. 

� To understand and monitor the ecological processes and long-term dynamics of the 

forest system in the project area, the consequences of habitat restoration, the impacts 

of the various introduced silvicultural systems to the project area; 

� To replicate habitat restoration techniques and projects to the wider Qinling mountains 

based on lessons learnt. 

(ii) Community Livelihood 

� To create community managed forest areas based on continuous cover silvicultural 

management systems to meet timber and firewood needs of (in situ) local people, 

ecologically balanced forest habitats created where all age classes of tree are 

represented; 

� To introduce the concept of Analog or ‘forest gardens’ to extend range of NTFPs 

available for use by community members (medical herbs etc); 

� To introduce small timber systems to meet local needs such as firewood, and for 

limited sale such as wood crafts, bean poles etc, for example, production based on 

coppice / coppice with standards systems will be explored. 

� To replicate community livelihood forest management approaches to the wider Qinling 

Mountains based on lessons learnt. 

262. The subcomponent will target the Community Forest Land within the 16 QBCDA villages and 

private land converted under the Land Conversion Program (Grain for Green). The area to be 

managed totals 5,000ha. 

263. Forest restoration is a long-term operation. Achieving the natural equilibrium within the 

forest where the natural processes sustain a multi level forest without human intervention will take 

many years to accomplish. The Project will set the foundations for recreating natural forest lost 

through intensive logging, agricultural activities and other anthropogenic influences and put in place a 

system which will be able to continue through sustained investment. 

264. The success of the restoration process is dependent on the long term commitment of the 

Government of Shaanxi and its various agencies, most notably the Shaanxi Forestry Bureau, 

Louguantai Forest Farm and the 16 local communities. The creation and management of forests 

requires continued interventions especially in maintenance to ensure new planting survives and 

continues to grow. Abandonment of these operations at the end of the GEF funded component of the 

project will result in achieving very limited results towards the reconstruction of the forest habitats and 

therefore limited value from the GEF investment within the project area. 

265. Support for capacity building within the implementing agencies and local communities to 

ensure that the forest management process is understood and developed during the project life and 

beyond will be an essential element of this sub component, as will a commitment of the ‘lead’ 

implementing agency to ensure that the capacity building process continues and that the ‘lessons 

learned’ are communicated to the wider forestry, conservation and local communities in order that the 

process can be replicated both in the Qinling Mountains and elsewhere. 

266. It is proposed that the Implementing Agency be the proposed Biodiversity and Livelihoods 

division of QNBG (i.e., the existing Louguantai Forest Farm ). The Louguantai Forest Farm will be 

responsible for field and village level activities including working with SFD to provide scientific support 

and monitoring. 

a. Village Development Planning: 

267. The Village Forest sub component will integrate with the QBCDA strategy. Central to the 

strategy is village development planning and the community implementation of Village Development 

Plans (VDP). The village plans will identify community based forestry objectives with the development 

of livelihood activities and other social requirements. Under the VDP process 22 , there will be a social 

awareness and mobilisation process contracted to a NGO to develop the understanding of the 

22 

See Supplementary Appendix 2 for a detailed description of the VDP and the steps for implementation along 

with proforma planning worksheets



purpose of the Project activities. This will be followed by a process of developing a village 

development [plan using the 12 planning facilitators trained in the first year of the Project by the 

conservation forestry expert and with support a the NGO training contracts. The Plan will be 

completed over a 3 to 4 planning session at the village level and will include village and resource 

mapping, goals and objective identification, and the preparation of a forest management plan. The 

forest management plan will be developed by the Louguantai Forest Farm staff who will develop a 

conservation and forest livelihood plan. The first stage of this process will be for the NGO’s and 

planning facilitators to create a village forest committee that will over time be strengthened into a 

village forest co-operative. The committee will represent those interested in the forest management 

activities and will use the planning processes described in Supplementary Appendix 2 to develop a 

long term forest management plan. Contracts are available to fill data gaps or create surveys of land 

boundaries. Additional funds are provided for participation costs and the plan production costs. These 

funds will be channeled through the PMO and the Louguantai Forest Farm division based on the 

agreement reached between the planning facilitators and the village. 

268. There are three types of forests associated with Collective Forest Land – these are: 

� Community Collective Forest areas belonging to the village; 

� Firewood collection areas – 5 – 10 mu / household 

� Private land converted to forest under the Grain for Green Land Conversion Program. 

269. Each of the sixteen villages have areas of ‘Community Collective Forest’ however, to date, 

the Land Bureau has not issued a collective land certificate to confirm land ownership and certificates 

of ownership of community forests have not been awarded by the Zhouzhi County Forestry Bureau. 

This is the case for all villages within Shaanxi Province. The location of community forest are 

tentatively known by each village, but as they have no direct ownership for them and as villagers are 

not allowed to cut and make use of the timber, there is a disinterest in their future. Determining the 

areas of community forest and establishing official ownership is a precursor to the 

implementation of the QBCDA sub component. The SPG needs to clarify this before appraisal. 

270. The community forest may be managed either through the community as a whole, or as a 

co-operative. Under the first method, benefits from the forest are shared by the community as profits 

and invested in village based public goods. However, benefits are controlled by the village committees 

and not all community members may benefit since there is no direct ownership / responsibility for the 

forest by individuals. The second option is to provide direct benefits to householders in the village 

communities. The community forest can be distributed through sub division and user rights given to 

households to maintain and receive individual benefit from the areas they individually manage. Under 

this system the individual householders would be required to form a “village community forest cooperative” 

under the “Rural Specialized Industry Co-operative Act of PRC and prepare a “Community 

Forest and Resource Management Plan” to be jointly implemented. The Project proposes to 

distribute responsibility from the community to individual households in the QBCDA project 

area. 

271. In preparing the “Community Forest and Resource Management Plan” the following 

objectives will be included: 

� The plans will link directly with the QBCDA strategy plan objectives and individual 

“Village Development Plans”. 

� Community forest management will support the overall aims of reconstruction of the 

natural forests habitats; 

� Silvicultural management systems adopted will be based on ‘continuous cover 

system’. 

� The management plan will include development opportunities for production and 

development of alternative forest related products and NTFPs such as medicinal 

herbs, forest mushrooms etc. 

272. The VDP/forest planning process will be implemented in two stages. The first stage during 

years one and two will comprise of implementing the planning program within the village communities. 

The lessons learned from the villages will be used to update planning processes for future programs 

undertaken by the SFD. It is suggested that 1-2 villages be used to pilot procedures and approaches 

as part of the training of facilitators. 

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273. The VDP will be implemented in the following stages:Stage One – The village livelihoods 

plan that defines economic and social objectives and opportunities and will specify a program of social 

infrastructure needs and economic livelihood development options. One livelihood option will relate to 

the use of forest land and resources which will be developed through the forest resource management 

planning process. This process involves: 

(i) Step 1 Area / location of community forest is determined between communities, 

Louguantai Forest Farm and County Forestry Bureau. During this process the area of 

community forest will be surveyed and permanently marked (concrete marker posts) – 

by Louguantai Forest Farm planning facilitators and community mapping. 

(ii) Step 2 On completion of surveys and agreement with parties the County Forestry 

Bureau grants (under the direction of SFD) a certificate of ownership to the village. 

(iii) Step 3 Village grants user rights contract to individual households 

(iv) Step 4 Individual households jointly form a “village community forest co-operative” 

under the “Rural Specialized Industry Co-operative Act of PRC. 

(v) Step 5 The village community forest co-operative prepare “community forest and 

resource management plan” with technical assistance provided by GEF 

(vi) Step 6 Each member of the co-operative implements the management plan with 

technical assistance provided by Louguantai Forest Farm 

274. The area of community forest allocated to each household will vary depending on the 

amount available and the level of interest from households. It is probable that multiple objectives will 

be defined to meet householder needs (firewood, small timber, herbs etc), silvicultural management 

systems may need to be integrated to meet these requirements (for example an Analog System with 

Coppice with standards 23 ), the optimum size of forest plot which can realistically be managed per 

household, whilst meeting household needs and providing an income will need to be initially defined 

during the development of the management plan. Project development (management plans and 

implementation) will be undertaken jointly by experts sourced through the SFDF using a competitive 

tender contract, this contract should be executed over a five year period, and results of the project 

disseminated to the wider national and international audience as a contract requirement. 

275. Central to the implementation of the community forest projects will be a training program. 

This will not only focus on members of the community, but also on building capacity within the Forestry 

sector to implement the program to the wider area. The training programs delivered by SFB and LFF 

will center on the following areas: 

� Legal framework for community forests (responsibilities of County Forestry Bureau, 

Forest Farm, Community, individuals); 

� Developing community forest and resource management plans, forest management, 

identifying and developing potential NTFPs, wildlife conservation and management; 

� Household economics and developing forest based enterprises. 

276. The Project will support: 

� Training of planners (12 people for 30 days) 

� Field surveys and data collection 

� Species and ecology research - 

� Survey of forest collective land 

� Printing of plans – 

� Planning process costs 

b. Collective Forest Land rehabilitation 

277. Participating forest co-operatives and committees will have access to funding through the 

PMO and Louguantai Forest Farm division for the implementation of agreed Village Forest Resource 

Management plans. The funding would be approved based on the Forest Resource Management plan 

being completed and ratified by the (i) the Forest Users Cooperative, (ii) the SFD/SQNBG as 

represented by Louguantai Forest Farm, and (iii) the PMO. Additional funds beyond the life of the 

Project will be provided through the revenue sharing from the tourism enterprises within QNBG. 

23 See Supplementary Appendix 2 for a detailed description



278. Funds will be used to demarcate boundaries, develop nurseries, and training in forest 

resource management. The level of investment is relatively small once boundaries are demarcated 

and nurseries seedlings are established s the remainder is mostly local labor that will be remunerated 

through the Project as identified within the Forest Resource Management Plan. The remuneration is 

provided as an incentive to participate and in recognition of the limited livelihoods beneficiaries 

currently have. The payments during the project and the QNBG revenue transfer will provide short to 

medium term income sources until forest revenues are generated. 

279. No forest models are provided and the PPTA notes that the integrity and value of the 

program will be determined by the process of planning and the extent that programs are defined for 

the needs of the local environment, social context and the current land use cover. This represents a 

major shift in thinking for forestry programs which have in the past relied on centrally defined planting 

models that suit industrial forestry but fail to recognize the needs and potential for mixed forest 

systems that fulfill social needs. 

280. The Project costing is based on data provided by the Provincial Forestry Design and Survey 

Institute of SFD to provide a budget figure for the program and is only indicative of the likely costs. The 

costing includes planting costs (CNY 5,875/ha) while maintenance costs of CNY 800/ha will be 

provided through by both the beneficiary and the revenue transfer mechanism.. The payment for 

planting costs is a direct payment to the farmer for his labor and represents an incremental increase in 

income. The break out of the cost is: 

� Land preparation 50 pdays 

� Transportation of tree and temporary planting 15 pdays 

� Planting 15 pdays 

� Replacement planting 5 pdays 

� Annual establishment and maintenance 15 pdays 

� Total labor per ha is 100 days per ha @ CNY30 per day for a total cost of 

CNY3,000/ha 

� Pest controls CNY75 per ha 

� Seedlings (i) 3,330 conifer @ CNY0.5 each, (ii) broadleaf 2,250 @ CNY0.4 each, (iii) 

shrubs 5,000 @ CNY0.05 each. 

c. Sloping Agricultural Land Technologies (SALT) and Conservation 

Agriculture 

281. The Government Land Conversion Program is well advanced in the QBCDA project area, 

with approximately 70 – 80 % of the agricultural land located on slopes over 25 degrees already 

converted out of agriculture. Most land conversion took place between 1999 and 2003. Under the 

scheme, commercial trees have been planted however these will not provide income for a number of 

years. The most common trees / shrubs planted are Walnut (Juglans spp) Sweet Chestnut (Castanea 

spp), Chinese Toon (Toona sinensis) and Chinese Prickly Ash / Sichuan Pepper (Zanthoxylum). 

282. The land is classed as ‘ecological forest’, compensation is paid for a period of eight years. 

The trees cannot be removed after this period. User right certificates are given to owners who have 

converted land for 70 years. Farmers converting to ‘ecological forest’ are paid additional compensation 

payments for their ecological contribution. 

283. With the removal of agricultural land, many householders have seen their incomes drop 

considerably. Many households are unable to grow enough for their own needs. In response some 

households rent additional land however many can not afford this option. Animal rearing has declined 

reducing protein intakes. 

284. Increasing diversity of crops is one objective of the forest rehabilitation program (see above). 

Households currently depend on one or two tree based products often grown on the converted land, 

and therefore subject to price fluctuations and variations in yearly harvest yields. Diversifying the 

range of products and focusing on production of higher value crops with the possibility of adding value 

by simple processing procedures (drying medical herbs, producing essential oils ) will provide 

livelihood benefits and enable appropriate land use practices to be adopted. 

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285. The second objective of the sub component is to examine systems of production which 

compliment the crops currently produced on land subject to the land conversion policy and to develop 

more intensive systems of production which contribute to the aims of reducing land erosion and soil 

degradation, while providing productive outputs for farmers 

286. Under existing regulations, once land has been converted it is not possible to re-cultivate the 

land unless it complies with the agreement. The structure of the agreement precludes systems such 

as under-planting with high value shrubby crops on existing converted land. 

287. The scope of the sub component is small at between 100 – 200 ha being available for trial 

and demonstrations however the opportunity to develop these systems for future replication is seen as 

an important contribution to developing agricultural systems on degraded land. 

288. The Project will: 

� Select four pilot villages with steep land that is not yet converted 

� Work with Village Implementation groups and Farmers to establish 4 SALT trials on 

existing farmer plots within each of the villages 

� The plots will be used as both demonstration plots and training plots for other land 

users 

� The Project will provide funds for the trials including a payment for the farmer’s time. 

In total there will be 16 plots of 0.5 ha to cover planting costs and site works and 

payment to the farmer for demonstration inputs based on 150 days per year at CNY50 

per day totaling CNY7,500 per year (CNY30,000 per plot). 

� LFF staff will trained in SALT technologies along with farmer training costing 

CNY50,000 per plot. 

d. Small Enterprise and Business Development– (Medicinal Herbs and 

Essential Oil Production) 

289. The Project will support QBCDA communities to develop appropriate technology small 

businesses especially those linked for forest and forest land uses. Support will be provided for 

planning, business development costs and grants for establishment. The following section describes 

two possible enterprises that are considered indicative of the type of business that may develop on 

demand through the planning process. 

290. The development of a sustainable management production system for medicinal herbs and 

essential oil producing plants together with the realization of their commercial potential through locally 

owned and operated micro-enterprises will serve to engage local communities in the QBCDA 

conservation program. The production of such plants and then processing these for high value 

products is fully consistent with the concept of analog or conservation forestry described above. 

291. The project would support: 

� On-site management including zoning of key areas and detailed socio-economic and 

biological surveys to assess the status of medicinal and essential oil producing plant 

species availability, their distribution, use, status and volumes harvested; 

� Identify and implement appropriate management options including preparation of 

guidelines for sustainable harvesting of medicinal and essential oil plants and 

medicinal and essential oil plant seed; 

� Monitoring and evaluation to assess impact of harvesting guidelines and management 

interventions; 

� Initiate pilot, farmer-based cultivation trials for selected threatened and high value 

species, focusing on community forest Analog forestry and sloping land agricultural 

technology approaches (SALT); The Project will provide grants for producing oil crops 

and will provide grant funds for up to 10 growers per community, i.e.: 160 in total. The 

grants will be set at CNY3,000 per mu with each producer growing 1 mu for a total 

cost of CNY480,000. The purpose of the grants will be to enrich new forest planting 

with productive medical and oil producing species as a future ‘wild’ resource; 

� Dissemination for GAP (Good Agriculture Production) standard for selected species 

cultivation by training local community. The training will involve 3 days training over



three training inputs that is 9 training days per community or 151 training days in total 

each year for two years. The training will be completed by a contracted NGO and 

linked to the Social mobilization and awareness raising program for a budgeted cost of 

CNY500,000; 

� Initiate community based pilot activities for essential oil extraction and refining. 

Develop methods of adding value to products such as extraction of essential oils and 

processing commodities (such as soap and creams) for direct sale. The Project will 

provide business development grants of CNY300,000 per start up for oil production. A 

total of 15 start ups are budgeted for. 

� Provide support for ex situ based activities with regard to cultivation and conservation 

of threatened medicinal and essential oil producing plant species through the Qinling 

Botanic Garden division; 

� Public education and awareness raising activities using an NGO – the PPTa suggests 

that this also be linked to the VDP social mobilization program to avoid too many 

different agencies operating in the Project Area . 

292. Initial technical expertise of the medical herb component should be provided through an 

established Medical Herb Institution such as IMPLAD who have the available capacity, knowledge and 

experience to establish the project based on their extensive past experience. The QBG will maintain 

the database of medicinal and essential oil producing plants within the project area and Qinling 

Mountains as a whole by drawing together information from oral, traditional, modern literature and 

herbarium collections. This database will provide systematic documentation of the threat, rarity and 

demand of each species. A contract for CNY550,000 is budgeted for training requirements for staff 

working the Project Area and throughout the wider QM will include: 

� Identification of essential oil and medical herb plants and their potential markets; 

� Medical Plant Conservation Areas (MCPAs) identification and sustainable 

management; 

� Growing and harvesting systems for essential oil and medical herb plants; 

� “Train the Trainer” programs. 

293. At the community level, the Village Implementation Group/Village Committee established 

within the QBCDA Strategy will undertake project planning. Each village group will be responsible for 

collecting local data pertaining to wild collection of herbs, identification of potential Medical Plant 

Conservation Areas (MPCAs). The identification of prospective farmers / available land will be 

undertaken and management of community plant nurseries and demonstration areas. The Village 

Implementation Group/Village Committee will play a major role in the essential oil component of the 

project by establishing, with project assistance, a co-operative type system for the distillation of the 

raw materials to essential oil. . A research contract will be awarded competitively for the purposes of 

surveying the Project Area for plants with oil or medicinal properties. The contract will identify target 

species and assess the extent of wild populations and provide recommendations on the sustainability 

of potential collection of plant materials or the potential for production from within the Conservation 

forestry program. The cost of the contract/contracts is budgeted at CNY 5,000,000 spread over the 

first three years. 

294. At community level, training will be provided through the NGO contract and will include the 

following areas: 

� Identification of essential oil and medical herb plants and their potential markets; 

� Medical Plant Conservation Areas (MPCAs) identification and sustainable 

management; 

� Growing and harvesting systems for essential oil and medical herb plants; 

� Processing of essential oils; 

� Small business management and negotiation skills; 

� “Train the Trainer” programs. 

295. The project will support studies to assess the current levels of usage of medicinal plants 

within the project area and will include market and field surveys to assess the pressures on the wild 

plant populations and habitats at selected sites and better understand the local communities and 

national dependence on medicinal and essential oil producing plants. This information will provide 

input to project and national databases and will set the priority for QBCDA conservation activities. The 

project will also support studies to identify methods of propagation and cultivation practices for a 

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number of the threatened and economically higher value species. Market study contracts totaling CNY 

500,000 are budgeted 

296. Essential oils are not currently produced in the project area. Studies will be undertaken to 

assess the availability and variety of species suitable for essential oil production. Plant material for the 

production of oils will be collected from wild populations and through farm production on ‘grain to 

green’ land. 

297. The following systems for the production of ‘raw’ medical herbs are proposed to be tested 

and developed within the QBCDA zone. Four production systems will developed and tried. These are: 

� Sustainable “Wild” Harvesting 

� Conservation Forestry / Forest Enrichment 

� Analog Forestry System 

� SALT 

298. Sustainable “Wild” Harvesting – the focus of this system will be in developing Medical Plan 

Conservation Areas within existing plant collection areas (forest and open land). The main areas 

commonly used for the collection of wild herbs will be identified and, in conjunction with the 

community, a sustainable harvesting system will be developed whereby the herbs are able to naturally 

regenerate. 

299. Conservation Forestry / Forest Enrichment – conservation forestry to restore habitats is a 

primary goal of the QBCDA strategy. During the implementation of this forest restoration work 

attention will be paid to the enrichment of both woody and herbaceous species of medical herbs to be 

used as future collection areas under a Medical Plant Conservation Area system. 

300. Because of the national regulations governing the production and refinement of medicinal 

herbs, opportunities for processing on site are limited. However, basic processing is permissible in 

some circumstances such as drying and grinding. This provides some limited added value to the crop 

for the collector / farmer. The farm producers will be assisted with technical support to aid with the 

allowable processing of herb crops. 

301. The links between processor and farm producer / collector in the medical herb industry are 

very close, with the farm producer / collector selling the raw and / or dried herbs directly to the 

processing company. Producers / collectors can benefit from attaining increased value of the herb 

material sold to the company based on the larger amount sold and added value such as basic drying 

and grinding of the herbs. Through the village groups, the farmers / collectors will be organized into 

producer groups or associations. This will enable the producer group to negotiate a higher value for 

the herbs, thereby benefiting each member. Furthermore, farmers / collectors will be provided with 

training to enable them to prepare the herb materials to a high quality for the producers (drying, 

grinding etc.) thereby giving added value. 

302. Currently no essential oil processing is undertaken in the area. The processing of essential 

oils uses ‘low technology’ distillation / extraction units which are available in China and can be 

installed easily. The number of extraction units is dependent on the type and volume of oils to be 

produced and the volume of the raw resource for treatment. It is unlikely that the equipment can be 

justified by one farmer alone, therefore, the number of units required and their mode of operation will 

be determined at the project planning stage through the Village Implementation Group/Village 

Committee. On the job training will be provided by the equipment supplier at the time of purchase. 

The SME grant program will be implemented by the Louguantai Forest Farm division based on the 

Village development plans produced and approved. 

e. Homestay Tourism 

303. The Qinling Mountains is already developing a quite large home-stay industry at e.g. 

Taibaishan. Jiufeng Township in Zhouzhi County is promoting home-stay tourism facilities in three 

villages in the PA: Gengxi and Yongfeng in ex-situ Zone D (East) and Gengyu, which is the only 

Jiufeng administrative village in the QBCDA zone of the PA. Gengyu already has about 18 home-stay 

operations and has established a number of larger tourism resort and other visitor facilities for both the 

general tourist and institutional markets. Some of these only serve government agency markets.



304. Under these programs the Township supports the training of home-stay operators through 

training provided by township staff, as well as in some cases visits to existing successful home-stay 

operations in other parts of the province. The Township as well is providing subsidies that cover onehalf 

of the capital cost of biogas installation estimated at between CNY3,000-4,000 per biogas unit in 

an attempt to limit environment impact of fuel wood collection. 

305. The project will develop home-stay operations in the Project Area with a focus on tourism 

and business training completed as a follow on to the VDP process. Each village will also have 

opportunity to access funds for essential social infrastructure such as alternative energy, water supply 

and sanitation/environmental protection services. Phased growth in the home-stay sector should be 

encouraged to protect the investments and incomes of existing home-stay facilities. 

306. Project support will be limited to 10 operations throughout the QBCDA zone during the 

Project. It is proposed that the home-stay accommodation investment be limited during the Project 

implementation period to Jixian and Louguan townships. The Project will not adopt the Jiufeng homestay 

model which is based on a high volume, low value tourism strategy. Rather, the Project will 

develop: (i) the home-stay accommodation facilities that are village rather than family based, (ii) 

involve higher capital costs and a higher value tourism product compared with the Jiufeng home-stay 

operations, (iii) village-based home-stay type accommodation operations be tightly regulated in terms 

of both number of facilities and quality, and (iv) therefore these QBCDA facilities position themselves 

strategically between the smaller home-stay facilities appropriate to the ex-situ and fringe areas of the 

PA and the very high value and high priced eco-lodges proposed for the QBCDA are see below. 

307. Community based ecotourism home-stays for medium to high value clients will be developed 

to support the growing demand for overnight accommodation in wild or natural environments. It is 

proposed to differentiate these from existing home stays by providing a slightly higher quality of 

service and accommodation. A total of 10 - 4 room home stays are include in the project. The forecast 

financial rates of return indicate that an FIRR of 19.1% for a 4 room home stay that will employ 8 to 10 

people on a full time basis. The financial model assumes a 40% occupancy increasing to 50% after 10 

years and stabilizing at that level with an average tariff per night of CNY150. 

Home Stay Compare With Below 

CNY 

Home Stay Tourism -- 360 day 

season 360 

Table 22: Financial Projections for Four Room Homestay 

Year 2009 2010 2011 2012 2013 2014 2015 

P Year 0 1 2 3 4 5 6 

Occupancy Rate Starts at 0.50, 

Four Rooms, 0.4 0.4 0.41 0.42 0.43 0.44 0.45 

Potential Visitor Nights Per Year 8 2,880 2,880 2,880 2,880 2,880 2,880 

Actual Visitor Nights Per Year 

Revenue Per Visitor Starts at 

1,152 1,181 1,210 1,238 1,267 1,296 

RMB 150 (Ex. Sales Tax) 150 150 150 150 150 150 160 

Gross Revenues 172,800 177,120 181,440 185,760 190,080 207,360 

Cost of Sales @ 45% of Revenue 0.45 77,760 79,704 81,648 83,592 85,536 93,312 

Net Income Before Overhead 95,040 97,416 99,792 102,168 104,544 114,048 

Overheads Before PIT 14% of 

Total Capital 0.14 46,005 46,005 46,005 46,005 46,005 46,005 

Net Income After Overheads 49,035 51,411 53,787 56,163 58,539 68,043 

Total Capital Cost CNY 328,608 

Net Cash Flow -328,608 49,035 51,411 53,787 56,163 58,539 68,043 

IRR Based on Total Capital 19.094% 

NPV at 10% 304,452 

308. The economic rate of return for a single home stay is 23.4%. 

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54 



f. In-situ infrastructure 

i. Road and Mountain Pathway Improvements 

309. The project will provide road and mountain path-way improvements for improving access of 

QBCDA villages and households to markets, jobs and basic services – while limiting access for mass 

tourism and recreation and thus protecting QBCDA bioresources and fragile eco-systems. 

310. The original FS on the QBG dated January 2006 included a major program of QBCDA road 

construction and improvements, with a total length of about 170 km. and a total capital budget of 

CNY189 million ($24.9 million). The proposed road building program included 88.45 km of main roads 

plus three smaller additional roads (1.5 m wide), which were not described in the FS. 

311. Road access was planned to improve the central spine road running through the QBG Zone 

A site from Tianyukou (site entrance) to Jinniuping. The reconstruction of the existing core road which 

runs down the central valley would have widened this road to 6.5 m from the current width of about 2- 

33 m. This reconstruction would have necessitated major earthworks. The construction of major 

QBCDA roads was justified in part by the proposed investment in an QBCDA cableway, which has 

since been dropped from the investment program because of its negative biodiversity and other 

environmental and social impacts. 

312. The QBG revised its road construction proposals to include improvements to the central 

valley road from Tianyuku to Jinniuping, and improvements to mountain paths. The canyon road 

covers a total length of 17.5 km at a total cost of CNY27.9 million, while the mountain path 

improvements would involve a total length of 109 km at a total cost of CNY21.9 million. The seven 

mountain paths would have the following routes: Jinniuping – Shouyangshan – 13.2 km; Jinniuping – 

Dongniandao – 15.5 km; Jinniuping – Yeniuhe – 20.0 km; Xiagukou – Shangyangpo – 11.0; Tielucha 

– Liangding – 14.2 km; Guanyinyan – Laojigou – 17.0 km; and Liziping – Yeyanghe – 18.5 km. This 

total road building budget, including recurrent costs for maintenance during the implementation period, 

therefore is CNY58.3 million ($7.7 million), covering a total length of 127 km. When the QBG provided 

its information to the PPTA Team in March 2007, the QBG Team stressed that the canyon road would 

follow the current route, would have its current length and width, and thus would involve minimal 

earthwork and related construction and environmental effects. However, the capital cost for this 

road was the same in March 2007 submission as in the January 2006 FS and was reduced by 

the PPTA in the final costing however there remain questions as to the rationale for the road 

investment given the relocation of the Panda Breeding center out of the QBCDA during Loan 

Fact Finding. The design, cost and potential environmental impacts of this road need to be fully 

reviewed and if the proposed cost is correct the road program will require a full EIA moving the Project 

to Environmental Category A. 

313. The design, location and costs of the proposed mountain path improvements need to be 

reviewed with reference to the final QBCDA strategy as well as the village development planning to be 

conducted. The VDP will define the need and demand for pathway improvements which will be 

available for all villages in the QBCDA area. The road contracts will be awarded by the Shaanxi 

Qinling Biodiversity Promotions Ltd and will be funded from loan funds. 

314. The Project proposal is currently for a road improvement program totaling CNY 34 million. 

a. Social Infrastructure 

315. Social infrastructure for residents in the QBCDA zone in terms of water supplies and 

alternative energy – biogas grants would provide a significant benefit to the poorest households in the 

Project Area and reduce their demand for firewood. The extent of social infrastructure demanded will 

be identified during the VDP process and once a plan is completed the village can apply for an 

infrastructure grant from the Louguantai Forest Farm division in the QNBG through the PMO. The 

Project is budgeting CNY12.4 million for these grants. 

316. The QBCDA community have very little infrastructure and field work indicated that essential 

infrastructure would provide a significant benefit to households and especially to women and children. 

Apart from access infrastructure the most requested types of infrastructure were (i) energy supplies 

and (ii) water supplies. The Project will identify these needs through the Village Development Planning 

program above. Once plans are complete villages may apply to the PMO through the proposed new



institution to obtain infrastructure grants. The PMO will ensure that relevant authorities in Zhouzhi 

approve the designs and planned inputs –no costs are recommended for the County Administration for 

this approval. The cost per village is budgeted at CNY500,000 for energy and CNY500,000 for water 

supplies. 

2. Demonstration of Conservation of Biodiversity 

a. LFF Habitat Improvement Program 

317. State Forest Land vested in Louguantai Forest Farm represents eighty percent of the forest 

area in the Project Area. Since the introduction of the ‘logging ban’ large sections of the ‘cut areas’ 

have been either replanted or subject to ‘forest closure’ with variable results. Each year a ‘plan of 

operations’ is provided to the forest farm by the Provincial Forest Planning and Design institute in 

Xi’an. The plan details the land to be planted only and there is no agreed long term management 

program. As such the approach seeks forest coverage improvement and has little or no impact on the 

forest quality attributes necessary to support conservation, ecological or habitat objectives 

Consequently there are no long-term management plans and actions to reconstruct the forest 

structure through continuous management and interventions are neither planned nor implemented. 

318. Since the introduction of the ‘logging ban’ there has been a complete moratorium on felling 

of trees. For example, in other areas of the Qinling, the WWF are endeavoring to reconstruct bamboo 

forest under the dense canopy of plantation larch species. The limitations imposed by the ‘logging ban’ 

seriously undermine conservation forestry activities and WWF is limited to silviculture pruning but not 

extraction. Similar limitations will exist regarding the introduction of forest conservation schemes to 

the QBCDA area, therefore, a prerequisite of implementing the Project is approval that the “no felling” 

restriction be either lifter or put aside for the Project Area. The SPG has confirmed that these 

restrictions will not apply. 

319. The Project will provide the Louguantai Forest Farm Division with support to complete a 

Forest Management Master Plan, a plan which focuses on forest restoration and biodiversity 

management in the QBCDA area will be developed during the first year of the program. The plan will 

also address possible current and future tourism opportunities issues relating to activities based on the 

future ecolodge development and control of activities undertaken by the existing ‘resorts’ already 

present in the periphery of the area. 

320. The plan will provide a detailed work program for the first five years and the outline work 

program for the years six to twenty. A total of six supporting ecological research grants will be 

financed along with Technical assistance for conservation and restorative forestry. The Project will 

provide funds for planning CNY70,000, and CNY2900 per ha for 2,000 ha of forest and habitat 

restoration programs. Labor for these programs will be supplied by Louguantai Forest Farm Division 

staff and local residents only. 

321. Forest restoration activities will be centered on the adoption of silvicultural systems which 

are based on continuous cover systems. These enable a forest of mixed age classes to be developed 

and favor development of a balanced forest structure which closely resembles the original natural 

structure. Where required, additional planting can supplement natural regeneration. A number of 

systems are available which can be adapted and tried. The Project will support the Louguantai Forest 

Farm Division to grow and plant seedlings. Seedlings are budgeted at CNY8 and a total of 1,200 

seedlings per ha 2.4 million are budgeted. Louguantai Forest Farm will contract local residents to 

develop community nurseries. 

322. Training will be undertaken with the Forest Farm staff, Zhouzhi County Forestry Bureau and 

Shaanxi Forestry Bureau. The training program will be ongoing and will be undertaken in conjunction 

with both the development of the Forest Management Plan and its implementation. The training will 

provide foresters with an understanding of natural forest reconstruction and its links both to nature 

conservation and livelihood development. One objective is to change attitudes from the current “no 

interventions and policing” as a means of forest conservation towards a more holistic approach to 

conservation based on setting objectives and developing management interventions to achieve them. 

323. The monitoring program will examine the impacts of the forest restoration process on forest 

eco-systems over a long time scale. Monitoring plots will be established both in the existing ‘old 

55

56 



growth’ forests in order that comparisons can be studied and techniques further developed to emulate 

the natural forest eco-systems. Monitoring costs are included in Component monitoring costs. 

b. Endangered Species Recovery Management 

324. Conservation in the Qinling has been greatly influence by past programs with encouraging 

success amongst those nature reserves that have been strengthened with wide spread adoption of 

various collaborative management models and increased protection and science. However the current 

reserve system is spread across many institutions and administrations and as such each is managed 

independently of each other and of the surrounding forest land. Cooperation across these 

management units is critical for endangered species management. 

325. The key consideration in recovery planning is participation of stakeholders. Successful 

implementation of recovery plans depends on cooperation of a range of partners, some of which might 

be partially responsible for declines of target species populations. Recovery plans seek to remove 

threats to wildlife and habitats, and this can only be achieved by cooperative effort among all parties 

that contribute to the threat. A preliminary list of stakeholders in QM recovery planning includes: 

� all Qinling nature reserves; 

� QM and its client, SRDC; 

� national and international NGOs; 

� communities within and adjacent to the six focal nature reserves, including: 

(a) villagers that exploit wildlife for household or market use 

(b) farmers that use agricultural chemicals that threaten wildlife and habitats, and 

(c) fishermen whose livelihoods depends on fish stocks in and around NRs 

� other provincial agencies including: 

(a) Shaanxi Environmental Protection Department (SEPD) 

(b) Shaanxi Water Resources Department (SWRD) 

(c) Shaanxi Tourism Department (STD) 

� county, city, prefecture governments and agencies at these levels; and 

� academic institutions including universities and research institutes. 

326. Four to five recovery plans will be drafted by QM personnel in cooperation with the above list 

of stakeholders (and any additions to the list). The steps in drafting plans are shown in Figure 1. 

Globally threatened species would be grouped in two categories to be addressed by recovery on the 

QM project area: (i) those species that are already the focus of recovery planning; and (ii) species not 

yet addressed by recovery planning. Plans for the former group would be drafted with the objective of 

ultimately appending them to the national or international recovery plans already in implementation or 

preparation. Drafting would be carried out in consultation with the agencies responsible for 

implementing any existing plans. Plans for the latter group (those species not yet addressed by 

recovery plans) will be drafted as stand-alone documents. 

327. Recovery plans that could be used as templates for the QM Project were approved and 

implemented by USFWS (see http://ecos.fws.gov/tess_public/). From the list of 1143 USFWS 

recovery plans, we selected those that are the closest taxonomic and ecological matches for globally 

threatened species recorded on the QM Project Area (Appendix 3). The USFWS model plans were 

reviewed in detail and the formats were either followed or adapted as needed to conditions in the 

Project Area and Qinling range.



Update list 

of 

Globally 

Threatened 

Species 

Figure 1: Steps in Development of QM Recovery Plans 

Select Species 

for 

Recovery 

Species 

Not in 

Recovery Plan 

Species 

Already 

in 

Recovery Plans 

Select 

From List of 

37 Threatened 

Species 

Integrate 

Activities 

Draft 

New Recovery 

Plans 

Crested Ibis: 

Release, 

Planning Release 

Giant Panda: 

Census, 

Monitoring, 

Reporting 

Implement 

New Recovery 

Plans 

328. Where data is not available or unknown but considered critical research contracts will be 

awarded by the PMO and financed by GEF. A total of 6 grants are included in the Project design. The 

planning process is supported by GEF such it can be used both as a training program and also used 

to demonstrate how future species management can be implemented. A total of CNY250,000 is 

budgeted for project years 2 to 5. 

329. Recovery plans drafted and approved by QM and stakeholders would be submitted for 

approval by the provincial and national wildlife conservation authority (SFD and SFA) and, if required, 

by the provincial and national biodiversity conservation authorities (Shaanxi Environmental Protection 

Department or SEPD and State Environmental Protection Administration or SEPA). Recovery plans 

will often need approval by additional sector authorities such as water, agriculture, and transport, 

because these agencies will be responsible for some actions to be undertaken during implementation 

of the plans. Examples include changes in water allocations, farm practices, or road designs. 

330. Recovery plans would be implemented by a range of stakeholders under the leadership of 

the national and provincial wildlife conservation authorities (SFA and SFD, respectively). SFD is also 

the wetland conservation authority in Shaanxi Province, thus there is a beneficial overlap of 

institutional responsibility for conservation of wetland ecosystems and wildlife as related to Crested 

Ibis foraging habitat. Recovery planning is intended to achieve one of two objectives: 

1. “delisting” (removal of the target species from the endangered species list); or 

2. “downlisting” (progressively lowering the level of threat from, for example, endangered to 

threatened). 

331. China maintains an endangered species` list in its Red Data Books and uses IUCN criteria to 

evaluate threats and assign status. China also maintains lists of nationally and provincially protected 

species. IUCN World Conservation Union maintains an internationally recognized Red List of globally 

threatened species. While China’s national and provincial lists are based to some extent on 

population size and trend, other factors are involved (such as commercial harvest). The IUCN Red 

List, in contrast, is based on global population numbers, trends, and probabilities of extinction. The 

Red List is therefore well suited to the concepts of delisting and downlisting used in the USFWS 

recovery plans. 

332. A species population is considered “endangered” by IUCN if it has declined by more than 

50% in the last 10 years, is comprised of less than 2,500 individuals, and has more than a 20% 

probability of extinction in the coming 10 years. Downlisting from endangered to “vulnerable’ would be 

justified if the population could be shown to have declined by 20-50% over the most recent 20 years, 

was comprised of 2,500-10,000 individuals, and had a 10-20% chance of extinction in the coming 100 

years. Delisting from “endangered” to “lower risk” (not globally threatened) would be justified if the 

population could be shown to have declined by less than 20% over the most recent 20 years, was 

comprised of over 10,000 individuals, and had less than 20% probability of extinction in the coming 

100 years. 

333. Objectives for species targeted for recovery planning in the QM could be delisting or 

downlisting by IUCN. If this objective were achieved, the target species might continue to receive 

national or provincial protection in China. An example of such a situation is seen in the global 

57

58 



recovery of the European Otter population. The species was downlisted by IUCN’s Red List from 

Vulnerable to Near Threatened because of a sustained increase in the global population, yet the Class 

II national protection in China remains unchanged. 

334. To the extent that the global population of any target species occurs outside the Project 

Area, the ability of QM programs to contribute to population recovery on a global scale will be affected. 

For example, the global population of Giant Panda is estimated at around 1,600 distributed over three 

provinces (Sichuan, Gansu, and Shaanxi) but not in the Project Area (Figure 3). A recovery program 

at the Project Area would affect that portion of the population in the Project Area (Figure 3) but could 

only have a global impact through linkage with other populations in neighboring provinces (Sichuan 

and Gansu). 

C. Integration of QBCDA with Other Project Components 

335. The proposed QBCDA Program will integrate with the following Project components: 

(i) Animal rescue centre: The animal rescue centre will seek to reintroduce endangered 

species into the QBCDA zone albeit in the medium to long term. The community forest 

program seeks to build potential habitats for these reintroductions. In the short term 

controlled release programs will require habitat enhancement programs for which the 

QBG nursery will be used. 

(ii) Shaanxi QM Botanic Garden will provide initial monitoring services on which a 

baseline dataset will be created. In addition they will provide botanic scientific inputs 

and ecological science support for the vegetation and habitat restoration programs 

(iii) Shaanxi Forest Bureau – Conservation Forest / Louguantai State Forest Park will 

provide technical, silvicultural and nursery support programs as well as village 

development planning (VDP) support 

336. The following exhibit illustrates the important linkages between the two components.

59 



Figure 2: Linkages between the QBCDA and Ex-Situ Zones 

Zones Stakeholder Planning IMPLEMENTATION 

Annual Work Plans Reporting 

Lessons Learned, Replication and 

Mainstream ing 

Project and Beneficiary Monitoring and Evaluation 

Institutional Strengthening – 

Proposed TA Grant 

Project Area 

Master Plan 

(tourism, 

Infrastructure, 

Socio-economic) 

Project Area 

Enterprise and/or 

Management 

Committee 

Off-Farm Work 

Small Business Development, Tourism Service Provision 

Training, Employment, Infrstructure 

Village Plans 

(14) 

Local Communities 

Hot Springs JV Co Site Plan 

Ex -Situ 

Zone 

Upgrade Facilities Upgrade Science 

Site Plan 

Animal Rescue 

Centre 

Exclosure Habitat Development Controlled Release Program 

Plants 

Plant Nurseries Garden Collections 

Site Plan 

Botanic 

Garden 

Science 

FUTURE 

REINTRODUCTIONS 

Plants 

Pilot Habitat and Ecosystem Restoration 

Biodiversity 

Conservation 

Plan 

TOURISM REVENUES 

Project Area 

Enterprise and/or 

Management 

Committee 

CNY 

CNY 

Lessons 

ECO FUND OPTIONS 

Plant Materials 

HABITAT AND ECOSYSTEM RESTORATION 

Land 

Appropriate Agriculture Technologies (SALT) 

In 

SITU 

ZONE 

Land Conversion 

(grain for green, re-vegetation, tree crops) 

Village 

Plans 

Local Communities 

Land 

Community based small business development – Tourism, Essential Oils, Medicinal Plants, etc 

IN SITU 

PLAN

60 



B. Detailed Description – Component III: Institutional Strengthening for Conservation of 

Biodiversity 

337. The Project will support three subcomponents in Component III. These include: 

� Project Management and administration 

� Institutional Strengthening Programs 

� Conservation Replication 

338. The outcome of Component III will be effective Project Management and implementation of 

the investment program using effective institutional arrangements that support the management 

strategy for the Project Area, and the dissemination and extension of lessons learned from the Project 

area through other QM programs. 

1. Project Management Arrangements 

339. The SPG will form a Coordination Commission for the Project under the chairmanship of the 

Governor of Shaanxi Provincial Government. The Committee will have vice chairs from each of the 

agencies providing counterpart funds and a general membership of representatives from (i) PDRC, (ii) 

two from SFB, (iii) Vice mayor of Xian Municipality, (iv) Director of Planning in Finance Department, 

(v) SFA, and (vi) CAAS. The commission will be supported by its own office headed by SFB with vice 

chairs from PDRC and SFB and will be responsible for high level decision making, policy decision and 

conflict resolution. 

340. The Shaanxi Provincial Department of Finance will manage the financial transfers and 

Project Bank Accounts. 

341. The executing agency will be the Shaanxi Forest Department who will be supported for 

implementation by PDRC that will form a Project Management Office for the work planning and 

administration functions. The PMO will comprise of staff seconded from the Shaanxi Department of 

Finance, Shaanxi Forest Bureau, and PDRC. In total the PMO staff levels will be 11 comprising the 

Project Director, 7 professionals in financial management, procurement, and engineering, one 

translator, and three support staff. The PMO will receive intensive training from ADB on its Project 

financial management systems. Each Implementing Agency will form a construction phase 

coordination office to oversee Project Administration. Members of these offices will also receive this 

training. 

342. In addition, ADB PRCM will provide PMO and Implementing Agency staff Project 

Administration training programs especially in disbursement and procurement procedures. The PMO 

will contract procurement to an existing business specialized in bid preparation and evaluation to 

prepare and oversee the procurement procedures. 

343. The responsibilities of the PMO will include the usual project management responsibilities in 

relation to Project coordination, procurement, financial management of foreign funds, and monitoring, 

evaluation and reporting, the PMO as well will coordinate the implementation of the QBCDA strategy 

including the management of the GEF grant funds, and will be responsible for overall coordination and 

management of the training, human resource development and capacity building plan for the Project. 

344. The Project will provide support for office rent, office equipment, and vehicles. 

345. Each Implementing Agency shall be responsible for preparing procurement and training 

plans. The QNBG requires significant training in the donor procedures relating to project 

administration, disbursement and monitoring. In addition to the in country training [provided by PRCM 

the Project will fund additional Project Administration training in Project Year one. AN additional Stand 

alone TA is proposed by the PPTA however this needs to be agreed with ADB. 

2. Institutional Strengthening 

346. The Project will support an institutional strengthening program that includes (i) legal reforms, 

(ii) training and capacity building.



a. Legal Reforms 

347. The project shall support a series of legal and institutional studies to assess option and 

propose reforms for a set of specific legal issues. These are discussed in detail in Appendix K. The 

reforms include: 

I. Recommendations on setting up a framework on collective 

forestry land tenure : 

348. It is suggested that the project contract a study working together with SFD to explore: 

� Approach to define the collective forests boundary and area 

� The appropriate collective (administrative or natural village) the forestry certificate 

should be issued to 

� Analysis of the possibility, advantage and disadvantage of contracting collective 

forests to individual households 

� Suggestion solutions including draft legal and regulatory changes 

� Propose a plan for action including a timetable to SFD. 

349. The cost of the study will be CNY231,900 over a period of two months. The study should 

start at the beginning of project implementation. 

II. Recommendations for Government and Community Partnership 

on Community Natural Forests Management in Shaanxi 

(i) Shaanxi Forestry Department to issue an exemption to the project implementation 

unit to allow the project to conduct analog forests and other forest models testing 

in pilot villages inside the project area after asking necessary approval. 

(ii) Shaanxi Forestry Department will find a solution with Louguantai Forestry Farm on 

removing the restriction to taking of NTFP from collective forests out of the PA 

mountains. 

(iii) Shaanxi Forestry Department will lead a forest management partnership 

monitoring and studying group to conduct monitoring and consultation with local 

communities and the project implementation team. The study group should invite 

the Economic and Policy Researching Institute of SFA to participate in the study. 

(iv) The monitoring and studying group will focus on : 

� Learning the lessons from the project forests model tested. 

� Further explore the possibilities to develop the pilot models into a 

replicable government–community forests management partnership 

system. It must be based on respect of community ownership and use right 

to the collective forests. It should carefully review the proposed village 

forest management plan approach. It should carefully study the approach 

of positive partnership interactive between state-owned forests farm and 

the surrounding communities. 

� Explore the possibility of developing a monitoring system to monitor the 

quality of the forests including non timber resources in the forest. The 

system will include principles and indicators and measures for monitoring. 

It must be simple and easy to conduct together with the community. 

� Develop a proposal to SFA on collective owned natural forest management 

issues to allow the community to manage and use the forests in 

sustainable manner in Qinling National Ecology Function Zone. 

350. The forests management partnership monitoring and studying group will be contracted by 

the project over four years with input of two months each year at a total cost of CNY618,400. The 

application for exemptions should be organized before the project starts after the project is approved, 

so that the exemptions will be in place when the project is ready for implementation. The study group 

should be formed at the end of the first year of the project implementation after the pilot villages are 

chosen. 

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62 



III. Recommendations on reform Guidelines for Eco-tourism 

development in Qinling area: 

351. The project will subcontract work with Shaanxi Forestry Department (SFD), Shaanxi 

Environmental Protection Bureau (SEPB) and Shaanxi Tourism Bureau to develop an eco-tourism 

guideline. The guideline should fit within the legal frame-work and be enforceable. The guideline 

should be simple to be easily monitored and understood. 

352. The guideline will include: 

(i) The definition of eco-tourism 

(ii) Implications of the application of principles of eco-tourism in Qinling Mountain 

(iii) Indicators for eco-tourism operation to meet the principles of eco-tourism. 

(iv) Monitoring system and enforcement measures. 

(v) The sub-contract should be in place in first year of project implementation, so the subcontract 

team will be able to form the general approach and principle for the study 

together with the project TA team. The contract will continue for three years to explore 

the issues with three months inputs from each year. The proposed budget for the subcontract 

will be CNY696,000 

IV. Recommendations for appropriate jurisdiction for the Institution 

operating future Eco-fund In Shaanxi 

353. The proposal for an independent ecofund will not be implement able in the initial period of 

the Project. It is proposed that an administrative funding system be used in the interim period while 

reforms are identified and enacted. This will also enable good practice to emerge and be used to 

define the needs of a future fund. The SPDRC should apply to the CBRC for an Exemption for Ecofund 

to lend and charge interest to the purposes of the Project. 

354. The project will set up a sub-contract to conduct monitoring of the Eco-fund operation from 

within the proposed restructured institutions that will manage the Project Area. The monitoring contract 

will be independent from the Eco-fund, supervised / organized by SPDRC. It will produce a report 

every year to the SPDRC on the assessment of the Eco-fund operation and in the final year provide a 

set of recommendations to form an independent financing mechanism. 

355. The annual report will provide the fundamental information to support SPDRC to get the Ecofund 

a legal status to operate in the Qinling area. It means the Eco-fund will be able to grant, lend, and 

make equity investments to activities meeting its biodiversity criteria and other policies. Before the end 

of the project, if the Eco-fund operation is successful, SPDRC will submit an application to the 

appropriate authority for approval to make the Eco-fund a permanent organization with full functions 

described above. It may be in the form that CBRC or SPG grants a long term license or permit to the 

Eco-fund to enable it to lend loans and charge interest within the regulatory limits as an experimental 

case. 

356. The sub-contract should also study the fund raising system to be used by the Eco-fund. A 

system of replenishment of the Eco-fund should be recommended to SPDRC. 

357. Outputs of the sub-contract will be: 

� A report produced every year from year one to end of the project implementation 

which will: 

(a) assess the management structure of the eco-fund 

(b) assess enforcement of biodiversity criteria and lending / granting policies 

(c) assess the efficiency of lending facility and granting facility 

(d) assess the efficiency of social and other safe guard policy 

(e) assess achievement of the objective of the eco-fund 

(f) assess the contribution of eco-fund to achievement of the overall objective of 

the project 

(g) assess the sustainability of the Eco-fund.



� A report should be produced on year two to summarize results of the fund raising 

approach used by Public Benefit Funds inside China and other environmental funds 

world-wide. 

� A report should be produced on year four of the project to recommend the 

replenishment system used by the Eco-fund. The report should include : 

� Summary of the fund raising system recommended to maintain / increase the Ecofund’s 

capital size to achieve its objectives in the broader Qinling area. A set of 

methods should be included such as annual appeal workshop inviting all the tourism 

operators in the Qinling area. 

� Legal status of the recommended fund raising activities 

� Operation procedure and guidelines 

358. The term of sub-contract will be for three years from year one of the project implementation. 

Inputs in each year will be three month. Total budget will be CNY696,000. 

b. Training and Capacity Building 

359. The overall training program is incorporated within each Project subcomponent so that each 

Implementing Agency or enterprise is clear in what is proposed. In addition, to the proposed training 

the PPTA has proposed an institutional strengthening program be supported by ADB through 

additional technical assistance grant funding. 

360. The TA will support the strengthening of the QNBG which will be newly formed prior to loan 

effectiveness. The strengthening program is described in Table 23 and seeks to develop the internal 

capacity of QNBG to operate in a commercially efficiency manner. A final plan will need to be 

prepared once final staffing and structural issues are agreed. At the Time of the PPTA Final Report 

the SPG was seeking to form QNBG in the first year of the Project while ADB had rejected the 

organizational proposal. During loan fact finding ADB changed its position to one of supporting the 

proposed institutional reforms and requested its inclusion. A final institutional strengthening program 

needs to be designed based on the staff included, the structural and management responsibilities and 

authorities created. These remain undecided. 

361. The proposed Institutional strengthening approach is based on developing agreed 

responsibilities, job descriptions, operational procedures through corporate strategy and work planning 

development and then using a work planning model to implement these strategies. The Project will 

facilitate the necessary processes for deciding on these and then support through training the building 

of capacity for QNBG to undertake and implement the agreed plans. In this respect the majority of 

institutional strengthening is achieved through facilitated guidance and leadership development that 

can then use the training programs and planning systems within the Project design to build the 

implementation capacity. The institutional strengthening ADTA is therefore targeted at the 

Management of QNBG and the Divisional Directors. The TA will assist the SPG in providing the 

following outputs: 

� SBP corporate manual and operational procedures 

� Governance structures 

� Financial systems and reporting capacity 

� Information systems and MIS 

� HRD development plan 

� Business Group Plans and annual work programs 

� Reporting and management information 

� Commercial procedures and quality controls 

362. The overall training and institutional investment is summarized in Table 23 below. The 

inability to confirm additional TA grant funding is however a major weakness ion the Project Design as 

without the institutional strengthening program the PPTA considers the Project not to be feasible due 

to implementation capacity constraints. 

63



64 

Table 23: Proposed Institutional Strengthening Program 

Organization / Division Target Skill Gaps Indicative Training Inputs/outputs 

Needs Assessment agreed with 

PMO/SQNBG 

Training plan prepared for 

Project including QNBG and 

project partners and 

beneficiaries 

Training Needs Assessment 

consultant 2 person months 

Shaanxi Qinling National Botanic 

Garden Unit 

42 Manager courses 

20 persons international 

exposure tours 

Strategic planning ( 2 courses - 

14 personnel) 

Team 

building and communication (1 

course 14personnel) 

Investment appraisal (2 courses 

– 8 personnel) 

Corporate planning and work 

planning ( 14 people 

Strategy 

Investment and Business 

Management 

Corporate Plan 

Annual Work plans 

Unit Budget and financial 

Performance 

Human Resource Management 

Monitoring and Reporting 

Total = 14 

� Director 

� Deputy Director 

� Commercial Manager and 

deputy 

� Public Relations and deputy 

� Financial Manager and 

deputy 

� Support staff 6 

A: Management 

Proposed ADTA of $0.526 

million that will include: 

1. Institutional strengthening 

($55,000) including 

specification and 

implementation of local 

regulations, and resource 

rights. 

2. Training $245k 

� Management training 

$50,000 

� Technical Training $65,000 

� Study tours and exchange 

visits $50,000 

� Seminars/workshops etc 

$80,000 

3. Essential equipment 

($16,000) 

� PC’s – 5 ($8,000) 

� Printers – 3 ($2,500) 

� Photocopiers – 2 ($3000) 

� Email system – 1 ($ 1000) 

� Other ( $1500) 

4. Consultants $2100K 

� International 

- Organizational and 

Strategic Planner 

Specialist 4 pmnths 

($85,000)

65 




� Domestic (30 pmnths) 

- Training HRD 

- Organizational systems 

- Financial management 

information systems 

- Horticulture expert 

- Visitor Management 

Local level training – 14 admin 

courses 

Each Dept to receive 2 training 

courses per year for 3 years. 

Total – 3 dept, 2 courses, 3 

years to be defined by staff skills 

appointed 

Administration support for Unit 

Project Record keeping and 

reporting 

MIS systems 

Total Staff = 22 

� Finance Dept (4) 

� Admin Dept (5) 

� HR Dept (4) 

� Office Staff (5) 

� Project support (4) 

B: Administration 

Project admin included in 

Component 3 

Operational mangers and 

professional staff training 93 

local courses 

Manager and Deputy’s 

� Planning 

� Budgeting 

� MIS 

� Promotion and marketing 

In house staff training 

� Guiding 

� Environmental education 

and awareness 

� Botanical garden 

management 

� Visitor management 

Job exchange for senior staff 

related to education and 

awareness and visitor 

management , and botanic 

garden management 

Enterprise management 

Planting, 

Maintenance, of gardens 

Repair and maintenance 

Education and awareness 

programs 

Visitor Management 

C: Botanical Garden Division Total Staff = 219 

� Full time 105 

� Part Time 114 

114 workers trained in botanical 

garden skills – identification of 

plants, planting, maintenance 

Included in Subcomponent 1.2 

including international exchange 

inputs and design inputs 

Commercial management and 

visitor management will be 

developed through contracting 

commercial services 

Commercial Management and 

visitor programs 


Management 

1. Center Manager 

2. Director Research and 

Breeding 

D: Animal Rescue Center 

Division 

70 staff trained in local courses 

or through Ta supported courses 

Endangered species recovery 

management 

Endangered species training – 

work based programs with 

3. Director Marketing



66 


4. Director Operation and Vet and wildlife recovery skills support from national and 

Administration 

international TA TA expertise for animal recovery 

Captive breeding technology 

and breeding programs for 

Panda, Ibis, Golden Monkey, 

Takin 

Operational management and 

admin included in ADTA 

� Admin – 5 

� Research and monitoring 

Staff – 10 

� Rescue and animal hospital 

– 12 

� Compliance 12 

� Keepers 50 

� Visitor management 6 

� Market (19 provided by 

contract b y tourism dept) 

Included in component 2 and 

Component three (GEF) 

A: Planning processes and 

option developed in consultation 

with wider conservation 

programs and staff 

A: Planning – habitat and 

conservation forestry, 

Landscape 

Existing Staff excluding 30 

SARC staff – approximately 270 

� Manager Operations 

� Forest Park 

� Conservation Forestry 

Programs 

� Community Forestry 

Programs 

� Compliance and Protection 

� Monitoring 

� Species Recovery 

Management 

E: Field Conservation Division 

(Louguantai Forest Farm) 

Livelihood Program 

� 20 village planning 

facilitators 

� Technical assistance 

(domestic) 6 pmnths 

� Economic Plants and SME 

development training for 

agency staff in Qinling 

Mountains by IMPLAD for 2 

years 

Capacity building through 

undertaking a planning program 

Village planning and community 

livelihoods 

Village development planning 

training of planning facilitators 

Collective /community forestry 

programs 

Biodiversity identification 

Conservation and community 

forestry based on analog and 

conservation forestry systems 

designed for social and local 

conditions – Project courses 

Habitat restoration 

Conservation Forestry 

� Habitat and forestry master 

plan (plan by doing) with 40 

to 60 people trained 

� Technical assistance to 

support training and 

planning processes 

(9pmnths domestic) 

� Endangered species 

recovery training and 

planning for 4 years – 50 to 

75 people trained 

Conservation forestry 

Habitat restoration – Project and 

other forestry experts to provide 

training 

Field Patrolling 

Monitoring and data 

management 

Plant identification course 

Endangered species 

management and recovery 

Field patrolling – Project office 

staff 

Landscape Planning 

Biodiversity monitoring training

67 




� Planning process (100 

Endangered species recovery trained by doing) 

� 24 IA staff 

� 250 agency and institute 

from Qinling Mountains 

� Planning working groups 

with support of TA 

Tourism Planning 

� Implementing Agencies 

agency and Qinling 

Mountains staff (50) 

- TA (international) – 10 

pmnth 

- TA (domestic) – 24 

pmnth 

- 12 local tourism 

planning facilitators 

Conservation Monitoring 

� Monitoring contract (WWF 

technical support for training 

– 2 years) 

� Implementing Agencies and 

conservation staff in Qinling 

Mountains training 100 per 

year for 3 years 

� Technical assistance for 

Training and capacity 

development 

- International – 15 pmnth 

- National – 15 pmnth 

� International/regional job 

exchanges – 15 ( 3 for 

Qinling Botanic Garden, 6 

SARC, 6 for non- 

Implementing Agencies 

staff) 

� 4 year education and 

dissemination program in 


B: Project Management



68 


Training provided by ADB head 

office and PRCM prior to loan 

effectiveness 

ADB procedures training – 

before effectiveness 

In-house training of 

Implementing Agencies staff 

Procurement 

Disbursement and 

replenishment procedures 

Project BME and MIS 

Project planning 

Project procurement 

Project administration 

Project disbursement 

Project reporting 

PMO (11) 

Follow on training provided in 

Component 3 

Directors, Management, and 

Administrative staff of QNBG 

(15) 

Component 2 training 

� 16 SALT demonstrations 

� 160 mu in 16 Forest Plant 

production demonstrations 

� Small enterprise 

demonstration (10 to 16) 

� Farmer training program (2 

year NGO contract) 

� Farmer and household 

education program for 3 

years 

� Homestay tourism training 

- 70 employees trained 

- 10 manager courses 

Course training facilitators 

Planning exercises for all 

agencies staff including staff 

from agencies operating outside 

the Project 

Group formation 

Spatial planning and 

prioritization 

Forest land allocation 

Community forestry programs 

- tree and shrub planting 

- tree shrub maintenance 

- biodiversity awareness 

- small business development 

Home stay tourism 

- marketing and promotion 

- hosting 

- cleanliness 

- cooking and food preparation 

- guiding and value adding 

SALT 

- agro-ecology 

- contour planting and 

management 

- agricultural technologies 

Project Beneficiaries 

Local Residents in in-situ area Village planning 

Community forestry 

Small enterprise development 


SALT 

Forestry Group training days 

using TA input and SFB staff 

Implementation planning and 

oversight through LFF 

Enterprise training programs 

SALT Demonstrations and 

farmer training



69

70 



3. Biodiversity Capacity Building and Replication Programs 

a. Landscape Planning 

363. The Project shall introduce spatial planning at a landscape level as both a demonstration 

and planning process for the mainstreaming of biodiversity conservation within the wider landscape. 

i. Project Area Master Landscape Plan 

364. Within the Project area people from across the QM would develop a landscape planning 

model for the Project Area which would then implemented and evaluated over a two year period. The 

plan would seeks to identify options, test approaches and information systems including the planning 

for nature reserves, forest landscapes, agricultural land use and intensive commercial development 

including urban or residential land use. 

365. The plan would adopt a highly participative approach and use this involvement as part of a 

wider capacity building and awareness raising opportunity for conservation and land use staff from 

across he wider QM. The process would focus on the project area but would also move around other 

sites that have adopted and proven techniques and or approaches that could be replicated. The 

planning process would involve: 

� A major residential workshop for up to 120 staff for a period of 4 days to identify and 

collate existing experience and approaches. These would be databased and made 

available to all participants. The workshop would also identify a plan for implementing 

an action learning process for the preparation of landscapes for the Project area over 

a 30 month period. 

� A total of five working group meetings per year lasting four days for 50 people 

� Plan preparation and production costs 

366. Implementation would be the responsibility of the SFB and the LFF reflecting the mandates 

of both to work in the Project Area and the wider QM and will be closely linked to the monitoring 

program –see below. The monitoring research programs and data collections will be used to inform 

the planning program and will also provide mapping and data analysis inputs. 

367. The landscape management plan for the PA would provide a pilot planning process through 

which wider QM stakeholders could gain experience and develop consensus on how landscape 

planning could be implemented within the wider QM. As such all planning procedures included in the 

Project are integral to capacity building in QNBG and the wider set of stakeholders 

Spatial Plan 24 

ii. Louguantai Forest Park Tourism Management and Development 

368. The Louguantai Forest Park located very close to both SARC and the Hot Springs 

Development in “Louguantai Village” is already well known and an attractive tourism site. The Forest 

Park is located between Louguantai village centre and the first foothills of the Qinling Mountains. 

Many of the Daoist sites are located within the Louguantai National Forest Park as is the existing 

Bamboo Garden. The tourism area in the Forest Park has been making small investments of about 

CNY1 million per year to improve tourism facilities based on a Forest Park management and tourism 

development plan completed in 1993. Development of the Louguantai Forest Park property will play a 

major role in Project success, as it is considered essential that the three principle visitor attractions 

located within the project area: the Qinling Botanic Garden, the Shaanxi Animal Rescue Centre and 

the Louguantai Forest Park are planned, promoted and marketed as linked attractions. 

24 Capacity building, technical assistance and related activities in Components I and II are being kept separate 

from the main project investments under each component both because of their importance to Project success 

and because, based on past SPG projects that were financed in part by an ADB loan, these could be funded 

under a separate Project TA between the SPG and the ADB



369. The Shaanxi Louguantai National Forest Park is operated by the Shaanxi Provincial Forestry 

Department and extends to 410,000 mu (approximately 27,333 ha) and is located between 501 meters 

and 2997 meters above sea level. The Park thereby provides a wide vertical distribution of vegetation 

zones which contribute to the varied landscape scene. The Park is divided into four main sub-divisions 

shown in the Map at the start of this document: (i) East Louguan; (ii) West Louguan; (iii) the Tianyu 

River; and (iv) the Shouyang Mountain. 

370. The proposed plan focuses on the smaller tourism facility of the Forest Park 25 , which 

together with SARC and the Hot Springs is located within Louguantai Village, which is a small town 

that fulfils the role of ‘service centre’ for tourism and entrance to the “Louguan Experience” sites. The 

town is arranged around a single wide main street which leads to the entrance to the Forest Park and 

Hot Springs. The main street is lined with small shops and restaurants that provide services to visitors. 

371. Along the main street is also located the impressive Daoist Zong Sheng Palace which is 

open to the public. With careful and sensitive management, there is potential to improve both the 

range and quality of services offered and also the ‘village quality.’ This could be achieved through 

improvements to the open space landscapes at the entrance to the village / main street, the circulation 

of traffic which is dangerous to pedestrian visitors during busy periods, and street cleanliness thereby 

improving visitor image. 

372. Because of the strong potential of the Forest Park and Village, it is proposed that the Forest 

Park be provided with Project support to prepare a long-term tourism management and development 

plan for the Louguantai Forest Park that would be extended to include tourism management and 

development for the Louguantai Village. The purpose of the Plan would be to position the Park and 

Village to properly manage, capitalize on and benefit from PA tourism growth. The plan would be 

included within the wider landscape plan for the Project Area. 

373. The Plan would encompass: (i) a longer-term investment plan (the Park is currently investing 

about CNY1 million per year largely on an adhoc basis); (ii) individual and joint marketing; (iii) 

interpretation in order to achieve thematic and related consistency with other ex-situ facilities in terms 

of quality and format; (iv) attendance and pricing strategies to generate net revenue for QBCDA 

biodiversity conservation through e.g. reforestation – the present revenue of CNY10 million based on 

CNY30 entry fee and 300,000 visitors per year could easily expand four times by 2015 to 40 million 

based on 600,000 visitors and CNY70 per visitor; (v) financial, cooperative, advisory and other 

arrangements with the Daoist community; including linking the Forest Park Daoist Temples with other 

Daoist sites in the ex-situ and near QBCDA area (the Lao Dzi Trail); and (v) spatial, environmental, 

infrastructure, social and business development planning for the Village so that businesses and 

families in the Louguantai Village can fully benefit from and add value to the Louguantai Experience. 

The Lougauntai Tourism master plan will form an integral part of the wider master landscape plan . 

374. The vision for the Louguantai Forest Farm / Louguantai Forest Park, Louguantai Village and 

surrounding landscape and communities is to work together with the tourism industry in a harmonious 

partnership, adopting best planning, management and marketing practices to establish Louguantai as 

one of China’s leading ecological and cultural tourism destinations. 

375. The objective is to prepare a Tourism Management Plan for the Louguantai Forest Park, 

Louguantai Village and surrounding landscape based on social and environmental constraints and 

ensure the sustainable long term development of the areas natural and cultural assets. 

376. The planning process would be led by the Louguantai Forest Farm with support from the 

Shaanxi Tourism Department. Louguantai Forestry Farm is a government affairs unit approved by the 

Shaanxi Forestry Department. The most recent confirmation of its legal status is in 1986. It is a 

government affairs unit however government only covers part of its operation cost. LFF is an 

independent legal entity registered with Shaanxi Province Government Affair Unit Registration 

Administration which can manage forestry land following Forestry ACT of PRC. LFF has the use rights 

for the area stated in the forestry land certificate covering 37,163 hectares. 

25 However, the larger Forest Park area, which reportedly covers 60% of the PA based on information provided 

by Forest Park officials will play a major role in the QBCDA strategy and overall Project impact and outcome. 

71

72 



377. The LFF mandate includes: management of state owned forestry farm, management of state 

owned forestry nursery, forging forestry development, rescuing wildlife, maintaining of ecology 

balance. LFF can plan supply and production of seedlings. LFF can conduct forestry farm 

management and state owned forestry nursery management. They will manage tree seedlings supply, 

forests, forestry fire prevention and control, selection of quality genes and seeds, extension of new 

technique. LFF can conduct training on relevant techniques and management practices. They can 

provide services on forests related tourism. They can rescue, keep and raise sick and injured wild 

animals. They can conduct publicity and education on wild animal protection affairs. They can 

research on animal protection related issues. They can raise and bread wild animals. It has initial 

capital of CNY21,330,000. 

378. Louguantai Culture and Ecology Tourism Area Development is one of projects planned 

under the Qinling National Ecological Function Zone Plan. The plan has listed 15 development 

projects under eco-tourism and ecological environment protection. If LFF develops a conservation 

sensitive tourism model, it will give impact to other development through an appropriate channel. It 

can organize an association with other forestry parks to disseminate the useful experiences. 

iii. Job Exchanges 

379. A total of 15 GEF financed job exchanges will be provided for technical staff to visit and work 

for a period of 2 months per input. The purpose of this activity is to expose senior technical staff to 

new ideas and approaches. The 15 positions are allocated to SARC, QBG and conservation staff not 

working for the Implementing Agencies and or EA of the Project. 

iv. Conservation Monitoring 

380. China is one of the world’s mega diversity countries, with over 30,000 vascular plant and 

6300 vertebrate species. China’s mountains are especially important. County level data has been 

digitized and evaluated by country scientists, identifying ten biodiversity hot spots and providing 

county level information that should be useful to this project. All the identified hotspots for overall, 

endemic and endangered diversity for plants and animals for China are located in mountainous areas. 

The Qinling Mountain is one of the ten. 

381. Ecological monitoring has and is being conducted by a number of Chinese Agencies. They 

include State Environmental protection Agency, Chinese Academy of Sciences, Ministry of Agriculture, 

State Forestry Administration, State Oceanic Administration and China Meteorological Administration 

operating research and monitoring stations in many parts of China. 

382. Considerable data on flora and fauna has been collected and many reports have been 

written about the status of the area’s biodiversity and the threats to its survival. Important information 

on land use and social-economic conditions has also been prepared. 

383. Understanding patterns of biodiversity is essential to conservation strategies and monitoring 

of conservation goals, but data constraints make surrogate indicators attractive to managers to show a 

change in environmental conditions. However studies on the use of indicator species have not been 

very supportive in their effectiveness. Nevertheless, indicator species can play an important role in 

biodiversity monitoring. 

384. Although, the biological data is informative, it is not well coordinated, analyzed or in a form 

that that can be used for policy formulations, decision making and subsequent management. The 

information is often not comparable. Fundamental information is hard to come by and may be 

contradictory. Protection and management is impossible without basic land use and management 

information. In particular, the in-situ strategy requires a strong monitoring framework, supported by 

GIS and other information systems. 

385. Some of the problems stem from an inherent desire not to share information, as information 

is often considered to be institutional power. This as an organizational, management, and technology 

problem that must be corrected. Fortunately, there have been some excellent advances in data 

collection and management that will be a great asset to this project.



386. Many kinds of information are required to conserve biodiversity effectively, including data on 

ecological relationships, species distribution, status and trends, human uses, and changes in land use. 

New technology makes data management more productive than before. For example the development 

and improvement of computerized Geographic Information Systems (GIS) has greatly enhanced the 

analysis and formulation of biodiversity conservation strategies and actions. 

387. Effective biodiversity monitoring requires a hierarchical effort from local on the ground work 

to global monitoring, i.e. WCMC (World Conservation Monitoring Center). 

388. Information needed for biodiversity conservation can be divided into 3 parts: 

(i) biological information on individuals, populations, communities, and ecosystems for all 

kinds of animals, plants, fungi, and microorganisms 

(ii) environmental information on the natural environment such as geology, 

geomorphology, climate, water quality and quantity both surface flows and under 

ground, soils and air, water and land pollutant 

(iii) socio-economic information 

389. Objectives of a biodiversity monitoring system should be clearly stated and understood. The 

objectives should include: 

(i) information of changes in land use, soil conditions and ecosystem health 

(ii) accurate information on biota, population size and trends, especially threatened 

species 

(iii) water quality condition and trends 

(iv) Information on air quality, not only related to human effects, but the effects of air borne 

pollutants on biodiversity, including agriculture crops. 

(v) present the results in a form readily available and understandable to scientists, 

managers and the public 

(vi) data and information collected and analyzed by government institutions should be 

shared without fees to recipient, except for the direct cost of providing the material. 

(vii) monitor implementation of policies and projects 

390. China made a step towards a national monitoring system when adopting the China 

Biodiversity Conservation Action Plan in 1994. The plan includes most of the above objectives plus 

components to accomplish these objectives. 

391. Monitoring in the QM and project area should be compatible and consistent with National 

system, but also provide improved and advanced methods that can be used in the Project Area, and 

replicated in the greater QM, and elsewhere in China. This requires: 

(i) developing effective information and monitoring system to conserve biodiversity in the 

Project area and the greater QM: 

(ii) improve sharing, coordination and use of information and monitoring net works 

(iii) improve biological information, especially occurrence and distribution data for all 

monitoring of trends through use of advanced technologies such as remote sensing 

(iv) strengthen field data collection and monitoring 

(v) strengthen the use of monitoring in EIA preparation and in decision making 

392. Biological and environmental data must be collected, stored and analyzed. Because of the 

skills required and expensive technical equipment, some centralization is necessary. However, results 

can be made rapidly available to a wide audience through modern information technology transfer. 

The Shaanxi Environmental Monitoring Center was established in 1978 as a unit of the Provisional 

Environmental Protection Bureau, and is a National Monitoring Station. Last year, the monitoring and 

research functions were separated. The Center has responsibilities for monitoring air, water, soil and 

water borne microorganisms. There are 10 local monitoring centers in Shaanxi Province, one in Xi’an, 

but none located in the QM. There are 6 automatic air monitoring stations, collecting standard air 

73

74 



borne pollutant data, in Xi’an, none in the project. Additionally, ten mobile stations are operated by the 

Shaanxi Center. The stations monitor the classic pollutants. There are ten automatic water monitoring 

stations with five more to be built. Classic measurements of pollutants and stream flow are taken, and 

on occasion testing for toxic chemicals. Ground and waste water are also monitored. Soil 

contamination is also monitored. Monitoring results are reported bimonthly, annually and every 5 

years. Collected data is stored and analyzed using SQL server data based system and the internet to 

disperse information. 

393. Monitoring for the QM must be coordinated with the Shaanxi and local monitoring Centers, 

with the likely need for air and water monitoring stations within the Project Area. Qinling Mountain 

Nature Reserves have good programs of biota monitoring in several units, which has been developed 

with WWF. Initiated by WWF, the monitoring program began in 1999 in Foping, Laoxiancheng and 

Niubeiliang Nature Reserves. This program monitored Giant Panda population and habitat, vegetation, 

Panda droppings and breeding places. In 2005, with the SFD, monitoring was expanded to 19 NRs 

and one Forest Farm. This monitoring work is collecting: Giant Panda breeding data from all QM 

breeding sites and also field monitoring data. Field monitoring occurs twice year, April to May and 

September to October. Socio-economic and Nature Reserve Management data is also collected and 

evaluated once a year. Vegetation is monitored on a 5 year schedule. Three hundred nineteen animal 

and eighty plant transects have been established and located precisely with GPS data system, which 

is directly transferred to Forest Bureau by internet. Standards have been established for the 

monitoring and are compiled in a useable hand book. Training is given to each of the approximately 

200 monitors, who are Forest Bureau employees. Training hand books and field guides are made 

available to the monitors. Training needs analysis is done prior to the training in order to tailor the 

training to the needs, which vary according to the employee’s abilities and the level of the NR in which 

they will work. Written exams and skill tests are given to test competence and awards are given for 

good work, often a GPS. An expert team gives support to the monitors. 

394. Data collection and monitoring is complemented by Patrols numbering more personnel than 

the monitors. They also are given special monitoring training. WWF has also established a Qinling 

Ambassador Program using volunteer students and others to work with communities educating 

villagers on values of biodiversity and conservation, and collecting specific socio-economic data for a 

5 year period, which should provide very valuable information. 

395. Funding for this work comes from several sources. At present 60% is from WWF for training 

and equipment, local partners (NRs) contribute staff and vehicles, and Shaanxi Forest Department 

and SFA cover other costs. WWF’s percentage is being reduced. 

396. All the Panda Reserves have GEF standard management plans. In the planning, WWF 

adopted the GEF co-management concept. WWF role was to act as a facilitator, asking locals what 

they want to do and if the proposal is environmentally friendly, helping them proceed through micro 

credit or other means. 

397. The Shaanxi WWF office is very willing to share all their information and work with this 

Project, but ask and believe it is necessary that a formal cooperative agreement be entered into 

between the Project and WWF’s Beijing office. Information sharing and other forms of cooperation 

would be highly beneficial to the Project and the PPTA strongly recommends that a cooperative 

agreement be formally arranged. 

398. Forest Resource Management Division and the Shaanxi Forest Survey and Design Institute 

of the SFD report that forest land is re-surveyed every 5 years. In Shaanxi there are 6440 permanent 

0.08 ha plots on which tree and soil type data are collected. The plots are laid out in a grid and located 

on remote sensing imagery, currently using Spot 5. The officials showed little interest in monitoring 

non tree species of plants, but the survey could provide the basis for systematic flora monitoring in the 

Qinling Mountains. 

399. The Northwest Institute of Forest Inventory, Planning and Design, under the SFA also have a 

system of forest plots, more limited in number than the above described Provincial survey, which are 

examined every 5 years. 

400. The PPTA recommends that a biota and land monitoring function be located within the 

QNBG and that this share all data with the SFD. The PPTA does not support the investment into new



GIS capability as the SFD currently have significant GIS capacity. It is proposed that the Project would 

contract biodiversity monitoring to SFD and that the WWF would receive a two year training contract to 

work with the QNBG in building their capacity. In return for provision of data an demonstrating new 

monitoring technologies the QNBG will receive data support and access to Qinling Mountain data sets. 

If the sharing of data is not agreed in advance GEF should not be involved in the Project. 

401. Each IA and enterprise will monitor and evaluate their developments and activities with 

technical assistance and oversight from the Monitoring Center. Monitoring performance, and impacts 

on biodiversity and the physical environment should be integrated into the proposed Ex-situ 

enterprises. 

402. The project proposes to develop a strategy for the Government to introduce replication of the 

models and lessons learned, including habitat restoration, endangered species management and 

general management systems. Certainly much can and will be learned that will be applicable 

elsewhere. Ecological conditions, socio-economic situation and threats will be determining factors in 

the ability to replicate in other areas. Replication opportunities should be identified in the 4 th year of the 

Project. 

403. The objectives of the biodiversity monitoring system includes: 

� information of changes in land use, soil conditions and ecosystem health 

� accurate information on biota, population size and trends, especially threatened 

species 

� water quality condition and trends 

� Information on air quality, not only related to human effects, but the effects of air borne 

pollutants on biodiversity, including agriculture crops. 

� present the results in a form readily available and understandable to scientists, 

managers and the public 

� data and information collected and analyzed by government institutions should be 

shared without fees to recipient, except for the direct cost of providing the material. 

� monitor implementation of policies and projects 

404. The Project will contract SFD to provide the ecological monitoring for the GEF component 

and the wider project area as a whole. The contract will include WWF costs for training QNBG staff, 

monitoring equipment, data collection costs and training for all stakeholders involved in the monitoring 

scheme. WWF shall be sole sourced contracted due to their unique presence and role within the 

strengthening of biodiversity conservation in the Qinling Mountains. The Existing SFD and WWF data 

sets can be integrated with the Project data sets to provide a time series of data that will enable trends 

to be identified and increasingly understood. Data collections will include a time series of imagery for 

the Project area and its interpretation. 

405. The Project will also provide Technical Assistance for training and definition of monitoring 

systems including data collection, data storage, data analysis and data use and interpretation. A total 

of 15pm of International experts and Domestic experts in remote sensing, survey techniques, and field 

conservation. Further there will be a total of 6 field survey and research contracts spanning two years 

that will be used to inform the landscape planning program. The contracts will be awarded for research 

into (i) vegetation monitoring and inventories, (ii) vertebrate research, (ii) Invertebrate research, (iv) 

Fish and Aquatic research, (v) Amphibians inventory and population studies, (vi) Soil microorganisms 

in natural forests, conservation forestry and SALT treatment areas. Monitoring performance, and 

impacts on biodiversity and the physical environment should be integrated into the proposed ex-situ 

projects, with supporting input by Center staff. 

406. As a part of the landscape planning program the project will develop a strategy for the 

Government to introduce replication of the models and lessons learned, including habitat restoration, 

endangered species management and general management systems. Certainly much can and will be 

learned that will be applicable elsewhere. Ecological conditions, socio-economic situation and threats 

will be determining factors in the ability to replicate in other areas. 

75



CONSULTING SERVICES 

1. The following appendix provides the description of technical services included within the 

Project, how these will be contracted and the detailed terms of reference for individual positions. 

Position 

Package A: 

Package A –SARC 

International 

Table 1: Individual Positions by Procurement Package and Project Year 

Total Person 

Month 

Project Yr 

One 



Golden Monkey 

Expert 

Domestic 

1 1 



Golden Monkey 

Expert 

Total Package A 


Package B 

International 


Expert 

1 1 

6 6 

Project Yr 

Two 

5 0 5 

Biological Surveys 5 0 5 

Biodiversity 

Conservation 

5 0 5 

Tourism Planner 10 3 7 


Design expert 

1 1 

Wildlife vet 1 1 

Subtotal 

International 

National 

Project Yr 

Three 

17 4 13 0 

Village Planner 6 2 2 2 

Tourism Planner 24 6 10 8 

Conservation 

Forestry 

9 3 3 3 

GIS Expert 5 0 5 


and Surveys 


Expert 

5 0 5 

5 0 5 

Subtotal National 54 11 30 13 

Total Package B 


71 15 43 13 

1

2 



A. Package A – SARC Species Expert Team ( 6 positions, 1 person month each) 

2. Package A will be contracted directly by SARC as individual consultants. A total 6 positions 

will be hired with a national and international expert for each of the giant Panda, Crested Ibis, and 

Golden Monkey. Each expert will have approximately one person input and they will be responsible 

for: 

� Reviewing the current species management program at SARC 

� Complete a field inspection of the proposed satellite sites 

� Identify management safeguards for the movement of animals into the satellite sites 

� Recommend management techniques to ensure the majority of animal movement is 

successful 

� Review current record systems and update to ensure stud book details are kept and 

used by Management 

� Review the endangered species management planning process and include the role 

of the ex-situ program within that 

� Provide a set of satellite site recommendations for the improving animal welfare and 

animal husbandry programs 

� Review science an veterinary programs to ensure world best practice is applied 

� Work with the Design expert (see package three) and recommend design 

improvements for the animal exposition area. 

B. Package B: Support for Biodiversity Conservation Program 

3. Package B will provide technical support to the in-situ conservation program and the 

replication and outreach program for the wider Qinling Mountains. The Package is financed by GEF 

and will include a total of 71 person months of input. The identification of the consultants will be 

undertaken by ADB using QCBS on a 80:20 technical financial selection criterion to expedite the 

mobilization of consultants. 

1. Detailed Terms of Reference – International Consultants 

a. Species Recovery Management Expert 

4. The candidate shall have experience in (i) threatened species survey, recovery planning, and 

recovery; (ii) threatened species habitat survey and threat analysis; (iii) donor and international 

projects in Asia; (iv) Familiarity with the IUCN World Conservation Union Species Survival 

Commission and Specialist Groups. The candidate shall be responsible for: 

� Work with and supervise National Species Recovery Specialist and National Species 

Recovery & Survey Specialist; 

� Accompany the National Species Recovery Specialist and National Species Recovery 

& Survey Specialist on a one week field trip to the core and buffer zones of the Project 

Area; 

� Accompany the National Species Recovery Specialist and National Species Recovery 

& Survey Specialist on a four week field trip to the nature reserves and corridors of the 

Qinling; 

� Review species recovery priority rankings in PPTA documents and revise as needed; 

� Review national and provincial species recovery plans for priority species and liaise 

with stakeholders to determine the status of those plans (current, outdated, obsolete, 

in need of update, etc.); 

� Specify procedures for updating, revising, or re-drafting any available plans; 

� Carry out threats assessment for priority species; 

� Supervise drafting of species recovery plans for priority species based on threats 

analysis; 

� Work with National Species Recovery Specialist and government stakeholders 

including State Forestry Administration and Shaanxi Forestry Department to initiate 

the governmental approval process for recovery plans;



� Encourage approval of the plan through government stakeholder networks; 

� Assist with initial implementation of recovery plans. 

b. Biological Survey Expert 

The candidate shall have an academic background in conservation and survey techniques with 

additional practical application of biological surveys and monitoring throughout a range of different 

ecosystems and terrains. The candidate shall have proven experience in the design of field monitoring 

programs and the in training local staff to implement these. The candidate shall be responsible for: 

� Reviewing the current survey techniques used by SFB and WWF and assess their 

application and outputs 

� Working collaboratively with WWF and SFB – including the Louguantai Forest Farm 

staff – support a monitoring design team that will design a biodiversity, ecological and 

environmental monitoring program for the Project Area that is affordable to be 

maintained at project completion and prioritizes information that is needed for decision 

making 

� Specify the options for field surveys including detailed methodological inputs, their 

strengths and weaknesses, implementation requirements, data collected and analysis 

requirements 

� Present a review of technological options to support the field survey program including 

remote sensing, camera trapping, telemetry etc 

� Using the monitoring design team agree on which techniques to implement and 

specify field monitoring locations and program in the form of a work plan. 

� Train monitoring personnel and agency staff in the techniques required to implement, 

and manage the field survey programs 

� Assist WWF supervise the establishment of the field survey programs and address 

any issues that arise including the management and reporting of data 

� Train WWF and SFB ( and associated institutes) in field monitoring and survey 

techniques 

c. Biodiversity Conservation Expert 

5. The candidate will have an extensive knowledge of biodiversity conservation, GEF programs 

and current developments and innovations within the international conservation arena. The candidate 

should also have a detailed knowledge of biodiversity conservation in China with the majority of this 

experience being linked to field conservation programs outside of Beijing. Past work experience within 

the Qinling Mountains with an emphasis on species management would be a definite advantage. The 

consultant shall be responsible for: 

� The design of the overall biodiversity conservation plan for the Project that will 

address the issues within the following points 

� The integration of biodiversity priorities and management techniques within the 

preparation of the In-situ Habitat Management plan ensuring that conservation 

objectives are maximized and used to prioritize silviculture interventions. As an 

integral part of this process the candidate shall assist the PMO prepare detailed 

TOR’s for any ecological or biodiversity related research contracts by developing a 

research priorities agenda that is developed as a part of the overall planning process 

and is demonstrably needs based. 

� The specialist will be responsible for defining the parameters through which 

biodiversity and conservation will be fully integrated within the proposed landscape 

planning program 

� Ensure that the biodiversity s fully integrated within the project and that the linkages 

between the in-situ and ex-situ programs – both financial and technical are reflected in 

designs planning and work programs. This could especially include the conservation 

forestry programs developed through the Village Development planning process. 

� Prepare guidelines for the inclusion of biodiversity within the dissemination programs 

3

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� Contribute to the design of field conservation programs that seek to demonstrate new 

technologies and approaches. 

� Provide training in biodiversity conservation including awareness raising for senior 

Project officials, technical training for field staff especially staff from Louguantai Forest 

Farm 

d. Tourism Planner 

6. The candidate shall have extensive experience in spatial planning with a tertiary level 

qualification in planning with specific job experience in tourism, conservation and residential planning. 

The candidate shall have at least 5 years work within developing countries some of which is to be 

linked to conservation and tourism. The candidate shall be responsible for: 

(i) Reviewing current policy and plans for spatial planning in Shaanxi 

(ii) Forming a spatial planning task force to provide leadership in defining and then 

undertaking the spatial planning process 

(iii) Undertaking a series of meetings/workshops that identify (i) the scope of the proposed 

plan, (ii) identify the planning stakeholders, their perspectives and expectations, (iii) 

identify existing data sources and systems 

(iv) Work with the Project information service provider to develop appropriate data bases 

and maps for spatial planning exercises 

(v) Undertake training of planner facilitators 

(vi) Using a participatory process define the planning process, its objectives, principles, 

and decision making processes 

(vii) Assist the national planner to under take the planning exercise including the 

assembling of stakeholder preferences and options to address these preferences both 

spatially and temporally 

(viii) Hold planning work groups that define and decide on preferred conditions, planning 

outcomes and identify potential conflicts between stakeholder groups 

(ix) Identify mechanisms for addressing conflicting needs and implement these 

(x) Prepare planning scenarios and circulate these to each working group and all planning 

stakeholders for comment and input 

(xi) Prepare a draft plan and hold public consultations in the planning area and within the 

Project Area, Zhouzhi County Shaanxi Provincial Government 

(xii) Using the planning work groups develop implementation targets and programs with 

supporting budgets 

(xiii) Identify the need for regulation and legal reforms to provide the Plan with status in the 

SPG 

(xiv) Prepare final planning document and supporting spatial maps. 

e. Animal Exposition Design Expert (1 person month) 

7. The candidate shall have experience in the development of a master plan for a zoo or similar 

wildlife focused facility and in the detailed design for animal and other zoo facilities. It is likely that this 

expert could be a zoo professional with experience of working in a design team where architects or 

technical drawers produce the plans and design documents. 

8. The candidate shall be responsible for 

� Working with the SARC staff, the international zoo management expert and the local 

design team, to assist in the development of a master plan for SARC and site layouts 

for the 4 satellite centers 

� 

� With the same group, to assist in the development of detailed designs for all of the 

facilities in SARC and at the satellite centers 

� 

� To advise on materials and equipment for the center



f. Veterinary Expert (1 person month) 

9. The candidate shall be a senior vet in a major international zoo or similar animal and wildlife 

based facility with experience in advising on the design and equipping of, and managing, veterinary 

facilities. 

10. The candidate shall be responsible for: 

� To review and comment on the plans for the Wildlife Rescue Center 

� To assist the design team in developing the layout and the detailed design for the 

veterinary and associated facilities in the WRC at SARC 

� To assist the veterinary team at the WRC in the production of an equipment list for the 

center and for the wildlife rescue unit 

� To advise on the latest techniques and equipment for wildlife rescue and for the 

veterinary care of animals in a captive environment 

� To assist in the development of a training program for vets and technicians at the 

center 

� With the zoo expert, to advise on the development of husbandry guidelines (including 

the veterinary care) for the species held at the center and in the satellites centers 

2. Detailed Terms of Reference – National Consultants 

a. Village Development Planner ( 6 person months) 

11. The candidate will have a social development background with experience in undertaking 

social assessment and village or community level planning. The candidate shall have raining and 

extensive training in PRA/RRA techniques and working with social survey data. A back ground in rural 

livelihoods and gender based development planning is required. The candidate will be responsible for 

the following tasks: 

� Work with the Shaanxi Qinling Biodiversity Promotions Ltd to identify all 16 villages 

� Undertake a consultative rapid assessment of needs and awareness raising of the 

Project and the VDP process 

� Based on the findings of the rapid assessment develop a plan for the Village 

development planning process 

� Recruit VDP facilitators and train these in the planning process and the context of the 

Project 

� Implement the VDP and supervise the facilitators 

� Provide a written description of each VDP and have each village leadership sign off on 

the plan. 

� Prepare plan outputs according to the needs of the PMO , SFB and the Village itself 

� Assist with the formation of forest resource management associations 

� Prepare a program for the PMO to maintain and develop the communication network 

amongst the 1 villages to ensure improved opportunity for involvement in the Project 

b. Tourism Spatial Planner ( 24 person months ) 

12. The candidate will have a minimum of 5 years experience of working in the tourism sector for 

both the public and private sector including commercial tourism planning, strategic planning, marketing 

and positioning studies. A proven involvement in ecotourism or nature tourism would be an advantage. 

The candidate shall be responsible for: 

� Compiling local data sets for tourism planning in the planning area and the wider 

Qinling Mountains 

� Assisting the international tourism planner to design and define a spatial planning 

framework for tourism and the Project Area 

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� Responsible for developing training program for the tourism sector in spatial planning 

and the implementation of the training for agency, operators and potential investor 

stakeholders 

� Working with the international training expert take the lead role in implementing the 

planning process 

� Provide regular reports to the PMO on the status of the planning exercise and it 

achievements 

� Prepare draft planning scenarios and ensure that all Project activities are consistent or 

compliant with the planning objectives 

� Develop concept plans along with agreed quality standards for design, service 

delivery, product development and a coordinated marketing and promotion program 

� Work with local government official to create awareness of the spatial plan with the 

view of having the plan ratified. 

� Work with stakeholder groups to develop implementation plans for achieving the plan 

objectives 

c. Conservation Forestry Expert ( 9 person months) 

13. The candidate shall have a social and conservation forestry background preferably with an 

understanding of natural forest management and the Qinling Mountains. They will have experience in 

community based forestry and a demonstrated knowledge of analog forestry and its application in 

China. The Candidate will be responsible for the following: 

� Reviewing the VDP and working with the VDP planner establish village level forest 

associations or groups 

� For each group develop a conservation forestry plan including the survey and 

demarcation of collective lands, species mixes to be planted and a planting schedule 

to be followed. 

� Work with early adopted to demonstrate how to transition from existing forest cover 

into conservation forestry systems 

� Develop a village level monitoring system for the establishment and monitoring of 

village level conservation forestry 

� Prepare a set of Conservation Forestry Guidelines for SFB and provide training to 

Louguantai forest staff 

� Facilitate the Louguantai staff to develop a forest habitat plan for the non-collective 

land that develops a number of treatments to enhance the conservation value of forest 

cover 

� Prepare a habitat enhancement plan for 2,000 ha of the Louguantai Forest Farm land 

and train staff in the silviculture required to complete this 

� Provide supervision and ongoing training to support staff in their development of 

conservation forestry. 

d. GIS and Remote Sensing Application Specialist 

14. The candidate will have advanced training in the application of image interpretation, remote 

sensing and GIS and will have previous experience n conservation or related sectors including the 

integration of data across natural resource, social and economic sectors. The candidate shall be 

responsible for: 

� Working with the PMO to structure the conservation monitoring contract with WWF. 

� Work with the Project staff and WWF to develop a fully integrated monitoring data 

base and analytical framework 

� Provide training and assist in the interpretation of time series imagery for the Project 

area 

� Using the imagery analysis establish time series data bases and complete an analysis 

on the identifiable trends in the Qinling Mountains and the Project Area. Ground truth 

the interpretation results



� Provide training to Louguantai Forest Farm and WWF staff in the use of image 

interpretation 

� Seeks means for integrating datasets between the image data, field observations and 

the intensive monitoring framework outputs 

� Prepare a detailed report and present to PDRC 

e. Species Recovery – Field Surveys 

15. The candidate will have the following experience and qualifications 

� Experience in biological resource survey and management in Shaanxi Province and 

the Qinling mountains; 

� Knowledge of protected area management in the Qinling mountains; 

� Experience in survey and management of endangered species including plants and 

animals; 

� Knowledge of and familiarity with the institutions responsible for wildlife survey and 

management at both province and national levels; 

� Ability to read and write English; 

� Knowledge of the scientific literature relevant to globally threatened species of the 

Qinling mountains; 

� Contacts with academic institutions and NGOs that have expertise in recovery of 

China’s globally threatened species; 

� Working knowledge of the three Giant Panda censuses and their results; 

� Working knowledge of the methodology employed by Shaanxi Forestry Department 

and WWF China (Xi’an) to carry out bi-annual or tri-annual monitoring in the Qinling; 

16. The candidate will be responsible for: 

� Work with the International Species Recovery Specialist; 

� Accompany the International Species Recovery Specialist on a one week field trip to 

the core and buffer zones of the Project Area; 

� Accompany the International Species Recovery Specialist on a four week field trip to 

the nature reserves and corridors of the Qinling; 

� Assess the status of survey and monitoring data for all priority recovery species; 

� Compile and assist translation of all relevant national and provincial species 

monitoring, research, recovery, management plans and other documents; 

� Compile and assist translation of all relevant national and provincial habitat 

monitoring, recovery, and management plans to include the Natural Forest Protection 

Program and Sloping Land Conversion Program (Grain-for-Green); 

� Prepare an annotated bibliography of scientific literature relevant to plant and animal 

biology/ecology and species recovery in the Qinling; 

� Obtain a digital map covering the Qinling with layers showing all nature reserve 

boundaries, all county boundaries, highways (existing and planned), water bodies, 

topography, and other features relevant to recovery planning; 

� Obtain digital habitat and internal zoning maps for all Qinling nature reserves, planned 

nature reserves, and corridors; 

� Work with the Shaanxi Wildlife Rescue and Breeding Center to develop their field 

conservation programs for monitoring and survey of globally threatened species; 

� Assist in drafting of species recovery and monitoring plans, and integrate those plans 

with the monitoring programs of WWF-China (Xi’an) such that the existing program is 

strengthened; 

� Assist in implementation of monitoring plans, collection and analysis of data, and 

reporting; 

� Participate in the process of adapting past and/or current research, monitoring, and 

recovery methods to current situations and needs. 

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f. Species Recovery Management Expert 

17. The candidate shall have (i) experience in biological resource management in Shaanxi 

Province and the Qinling mountains; (ii) knowledge of protected area management in the Qinling 

mountains; (iii) experience in management of endangered species including plants and animals; (iv) 

knowledge of and familiarity with the institutions responsible for wildlife management at both province 

and national levels; (v) ability to read and write English; (vi) Knowledge of the scientific literature 

relevant to globally threatened species of the Qinling mountains;(vii) Contacts with academic 

institutions and NGOs that have expertise in recovery of China’s globally threatened species. 

18. The candidate shall be responsible for: 

� Work with the International Species Recovery Specialist; 

� Accompany the International Species Recovery Specialist on a one week field trip to 

the core and buffer zones of the Project Area; 

� Accompany the International Species Recovery Specialist on a four week field trip to 

the nature reserves and corridors of the Qinling; 

� Review and revise as needed the species priority rankings made during the PPTA; 

� Compile and assist translation of all relevant national and provincial species recovery 

and management plans; 

� Compile and assist translation of all relevant national and provincial habitat recovery 

and management plans to include the Natural Forest Protection Program and Sloping 

Land Conversion Program (Grain-for-Green); 

� Prepare an annotated bibliography of scientific literature relevant to plant and animal 

biology/ecology and species recovery in the Qinling; 

� Obtain a digital map covering the Qinling with layers showing all nature reserve 

boundaries, all county boundaries, highways (existing and planned), water bodies, 

topography, and other features relevant to recovery planning; 

� Obtain digital habitat and internal zoning maps for all Qinling nature reserves, planned 

nature reserves, and corridors; 

� Work with the Shaanxi Wildlife Rescue and Breeding Center to develop their field 

conservation programs for globally threatened species; 

� Assist in drafting of species recovery plans.



PROPOSED LEGAL AND INSTITUTIONAL REFORM AGENDA 

1. The GEF team has reviewed the components and activities of the project. The following 

problems have been identified as significant obstacles for project implementation from the legal and 

institutional system. Recommendations have been made to resolve the issues. The recommended 

solutions have been discussed with SPDRC and agreement has been reached on the reform agenda 

proposed in the report. 

A. Reform on Collective Land Tenure Management in Shaanxi 

2. Currently there are no legal certificate and boundaries to define the legal right and area of 

community collective forests. 

3. The project is promoting integrated management at landscape level. It requires all parties 

who own or manage the land to reach common understanding about sustainable management and 

practice in the same approach. The community collectively owned forests occupy a big proportion of 

the forests in the project area, and elsewhere in the Qinling Mountain. The project views it as a very 

important issue that the community can manage and use their natural recourse in sustainable manner. 

For effective management, legal rights to forest resources are required for the long term vision and 

benefit. 

4. According to Zhouzi County Forestry Bureau, Zhouzi county did not complete community 

forests land definition work in year 1978. There is no clear boundary and accurate forest area defined 

for the village and they have never issued the forestry certificate to the administrative village or to 

individual farmer except on Land Conversion land. 

5. Currently the communities know approximately their forest area, but they have no idea who 

is managing it. They do not have any use of the forests except on firewood forests after Natural 

Forests Protection Program. They know that it is forbidden to log and graze in the forests. In most of 

the villages, every household has been contracted to use a small area (around 5-10 mu) of forest to 

collect fire wood. They also collect some wild vegetables for household consumption. 

6. Most communities have a large area of forests, but very limited management and benefit 

from it. The communities are poor. They have no incentive to look after and utilize the forest. Illegal 

logging still happens from time to time. 

7. The outstanding land tenure issue will discourage the community from practicing effective 

forest management and obtaining benefit in sustainable way from it. The project is proposing to 

conduct forestry management activities with the community. If the forest boundary is not clear, it will 

be unable to operate. The forest ownership or user right is not clear, therefore certainty of future 

benefits from management will not be obvious and will deter farmers from trying to improve the quality 

of the forests. 

8. To resolve this issue, the Shaanxi Forestry Department (SFD) needs to initiate a process for 

defining the administrative village or natural village forest area, issue a forest certificate to the 

administrative village or natural village to confirm the legal right of the collective. SFD should also 

explore the possibility to encourage collective forests to be contracted to households. That will give the 

households scope to manage and use the forests in a legal and sustainable manner. The projects will 

have the chance to work with the households groups to practice eco-system management. 

1. Recommendations on setting up a framework on collective forestry land tenure: 

9. It is suggested that the project sub-contract a study working together with SFD to explore: 

(i) Approach to define the collective forests boundary and area 

(ii) The appropriate collective (administrative or natural village) the forestry certificate 

should be issued to 

(iii) Analysis of the possibility, advantage and disadvantage of contracting collective 

forests to individual households 

(iv) Suggestion solutions 

1

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(v) Propose a plan for action including a timetable to SFD. 

10. Cost of the study will be $30,000 over a period of 2 months. The study should start at the 

beginning of project implementation. 

B. Reform on Government and Community Partnership on Community Natural Forests 

Management in Shaanxi 

11. Logging and forest thinning are banned in Natural Forests Protection Area including 

community forests. Non timber products utilization has been restricted in many ways. 

12. A logging ban has been in place since the national Natural Forests Protection Program 

(NFPP) started in year 1999. After enforcement of the logging ban commenced, state owned forestry 

farms received support from the government financially and they can still run tourism business. In 

contrast the communities whose forests are in the NFPP project area have received no additional 

support except plantation subsidies, but they lost the income opportunity from the forest. The project 

En situ and Ex situ forests are both inside NFPP area so logging and grazing are banned. 

13. The project PPTA team thinks there is great potential to develop sustainable forest utility 

models such as ANALOG forests, and to restore natural habitant in the en situ area. The project has 

proposed to include forestry management models in project en situ area as project activities. 

Therefore, SFA will need to provide an exemption to allow the project to test the models in the project 

area. If the project has successful experience in sustainable management of natural forests with the 

community, it will be a good model of partnership between government and community in forest 

management. It will be essential to expand the experience to the broader Qinling area such as inside 

the Qinling National Ecological Function Zone. 

14. Very few non timber forest products (NTFP) from the collective forests are able to be taken 

out of the mountains according to the project social assessment report. Louguantai Forestry Farm 

Checking Points stop farmers from taking medicine herbs and other NTFP out of the mountains. Use 

of NTFP is a very important option for sustainable forests management. The PPTA team and GEF 

team recommend to further explore NTFP development under the project. NTFP development will be 

a very important part of the en situ strategy. If project NTFP development activities are successful, the 

experience can be replicated in other part of the Qinling Mountain. 

15. NTFP development and forestry model testing will be included in a village forests 

management plan. The plan will be agreed with forestry authority designated by SFD, to be 

implemented during the project life. A solution is needed to remove the restrictions on taking NTFP 

out of the PA mountain area for smooth project implementation. A further study is desirable to explore 

the approach to develop community-government partnership in managing collective natural forests. 

1. Recommendations for resolving the issue 

(i) Shaanxi Forestry Department to issue an exemption to the project implementation unit 

to allow the project to conduct analog forests and other forest models testing in pilot 

villages inside the project area after asking necessary approval. 

(ii) Shaanxi Forestry Department will find a solution with Louguantai Forestry Farm on 

removing the restriction to taking of NTFP from collective forests out of the PA 

mountains. 

(iii) Shaanxi Forestry Department will lead a forest management partnership monitoring 

and studying group to conduct monitoring and consultation with local communities and 

the project implementation team. The study group should invite the Economic and 

Policy Researching Institute of SFA to participate in the study. The monitoring and 

studying group will focus on : 

(a) Learning the lessons from the project forests model tested. 

(b) Further explore the possibilities to develop the pilot models into a replicable 

government–community forests management partnership system. It must be 

based on respect of community ownership and use right to the collective 

forests. It should carefully review the proposed village forest management 

plan approach. It should carefully study the approach of positive partnership



interactive between state-owned forests farm and the surrounding 

communities. 

(c) Explore the possibility of developing a monitoring system to monitor the quality 

of the forests including non timber resources in the forest. The system will 

include principles and indicators and measures for monitoring. It must be 

simple and easy to conduct together with the community. 

(d) Develop a proposal to SFA on collective owned natural forest management 

issues to allow the community to manage and use the forests in sustainable 

manner in Qinling National Ecology Function Zone. 

16. The forests management partnership monitoring and studying group will be contracted by 

the project over four years with input of two months each year. Suggested budgeting for this group will 

be $80,000. 

17. The application for exemptions should be organized before the project starts after the project 

is approved, so that the exemptions will be in place when the project is ready for implementation. 

18. The study group should be formed at the end of the first year of the project implementation 

after the pilot villages are chosen. 

C. Reform on Eco-tourism Management through developing an Eco-tourism Guideline in 

Shaanxi 

19. There is no clear guideline in Qinling Mountains for eco-tourism development in terms of 

biodiversity conservation sensitivity. 

20. The Qinling Mountains have become a significant tourism development area on both north 

slope and south slope. The Plan of Shaanxi Qinling National Ecological Function Protection Zone has 

indicated 15 tourism development areas in Qinling Mountain. There are under going extensive 

development in the name of eco-tourism. 

21. There is no clear definition of eco-tourism in the Plan to guide eco-tourism development in 

principle. Considering most of Qinling mountain areas are fragile in terms of eco-system and have 

significant value of biodiversity in a global sense, it will be very important to make sure these ecotourism 

developments are guided in biodiversity conservation sensitivities to prevent over exploitation 

and irreversible damage. 

22. The PPTA team has explored world –wide eco-tourism experience and principles. The 

project will introduce eco-tourism operations in the project area to follow the biodiversity conservation 

sensitivity principle. It will be crucial for the project to work with related government agencies to 

develop simple, enforceable guidelines for eco-tourism operation to protect biodiversity at landscape 

or ecosystem level. 

1. Recommendations on reform of guiding eco-tourism development in Qinling 

area: 

23. The project will subcontract work with Shaanxi Forestry Department (SFD), Shaanxi 

Environmental Protection Bureau (SEPB) and Shaanxi Tourism Bureau to develop an eco-tourism 

guideline. The guideline should fit within the legal frame-work and be enforceable. The guideline 

should be simple to be easily monitored and understood. 

The guideline will include: 

(i) The definition of eco-tourism 

(ii) Implications of the application of principles of eco-tourism in Qinling Mountain 

(iii) Indicators for eco-tourism operation to meet the principles of eco-tourism. 

(iv) Monitoring system and enforcement measures. 

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24. The sub-contract should be in place in first year of project implementation, so the subcontract 

team will be able to form the general approach and principle for the study together with the 

project TA team. The contract will continue for 3 years to explore the issues with 3 months inputs from 

each year. The proposed budget for the sub-contract will be $90,000.

1 



PROJECT COSTS 

China 

Shaanxi Qinling Mountains Integrated Ecosystem Management Project 

Expenditure Accounts Project Cost Summary (Local Ten Thousand) (US$ '000) 

Local Foreign Total Local Foreign Total 

I. Investment Costs 

A. Civil Works 

Construction 19,396.2 2,155.1 21,551.4 25,521.4 2,835.7 28,357.1 

Planting 3,075.8 341.8 3,417.6 4,047.2 449.7 4,496.8 

Infrastructure 12,665.5 1,407.3 14,072.8 16,665.1 1,851.7 18,516.8 

Landscaping 8,324.3 924.9 9,249.2 10,953.0 1,217.0 12,170.0 

Subtotal Civil Works 43,461.9 4,829.1 48,291.0 57,186.7 6,354.1 63,540.7 

B. Equipment 

Equipment - Machinery 2,179.9 726.6 2,906.6 2,868.3 956.1 3,824.4 

Equipment - Outfitting 428.2 142.7 570.9 563.4 187.8 751.2 

Other Equipment 2,146.4 238.5 2,384.9 2,824.2 313.8 3,138.0 

Office Equipment 1,311.0 145.7 1,456.7 1,725.0 191.7 1,916.7 

Equipment-Furniture 256.0 - 256.0 336.8 - 336.8 

Subtotal Equipment 6,321.4 1,253.5 7,575.0 8,317.7 1,649.4 9,967.0 

C. Vehicles 

Cars & Trucks 364.0 121.3 485.3 478.9 159.6 638.6 

D. Materials 

Planting Material & Supplies 3,427.8 - 3,427.8 4,510.3 - 4,510.3 

Office Materials & Supplies 389.5 - 389.5 512.5 - 512.5 

Subtotal Materials 3,817.3 - 3,817.3 5,022.8 - 5,022.8 

E. Training 

Technical Training (AGENCIES) 49.9 - 49.9 65.7 - 65.7 

Stakeholder Technical Training 158.0 - 158.0 207.9 - 207.9 

Vocational Training 91.5 - 91.5 120.4 - 120.4 

Community Training & Extension 200.0 - 200.0 263.2 - 263.2 

Demonstrations 482.6 - 482.6 635.0 - 635.0 

Subtotal Training 982.0 - 982.0 1,292.1 - 1,292.1 

F. Surveys & Studies 

Planning 310.0 - 310.0 407.9 - 407.9 

Monitoring & Evaluation 195.5 - 195.5 257.2 - 257.2 

Field Technical Surveys & Trials 1,949.4 - 1,949.4 2,565.0 - 2,565.0



2 

Socio-economic Surveys 1,413.7 - 1,413.7 1,860.2 - 1,860.2 

Subtotal Surveys & Studies 3,868.6 - 3,868.6 5,090.3 - 5,090.3 

G. Resettlement 

Compensation 4,175.9 - 4,175.9 5,494.6 - 5,494.6 

H. Design & Supervision 2,829.4 - 2,829.4 3,722.8 - 3,722.8 

I. Technical Assistance 

International Consultants - 586.5 586.5 - 772.4 772.4 

National Consultants 355.9 - 355.9 468.3 - 468.3 

Subtotal Technical Assistance 355.9 586.5 942.4 468.3 772.4 1,240.7 

K. Staff Costs 

Staff 310.0 - 310.0 407.9 - 407.9 

Total Investment Costs 66,486.3 6,790.4 73,276.8 87,482.0 8,935.5 96,417.5 

II. Recurrent Costs 

A. Operation & Maintenance 

Staff costs 1,675.2 - 1,675.2 2,204.2 - 2,204.2 

Rental 750.0 - 750.0 986.9 - 986.9 

Vehicles 104.0 - 104.0 136.8 - 136.8 

Maintenance_Garden infrastructure 3,566.8 - 3,566.8 4,693.1 - 4,693.1 

Materials 2,116.4 - 2,116.4 2,784.7 - 2,784.7 

Forage 2,740.0 - 2,740.0 3,605.3 - 3,605.3 

Medical cure 625.0 - 625.0 822.4 - 822.4 

Marketing 700.0 - 700.0 921.1 - 921.1 

Total Recurrent Costs 12,277.4 - 12,277.4 16,154.4 - 16,154.4 

Total BASELINE COSTS 78,763.7 6,790.4 85,554.1 103,636.4 8,935.5 112,571.9 

Physical Contingencies 2,889.8 235.0 3,124.8 3,802.4 309.2 4,111.6 

Price Contingencies 4,684.5 246.9 4,931.4 6,163.8 324.9 6,488.7 

Total PROJECT COSTS 86,338.0 7,272.3 93,610.3 113,602.6 9,569.5 123,172.1 

Interest During Implementation - 4,471.4 4,471.4 - 5,883.5 5,883.5 

Commitment Charges - 77.3 77.3 - 101.7 101.7 

Total Costs to be Financed 86,338.0 11,821.0 98,159.0 113,602.6 15,554.7 129,157.3

3 



China 

Shaanxi Qinling Mountains Integrated Ecosystem M (US$ '000) 

Local/Foreign/Taxes by Financiers Global 

Asian Development Environmental Hotspring Joint Qinling Botanic Qinling Botanic 

Bank Facility VEnture Garden (Revenue) Garden(Counterpart) 

Amount % Amount % Amount % Amount % Amount % 

I. Foreign 8,888.3 92.9 521.4 5.4 0.9 - - - 137.6 1.4 

II. Local (Excl. Taxes) 24,489.8 22.8 3,725.2 3.5 4,732.0 4.4 7,682.4 7.1 33,532.2 31.2 

III. Taxes 636.7 10.5 24.1 0.4 573.4 9.5 - - 2,865.2 47.4 

Total Project 34,014.8 27.6 4,270.8 3.5 5,306.4 4.3 7,682.4 6.2 36,535.0 29.7 

Interest During Implementation 5,883.5 100.0 - - - - - - - - 

Commitment Charges 101.7 100.0 - - - - - - - - 

Total Disbursement 40,000.0 31.0 4,270.8 3.3 5,306.4 4.1 7,682.4 5.9 36,535.0 28.3 

Local/Foreign/Taxes by Financiers 

(US$ '000) 

Animal Rescue 

Animal Rescue Center 

Center (Revenue) (Counterpart) The Government Total 

Amount % Amount % Amount % Amount % 

I. Foreign - - 11.3 0.1 10.0 0.1 9,569.5 7.4 

To II. Local (Excl. Taxes) 10,096.3 9.4 19,720.5 18.3 3,579.0 3.3 107,557.3 83.3 

III. Taxes - - 1,302.5 21.5 643.4 10.6 6,045.3 4.7 

10,096.3 8.2 21,034.2 17.1 4,232.3 3.4 123,172.1 95.4 

To Interest During Implementation - - - - - - 5,883.5 4.6 

Commitment Charges - - - - - - 101.7 0.1 

10,096.3 7.8 21,034.2 16.3 4,232.3 3.3 129,157.3 100.0

1 



PROJECT IMPLEMENTATION SCHEDULE



PROCUREMENT PLAN 

Project Name: Shaanxi Loan (grant) Number_____________________ 

Loan Amount: US$ 40 Million Executing Agency Shaanxi Provincial 

Development Reform Committee 

Date of first Procurement Plan: Date of this Procurement Plan 

A. Project Procurement Thresholds 

Except as ADB may otherwise agree, the following process thresholds shall apply to procurement of 

goods and works. 

Procurement of Goods and Works 

Method Threshold 

International Competitive Bidding (ICB) for 

Works 

> US$10,000,000, < US$1,000,000 

International Competitive Bidding (ICB) for 

Goods 

> US$ 1,000,000, < - US$500,000 

National Competitive Bidding (NCB) for 

Works 

US$1,000,000 

National Competitive Bidding (NCB) for 

Goods 

US$500,000 

Shopping (SHP) for Works

2 



to be paid are 

reasonable, and method 

applied in accordance 

with Procurement 

Guidelines, Section 3.6 

Community Participation Prior ADB needs to be 

satisfied that the 

community can 

demonstrate adequate 

capacity through 

previous successful 

implementation in 

accordance with PAI 

3.05 H and PAI 5.12; 

prior review applies only 

to the first community 

participation contract for 

each community group. 

Recruitment of Consulting Firms 

Quality and Cost Based Selection (QCBS-80:20) 

of firm by ADB 

Prior ADB selects firm and 

Executing Agency (EA) 

negotiates and manages 

the contract. One EA 

submission required, 

namely, minutes of 

negotiations and draft 

contract. 

Recruitment of Individual Consultants 

Individual Consultant Selection by ADB Prior ADB selects individual; 

EA contracts and 

manages contract. One 

EA submission required, 

namely, the draft 

contract 

Individual Consultant Recruitment by EA Prior EA selects, contracts 

and manages contract. 

One EA submission 

required, namely, 

candidate ranking and 

draft contract.



C. Goods and Works Contracts Estimated to Cost More Than US$ 1 Million 

General Description Contract 

Value 

Procurement 

Method 

Prequalification 

Of Bidders (y/n) 

Qinling Botanic Garden 11,120 

A: Works 8135 

Plant greenhouse 2062 NCB Yes 

Temple restoration 6073 NCB Yes 

Roading –internal 1928 NCB Yes 

B: Goods 2985 

Services and security 1,382 NCB Yes 

Cable car equipment 1,603 ICB Yes 

Hot Springs 

2,589 


Advertisement 

Date 

(quarter/year) 

3 

Comments 

A. Works 2,589 

Villa A 1,202 NCB Yes 8 packages 

Restaurant complex 1,387 NCB Yes 2 packages 

Shaanxi Animal Rescue 

Center 

15,664 

A : Works 15,664 

Panda Center 

Construction 

5,971 NCB Yes 8 packages 

Panda Landscaping 4,898 NCB Yes 4 packages 


Construction 

6,500 NCB Yes 

Animal Rescue center 

landscape 

1,685 NCB Yes 4 packages 

In-situ Conservation 

and Livelihoods 

9,500 

A ; Works 9,500 

Road construction 2,030 NCB Yes 2 lots 

Pathway 

improvements 

3,010 NCB/DC No 4 lots 

Planting Materials 4,460 NCB/DC No 

D. Consulting Services Contracts Estimated to Cost More Than US$ 100,000 

General 

Description 

Package A: 

SARC 

Package B 

VDP, In-situ 

Monitoring 

Planning 

Contract 

Value 

(US$ 

million) 

Recruitment 

Method 

Advertisement 

Date 

(quarter/year) 

International 

or National 

Assignment 

122.5 QBS 3/08 Both 

1.196.7 

QCBS 

80:20 

Technical: 

Price 

2/08 Both 

Comments 

EA selects, EA 

negotiates and 

contracts 

ADB selects, EA 

negotiates and 

contracts 

E. Goods and Works / Related Services Contracts Estimated to Cost Less than US$ 1 Million

4 



General 

Description 

Value of 

Contracts 

(US$ ‘000) 

Number of 

Contracts 

Procurement / 

Recruitment 

Method 

Qinling Botanic 

A: Works 

Rose Garden 189 Multiple NCB 

Legume Garden 193.9 Multiple NCB 

Magnolia Garden – site works 418 Multiple NCB 

Magnolia Infrastructure 338.5 Multiple NCB 

Magnolia Nursery 141 Multiple NCB 

Magnolia Other 428.8 Multiple NCB 

Bamboo 826 Multiple NCB 

Suoicc Garden 107 Multiple NCB 

Ulma 76 Multiple NCB 

Maple 736.7 Multiple NCB 

Profol garden 101.5 Multiple NCB 

Gingko 425.7 Multiple NCB 

Pine Garden 532 Multiple NCB 

Yew Garden 380 Multiple NCB 

Taxo Garden 532 Multiple NCB 

Cepha garden 357 Multiple NCB 

Cupress garden 133.9 Multiple NCB 

Integrated Garden 249.1 Multiple NCB 

Poisonous Plants 118.5 Multiple NCB 

Qinbu Garden 117.9 Multiple NCB 

Herb garden 123.1 Multiple NCB 

Lawn and landscape 713.1 Multiple NCB 

Greenhouse for flowers 764 Multiple NCB 

Greenhouse for Water plants 764 Multiple NCB 

Greenhouse for Cacti 663 Multiple NCB 

Greenhouse for Fungus 663 Multiple NCB 

Public Building 663 Multiple NCB 

Paleontology Building 726 Multiple NCB 

Glacier Building 602 Multiple NCB 

Modern Creatures 648.9 Multiple NCB 

Public buildings 207.6 Multiple NCB 

Science building 674.8 Multiple NCB 

Dining Building 350.4 Multiple NCB 

Road drainage and bridges 739 Multiple NCB 

Public Square 989 Multiple NCB 

Parking 467 Multiple NCB 

Boundaries 316.9 Multiple NCB 

Cable car 666 Multiple ICB 

B Goods 

Greenhouse Goods 1331 Multiple NCB 

Electric Supply 246 Multiple NCB 

Paleontology outfitting 605 Multiple NCB 

Paleontology specimens 420 Multiple NCB 

Glacier fittings 411 Multiple NCB 

Glacier Goods 373.9 Multiple NCB 

Modern creatures building fitting 541 Multiple NCB 

Modern Creatures Other 374 Multiple NCB 

Public Buildings 293.7 Multiple NCB 

Specimens 526 Multiple NCB 

Railcar 435.9 Multiple NCB 

Comments



Science building fitting 311 Multiple NCB 

Science building other 700 Multiple NCB 

Dining room fitting 160 Multiple NCB 

Dining cooking 465 Multiple NCB 

Road lighting 899 Multiple NCB 

Other road goods 103 Multiple NCB 

Water supply 190.8 Multiple NCB 

Drainage 89.4 Multiple NCB 

Power and telecom 953.4 Multiple NCB 

Environmental Protection 524 Multiple NCB 

Vehicles 283 Multiple NCB 

Fire control and Office Equip 102 Multiple NCB 

C: Services 

Training 274 1 DC 

Design fee 963 Multiple DC 

Other fees 354 5 DC 

Marketing materials 517 Multiple DC/SHOPPING 

Hot Springs Development 

A: Works 

Villa B 905 Multiple DC 

Villa C 661 Multiple DC 

…Pool Development 204 Multiple DC 

Parking lot and roads 

B : Goods 

336.3 Multiple DC 

Restaurant equipment 655 Multiple DC 

Water supply/Irrig 538.7 Multiple DC 

Boiler and cooling ventilation 807.5 Multiple DC 

…Power supply and Lighting 600.7 Multiple DC 

Communication equip 1.7 Multiple DC 

Decoration and fittings and 

301.6 Multiple DC 

furnishings 

Vehicles 40 Multiple DC 

C : Services 

Training 62.1 1 DC 

Design fees 376 DC 

Supervision costs 150 DC 

Management fees 225.7 1 DC 

Shaanxi Animal Rescue Center 

A ; Works 

Panda infrastructure 792 Multiple NCB 

Environment Protection – all 192.3 Multiple NCB 

Panda Forage 988 Multiple DC /CP 

Ibis Landscape and 

infrastructure (Office and wetland 

construction) 

175 Multiple NCB 

Ibis land 

Animal Exposition Construction 


335 1 DC 

Animal Rescue Center Land 881 1 DC NCB 

Animal Rescue Center 

Construction 


Animal Rescue center 

infrastructure 


G Monkey Land and 975 1 DC 

5

6 



construction 

G Monkey Infrastructure and 

landscape 

389.5 Multiple NCB 

B : Goods 1267 

Equipment animal rescue center 815.3 Multiple NCB 

Equipment 208.6 Multiple NCB 

Vehicles 243.2 Multiple NCB 

C: Services 925.2 

Training 49.1 1 DC 

Design and Supervision 500.6 1 DC 

Management fees 253 1 DC 

In-situ Conservation and 

Livelihoods 

A ; Works 

Homestay construction 

B : Goods 


Conservation Agriculture plots 68.6 Multiple NCB 

Homestay fittings 191 Multiple NCB 

Energy systems 934 Multiple NCB 

Water Supply 

C: Services 


VDP training 70 1 DC 

VDP Data collection and 

573.6 Multiple NCB 

surveys 

VDP Plan production 30 1 DC 

VDP Planning contracts –NGO 1109 16 DC 

SME Programs 1570 Multiple DC/NCB 

Homestay training 58 1 DC 

Design and Supervision 22.6 1 DC 

In-situ - Conservation 

A: Goods 

Habitat planting 664 3 DC 

Implementation grants 161 Multiple DC/CP 

Planning costs 251 Multiple DC 

Research grants and 

endangered spp research 

696 Multiple DC 

Project Management 

A: Goods 

Equipment and vehicles 

B: Services 

56.3 2 NCB 

Monitoring contracts 62.6 3 DC 

Resettlement Monitoring 

25.2 1 DC 

Contract 

Institutional Strengthening 

A: Services 

Legal reform contracts 

Conservation Replication 

A: Services 

330 6 DC 

WWF Monitoring contract 302.1 1 DC 

Monitoring equipment 68 2 NCB 

Data Purchase and collection 

include imagery 

121 4 DC 

Training 42 1 DC



Research Contracts 616 Multiple DC 

Awareness contracts 311 Multiple DC 

Legend 

CP = community participation, CQS = consultants qualification selection, DC = direct contracting, ICB = international 

competitive bidding, LIB = limited international bidding, NCB = national competitive bidding, NCB/CP = combination 

of national competitive bidding and community participation, NCB/LIB = combination of national competitive bidding 

and limited international bidding, NCB/SHP = combination of national competitive bidding and shopping, QCBS = 

quality and cost-based selection, SHP = shopping 

7



A. Introduction 

FINANCIAL AND ECONOMIC ASSESSMENT 

1. This appendix contains a summary of the financial and economic analysis for the project 

components and subprojects as well as the overall Project. A set of detailed analysis is contained in 

Supplementary Appendix 15. 

2. The Project has 3 components, and 8 subcomponents. Component One provides support for 

the development of ex-situ commercial businesses and has three subcomponents that are 

implemented by two implementing agencies. The NQBG will strengthen two commercial enterprises 

being the QNBG and the Shaanxi Animal Rescue Center1. The Louguan Fudi Tourism Group will 

implement an expansion of the geothermal hot spring development. For each enterprise project costs, 

financial and economic costs and benefits have been assessed based on the visitation and associated 

tourism receipts. Component Two supports two subcomponents: the first provides support for in-situ 

residents to transition to new and more sustainable livelihood options. This subcomponent includes a 

range of activities from the provision of social infrastructure, road and pathway improvement and 

access, small and medium enterprise development support with additional support for the 

development of community based homestay tourism, and the creation of rights to collective forest land 

to be planted into analog forest systems. Project costs have been estimated and benefits estimated for 

example enterprises related to essential oils, medicinal plants, and the homestays. No benefits have 

been quantified for the reduced transport and travel times, improved water and energy supplies. The 

second subcomponent for the in-situ program provides support for habitat re-establishment and 

endangered species management for which project costs have been estimated and benefits assessed 

in qualitative terms. 

3. Component three has three subcomponents being (i) Project Management, (ii) institutional 

strengthening, and (iii) the conservation replication and awareness program. The first two 

subcomponents are treated as overheads while the third is a public good and global value set that is 

assessed only in qualitative terms. 

B. Assessment Parameters 

4. The economic and financial analysis is in constant 2007 prices. An exchange rate of CNY 7.6 

= USD 1 has been used throughout. The Project life is set to end in 2035. For the economic analysis 

the discount rate is 12% and for the financial analysis a weighted average cost of capita of 5.6% is 

used. The involvement of commercial funding for the Hot spring Development results in an assessed 

WACC of 6.8% . Details of the WACC calculations are provided in Annex 1. 

1. Financial Parameters 

5. Project costs and financial analysis were provided by the IAs in the case of the QBG, SARC 

and Hot Springs. Prices were modified including standardization of unit costs between IAs and 

corrections to the SARC financial analysis to ensure consistency with PRC and ADB financial 

guidelines. For investments linked to Component two and three costs and financial analysis were 

prepared by the PPTA Team. 

6. The financial analysis is based on cash items with non-cash items such as depreciation and 

amortization of intangible assets separated from operating costs. Most of the financial analysis is 

based on the net cash flow before the payment of corporate tax to remove the influence of differing 

taxes based on the overall tax position of each enterprise. 

7. Price and physical contingencies were calculated using the following table for different 

expenditure categories in the case of physical contingencies see Table 1. 

1 

1

2 



Table 1: Price and Physical Contingencies 

Price Contingencies 

Local 2,2% in 1998 and 3.0% per year 

thereafter 

International 

Physical – Same Percentages to Each Broad Category 

1.9% per year 

2 

Civil Works 5% 

Equipment 0% 

Vehicles 0% 

Materials 5% 3 

Training 2% 

Surveys and Studies 5% 

Resettlement 10% 4 

8. The disparity between inflation factors for foreign and local cost impacts purchasing power. 

The analysis does not apply Constant Purchasing Power (CPP) to exchange rates as the impact is the 

reverse of the expected exchange rate movement. This leads to exchange rate risk for the borrower. 

9. The exchange rate assumptions used are based on constant CNY 7.6 per USD 1 rate as at 

June 2007. The current expectations are that, despite higher inflation in PRC compared with 

international inflation, there will be continued depreciation of the USD against the CNY effectively 

resulting in declining purchasing power for the USD denominated loan. The use of constant 

purchasing parity could be used to reduce the risks created by exchange rate movement during the 

construction period; however, the current set of inflation forecasts would, under CPP rules, result in 

further depreciation of the USD against the CNY compounding the problem of declining purchasing 

power. 

10. Consistent with the ADB’s Financial Analysis Guidelines, the cash outflow for capital is the 

base cost plus physical contingencies and therefore excludes the price contingencies (based on 

projected international and local inflation). This measure of capital costs is used because the financial 

analysis is in constant 2007 CNY. 

2. Economic Parameters 

11. The economic analysis uses the domestic price level (not the world price level) as the 

numeraire or reference point for converting financial into economic prices. 

12. Financial prices were converted to economic prices through removing taxes, subsidies and 

market distortions. The sales tax and value added tax adjustments (see Table 2) were made to the 

financial prices in the investment costs. In addition, sales taxes were removed from operating 

costs/cash outflow and a factor of 0.95 was applied to the non-wage purchases of the revenue-earning 

entities during operation. This is consistent with a sales tax rate of about 5%. 

2 On assumption that the three ex-situ tourism enterprises are facing similar construction conditions and each 

used professional design teams, following similar national guidelines, to estimate project costs. 

3 Same as civil works. 

4 Resettlement estimates not done by a professional design team. Therefore, numbers could change.



Table 2: Rates of Taxation to be Applied to the Difference Purchases of Project Financed 

Enterprises during Construction and Operation 

No. Item 

Rate of 

Taxation 5 (%) 

1 Products the Project Will Buy During 

Construction 

1.1 Vehicles 14.07 6 

1.2 Construction materials 5.48 

1.3 Furniture 3.85 

1.4 Electronic appliances/office equipment 2.92 

1.5 Electric equipment 4.07 

1.6 Seedling 3.85 

1.7 Conventional machines 4.07 

1.8 Agricultural chemicals 3.69 

1.9 Electricity and water 5.45 

2 The Products/Services the Project will 

Buy and Sell During Operation 

2.1 Admission ticket 5.5 

2.2 Tourist reception (villa) 5.5 

2.3 Framer’s Agricultural Products 0 

2.4 Tourism handicrafts 3.85 

2.5 Most other non-wage agricultural purchases 5.5 

(Source: Provided to PPTA by accountants in Xi’an.) 

Remarks 

Based on sales income 

13. As the market economy of China and Shaanxi becomes more integrated into the international 

economy, conversion factors are used less often in PRC economic analysis. The Team used a 

standard conversion factor (SCF) of 1.0 for most non-wage purchases. In recent ADB RRPs for 

projects in China, there is varied practice with regard to the conversion of financial to economic prices. 

The Hunan Flood Management Sector Project (June 2006) uses a SCF of 1.09 and a SWRF of 0.90; 

the Heilongjiang Road Network Development Project (June2006) has a SERF of 1.01 (SCF = 0.99) 

and a SWRF of 0.67; the Wuhan Wastewater and Stormwater Management Project (June 2006) 

states that conversion factors have been used to estimate economic prices but does not state what 

these factors are; the Guangxi Nanning Urban Environment Upgrading Project (June2006) used 

implied conversion factors between 0.96 and 1.0; and the Shandong Hai River Basin Pollution Control 

Project (May2006) uses a SERF of 1.013 (SCF = 0.987). 

14. The one input adjusted was labor cost. A Standard Conversion Factor (SCF) of 1.0 was used 

for skilled and semi-skilled labor, in light of the growing shortages of such labor in China especially in 

major urban areas and their suburbs such as Xi’an. the Project Area A is within one hour’s drive from 

Xi’an and therefore no adjustment for skilled and semi-skilled wages was made. 

15. The shadow wage rate factor (SWRF) for unskilled labor is a more complex issue. SERF’s of 

between 0.25 to 0.8 have been applied to unskilled labor to account of surplus labor especially in rural 

areas. The Project Area, especially the ex-situ zone) is increasingly part of the Xi’an metro region, 

and the Project will accelerate this integration. There is evidence that surplus unskilled labor is 

declining with as a result both unskilled and casual labor wage rates increasing 7 . Shaanxi for example 

5 

Includes the construction and education supplementary tax 

6 

Includes the purchasing supplementary tax 

7 

See for example a report published recently in the China Daily (May 12-13 on the front page) by the Chinese 

Academy of Social Sciences on Labor Force Trends in the PRC, which stated that the supply of low-cost labor 

that has been a major reason for China’s high economic growth since 1978 may start to disappear as early as 

2010. One major reason for the potential shortage is that the rural labor force may not be as large as was 

previously estimated. The report concludes that China is moving from an era of labor surplus to an era of labor 

shortage. The result is rising labor costs not only in the Yangtze Delta and the Pearl River Delta (where wages 

for unskilled labor have reportedly been increasing for a number of years) but as well in major western PRC cities 

3

4 



has experienced major increases in wage rates for casual unskilled labor for construction and casual 

farm labor in the past few years. As a consequence a conservative SWRF of 0.8 has been applied to 

casual and unskilled labor costs. 

16. There continues to be high unemployment and underemployment particularly in the in-situ 

zone. The team applied a SWRF to the construction expenses. This was based on an SWRF of 0.8 

with labor costs assumed to account for 50% of the total construction investment. The SCF for 

construction costs to economic values was therefore 0.9. For planting of trees and the Botanical 

garden unskilled labor is assumed to be 50% of total costs (excluding the semi-skilled labor costs 

used to produce nursery plants) and as such the SCF for planting programs was 0.9. Road 

construction and upgrading costs were also assumed to involve 50% unskilled labor and a SCF of 0.9 

was applied. For the Mountain pathways program 80% of costs were assumed to be casual labor and 

a SCF of 0. 84 used. Finally the home stay investment had a total unskilled labor input amounting to 

20% of total costs for a SCF of 0.96). 

17. In contrast, tourism workers are semi-skilled to skilled with training included in the investment. 

No shadow wage rates are applied to workers operating in the tourism enterprises. All of these 

workers will receive training and arguably should receive a higher wage to retain trained workers and 

provide a high quality service to their customers. In this situation, it is assumed the opportunity cost of 

labor equals prevailing market wage rate. 

18. The Team’s review of previous national and international project feasibility studies indicated 

that real discount rates of 8%, 10% and 12% were used as the benchmark rate for the economic 

internal rate of return (EIRR), depending on the project. An 8% benchmark discount rate was 

proposed in the PRC document “Indicators and Methodology of Economic Evaluation for the 

Construction Projects” issued by the National Development & Reform Commission and Ministry of the 

Construction in 2006. The NPV was assessed at 10% with sensitivity applied at the other levels. 

19. The PRC document noted earlier recommended a shadow exchange rate (SER) of 1.08 to be 

applied to the costs of imports and Project revenues from e.g. international tourists. The analysis did 

not apply this SER as few Project construction and operating costs involve importation and the 

number of international visitors to the sites are small relative to overall visitation. In short, 

internationally traded goods and services will play a minor role in project costs and benefits particularly 

in the early years. Over a longer time period, the SER will trend towards 1.00 as PRC becomes further 

integrated with the international economy and its tariff and non-tariff barriers decline through 

implementing the WTO and other trade agreements. For both reasons, applying a SER would have 

little impact on the EIRRs computed for the revenue-earning entities of the Project. 

C. Project Assessment 

20. Benefit and cost estimates are based on the Feasibility study estimates which have been 

reviewed by the PPTA and modified or reformulated if necessary. Those subprojects with quantified 

benefit streams – all within Component One – have benefits derived from visitor numbers and visitor 

receipts including ticket sales, and assorted retail sales. The following section provides the summary 

of the financial and economic costs for Component One. Benefits are based on marginal increases in 

visitor numbers for each enterprise. 

21. In addition to the quantified benefits that have been incorporated into the Project financial and 

economic assessments, the project will generate many benefits that have not been or cannot be 

quantified. Most of these benefits fall into two major categories: environmental and ecosystem benefits 

and cultural, religious and heritage values. Together these are significant benefits that add further 

justification for the implementation of the Project whose primary impact seeks to develop sustainable 

conservation of biodiversity. Included in these categories are: 

(i) Benefits accruing from the improved welfare of animals in the SARC 

(ii) Benefits from the advancement of science related to endangered species recovery 

from SARC 

such as Xi’an where wages for unskilled and casual labor reportedly have increased by as much as CNY 10 per 

day in the last few years.



(iii) Benefits from the genetic collection established at QBG 

(iv) The benefits arising from public awareness and education with respect to the Qinling 

Mountains and biodiversity conservation 

(v) Benefits in the overall conservation of biodiversity 

(vi) Improved ecological functions in the in-situ zone from increased forest cover and the 

quality of forest cover 

(vii) The intangible benefits arising from the conservation of Daoist religious sites 

(viii) Improved environmental quality through the provision of waste management systems 

22. Further tangible but not quantified benefits are generated for the current 4,000 residents from 

the In-situ Livelihood Projects. These include: 

(i) Payment for the establishment of Conservation Forestry over 5,000ha that will in the 

future provide increased livelihoods to 4,000 in-situ residents 

(ii) Reduced travel times due to improved road and mountain pathway access 

(iii) Increased economic output derived from alternative livelihoods as represented by 

medicinal plants, essential oils, and home-stay tourism 

(iv) Improved health, reduced drudgery, arising from improved access to water and 

alternative sources of energy with spin-off benefits from reduced fuel wood cutting. 

1. Component One Support for Ex-situ Enterprises 

23. The financial analysis is presented for the three enterprise investment proposals as well as a 

consolidation of the two NQBG enterprises into a single financial assessment 8 . 

a. NQBG 

i. Qinling Botanical Garden 

24. The Botanical Garden will developed to: (i) provide a world class tourism and educational 

experience to local residents and visitors of Xi’an and SP from other PRC provinces and other 

countries; (ii) provide an international standard science and research facility on the QM’s bioresources 

and biodiversity management that will add to the education features of the tourism attraction; (iii) build 

knowledge, appreciation and understanding of the Qinling experience and culture in particular the 

Daoist culture and religion which emphasizes harmony between people and nature; (iv) generate a 

financial surplus, so that a portion of this surplus can be reallocated to support habitat restoration, 

sustainable biodiversity conservation and sustainable livelihoods in the in-situ portions of the PA and 

QM ; (v) expand and diversity the tourism base of Xi’an and Shaanxi through constructing and 

operating an international standard eco-tourism facility; and (vi) provide sustainable livelihoods to local 

people through employment at the BG, through the sale of goods and services by local firms to the 

tourism facility, and through the generation of indirect impacts including future tourism investments in 

(e.g.) home-stay restaurants and accommodation facilities and handicraft production workshops 

located in the Jixian Township villages near the site to the south and north of provincial highway South 

107. 

25. A major challenges for the BG is determining the attendance and prices that are needed to 

provide solid financial performance and loan repayment in the early years, while at the same time 

offering an exciting tourism experience at an affordable price that will attract significant numbers of 

domestic tourists and local residents who are on limited budgets and will generate return visitation 

from both groups. 

26. Botanical gardens in PRC typically have high attendance but low entry fees and revenues per 

visitor. In many cases, these PRC Botanical gardens are older facilities that are not operated on a 

commercial basis (and/or have already fully recovered their capital costs), and therefore require 

8 The consolidated analysis is however not a financial analysis for the NQBG as a whole enterprise. The NQBG 

also includes the Louguantai Forest Farm and a management overhead that remains unknown to the PPTA. 

The impact of this could be significant as currently SARC employees are included the Louguantai Forest Farm 

employees – without agreement on the split and numbers of staff and management overheads a full NQBG 

financial analysis is not possible. 

5

6 



relatively low entry fees and revenues to cover only operating costs. Most of the current PRC 

Botanical gardens surveyed have entry fees of CNY30 or less per entry (i.e. visitor). For example, the 

relatively small but quite appealing Xi’an Botanical Garden near the center of the city has an entry fee 

of CNY10, as does the much larger and better known Beijing Botanical Garden. 

27. In other cases, the site such as the horticultural exhibitions first at Kunming in 1999 and then 

in Shenyang in 2006 were established and fully paid for as one-year world expo events and therefore 

can now charge small entry fees that again only need to cover operating costs. Even then, the 

Shenyang (Liaoning Province) International Horticultural Exposition of 2006, which operated for 184 

days from 1 May-31 October 2006, had an entry fee of only CNY50. Now, one year after the Expo, it 

is operating as a more normal Botanical garden and it is charging an entry fee of CNY20. The 

Kunming Horticultural Landscape Botanical Garden in Yunnan is now charging the same entry fee. 

Therefore, to the extent that domestic and international tourists visiting Xi’an – and local residents in 

southern Shaanxi – have some reference point for what they are prepared to pay to visit a Botanical 

garden, that reference point would appear to be less than CNY50 a figure confirmed by a small 

willingness-to-pay survey conducted. 

28. The second challenge is that Xi’an and Shaanxi offer a wide range of very attractive tourism 

facilities that will be competitors of the Botanical Garden and the other PA tourism facilities, 

particularly in the early years when the BG will be an immature Botanical garden and will not be well 

known among many visitors to Shaanxi. (A recent survey completed by the Design Team indicated 

that the BG is well known among local residents because of extensive and favorable media coverage). 

29. With the exception of the Terra Cotta Warriors, the Xi’an Wildlife Park and the Xi’an Aquarium, 

these competing facilities typically charge an entry fee of CNY 40 to 50 and the revenues per visitor 

appear to be in the range of CNY100-120. The PPTA “willingness to pay” survey confirmed an entry 

fee of CNY50 and revenues per visitor of about CNY100. Accordingly, a high entry fee and other 

charges in the early years, and within-site prices total revenues per visitor that are not competitive with 

alternative tourism facilities in Xi’an and which are seen as not affordable by many local residents and 

domestic tourists, could result in very low attendance and no growth momentum for the BG based on 

favorable word-of-mouth advertising. This situation would place early financial performance and ADB 

loan repayment at risk. 

30. In its earlier financial analysis, the BG Team preferred an attendance/pricing scenario which 

involved lower attendance in the early years – recognizing the immaturity of the Botanical garden and 

the need to build market interest and image over time – while charging high entry fees and other 

prices to enter the Park’s attractions. While the low early attendance was justifiable, the PPTA Team 

argued that the high entry fees and other charges were not competitive with alternative tourism 

facilities in Xi’an and would not be affordable for many potential visitors from domestic markets 

especially in the first critical years of BG operation. 

31. In its May 2007 FSR, the BG Design Team proposed high early attendance, entry fees and 

revenues per visitor from 2011 on – with relatively little growth in these parameters 9 . The Design 

9 In fairness to the BG Design Team, it should be stated that the financial analysis guidelines of both the PRC 

and ADB require that the financial analysis be conducted in terms of real monetary values (where the effects 

of price inflation are removed) and encourage analysts to use attendance, price and cost parameters that are 

fixed or at the very least change very little through the projection period. This static approach generally works 

well for traditional, slow-growth sectors such as agriculture/food processing, forestry and infrastructure. 

However, this static approach works less well in high-growth economies like China, and in dynamic sectors 

such as tourism, where the income elasticity of demand is high (meaning that tourism demand and revenues 

expand much faster than real per capita incomes) and where effective marketing campaigns and word-ofmouth 

advertising can move demand curves outward – allowing tourism facilities that are well run and 

differentiated from competing attractions to raise their prices through time without hurting attendance and 

revenues. 

The static approach applied by the BG Design team leads to situations where attendance and prices appear 

much too high in the early years but are quite acceptable and even on the conservative side in the later years 

of the projection period when per capita incomes and tourism demand and revenues in China are higher and 

the tourism facility is well established within a region’s tourism network for guided and individual tourism.



Team used the “analogy” method by assessing attendance and pricing at other tourism facilities, such 

as the Xishuangbanna Topical Botanical Garden which is 527 km from Kunming, the Shenyang 

Botanical Garden noted earlier which is 40 km away from the Shenyang City Center, and the Xi’an 

Qinling Wildlife Park which is also on the North Slope of the Qinling and is 40 km away from the city 

center. The attendance and pricing figures from these tourism facilities were used to justify first year 

attendance of 600,000 and an entry fee of CNY70 for the Botanical Garden. 

32. The PPTA Team developed a second attendance/pricing scenario that had lower attendance 

and prices in the early years, which would both grow significantly through time as the BG and the 

Qinling became better known in the tourism market, the Botanical garden matured and therefore 

became more interesting to the general tourist as well as biodiversity enthusiasts, and per capita 

incomes, consumer purchasing power and the percentage of expenditures allocated to tourism and 

recreation all continue to increase in Xi’an, Shaanxi, and other PRC market segments. 

33. The following table compares the pricing strategies of the Design Team and PPTA Team 

scenarios. Revenues from each source are varied under the PPTA Team pricing/revenue strategy by 

increasing through time the percentage of visitors who use each service. Alternatively, the same 

results could be generated by holding the percentages constant and decreasing the price paid for 

each service. The implications for revenue would be the same. For example, for the same 

attendance and percentage of visitors (fixed at 85%), the price per visitor to the Ancient Biodiversity 

Building would need to decrease from CNY30 to CNY25 in order generate the same revenue for 2011 

from this source. 

34. However, under the PPTA team’s preferred attendance/revenue and pricing scenario, 

attendance at start-up is also lower – since the Botanical gardens are immature and the BG facility is 

not yet fully established. Benefit estimation was based on a visitor profile starting from 350,000 in 

2011 and increasing at an average growth rate of 5.3 % of the life of the analysis. Entry fees of CNY 

50 per visitor were used. The Feasibility study used a start up figure of 600,000 visitor at an entry fee 

of CNY75 per visitor. 

Table 3: QBG Visitor Projection Assumptions 

Assumptions: 

Entry 

Fee(CNY) 

1 BG Attendance at the first year 350000 50 

Growth Rate(Average) 5.29% 

2 Percentage of Total will visit Paleontology 85% 30 

3 Percentage of Total will visit Temple 30% 30 

4 Percentage of Total will take electric vehicle 50% 30 

5 Percentage of Total will take cableway 30% 60 

6 Percentage of Total will have fast food 30% 20 

7 Every 50 tourists will park once 50 20 

35. The estimated visitors per attraction use din both the financial and economic analysis are 

presented table 4. 

7

8 



Table 4: Projected Visitor Numbers per QBG Attraction 

Attendance 2011 2012 2013 2014 2015 2020 2035 

Total Attendance 

Growth Rate 

350000 391753 433506 475259 517012 725776 1272200 

(annual) 11.93% 10.66% 9.63% 8.79% 6.10% 2.50% 

Paleontology 297500 332990 368480 403970 439460 616910 1081370 

Temples 105000 117526 130052 142578 155104 217733 381660 

Electric Vehicle 175000 195876 216753 237629 258506 362888 636100 

Cableway 105000 117526 130052 142578 155104 217733 381660 

Fast Food 105000 117526 130052 142578 155104 217733 381660 

Parking��times) 7000 7835 8670 9505 10340 14516 25444 

36. The total investment into the QBG is CNY365 million ($48million) for the investment at the 

269ha site only see table 5. 

Item 


Table 5: QBG Investment Costs – (CNY ‘0,000’s) 

2008 2009 2010 2011 2012 

Fixed Asset 599.4 24605.3 0.0 1712.5 

Civil Works 321.7 21785.3 682.0 

Equipments 277.7 2820.0 1030.6 





37. The projected revenues and costs are detailed in Supplementary Appendix15. The summary 

revenue and cost for the construction period through to 2015 is presented in Table 6 below. Based on 

the project models and the costs provided by the Enterprise the before tax FIRR is estimated to be 

9.5% and the after tax FIRR 8%. The inclusion of the shareholder payment for resettlement 

compensation reduces the FIRR to 9.07% and 7.45% respectively. Both rates of return are above the 

WACC and are considered to be viable. The major challenge for the QBG will be cashflow during the 

construction period – something that the PDRC / PPTA EA has confirmed the Government will 

underwrite cashflow short falls. 

38. The Incorporation of a revenue transfer to the Louguantai Forest Farm Division of QNBG will 

involve an annual charge of $148,000 in 2012 will reduce the post tax FIRR to 6.8%. 

Table 6: Forecast Financial Cashflows 2008 to 2015 

Item 2008 2009 2010 2011 2012 2013 2014 2015



Cash in 0.0 0.0 0.0 3502.6 4586.9 5075.7 5564.6 6053.5 

Revenue 0.0 0.0 0.0 3706.5 4853.8 5371.1 5888.5 6405.8 

Sales Tax(5.5%) 0.0 0.0 0.0 203.9 267.0 295.4 323.9 352.3 


Cash out 9813.2 26738.8 3062.2 4417.2 2693.2 2693.2 3618.7 3561.2 

Investment 8889.0 24679.0 539.0 1724.0 





FNPV Before Income Tax at 10% -2105.2 

Income Tax 0.0 0.0 0.0 0.0 0.0 238.0 0.0 265.4 



FNPV After Income Tax at 10% -8028.5 

39. The financial rates of returns were tested for shifts in both revenue and costs – see Table 7 – 

and found to be relatively robust, however the assessment suggests that there would be significant 

benefits from a further critical review of costs to increase the viability and reduce the risk associated 

with the investment. 

Table 7: FIRR Sensitivity Analysis 




Operating Cost (10% up) 8.73% -5775.9 7.23% -11393.5 

Operating Cost (10% down) 9.86% -633.1 8.26% -7038.4 

Operating Cost (20% down) 10.44% 1938.2 8.79% -4860.9 

Revenue (10% down) 8.04% -8507.9 6.60% -13395.9 

Revenue (10% up) 10.45% 2098.9 8.80% -5036 

Revenue (20% up) 11.54% 7402.3 9.80% -856.1 

40. Assuming that it is well designed, well constructed and operated to a high international 

standard, the ex-situ Botanical Garden is expected to: (i) significantly strengthen and diversify the 

Shaanxi and Xi’an tourism bases, (ii) attract new tourists to the province and city and further expand 

tourism revenues through extending the length of stay of some current and projected tourists, (iii) help 

to promote habitat restoration and improved biodiversity management and conservation in the PA and 

the wider QM through direct investments in science, research, demonstration and outreach and 

through the education of visitors on the importance of protecting the QM’s valuable bioresources and 

ecosystems, and (iv) generate sustainable livelihoods for the PA and target populations through: job 

creation at the ex-situ site and investments in the in-situ area; purchasing goods and services from PA 

and target area residents, business enterprises and village groups, and demonstrating how improved 

biodiversity management can lead to higher and more sustainable livelihoods for PA and wider QM 

households and villages. 

41. The number of direct jobs at the ex-situ QBG site during the Phase I construction period could 

be a total of 6,000 person years, or an average of about 1,500 per year from 2008 to 2011. After 

startup, the Botanical Garden will directly employ about 270 people and this number will increase with 

the advances in attendance. The proportion of local resident employed could be as high as 1.5% at 

the end of the projection period, while perhaps about 6% of the target area households could benefit 

from employment at this site. However, policies and programs are needed to ensure that these 

potential local employment benefits, as well as benefits for local businesses and suppliers, are 

realized. 

9

10 



42. The economic analysis of the QBG estimated the EIRR to be 10.9% - see Table 6. Again 

whilst above the hurdle rate for the PRC it is marginally viable for ADB purposes highlighting the need 

for the previously recommended review of costs. 

Table 8: QBG Economic Net Cash Flow 

Item 2008 2009 2010 2011 2012 2013 2014 2015 

Cash in 0.0 0.0 0.0 3706.5 4853.8 5371.1 5888.5 6405.8 

Revenue 


0.0 0.0 0.0 3706.5 4853.8 5371.1 5888.5 6405.8 

Cash out 9302.0 24345.6 2935.4 4059.4 2672.7 2672.7 3670.6 3609.3 

Investment 8244.0 22190.0 443.0 1386.7 



Net Cash Flow -9302.0 -24345.6 -2935.4 -352.9 2181.2 2698.5 2217.9 2796.5 

EIRR 10.85% 

ENPV 3638.5 

43. The EIRR is relatively sensitive to the movement in revenue and costs. Given the difficulty in 

revenue forecasting there is a need for careful reassessment of the investment and the underlying 

assumptions. The PPTA has been concerned about the assumptions and as a result has taken a 

conservative position for visitor numbers. The PPTA concludes that the QBG is a viable investment 

but there is considerable risk of commercial failure arising during the first 5 to 10 years. Experienced 

commercial management, cost reviews and more market research are important risk management 

strategies. 

Table 9: Economic Analysis Sensitivity Analysis 

EIRR ENPV 

Operating Cost (10% up) 9.99% -59.1 

Operating Cost (20% up) 9.41% -2614.1 

Operating Cost (10% down) 11.16% 5050.8 

Operating Cost (20% down) 11.77% 7607.7 

Revenue (10% up) 11.79% 8107.9 

Revenue (20% up) 12.95% 13720 

Revenue (10% down) 9.26% -3116.2 

Revenue (20% down) 7.85% -8728.3 

ii. Shaanxi Animal Rescue Center 

44. The expansion, modernization and enhancement of SARC to international standards is 

intended to: (i) significantly increase the personnel and material investments made in wildlife 

protection in Shaanxi to improve animal welfare and the survival rate of rescued animals; (ii) rescue 

endangered animals more efficiently and provide a better natural environment for the animals that are 

raised on site; (iii) develop an important high-quality site for eco-tourism that meets the needs of the 

modern, well informed and highly demanding tourist, (iv) increase public awareness and support for 

the rescue, breeding, science, research and public awareness functions of the SARC; (iv) conduct 

scientific research on wild animal conservation and expand cooperation, information exchanges and 

partnerships with similar agencies in China and abroad; and (v) distribute information and knowledge 

on wildlife conservation to promote greater harmony between animals and people. 

45. SARC is planning a two phase development with the Project part financing Phase One. 

Accordingly, phase one and two investments are proposed to address a number of problems with the 

current SARC facility namely: inadequate rescue equipment, small size and poor layout of the current



animal exhibition area, animal pens that are overcrowded and well below international standards, 

severe shortage of research equipment, and weaknesses in technical capabilities. To improve and 

strengthen the rescue and breeding work of rare wildlife, SARC proposes to: (i) enlarge and greatly 

improving the rescue, breeding, research and other necessary facilities, (ii) establish satellite sites for 

breeding in different parts of the PA, (iii) actively adopt new approaches, new technologies, new 

instruments and (iv) through high quality design, building the Animal Rescue Center into a 

modernized, high standard, ecological institution that is a domestic leader and fully meets international 

standards. 

46. The SARC expansion and modernization is intended to capitalize on the significant growth in 

the tourism sector of China, Shaanxi and Xi’an particularly in eco-tourism market segments; and on 

the sharply rising urbanization and urban incomes of Xi’an and southern Shaanxi. These opportunities 

will provide financial and technical support its main objectives and functions related to rescue, 

breeding, science, research and public awareness of the Qinling’s rare animals. 

47. By focusing on the QM’s rare and globally important animal species and providing facilities of 

international standard, SARC offers a far more attractive and exciting experience for general tourists 

and for biodiversity experts and enthusiasts compared with the Xi’an Wildlife Park – located to the 

south of Xi’an on the North Slope of the Qinling -- which reportedly has been a significant commercial 

success since 2004 . 

48. The enhancement of SARC is a major component of the proposed “Louguan Experience” . 

The fact that Louguantai is the birthplace of a major world religion coupled with the SARC and the 

opportunity to view two of the world’s most iconic fauna, the Giant Panda and Crested Ibis, presents a 

unique opportunity for development, especially for international clientele. There is a massive interest in 

the Giant Panda worldwide, and holidays specifically to view the panda can now be arranged from 

most European countries and North America. Because of the rarity value of the animal, these holidays 

are sold at premium rates. International tourists are increasingly being offered mixed cultural and 

wildlife tours. 

49. Currently SARC does not feature on organized tours or promotions for Shaanxi Province. The 

close location of SARC to Xi’an, gives it a strong market advantage, unlike Wolong or Foping Nature 

Reserve access to SARC is only one hour’s drive from Xi’an. The closeness allows visitors to view 

giant Panda as a ½ day excursion added to the existing flow of visitors to the Terra Cotta Soldiers. 

50. The projected attendance figures are based upon the assumptions in Table 10 and include a 

10% factor for nonpaying or official visitors due to the iconic nature of giant Panda and the Crested 

Ibis. 

Table 10: Assumptions for Visitor and Revenue Projections 

The attendance for the three attraction in 2011 is 280,000. 

In the first 5 year period from 2011 to 2016, the annual growth rate peaks and decreases gradually. 

The attendance of Crested Ibis in 2010 is 266,000. 

10 % of tourists will be free guests CNY 

Panda Entry Fee 55 CNY 

Crested Ibis Entry Fee 50 CNY 

Golden Monkey Entry Fee 30 CNY 

51. The SARC Design Team projects attendance to start at a fairly low level and then to grow 

quite rapidly through the early years of the projection period. Therefore, this attendance forecast is 

used for the analysis. However the SARC prices were adjusted downward to be consistent with 

market studies to be consistent with market research and to provide a conservative base to the overall 

assessment. The SARC strategy envisages that all visitors to the SARC Animal Exhibition Center/Zoo 

would also visit the breeding centers for the three species and the animal exposition center. Visitation 

numbers are presented in Table 11. 

11

12 



Table 11: SARC Visitor and Revenue Projection 

Attendance 2010 2011 2012 2013 2014 2015 

Attendance 280000.0 336000.0 403200.0 463680.0 519321.6 

Growth Rate Yearly 20% 20% 15% 12% 

Panda 280000.0 336000.0 403200.0 463680.0 519321.6 

Crested Ibis 266000.0 280000.0 336000.0 403200.0 463680.0 519321.6 

Golden Monkey 336000.0 403200.0 463680.0 519321.6 

Revenue (‘0,000) 

Panda (CNY50/ person) 1386.0 1663.2 1995.8 2295.2 2570.6 

Crested Ibis�CNY50 /person� 1197.0 1260.0 1512.0 1814.4 2086.6 2336.9 

Golden Monkey �CNY30/person� 0.0 907.2 1088.6 1251.9 1402.2 

Total 1197.0 2646.0 4082.4 4898.9 5633.7 6309.8 

52. The investment into SARC is presented in Table 12 and total CNY215 million (USD28.3 

million) over a four year period with nearly 84% being civil works. 

Table 12: SARC Investment costs (CNY’0,000’s) 

Item 


2008 2009 2010 2011 2012 

Fixed Asset 1207.9 7236.9 10843.4 589.9 

Civil Works 1199.7 6425.4 10549.3 555.9 

Equipments 8.2 811.5 294.1 34.0 


Total investment 


2474.0 7368.0 11395.0 589.9 


53. The forecast financial cashflow before and after tax is presented in Table 13 with the FIRR 

before tax estimated to be 16% and the after ax FIRR 13.5% both of which are well above the 

enterprise WACC of capital. The income transfer to the QBCDA programs base don 8% of the net 

profit will see a contribution of $160,000 in 2012 and reduces the post tax FIRR to 12.75%. 

Table 13: SARC Forecast Cashflow and FIRR (CNY ‘0,000) 

Item 2008 2009 2010 2011 2012 2013 2014 2015 

0 0 1131 2500 3858 4629 5324 5963 

Revenue 0.0 0.0 1197.0 2646.0 4082.4 4898.9 5633.7 6309.8 



0.0 0.0 65.8 145.5 224.5 269.4 309.9 347.0 

Cash out 3496.7 8959.2 13249.2 2524.4 2015.0 2015.0 2373.1 2351.2 

Investment 2474.0 7368.0 11395.0 589.9 



1022.7 1591.2 1854.2 1934.5 2015.0 2015.0 2373.1 2351.2 



Cash out without project 185.7 185.7 185.7 185.7 185.7 185.7 185.7 185.7




Net Cash Flow Before Income Tax with project -3529.9 -8992.4 -12151.2 -57.2 1809.7 2581.3 2917.5 3578.3 



Income Tax 0.0 0.0 0.0 0.0 278.8 471.6 555.7 720.9 

Net Cash Flow After Income Tax with project -3530 -8992 -12151 -57 1531 2110 2362 2857 


FNPV After Income Tax at 10% with project 9605 

54. The Financial viability was tested for movement in cost and revenues - see Table 14 - and 

found to be robust under scenarios involving 20% movement of current projections. The proposed use 

of commercial management will reduce the risks attached to the commercial operation of the SARC. 

Table 14: Financial Analysis Sensitivity 




Operating Cost (10% up) 14.81% 15621.1 12.56% 7474 



Revenue (10% down) 13.90% 12076.8 11.75% 4875 

Revenue (20% down) 12.26% 6692.7 10.29% 773 

Revenue (30% down) 10.46% 1308.6 8.70% -3329 


Phase I and Phase II will further strengthen and diversify the Shaanxi and Xi’an tourism base and will 

provide a high quality tourism experience that, together with the Botanical Garden, the Louguantai 

Forest Park and other ex-situ facilities, will encourage visitors to the Project Area to spend the whole 

day there or to come back for a second day to the ex-situ sites. This will lengthen their stay and/or 

increase their spending in the city and province. 



expanded SARC site will as well increase the number of operating jobs provided to local people from 

the current number of about 40 (including casual employees) to over 200 positions after construction 

of both phases. This number will increase as the number of visitors and the SARC’s gross revenues 

expand through the projection period. Based on data earlier provided by SARC on its personnel and 

operating costs, the Team estimates that under the PPTA Team’s base case scenario, employment at 

SARC after construction of both phases, including staff servicing tourists, employees caring for 

animals and administrative staff, would likely be about 250 at start-up in 2011, and this number would 

likely increase to over 400 by 2020 and to about 500 in 2030. The expanded and modernized SARC 

facility will as well generate quite significant indirect or spin-off benefits through providing service and 

supply contracts to local companies and other suppliers of goods and services. 

57. Other benefits noted in the SARC FSR include: better care of and more healthy animals based 

on the breeding bases, animal hospital, rescuing and quarantine facilities, and the expanded research 

facilities and food/forage bases – leading through time to expansions in the population of rare Qinling 

wildlife. Better animal care, training and research to promote controlled release to the wild or semiwild 

(to be funded perhaps in part under the GEF program) could further add to the benefits from the 

animal conservation work of SARC. This could be particularly important to Crested Ibis. The genetic 

resources associated with these rare animals will be better protected and utilized at project 

completion. 

13

14 



58. Over the longer term, strong national and international interest in iconic Qinling animals such 

as giant Panda, Crested Ibis and Golden Monkey and SARC’s growing reputation for the rescue, care, 

breeding and release of these animals and for operating a well-known Animal Exhibition Area and 

Rescue Center to international standards. This reputation will generate significant funds from 

international NGOs and other donors (corporations, foundations etc.) to support the animal rescue 

center’s future activities and development. The project will provide technical support for the design 

process to ensure that the skills and experience within SARC and the international community are 

brought to bear on the detailed design. 

59. The economic cash flow for the period through to 2015 is presented in Table 15 which results 

in an EIRR of 17.9% based on the net cash flow for the with and without project. In reality the current 

center would be unlikely to survive past the short term given the low standards of animal welfare and 

the increasing public rejection of these standards. 

Table 15: Economic Analysis of SARC Proposal 

Item 2008 2009 2010 2011 2012 2013 2014 2015 

Cash in 

0 0 1197 2646 4082 4899 5634 6310 

Revenue 


0.0 0.0 1197.0 2646.0 4082.4 4898.9 5633.7 6309.8 

Cash out 3401.0 8220.5 11925.2 2432.2 2009.0 2009.0 2367.1 2345.2 

Investment 2378.3 6635.3 10077.0 503.7 



1022.7 1585.2 1848.2 1928.5 2009.0 2009.0 2367.1 2345.2 

Net Cash Flow Before Income Tax -3401.0 -8220.5 -10728.2 213.8 2073.4 2889.9 3266.6 3964.6 


Cash out without project 185.7 185.7 185.7 185.7 185.7 185.7 185.7 185.7 


Net Cash Flow -3434.2 -8253.7 -10761.4 180.6 2040.2 2856.7 3233.4 3931.3 

EIRR 17.86% 

ENPV (10%) 22965.8 

60. The EIRR was found to be robust up to 30% movement in either the costs or revenue streams 

and as such given he conservative visitor numbers the investment as forecast is considered 

economically feasible. 

Table 16: Sensitivity of Economic Analysis 


EIRR ENPV 

Operating Cost (10% up) 16.33% 20149.4 

Operating Cost (20% up) 15.69% 18314.8





Revenue (10% down) 15.37% 16286.6 

Revenue (20% down) 13.64% 10589.2 

Revenue (30% down) 11.77% 4891.8 

Revenue (40% down) 9.69% -805.7 

iii. Consolidated NQBG 

61. The Qinling Botanical Garden and SARC commercial enterprises will be managed under a 

unified institution to be established before Loan Negotiations. The new institution the National Qinling 

62. Botanical Garden will derive its revenue from both of these enterprises and will by 2015 

generate a total revenue of CNY 127.5 million and CNY 250 million by 2025. The combined 

enterprises have an estimated FIRR of 12.1% before tax and 10.2% after tax. The FIRR declines to 

9.3% after the inclusion of shareholder payments for the Qinling Botanic Garden resettlers and the 

transfer of funds to the conservation investment program. All FIRR’s are well above the WACC 

estimated to be 5.6%. 

Table 17: Financial Forecasts and Analysis of Consolidated QNBG Enterprises (CNY 10,000) 

Item 2008 2009 2010 2011 2012 2013 2014 2015 

Cash in 0.0 0.0 1131.2 6003.1 8444.7 9705.2 10888.4 12016.2 

Revenue 0.0 0.0 1197.0 6352.5 8936.2 10270.0 11522.2 12715.5 

Sales Tax(5.5%) 0.0 0.0 65.8 349.4 491.5 564.9 633.7 699.4 

Residual Value 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 

Cash out 13309.9 35698.0 16311.4 6941.6 4708.2 4708.2 5991.8 5912.4 

Investment 11363.0 32047.0 11934.0 2313.9 0.0 0.0 0.0 0.0 


Working capital 92.9 0.0 0.0 0.0 0.0 0.0 0.0 0.0 




Income Tax 0.0 0.0 0.0 0.0 278.8 709.7 555.7 986.3 



FNPV After Income Tax at 10% 11182.1 

Q.B.G. Shareholder Pmt 0 0 0 0 114 143 117 150 

NCF less shareholding (after tax) -13343 -35731 -15213 -972 3311 4111 4191 4935 

FIRR 9.95% 

Financial Transfer to QBCDA 0 0 0 0 268 333 337 398 

NCF (Post Tax) incl. transfer -13343 -35731 -15213 -972 3043 3778 3854 4537 

FIRR (after financial transfer) post-tax 9.28% 

63. The economic rate of return for the combined enterprises is estimated to be 13.7% and is 

considered to be economically justified (see table 18). 

Table 18: Economic Cash flows for Consolidated NQBG (CNY 0,000’s) 

Enterprise 2008 2009 2010 2011 2012 2013 2014 2015 

15

16 



QBG -9302 -24346 -2935 -353 2181 2698 2218 2796 

SARC -3434 -8254 -10761 181 2040 2857 3233 3931 

Consolidated NQBG -12736 -32599 -13697 -172 4221 5555 5451 6728 

EIRR 13.67% 

b. Hot Spring Development 

64. The investment will: (i) improve leisure tourism services in the Louguantai area; (ii) promote 

the development of the tourism industry in the Project Area; (iii) stimulate the growth and development 

of related industries in the Project Area and Zhouzhi County; (iv) provide a multi-purpose tourism 

facility that appeals to various tourism groups at different levels of income; and (v) promote 

understanding of the Daoist culture and religion. Based on the hot springs project in Louguantai, 

seeks to integrate the tourism resources of Louguantai National Forest Park, expand visitation to the 

Forest Park, and construct a new Culture Tourism District that relies largely on the metropolitan Xi’an 

tourist market. 

65. As described in the Marketing Guide (see Appendix 30), the Hot Springs development is a 

complementary attraction for the “Louguan Tai Experience” providing accommodation services for 

longer stay visits to the area. It services a specialized niche market (health tourism), and it provides 

an add-on service by providing day access to the hot pools. A full one day ‘package’ can be offered 

which provides a wildlife-culture-recreation experience. Consultation with the Shaanxi Daoist 

Association indicated a linkage between the Hot Springs and the Daoist sites. 

66. The Shaanxi Tourism Group Corporation (STCG is the largest single tourism state-owned 

enterprise in Shaanxi holds a 51% share of the joint venture. In 2000, the Shaanxi Province Branch 

of the Bank of China signed a deal with the Group to finance CNY1.8 billion ($218 million) of the 

Group’s major tourism investments over the next five years through to 2005. This Group was founded 

in 1998 as a state owned company with a registered capital of CNY3 billion ($36.14 million). 

67. The Group is an investment and capital management company authorized by the provincial 

government to engage in management and development of cultural and scenic tourism sites, travel 

services, star-class hotels, bus companies and other tourism products. In conducting these functions, 

the Group places an emphasis on servicing the tourism industry of Shaanxi Province – although the 

Group has as well invested in other provinces and cities such as Beijing. 

68. The Group and its subsidiary companies are engaged in different tourism services including 

dining, accommodation, travel agencies, transportation, entertainment, and the management of tourist 

sites. The STCG operates some of China’s most famous historical sites, in particular the Terracotta 

Warriors site in suburbs of Xian, and its subsidiary companies include some of the most profitable 

tourism enterprises in the province. The SPG Tourism Bureau provides the Group with policy advice 

and guidance but there are no financial and staff relationships between the Bureau and the Group. 

The Group’s funds are generally raised from commercial markets, with the exception of some smaller 

subsides from the SPG for specific purposes. 

69. The Hot Springs Feasibility Study provides detailed attendance, pricing and financial analysis 

for Phase II of the development to be partly financed by the Project. The Design team’s financial 

analysis used a discount rate of 12% as its benchmark FIRR, reflecting their commercial 

requirements. The construction period was assumed to be 2007-2008 and the operating period was 

assumed to be 15 years from 2009-2023. The PPTA Team altered these periods to 2008-2009 for 

construction and 2010-2035 for construction to be consistent with the Project. 

70. The operating income is generated from the 18 villas, based on 70% occupancy in each year 

and different daily rates for the villas as follows: Villa A – CNY5,800 per day ($763); Villa B – 

CNY4,800 per day ($632); and Villa C – CNY3,800 per day ($500). The daily rates are based on the 

villa and not the number of people. There will be five bedrooms per villa, and the number of people 

staying over night will normally be 5-10, with a maximum of 12 overnight visitors. Therefore, when ten 

people are staying over night – two people per bedroom, the daily rate per visitor would be between 

CNY380-580. However, even if only two rent the villa for the night, the daily rate will be the same.



71. Additional revenues are generated from the eco-restaurant and from parking. Eco-restaurant 

revenues are generated from over-night visitors to the villas and hotel (constructed in phase one) and 

from day visitors for bathing (50% of visitors at CNY30 per day visitor) and sightseeing (20% of visitors 

at CNY20 per head). The cost of sales ratios employed by the Hot Springs Design team for lodging, 

the restaurant and parking are for the most part very consistent with the ratios identified in the 

independent research by the PPTA Team.. The HS Design Team analysis assumed the same 

revenues and costs for every year of operation. 

Table 19: Assumptions used for Revenue Projections 

Item 

Hot Spring Residential 

Unit 

Price 

(CNY) 

Capacity Occupancy 

Rate Daily 

Villa-A 5800 8 70% 5 

Villa-B 4800 6 70% 4 

Villa-C 3800 4 70% 3 

Catering 

Tourist guest 20 2000 20% 400 

Bathing guest 30 600 50% 300 

Parking 

Car 5 200 50% 100 

Bus 10 100 50% 50 

Daily 

guests 

72. As the investment is building on the existing development the capital construction and 

investment is expected to be complete within a construction period of one year and that the occupancy 

and therefore revenue forecasts be achieved one year following. Based on these projections the total 

revenue per year is approximately CNY 30 million (USD 4 million). The investment costs for the 

proposal are estimated at CNY 65 million – see Table 20. The mix of costs differs from the other two 

enterprises with far greater investment into the equipment budget line to outfit the villas, pool and 

restaurant. 

Table 20: Hot Springs Investment Costs (CNY ‘0,000’s) 

Item 2008 2009 2010 2011 2012 


Fixed Asset 5524.2 0.0 0.0 0.0 

Civil Works 3200.3 

Equipments 2323.9 


Total investment 6451.5 


Total investment 5299 

73. The financial forecasts are presented in Table 21 which highlights the strong cash-flow 

forecast which results in a FIRR before tax of 13.7% and after tax of 10.9% both above the WACC 

however the after tax operation is lower than the commercial hurdle of 12%. The enterprise has 

accepted this rate of return however that will require the construction timetable to be fully met. 

Table 21: Hot Springs Financial Cash Flow Forecast 

Item 2008 2009 2010 2011 2012 2013 2014 2015 

17

18 



Cash in 

0 2640 2640 2640 2640 2640 2640 2640 

Revenue 0 2794 2794 2794 2794 2794 2794 2794 



0 154 154 154 154 154 154 154 

Cash out 6766 1663 1644 1644 1644 1644 1787 1778 

Investment 6478 0 0 0 

Operating cost 288 1663 1644 1644 1644 1644 1787 1778 

Net Cash Flow Before Income Tax -6766 977 996 996 996 996 853 861 


FNPV Before Income Tax at 10% 1916 

Income Tax 0 157 162 162 162 162 126 128 

Net Cash Flow After Income Tax -6766 820 834 834 834 834 727 734 


FNPV After Income Tax at 10% 450 

74. The FIRR is however quite sensitive to changes in costs or incomes suggesting that the 

Project needs to be closely assessed in terms of the assumptions that are applied. Central to these 

are (i) the construction period and the need to avoid delays, (ii) the occupancy early in the project life, 

(iii) demand for the day visitation services. 

Table 22: Hot Spring Financial Analysis Sensitivity 




Operating Cost (10% up) 10.89% 460 8.67% -649 

Operating Cost (20% up) 8.03% -997 6.34% -1748 

Operating Cost (30% up) 5.00% -2453 3.83% -2846 

Revenue (10% down) 9.37% -317 7.44% -1225 

Revenue (20% down) 4.68% -2551 3.57% -2900 

Revenue (30% down) -1.06% -4784 -1.24% -4575 

75. The Economic analysis is however somewhat stronger with a EIRR of 23.33 % suggesting a 

very good investment. Economically the investment is relatively insensitive to changes in revenues 

and costs – see Tables 23 and 24. 

Cash in 

Table 23: Economic Forecast for Hot Springs (CNY 0,000) 

Item 2008 2009 2010 2011 2012 2013 2014 2015 

Revenue 0 2794 2794 2794 2794 2794 2794 2794 


Cash out 5587 1531 1512 1512 1512 1512 1655 1647 

Investment 5299 0 0 0



Operating cost 288 1531 1512 1512 1512 1512 1655 1647 

Net Cash Flow -5587 1262 1281 1281 1281 1281 1138 1147 

EIRR 22.11% 

ENPV 5400 

Table 24: Economic Sensitivity Analysis 


EIRR ENPV 

Operating Cost (10% up) 20.19% 4312 




Operating Cost (50% up) 7.36% -1068 

Revenue (10% down) 17.88% 3293 

Revenue (20% down) 12.28% 950 

Revenue (30% down) 6.29% -1434 

c. Component Summary – Economic Assessment 

76. Component one has an overall EIRR of 14.2% estimated from the assumptions described 

above for each of the subcomponents – see table 25. These benefits do not include the intangible 

benefits linked to species conservation, awareness and education, and the scientific knowledge to be 

developed from the QBG and SARC. 

Table 25: Component One Economic NCF and EIRR 

Subcomponent NCF 2008 2009 2010 2011 2012 2013 2014 2015 

Qinling Botanic Garden -9302 -24346 -2935 -353 2181 2698 2218 2796 

SARC -3434 -8254 -10761 181 2040 2857 3233 3931 

Hotsprings -5587 1262 1281 1281 1281 1281 1138 1147 

Component One NCF -18323 -31337 -12415 1109 5503 6837 6589 7875 

EIRR Component One 14.19% 

77. The beneficiaries include the domestic and international tourists who visit the tourism sites and 

enjoy the facilities and services and learning more about the Qinling Mountain’s bioresources, history, 

culture and religions. By 2011, once the first phases of the QBG and SARC and the second phase of 

the Hot Springs are completed, the total number of tourists visiting the PA will be about 700,000 10 , 

compared with about 300,000 at the present time. With completion of all phases of the three ex-situ 

enterprises, the total number of visitors to the tourism facilities would approach 1.8 million and could 

be over 2.3 million by 2030. 

78. The target beneficiaries within the Project Area target area people who receive jobs generated 

by the construction of the Project investments and the operating jobs after construction after 

construction. The following provides employment estimates from the construction and operation 

stages of the Project based on estimates provided in the FSRs. 

10 This number takes account of the number of visitors who are expected to visit two or even all three ex-situ 

sites in one day. Actual attendance counts when the three sites are combined together would therefore be 

higher. 

19

20 

Component I Tourism 

Facilities 



Table 26: Estimated Job Creation from Component One Enterprises 

Construction: Full-Time Equivalents 

Aggregated Over the 2008-2013 

Construction Period 

10,900 

(Averaging 3,500 per year from 

2008-2010) 

Operations 

650 in 2011 and 725 in 2013, 

expanding to 870 in 2020 and nearly 

1,100 in 2030 

79. The added benefit from component one is the investment generated for input into the in-situ 

and wider Qinling Mountains. Initial estimates indicate that by project completion this could amount to 

USD 350,000 increasing to over USD 1 million based on a levy equivalent to 15% of net profit levels 

from QBG and SARC. 

2. Component Two: In-situ Livelihood improvement and Biodiversity Conservation 

a. Improved Forest Based Livelihoods 

80. The Project will introduce technologies, infrastructure and business development resources to 

reduce poverty that currently afflicts 70% of the estimate 1,370 households within the 16 

administrative villages. Livelihood improvement within forest based production systems will be 

demonstrated and evaluated to enable policy reforms and replication of successful models throughout 

the Qinling Mountains. The Project will prepare 16 village development plans including a community 

forest and natural resource plan prepared using a participatory planning process (see Appendix 10). 

81. The plan will identify collective forest land that will be surveyed and demarcated, and the 

Shaanxi Forest Bureau will issue each collective with the necessary forest tenure certificates 

establishing rights to forest resources for individuals. During the planning process village forestry 

associations will be formed through which the conservation forestry program will be implemented. 

82. The Project will support the development of 5,000 ha of analog conservation forestry through 

the provision of technical support, planting materials, site management technologies including light 

penetration, shade planting, and intercropping. Mixed species forests that mature into forests that are 

analogous to natural forest will provide substantial wildlife benefits, reduced soil and water loss, and 

both forest and non-forest products for harvest. It is expected that up to 3.5 ha may be allocated to 

each household based on 100% involvement and 5ha based on approximately 70% involvement. The 

benefits of the analog forestry have not been quantified due to (i) the need for a substantial policy and 

legal reform in terms of issuance of tenure over forest resources, exemptions for manipulating existing 

forest cover, and the enabling of households to derive revenue from the analog forests once 

established, and (ii) the long term nature of benefits accruing. 

83. In-situ households will also have access to small business development grants to establish 

value-adding enterprises. Opportunities and interest in such enterprises will be identified during the 

village planning process. These will be assessed through Project supported research studies into plant 

and plant extract opportunities including essential oils and medicinal plants. Additional support will 

undertake market research and market chain linkage studies to ensure viability and to maximize their 

integration within value chains. Community based ecotourism home-stays for medium to high value 

clients will be developed to support the growing demand for overnight accommodation in wild or 

natural environments. It is proposed to differentiate these from existing home stays by providing a 

slightly higher quality of service and accommodation. A total of 10 - 4 room home stays are include in 

the project. The forecast financial rates of return indicate that an FIRR of 19.1% for a 4 room home 

stay that will employ 8 to 10 people on a full time basis. 

84. The financial model assumes a 40% occupancy increasing to 50% after 10 years and 

stabilizing at that level with an average tariff per night of CNY 150. 

Table 27: Financial Projections for 4 Room Homestay 

Year 2009 2010 2011 2012 2013 2014 2015 

P Year 0 1 2 3 4 5 6



Home Stay Compare With Below 

CNY 

Home Stay Tourism -- 360 day 

season 360 

Occupancy Rate Starts at 0.50, 

Four Rooms, 0.4 0.4 0.41 0.42 0.43 0.44 0.45 

Potential Visitor Nights Per Year 8 2,880 2,880 2,880 2,880 2,880 2,880 

Actual Visitor Nights Per Year 

Revenue Per Visitor Starts at 

1,152 1,181 1,210 1,238 1,267 1,296 

RMB 150 (Ex. Sales Tax) 150 150 150 150 150 150 160 

Gross Revenues 172,800 177,120 181,440 185,760 190,080 

21 

207,36 

0 

Cost of Sales @ 45% of Revenue 0.45 77,760 79,704 81,648 83,592 85,536 93,312 

Net Income Before Overhead 

Overheads Before PIT 14% of 

95,040 97,416 99,792 102,168 104,544 

114,04 

8 

Total Capital 0.14 46,005 46,005 46,005 46,005 46,005 46,005 

Net Income After Overheads 49,035 51,411 53,787 56,163 58,539 68,043 

Total Capital Cost CNY 328,608 

Net Cash Flow -328,608 49,035 51,411 53,787 56,163 58,539 68,043 

IRR Based on Total Capital 19.094% 

NPV at 10% 304,452 

85. The economic rate of return for a single home stay is 23.4%. The economic NCF for the 40 

rooms developed by the Project is presented in Table 27 indicates that the home stay is economically 

justified. 

Table 28: Economic NCF for 10 Home-stays 

2009 2010 2011 2012 2013 2014 2015 

Number of 4 room home stays 0 2 2 2 4 

NCF per Home stay (econ) 0 -287000 54860 57236 59612 61988 64364 73868 

2009 development -574,000 109,720 114,472 119,224 123,976 128,728 

2010 development -574,000 109,720 114,472 119,224 123,976 

147,73 

6 

128,72 

8 

2011 development -574000 109720 114472 119224 123976 

2012 development 

- 

1148000 219440 228944 238448 

NCF for Home stay program 0 -574000 -464280 -349808 -804584 577112 600872 638888 

EIRR 23.254%

22 



NPV at 10% 3,248,667 

NPV at 20% 383,699 

86. Community infrastructure including 17.5 km of roads along the Tianyu River and 109 km of 

mountain pathways will be upgraded to reduce travel times and ensure access during adverse 

weather. No estimates have been made of the time savings. 

87. Grants are proposed for either villages or households to develop social infrastructure 

especially alternative energy sources (biogas and solar) and water supply schemes where these are 

identified during the village development planning program. Again no quantification of benefits has 

been made. 

b. Conserving In-Situ Biodiversity 

88. The in-situ area will be used as a demonstration and training program for those working in 

other parts of the Qinling Mountain. In it will be used as a field conservation training and 

demonstration area from which methods and skills are developed and lessons disseminated. For the 

in-situ area the project will prepare a detailed forest and habitat management plan as a training 

exercise for staff in the Qinling Mountains. 

89. A total of 2,000ha of habitat restoration will be completed using ecological research, forest 

silviculture, under-storey planting, canopy manipulation. The objective of habitat restoration is to move 

the existing monoculture forest plantings into mixed species forest cover with the forest architecture of 

natural forests. Technical assistance will be supported by GEF for defining and implementing the 

Conservation Forestry Programs. Research into tree and shrub species, ecological impacts and 

monitoring grad-sects, permanent sampling plots will be supported to assess the impact on floral 

characteristics, environmental parameters, and overall forest structure. The data sets will provide a 

strong basis on which to develop future policy and government interventions within the Qinling 

Mountains and especially to mange the newly created corridors that link protected areas for the 

purpose of improved biodiversity conservation. 


hotspot through developing endangered species recovery management programs that will operate 

within and beyond nature reserve boundaries. Support will be provided to undertake research and 

management planning for five endangered species and then providing budgetary support for initial 

implementation work programs. The in-situ endangered species management program will focus on 

using the Project Area as a field conservation research area from which monitoring and lessons can 

be disseminated throughout the conservation sector in the QM. In addition, the program will 

increasingly integrate the ex-situ species management program of the Shaanxi Animal Rescue Center 

(see Component one) with the in-situ endangered species recovery management programs through 

making significant operational and management changes to SARC and its facilities. The integration 

will be developed through shared research, joint planning exercises and sharing of data and 

experiences. 

c. Component Two Summary 

90. The total investment costs for the in-situ program totals approximately CNY129 million (USD 

16.7 million) – see table 2.. 

Table 29: Investment Costs Component 2 (CNY ‘0,000’s) 

A: Financial Costs 2008 2009 2010 2011 2012 

Village Livelihoods 543.7 1843.8 4232.3 2601.1 2323.9 

Conservation 55.1 84.2 482.0 494.3 287.0 

Total 

B : Economic Costs 

598.8 1928.0 4714.3 3095.4 2611.0 

Village Livelihoods 535.6 1707.0 3757.6 2225.6 1923.3 

Conservation 54.3 80.6 434.9 433.1 238.9



Total 589.9 1787.5 4192.6 2658.7 2162.1 

91. The investment in component 2 is predicted to generate approximately 4,000 jobs during the 

construction phase of the Project and approximately 450 from 2015. These levels of employment are 

significant and suggest that close to 1/3 rd of in-situ households could receive an additional wage after 

the construction period. Equally the conservation forestry program could impact in excess of 70% of 

current in-situ households through participation in planting programs and obtaining secure tenure to 

collective forests. 

Component II Tourism 

Facilities 

Component II Reforestation 

and Road and Path 

Construction 

Table 30: Estimated Employment Impacts of Component Two 

Construction: Full-Time 

Equivalents Aggregated Over the 

2008-2013 Construction Period 

1,070 

(Average of 214 per year from 2009 

to 2013 

3,000 

(Average of about 500 per year over 

the 2008-2013 period) 

3. Component Three Supportive Institutional Arrangements 

Operations 

66 in 2011, 175 in 2013, 192 in 2014, 

and expanding to 230 from 2020 on 

220 in 2013 and 270 per year from 

2014 on 

92. Component three provides a number of institutional inputs to undertake project management, 

training, undertake policy and legal research on topics identified as creating significant constraints to 

the proposed management approaches. The subcomponents for Project Management and Institutional 

Strengthening are considered as overheads to the rest of the Project and the benefits are not 

quantified. 

93. Subcomponent three will provide a range of replication programs built on action based 

conservation planning, endangered species management, and monitoring within the Project Area and 

then disseminating these and other project lessons to the wider Qinling Mountains. The potential 

impact of small changes to biodiversity management and livelihood improvement is likely to be large 

however the nature and extent of these is uncertain and therefore these have not been quantified. 

94. The component investments are outlined in Table 29 below. 

Table 31: Investment Costs Component 3 (CNY0’000’s) 

Financial Costs 2008 2009 2010 2011 2012 

Project Management 160.8 92.3 110.9 92.1 111.6 

Institutional Strengthening 41.2 67.9 69.9 72.0 0.0 

Replication 282.5 1112.8 528.0 223.0 217.1 

Total 

Economic Costs 

484.5 1272.9 708.8 387.1 328.7 

Project Management 148.7 85.1 99.8 79.9 94.6 

Institutional Strengthening 40.6 65.0 65.0 65.0 0 

Replication 278.6 1065.8 490.4 201.1 190.1 

Total 467.9 1215.8 655.1 345.9 284.6 

4. Summary of Project Assessment 

95. The Project results in significant benefits arising from the visitation program associated with 

the QBG, SARC, and the Hot Springs enterprises. To these direct employment benefits can be added 

the indirect benefits from the supply of goods and services by local businesses and households and 

contracts to village groups and small businesses to conduct biodiversity conservation activities that 

are funded by the Project or by subsequent activities financed by local governments and the ex-situ 

23

24 



tourism facilities after Project implementation is completed from 2014 on. Finally, the eco-fund loans, 

repayable contributions and grants will generate additional direct and indirect employment and income 

benefits once the eco-fund is established. These benefits cannot be estimated at this time. It should 

be stressed that employment and livelihood benefits to PA and in particular in-situ households and 

businesses will not happen automatically. These will require major Project and related government 

and enterprise investments in training, capacity building, and village development to ensure that these 

potential benefits are actually realized. 

96. A set of benefits, only partially captured in attendance projections, benefit-cost analysis and 

employment estimates, is the value that people place on improvements to the bioresources of the PA 

and wider Qinling. To some degree, these benefits can be quantified and given monetary values 

through willingness to pay surveys and through the donations that private individuals, foundations, 

corporations and other groups may provide to accelerate government and international efforts to 

restore the bioresources of the Qinling to approach the biodiversity found in the distant past. This 

quantification was not possible within the resources of the PPTA. 

97. The estimated EIRR for the whole project is 11% based on the total Project costs being offset 

against the benefits quantified for Component one only. Additional benefits not quantified relating to 

biodiversity conservation, ecological function improvement, and rural livelihoods benefits will only 

increase the overall economic performance. The investment is considered economically feasible within 

the caveats of the benefit stream estimation described above. The EIRR is well above the PRC hurdle 

rate of 8% 

Table 32: Project EIRR and NCF through to 2015 (CNY 0,000’s) 

Subcomponent NCF 2008 2009 2010 2011 2012 2013 2014 2015 

Qinling Botanic Garden -9302 -24346 -2935 -353 2181 2698 2218 2796 

SARC -3434 -8254 -10761 181 2040 2857 3233 3931 

Hotsprings -5587 1262 1281 1281 1281 1281 1138 1147 

Component One NCF -18323 -31337 -12415 1109 5503 6837 6589 7875 

EIRR Component One 14.19% 

Economic Costs Comp. Two -564 -1713 -4043 -2572 -2086 -10979 

Economic Costs Comp. Three -458 -1194 -633 -336 -278 -2899 

Project NCF -19345 -34244 -17092 -1799 3139 -7042 6589 7875 

EIRR Project 10.92% 

NPV (10%) 8190



ANNEX ONE: ESTIMATES OF WEIGHTED AVERAGE COST CAPITAL (WACC) 

Weighted Average Cost of 

Capital ADB Loan 

SARC 

Domestic 

Loans 

Government 

Funds 

Domestic 

Equity WACC 

Weighting 35% 65% 

Nominal Cost 7.00% 10.00% 

Tax Rate 25% 0.00% 

Tax Adjusted Nominal Cost 5.250% 10.000% 

Inflation Rate 1.90% 3.00% 

Real Cost of Capital 3.29% 6.80% 

Weighted Component of WACC 1.15% 4.42% 5.57% 

Qinling Botanical Garden 

Weighting 40% 10% 40% 10% 

Nominal Cost 7.00% 9% 10.00% 15% 

Tax Rate 25% 25% 0.00% 0.00% 

Tax Adjusted Nominal Cost 5.250% 6.750% 10.000% 15.000% 

Inflation Rate 1.90% 3.00% 3.00% 3.00% 

Real Cost of Capital 3.29% 3.64% 6.80% 11.65% 

Weighted Component of WACC 1.32% 0.36% 2.72% 1.17% 5.56% 

Hot Springs Development 

Weighting 20% 40% 40% 

Nominal Cost 7.00% 9% 15% 

Tax Rate 25% 25% 0.00% 

Tax Adjusted Nominal Cost 5.250% 6.750% 15.000% 

Inflation Rate 1.90% 3.00% 3.00% 

Real Cost of Capital 3.29% 3.64% 11.65% 

Weighted Component of WACC 0.66% 1.46% 4.66% 6.77% 

25

Project Year One Project Year Two Project Year Three Project Year Four 

Project Year Five 

1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 

Activity 

Component I - Commercial ex-situ business investment 

1.1 Construction of Botanic Garden 

Establish specialized gardens 

Greenhouse development 

Paleontology muesum 

Daoist temples and historic buildings 

Other civil works and infrastructure 

Cableway 

Office and vehicles 

Resettlement 

Training programs 

Design input 

Marketing and education 

1.2 Hot Springs Development 

Villa construction 

Restaurant and swimming pool complex 

Site infrastructure 

Design and supervision 

1.3 Shaanxi Animal Rescue Center 

Panda breeding base 

Crested Ibis breeding base 

Animal rescue area 

Animal exposition area upgraded 

Golden Monkey base 

Training 

Design and management contract 

Operating program 

Component II - Improved Livelihoods for Sustainable Management of In-situ Natural Resources 

2.1 Village Development Planning 

Completion of 16 Village Development Plans 

Conservation forestry planting (5,000 ha) 

Conservation Agriculture (SALT) 

Small business development 

Homestay tourism 

Training program 

Roading and mountain path program 

Social infrastructure program 

2.2 In-situ Conservation 

Lougantai habitat program 

Endangered species management program 

Component III - Institutions for sustainable management of Qinling Mountain natural resources demonstrated, replicated and supported through effective project management 

3.1 Project Management Operational 

PMO staffing 

PMO office development 

Professional Job Exchanges (13) 

Project monitoring contracts 

Resettlement monitoring 

3.2 Institutional Strengthening 

Legal reform program 

Shaanxi-Qinling Biodiversity Promotion Limited - establishment and 

capacity building TA 

3.3 Conservation Replication Program 

Biodiversity landscape master planning 

Tourism planning 

Establishment of information center and biodiversity monitoring 

Dissemination program



INITIAL ENVIRONMENTAL EXAMINATION 

1. The project adopts an integrated ecosystem management (IEM) approach to biodiversity 

conservation, featuring commercial tourism and sustainable land management, and well-managed 

conservation. The Project embodies very different but highly complementary and strongly linked strategies 

between the ex-situ zones and the much larger but less populated in-situ zone. The project supports three 

enterprises in the ex-situ zone, the Shaanxi Qinling Botanical Garden (SQBG), the Shaanxi Animal Rescue 

Center (SARC), and Hot Springs/Daoist Cultural Center (HSDCC). Within the in-situ Conservation 

Demonstration Area (CDA) the Project will support Government Policy of increasing the extent and quality 

of forest cover while also assisting local residents to improve their livelihoods. 

2. The project is classified as category B, in accordance with the Asian Development Bank (ADB) 

environment categorization. This SIEE was prepared based on two Environmental Impact Assessment 

(EIA) Reports1. 

A. Project Zoning 

PROJECT DESCRIPTION 

3. The Qinling Mountains (QM) range is located immediately to the south of Xi’an, the provincial 

capital of Shaanxi Province (SP), and runs east-west straddling the southern part of SP in the west region 

of the People’s Republic of China (PRC). The PA is located on the northern slope of the QM, about 45 km 

from Xian, comprises an area of 458 km 2 with about 20,400 people. The project seeks to develop three 

commercial enterprises to generate the revenue to support habitat rehabilitation and protection activities 

and sustainable livelihoods to preserve biodiversity. 

4. Ex-situ Area. The ex-situ area consists of a 2 km wide strip of predominantly flat land along the 

north side of the Qinling Mountains that is heavily developed for agricultural/horticultural and residential 

purposes. The population is approximately 16,000. The Project will develop a Botanical garden and 

associated visitor attractions including Daoist temples, enhance the Shaanxi Animal Rescue Center and the 

support the continued development of the Louguantai Geothermal Hotsprings. 

5. Conservation Demonstration Area consists of steepland with a dispersed population of less than 

4,600 persons over an area of about 430 km 2 . The area was previously the Louguantai Forest Farm with 

large areas heavily logged. Remoter areas retain high biodiversity values. The project will support habitat 

rehabilitation for biodiversity conservation. There are a number of isolated communities in the in-situ area 

practicing unsustainable agriculture on steep slopes who will be assisted to develop more sustainable 

livelihoods and adopt more appropriate land use practices. The long term vision for the in-situ area is to 

develop and enhance the ecological sustainability of natural resources and ecosystems to enable 

biodiversity to be enhanced, managed and secured. 

B. Project Components 

6. There are three project components (see Appendix 7) being: 

1 

(i) Tourism Development to Support Conservation 

(ii) Improved livelihoods from the sustainable management and conservation of natural 

resources through (i) Improved village and Forest-based Livelihoods and (ii) 

Demonstration of Biodiversity Conservation 

(iii) Institutional arrangements for sustainable management systems of QM natural resources 

demonstrated and replicated 

Shaanxi Qinling Botanical Garden (Ex-Situ Area) and the4 SARC completed by Xi'an University of Architecture and 

Technology (XUAT)May 2007 awaiting approval which is expected in September 2007. Hot Springs/Daoist 

Cultural Center (Phase II) No. 203 Institute of Xianyang June 2007awaiting approval which is expected by September 

2007 

1



7. The success of the Project will be measured in terms of biodiversity conservation trends, impacts 

and outcomes in the Project Area and in particular the CDA which comprises 87% of the PA’s land area but 

only about 20% of its population. The major tourism investments proposed for the ex-situ area are viewed 

as instruments – or means to an end -- for achieving sustainable biodiversity conservation impacts and 

outcomes throughout the PA but especially in the CDA. The CDA activities focus on livelihood improvement 

on collective forest lands (that total 8,100ha) and on improved forest cover and habitat restoration on State 

Forest Lands. 

A. Physical Resources 

DESCRIPTION OF THE ENVIRONMENT 

8. The PA has a monsoon climate area with an average rainfall of 900~1000mm in high-precipitation 

years. Its annual average temperature ranges from 8 degrees to10 degrees. The area enjoy about 2,000 to 

2,222 hours sunshine with a frost-free period between 200 and 240 days every year. Northwest wind is the 

dominant wind. 

9. Ambient air quality monitoring results indicate that daily average concentration of NO2 to be below 

Grade I of the National Ambient Air Quality Standard (GB3095-1996). However, sixty percent of the daily 

average concentrations of SO2 exceeded the same standard at Jinniuping station. PM10 was the main air 

pollutant at all the three monitoring stations with an exceeding of 100%. It is believed to be caused by 

smoke emissons from local households and industry. 

10. The Qinling Mountains influence the water resources of both the Yellow and Yangtze rivers. The 

northern slopes supply water to the Yellow River system, which flows to the dry northern parts of the 

country. Over 90% of Qinling Mountains have been degraded through inappropriate farming, logging, 

overuse of natural resources, destructive mining operations, as well as pollution from solid waste and agrochemicals 

over many decades. As a result, water resource quality is in serious decline. 

11. There are two major rivers in the PA, i.e. Tianyu River and Chiyu River. Water quality of Tianyu 

River has been monitoring by the Xi’an Municipal Environmental Monitoring Central Station (XMEMCS) for 

20years at two permanent stations, Results indicate that water quality of Tianyu River meets the Class I 

water standard – water from natural sources, except coliform bacteria associated with the discharge of 

human and animals waste. 

12. Groundwater from Dianzhen Township the site of the Botanical Garden meets Grade III standard of 

Quality Standard for Groundwater (GB/T14848-1993), except ammonia (NH3-N) and coliform. It is believed 

that the relatively high concentration of NH3-N may be associated with the local agricultural activities 

something that the Botanical Garden will positively impact through reduced nitrogenous fertilizer use. 

13. QM is biologically rich and globally significant, with many endangered rare and/or endemic plant 

and animal species including the Giant Panda, Takin, Snub-nosed Golden Monkey, and Crested Ibis 

(national bird of Japan). The mountains are characterized by very high levels of endemic biodiversity found 

in temperate and sub-tropical ecosystems, as well as a vertical spectrum of vegetation types; seventy 

percent of all vegetation types in the PRC are represented. 

14. In the project area, there are six species which are globally threatened including four amphibians 

and two reptiles. Two species of fish are vulnerable, one of which is protected in Shaanxi, the other is listed 

as a national red data book as class II. Noted species in the Tianyu River of concern, include the 

Manchurian Trout, the Giant Salamander and the Soft-Shelled Tortoise. 

15. There are a number of national nature reserves (NNR) in the QM area. Five of them are located on 

the northern slope including Niubeiliang NNR, Zhouzhi NNR, Taibaishan NNR, Zhouzhi Old Town Nature 

Reserve and the Heihe Wetland Provincial Nature Reserve. The total area of the five nature reserves 

amounts to 1541.92 square kilometer, 16.16% of the total area (9282 square kilometer) of northern slope of 

QM. Zhouzhi NNR is about 31 km to the southwest of the PA. Heihe Wetland Provincial Nature Reserve is 

the closest to the PA but is still 3 to 5km distant the PA does not overlap or adjoin any of the existing nature 

reserves. 

2



16. The PA is included in the Qinling Mountains Ecosystem Function Conservation Area (QMEFCA) 

within the high priority Central Conservation Zone of Qinling Water Resources and Biodiversity Function 

Zone (II1). The proposed activities in this Project are consistent with the requirements of the QMEFCA. 

Under the proposed QMEFCA framework, the “Shaanxi Qinling Mountains Northern Slope Ecological 

Environment Protection Plan” was prepared and approved by the SEPB in March 2007. The proposed 

project conforms to the development standards stated in the Northern Slope Protection Plan. 

17. The socioeconomic of the Project Area indicates a total population of 43,800 living in 10,500 

households most with living standards well below provincial averages. Net farmer income per capita is only 

29% of the national average and 47% of the provincial averages. The Ex Situ area is part of an important 

grain production and exporting region and per capita grain availability for the total target population is above 

both the national and provincial averages. 

Area and 

Key Indicators 

Table 1: Socioeconomic Data in the Project and Fringe Areas 

Registered 

Population 

(2005) 

Popula. 

Density 

Ex Situ 15,763 267 

(196) 

In Situ 4,593 12 

(9) 

Total Project Area 20,356 44 

(32) 

Average 

Household 

Size b 

Sex c 

Ratio 

4.45 1.06 

(104) 

3.73 1.16 

(113) 

4.26 1.08 

(106) 

Fringe Area 23,405 NA 4.09 1.07 

(105) 

Total Target 

Population 

43,761 NA 4.17 1.08 

(106) 

Average 

Cultivated 

Land d 

Per Capita 

Net Income 

(Y) 

3 

Per e 

Capita 

Grain 

2.5 966 (30) 422 

(114) 

3.7 599 (18) 198 (53) 

2.5 884 (27) 371 

(100) 

1.9 1,020 (31) 409 

(110) 

2.2 956 (29) 392 

(106) 

a b c 

population density = persons per sq. km. average household size = persons per household. Sex 

ratio = male to female ratio. d = mu per person. e = Kg /person 

NA = not available. N.B Figures in brackets are percentages of the national average. 

Source: PPTA MTR 

ENVIRONMENTAL IMPACT AND MITIGATION MEASURES 

18. The following sections analyze the key environmental impacts anticipated due to the proposed 

activities under each component of the Project. Table 9 summarizes the potential environmental impacts 

and mitigation measures. Detail of expected impacts and proposed mitigation strategies are annexed in 

Project Environmental Management Plan. 

A. Sub Component : Shaanxi Qinling Botanical Garden 

19. The activities proposed under this component include building 18 specialized gardens covering an 

area of about 54 ha, one greenhouse of 600 m 2 , two main exhibition halls, research facilities and 

infrastructures including irrigation system, drinking water supply, wastewater treatment, solid waste 

management, roads and cableway. This component also includes reconstruction of 18 Daoist religious 

sites. Total visitation is projected to be 600, 000 per year by 2011. 

20. Potential adverse impact associated with this intervention may include (i) possible invasion by 

exotic species, (ii) loss of vegetation due to road and cableway construction, (iii) impacts on local water 

resources from water supply extraction, (iv) waste water and solid waste impacts, and (v) impacts to 

landscape, culture and religion. 

21. The specialized Gardens will involve over 1000 species of plant in the ex-situ area. There is a threat 

of exotic species invading the CDA is therefore significant. The Qinling Botanic Garden will develop and 

implement an environmental risk assessment for bio-safety as part of the detailed design.



22. A total of 33.57 km roads and a cableway will be constructed for QBG. All natural vegetation 

impacted will be restored by replanting after the construction. 

23. The water supplies for SQBG are from two sources. About 1405 t/d of surface water will be taken 

from the Tianyu River (less than 1% of total flow) for irrigation system (west part). Ground water, about 252 

tones per day will be extracted from a well near the Tianyu River. Given the relative sufficient precipitation 

and surface water recharge in the area, the demand is not a significant volume and potential impacts can 

be minimized by site selection, water saving and monitoring program. 

24. It is estimated that about 201 tones of wastewater and 1.51 tones of solid wastes will be produced 

daily. Secondary sewage treatment will be constructed to treat sewage up to the national irrigation 

standard and discharge will be used for grey water irrigation purposes. Solid waste will be collected and 

sorted for recycling on-site and trucked to the municipal solid waste treatment facility. 

25. Reconstruction of the eight historical culture sites ranging in size from 200 to 3600 m 2 will add to 

local cultural values. The design and style of these reconstructions will be consulted on with the public and 

religious groups to ensure the buildings are consistent with historical standards. 

B. Sub component B: Shaanxi Animal Rescue Center 

26. The proposed SARC development will expand from 141 ha (current operation) to 1,333 ha 

(proposed operation). The expanded SARC is being designed to promote animal welfare and captive 

breeding of at risk species. These functions are linked to tourism development and to adopt new innovative 

approaches for rescuing, protecting and improving the living conditions of endangered and rare wild 

animals. The proposed activities include (i) animal hospital, rescue/emergency department, zoology 

research lab and a dormitory for experts; (ii) breeding and raising bases for giant panda, crested ibis, 

golden monkey, takin and other artiodactyls, as well as forage bases for the above animals; (iii) animal 

protection and exhibition facilities; (iv) infrastructure, including road and path, security gate (tunnel) for giant 

panda base, and wastewater treatment plant. 

27. While all these activities will have positive impacts on biodiversity conservation, certain 

environmental problems may occur at design, construction and operation stages. These problems may 

include (i) soil erosion, (ii) source water protection, (iii) loss of vegetation, (iv) water pollution and (v) waste 

disposal 

28. Eighty five percent (85%) of the expanded area will be used for forage bases to plant bamboo and 

other suitable plants and fruits for the animals. This operation will be favorable for water and soil 

conservation. However, there are 64 ha of land that will be converted into animal breeding and raising. 

Development of infrastructure facilities in these bases may create soil erosion during construction. The soil 

erosion will be effectively controlled by sound planning, good engineering, and integrated management. 

29. Water pollution associated with this component would mainly occur in two areas, which are the exsitu 

area and the breeding bases. A secondary biological wastewater treatment facility with a capacity of 

300t/d is designed for treating wastewater generated by animals and visitors in the ex-situ area. The 

sewage generated in the breeding bases is relatively small and scattered and is currently sold to local 

farmers who seek the dung and organic matter. On-site wastewater treatment (secondary biological) will be 

installed where necessary. The treated effluent will be used for irrigation and no direct discharge to the 

surface water will take place. Solid waste will be managed in the similar way as proposed for SQBG. 

C. Sub-component C: Hot Springs/Daoist Cultural Center 

30. The HSDCC project includes phase two. The second phase is an expansion of the accommodation 

and will add 18 detached villas (total of 5848 m 2 ), one eco-restaurant (3000 m 2 ), and parking lot and 

wastewater facilities. 

31. The HSDCC, together with Daoist Temples, will enrich the Daoism culture in the area and provide 

convenience and relaxation to the visitors of both SQBG and SARC. Potential impacts include overextraction 

from the underground aquifer and surface water pollution issues associated with wastewater 

disposal. 

4



32. The proposed development will extract water from an existing artesian well. To evaluate the 

sustainability of the groundwater resource, a study was conducted by the Shaanxi Geological Survey 

Institute in 1992. The EIA of HSDCC(II) was carried out by the No. 203 Institute of Xianyang. The study 

results show that the geothermal well was developed in December 1992 with a depth of 1701 m. The hot 

water is stored in a fractured rock aquifer under Qinling piedmont. The aquifer is 443m thick and is located 

at a depth of between 1258m to 1701m. The isotopic study showed that the aquifer is recharged by both 

deep geothermic water and surface infiltration. It was reported the water head was 24 m above ground and 

the outflow rate was 33.7 m 3 /h with a temperature of 56º C when the well was constructed in 1992. Based 

on 15 years’ observations, there is no significant change in water level, temperature and water chemistry. 

The current demand, 144m 3 /d, therefore does not break the recharge/discharge balance. The study 

concluded that the geothermal water supply is sustainable if it is maintained at the current outflow rate. A 

protection zone is in place with no geothermal well allowable within 1 km of north/south direction and 2 km 

in east/west direction. 

33. It is anticipated that the total wastewater discharge will be 59,536 tons per year after the completion 

of Phase II, of which 12,415 tons per year will be from the hot spring. A wastewater treatment system has 

been designed for treating the sewage before its discharge to the municipal sewer system. The proposed 

sewage treatment system includes pretreatment by a septic tank and further treatment by a biological 

treatment system. The system will also remove the high content of iron, fluoride, chloride and sulphate from 

the used hot spring water. Sewage sludge will be disposed in accordance with the requirements of EPB or 

used as fertilizer. Solid waste, 185 t/a, will be collected, sorted on site and then disposed in the Zhouzhi 

landfill site. 

D. CDA Component 

34. The CDA of the PA will be managed for the primary purpose of biodiversity conservation. The long 

term vision for the in-situ area is to develop and enhance the ecological sustainability of natural resources 

and ecosystems to enable biodiversity to be enhanced, managed and secured. The long term status of the 

CDA involves improved coverage and quality of forest to increase the habitat for Qinling Mountain 

biodiversity. 

35. The reforestation and silviculture development proposed while on a large scale is not expected to 

have any negative effects and will be managed through the preparation of a habitat and forest management 

plan for CDA. Any small enterprise development including home-stay tourism and forest product processing 

will need to be screened by the PMO and Louguantai Forest Farm division of QNBG priority to being 

approved. 

36. Rural Livelihoods improvement will be through the development of small enterprises, provision of 

social infrastructure linked to water and solar energy with potential adverse impact associated with 

construction or renovation of the basic facilities, and tourism activities during their operation. These will be 

mitigated by the environmental considerations of: (i) Design should be consistent with the landscape and 

will include sustainable practices to reduce environmental impact. The sites selected should enable the 

infrastructure to integrate harmoniously with nature and cultural environments. It is encouraged to use 

natural colors and materials to blend with the landscape, and traditional local design features. Use of 

concrete and steel is to be avoided. (ii) Low energy consumption technologies for lighting will be utilized. 

Where feasible, water heating will be provided by solar panels. Cooking will be undertaken using a 

combination of biogas and main electricity supply. Construction combines traditional and modern 

technologies and material to ensure robust and energy saving buildings. (iii) Solid waste: Convert 

biodegradable waste to compost that can be used on site. Non-biodegradable would be collected and 

removed from the in-situ area for disposal in the municipal landfill. A policy of recycling will be introduced. 

(iv) water supply: It is expected that the water supply will be from a local spring source (quality tested), (v) 

sewage and wastewater: Septic tanks combining with on site small biological treatment will be applied. (vi) 

walking trails - existing footpaths will be used. Low numbers of users will require no upgrading /surfacing of 

paths. (viii) All the ecology, homestay and other micro-scale resource based tourism activity will be covered 

by a monitoring system under the environmental monitoring plan of the Project. 

37. Subcomponent D includes road and mountain pathway improvement. The canyon road covers a 

total length of 17.5 km mountain path improvements would involve a total length of 109 km. The seven 

mountain paths would have the following routes: Jinniuping – Shouyangshan – 13.2 km; Jinniuping – 

5



Dongniandao – 15.5 km; Jinniuping – Yeniuhe – 20.0 km; Xiagukou – Shangyangpo – 11.0; Tielucha – 

Liangding – 14.2 km; Guanyinyan – Laojigou – 17.0 km; and Liziping – Yeyanghe – 18.5 km. 

38. The design, of the proposed road and mountain path improvements are under review with reference 

to the final detailed design and the needs identified during the village development planning process. 

Potential adverse impacts associated with this intervention are: (i) uncontrolled vehicles and visitors to enter 

environmentally sensitive areas (ii) construction requiring earthworks (iii) possible blockage of wildlife 

movement. (iv) impacts during construction (wildlife disturbance and temporary or permanent 

displacement). (v) river bank erosion by increased traffic, unintentional wildlife and habitat disturbance, and 

(vi) other construction associated impact. 

39. Mitigation measures for impacts associated with construction will be the same as outlined in the 

projects’ environmental management plan. For the other impacts, the mitigation measures will include (i) 

careful site (alignment) design to avoid encroachment into the sensitive wildlife area. (ii) controlled 

attendance numbers at the QNBG entrance (iii) fencing of construction sites and restriction of access for 

laborers (iv) carrying out the construction quickly, suspending construction activities between dusk and 

dawn or avoiding excessive noise in order to mitigate impact on wildlife displacement. (v) replanting and 

afforestation along the road and river bank to minimize soil erosion and protect habitat. 

E. Benefit Analysis 

40. The overall impact of the proposed project will be improved environmental management to 

rehabilitate ecosystems in the PA and QM area. The longer term outcome and impact will be demonstrate 

and build capacity to replicate conservation programs linked to commercial enterprises while building 

commercial enteprises from on conservation resources. The Project will ensure effective protection of wild 

flora and fauna and conservation of biodiversity within the PA. This Project is the first of its class in the QM 

area. The demonstration effects of the Project will contribute to increased awareness of environmental 

protection within and surrounding the PA. The benefits associated with the Project are significant. There will 

be positive impacts on both the environment of the project area and globally important biodiversity. 

INSTITUTIONAL REQUIREMENTS AND ENVIRONMENTAL MANAGEMENT PLAN 

A. Institutional Requirements 

41. The Shaanxi Provincial Development and Reform Commission (PDRC) will be the Executing 

Agency for the Shaanxi-Qinling Mountains Integrated Ecosystem Management Project and will have overall 

responsibility for ensuring that all environmental standards and procedures are followed. Under the 

supervision of PDRC, the two implementing agencies (IAs), QNBG and the HSDCC will be responsible for 

the implementation of all corresponding environmental mitigation measures and to monitor programs 

recommended in its EIA and this SIEE. 

42. Prior to project construction, QNBG will form an environmental management unit (EMU) for 

environmental management and operation, including environmental supervision of contractors. The EMU 

will ensure implementation of the environmental management plan and environmental monitoring plan 

during construction and operation of the Project. The EMU will be staffed by a project manager and at least 

one technical officer. The construction contractor will designate an environmental representative, who will 

be responsible for the environmental management of construction activities during project construction. 

43. SEPB is the top environmental authority in the province and has overall responsibilities for 

overseeing and supervising environmental enforcement according to the national and local environmental 

regulations. During the project design stage, SEPB provides services in consulting on environmental 

policies and regulations, confirming that environmental standards and emission standards are applied to the 

project, and reviewing and approving the environmental impact assessment report, including the 

environmental management and monitoring plan. During the project construction stage, SEPB may entrust 

the local environment protection bureau, Xian Environment Protection Bureau (XEPB), with responsibility to 

ensure the enforcement of the mitigation measures described in the environmental management plan 

(EMP). However, SEPB reserves for itself the final evaluation and approval of the projects’ environmental 

protection facilities. After the completion of the project, XEPB, on behalf of SEPB, will supervise the 

environmental performance of the project. Appendix I present the major activities under this environmental 

supervision plan. 

6



B. Environmental Management Plan 

44. The summary environmental management plan (EMP), included in this SIEE (Appendix II), is based 

on the full EMP, included in the EIA report. The Project Management Office (PMO) will translate the SIEE, 

including the summary EMP, into Chinese. PDRC/PMO will ensure that the SIEE (including summary EMP) 

and the full EMP in the corresponding EIA are included in all contractors bidding documents and operating 

contracts. The EMU will be responsible for implementing the EMP during project construction and 

operation. The EMU will ensure that the EMP is updated periodically during construction. 

C. Environmental Monitoring Plan 

45. The project will utilize appropriately qualified environmental monitoring service providers for 

conducting the environmental monitoring duties specified in this SIEE. This entrustment will be arranged 

through SEPB. The environmental monitoring agency will visit project sites and conduct the monitoring 

program. The monitoring agency will submit environmental monitoring reports to PDRC/PMO, SEPB and 

IAs semiannually during construction and annually for 2 years after completion of construction. Monitoring 

requirements for the main activities are summarized in Appendix III.. 

PUBLIC CONSULTATION 

46. Public consultation exercises have been extensively involved in the Project’s environmental 

assessment since the original project proposal was promoted. 

47. The results were used to modify the EIA and project design. Two major forms of public participation 

were adopted, i.e., questionnaires and workshops. Specifically, the major stakeholder consultation activities 

comprised: (i) dissemination project information to the public through media and SQBG’s website; (ii) public 

consultative surveys; and (iii) workshops. 

48. Two public consultative surveys were conducted during the project preparation. The first one was 

conducted in a smaller scale, 24 valid respondents from 30 questionnaires, during the previous EIA in 

October 2002 in the central project area. The second survey, 97 valid respondents from 101 questionnaires, 

was conducted in a larger scale in December 2006 during the supplementary EIA study. A total of 131 

questionnaires were randomly issued to the public in the PA and the fringe area. 121 valid responses were 

received. The two surveys shared the same questionnaire and are considered to have sufficient 

representatives in the project area. A breakdown of the respondents is presented in Table 11. 

Table 2: Summary of Public Survey Respondents 

Classification Respondent Details Number of 

Respondents 

Number 

Surveyed 

Age Distribution 

Education Level 

Occupation 

Male 113 

Percentage 

% 

93 

Female 8 7 

Total 121 100 

40 63 52 

Elementary School 51 42 

Junior High School 49 41 

Senior High School 21 17 

and Vocational School 

Farmer 110 91 

Other 11 9 

49. Of the responses received, 74 percent of the interviewees were aware of the Project by TV news. 

Eighty-one percent deemed the Project will be beneficial to the county’s economic development and 74 

percent of them would like the Project to be completed as soon as possible so that they can settle down 

earlier. In terms of most concern questions of the local residents, 74 percent wanted to improve the road 

7



system so that they can go out to the Mountains and be accessed easily; and 67 percent were worried 

about the changes in their daily lives, their incomes, and psychologically to be caused by relocation. Quite a 

few respondents indicated that they are worried about the potential impacts on the forest and wild animals 

due to the increasing number of tourists. The extracted survey results are provided in Table 12. 

Table 3: Public Consultation Survey Results 

No. Survey Content Number of 

Respondents 

1 Channels of knowing 

the project 

2 Impact on the local 

economy 

3 Most concern issues 

4 Suggestion to the 

project and related 

environmental issues 

Percent 

% 

TV 90 74 

Newspaper 57 47 

Radio 70 58 

Meetings 23 19 

This Survey 9 7 

Other 18 15 

Beneficial to the whole Zhouzhi Country 98 81 

Only beneficial to outside of the County 1 1 

Negative impact or no impact 0 0 

Road construction 90 74 

Immigrating/relocation 81 67 

Tourists increase 70 58 

Disturbance with wild animals 7 6 

Destruction of forest 36 30 

Environmental pollution 23 19 

Soil erosion 32 26 

Reduction of farmland 38 31 

Compensation to farmland reduction 63 52 

To start the project as soon as possible 89 74 

Pay attention to environmental protection 4 3 

Pay attention to immigrants 10 8 

50. Two workshops were held on December 15 and 16, 2006, respectively, with a panel of 47 

participants including representatives from relevant departments of Shaanxi Provincial Government and 

local governments including the development and reform commissions, agricultural bureaus, forestry 

bureau, environmental protection bureau, tourism bureau, poverty reduction office. Leaders of the 

townships and village in the vicinity of the PA, academy and NGO representatives, such as Xian Office of 

WWF, were fully involved in the workshops. 

51. Participants at the two workshops described some of the implications for a project design that 

emphasizes biodiversity conservation. First, such a design requires a participatory approach, which ensures 

that all potential stakeholders and beneficiaries, including less prosperous townships, villages and 

households, are directly involved from the outset in project design and are fully engaged as participants, 

investors, employees, suppliers and/or key interested parties in project implementation. 

52. Second, biodiversity conservation would need to be addressed as the central goal in the 

preparation of all project investments and other components. All tourism investments and interventions in 

such areas as eco-tourism, home tourism and other resource based tourism, would need to be assessed 

from the perspective of their impacts on the Project Area’s fragile ecology and their ability to serve the 

central goal of biodiversity conservation. 

53. Finally, many participants emphasized that biodiversity conservation, protecting the QM’s unique 

physical and human environments, and tourism development should be seen as complementary not 

conflicting objectives. For example, biodiversity conservation and restoration and environmental protection 

is essential to the development, pricing, and promotion of low impact, high value added tourism products for 

the eco-tourism, adventure, religious, cultural and other high income tourism markets; and for providing 

higher more sustainable living standards and quality of life to the residents of the project area. 

8



54. The public participation has played a very important role in the EIA and project design. For 

example, the width of the road from Jinniuping to Caihulu via Shouyangshan, in the in-situ area, has been 

reduced from 6 m to 1.5 m with a saving of about USD 1.7 million. Some of the other proposals like 

hotspring resorts in Meidenbao and Dianzhen, scientific research base in Fenghuangling, cable-car project 

in the in-situ area have been cancelled, saving costs of about USD 2 million. To minimize the potential 

impact on the aquatic ecosystem, the proposed 20 km riverbank engineering proposal was also deleted 

from the Project. All these adjustment will not only save the project cost, but reduce the potential 

environmental impact on the fragile ecosystem in the PA and contribute to a sustainable and cost effective 

investment. 

CONCLUSIONS 

55. The analysis undertaken in this SIEE indicates that the majority of the Project’s impacts are 

environmentally beneficial; many of the project’s activities are explicitly designed to have a large and 

positive impact on securing long-term biodiversity conservation and sustainability in the QM. Some minor 

adverse impacts are associated with the Project, mainly related to construction activities; all of these can be 

mitigated by appropriate measures. It is therefore concluded that no Environmental Impact Assessment is 

required. 

9

TA 4721-PRC: Preparing the Shaanxi-Qinling Mountains Integrated Ecosystem Management 

Project 


ANNEX I: ENVIRONMENTAL SUPERVISION AND ENFORCEMENT 

Pre- 

Construction 

Phase 

Construction 

Phase 

Operation 

Phase 

Key 

Responsibilities 

Confirm the environmental standards and 

emission standards applied to the project 

Review and approve the environmental 

impact assessment report 

Review and approve the environmental 

management and monitoring plan 

Review the preliminary design for 

environmental protection facilities in the 

project (three simultaneousness) 

Review and confirm environmental 

investment 

Review site-specific environmental 

management plan and work plan with site 

supervisors 

Make sure all required mitigation 

measures are in place 

Ensure the sites for storage and 

preparation are appropriately located 

Document inspection findings 

Recommend improved mitigation 

measures as necessary 

Suspend work if adverse impact are noted 

The key areas should include: 

earthmoving, hydrological modification, 

wastewater discharge, construction noise, 

dust, and solid waste 

Make sure the sites are restored timely 

Ensure the environmental facilities are 

completed (three simultaneousness) 

Review the environmental and 

management plan 

Review the environmental monitoring plan 

Ensure the environmental facilities are 

functional and in operation(three 

simultaneousness) 

Ensure the sensitive environmental 

elements are protected 

Update environmental management and 

monitoring plan 

Supervision 

Agency 

11 

Schedule for 

Environmental 

Supervision 

SEPB As needed 

XEPB/PMO/EMUs 

XEPB/PMO/EMUs 

SEPB 

Before work 

commences 

Weekly 

Twice a year 

XEPB/EMU Quarterly 

SEPB =SHAANXI ENVIRONMENT PROTECTION BUREAU; XEPB =XIAN ENVIRONMENT 

PROTECTION BUREAU; EMU =ENVIRONMENTAL MANAGEMENT UNIT; PMO =PROJECT 

MANAGEMENT OFFICE ON BEHALF OF PDRC

13 



ANNEX II: SUMMARY ENVIRONMENTAL MANAGEMENT PLAN 

Responsibility 

Mitigation Measures Location Time Frame 

Environmental 

Impact/Issue 

Implementation Supervision 

XEPB 

EMU 

All construction sites Construction IAs 

Contractors 

A. Construction Phase 

1. Impact on Flora 

Impact to flora (1) Some vegetation will be removed at the construction sites. All works will 

be carried out to minimize damage or disruption to vegetation, After 

completion of construction activities, temporarily occupied areas will be 

replanted. (2) Due to the temporary increase in workers to the construction 

site, the potential of illegal fuelwood collection is increased. Mitigation 

measures will include (a) provision of adequate heating and cooking 

facilities, and (b) provision of environmental training on environmental 

issues including penalties for illegal fuelwood collection. (3) Improvement 

of access road to the construction sites will increase access to QM, with 

potential of overgrazing and forest fire. To prevent this, SQBG will guard 

the entrances. 

XEPB 

EMU 


Contractors 

2. Impact on Fauna 

Impact to fauna (1) Because of the temporary increase in workers to the construction site, 

the potential for illegal animal poaching is increased. Mitigation measures 

will include environmental awareness education including penalties for 

illegal poaching and hunting. (2) Construction activities will disturb the 

habitat of terrestrial animals immediately adjacent to the project site. This 

may result in movement of wildlife from the project vicinity. However, the 

impact is anticipated to be temporary during construction. 

XEPB 

EMU 


Contractors 

Loss of topsoil will be avoided by stripping and storing topsoil (where 

present) prior to construction and using it for restoration works. 

Excavated rock and aggregate will be used in embankment construction to 

the maximum extent possible. Selected sites will be used to dispose of 

excess earthworks where the catchments area is minimal. Sites will be 

covered with soil and planted with shrubs and grasses. 

3. Soil 

Loss of topsoil 

Disposal of excess 

earthworks

14 



XEPB 

EMU 


Contractors 

Soil erosion and siltation will be minimized by preventive measures 

including: (1) sediment trap for the access road to collect and slow runoff, 

(2) appropriately engineered storm-water diversions, (3) optimizing work 

schedule, especially excavation related work, to minimize the exposure 

time and avoid rain season. (4) reduction of slop and appropriate 

engineering design in the terrace (5) restoration construction sites with 

planting shrubs and grass. 

Soil erosion and 

siltation 

XEPB 

EMU 


Contractors 

About 135t/d sanitary wastewater will be discharged from the work camps 

during the construction phase. All wastewater will be collected by mobile 

toilets and transferred to the temporary septic tank and treated to national 

standards and used for watering forestland. No direct discharge of 

untreated wastewater will be made to surface water bodies. 

4. Wastewater 

Disposal of septic 

wastewater 

XEPB 

EMU 


Contractors 

It is anticipated that some wastewater, about 0.5 m3/ per washing, will be 

produced during the concrete preparation. This type of wastewater usually 

contains suspended solids of 5000 mg/L with a pH value about 12. The 

wastewater will be treated onsite by sedimentation and neutralization in a 

treatment tank. The treated clean water will be reused. Site will be covered 

with soil and planted with shrubs and grasses. 

Recycle of 

construction 

wastewater 

XEPB 

EMU 


Contractors 

5. Air Quality 

Generation of dust Increased dust levels from construction activities will be the major impact 

on air quality. The dust emission sources include construction machinery, 

rock blasting, foundation excavation, cement mixing and material 

transportation. The dust control measures implemented on a case-by-case 

basis, such as siting the storage and preparation of construction material 

nearby and in a downstream area so that the transportation and impact can 

be minimized. Dust from construction traffic will be mitigated by covered 

transport truck, road compaction, and water spraying. 

6. Noise

15 



XEPB 

EMU 


Contractors 

Noise impact Noise will be generated from vehicular movements, sand and aggregate 

processing, concrete mixing, excavation machinery, construction noise and 

blasting. Residents in a few villages nearby construction sites may affected 

by the noise during construction. Mitigation measures include using low 

noise machinery and no construction activities are allowed within 200 m of 

residential area during night. Mitigation measures for noise impact on 

construction workers will include standard occupational health and safety 

practices. 

XEPB 

EMU 


Contractors 

7. Solid Waste and Hazardous Materials 

Solid waste disposal Domestic waste and construction waste will be disposed in approved 

disposal sites. Hazardous waste will be collected in designated areas with 

anti-leakage measures and then will be transferred to the garbage disposal 

areas of Zhouzhi county that has hygienic and safety measures. 

Operation IAs/EMUs XEPB 

EMU 

Tour sites, SQBG 

facilities and 

accommodation 

area 

B. Operation Phase 

Wastewater disposal It is estimated about 201, 305, and 670 tones of wastewater will be 

generated daily in SQBG, SARC and HSDCC, respectively. Three 

wastewater treatment plants will be built in the three tourism attractions to 

treat the wastewater collected by the sewer system within their territory. 

Septic tanks and land treatment will be used to treat the wastewater from 

the areas where sewer system is not available. Bio-toilets will be used in the 

tour sites. 


EMU 

Park lot, tour routes 

and accommodation 

area 

Noise impact Noise will be generated from parking lots, internal shuttle buses, cable-cars 

and occasionally from the helicopter. Mitigation measures will include: (1) 

using low noise, low emission tour buses (2) taking noise reduction 

measures, where required, to reduce the noise level to meet the national 

standards. 


EMU 

Park lot, tour routes 

and accommodation 

area 

Solid waste disposal Domestic waste will be generated at 1.17 t/d, 2.9 t/d and 7 t/d in SQBG, 

SARC and HSDCC, respectively. Domestic waste will be collected 

separately and stored in a depot in Dianzhen, and it will be transferred to 

and treated (including recycle, reuse) in a designated site by the municipal 

sanitation authority. 

Tour sites Operation IAs/EMUs EMUs 

High volume of tourists may cause disturbance of flora and fauna along the 

tour routes. The preventative measures include warning signs, conducting 

environmental awareness educational programs (videos, brochures, tour 

guiding) at the main entrance, as well as building necessary protective 

fences. 

Disturbance of 

ecosystem

16 



ANNEX III: ENVIRONMENTAL MONITORING PLAN 

Sup. d 

Agency 

Location Parameters Frequency Imp. c 

Environmental 

Media 

Agency 

(tentative) 

SO2 ,NO2 , PM10 2 times/year XEMCS EPB 

Air SQBG 

Louguantai 

Construction Phase 

In-Situ Area 

4 times/year XEMCS WRB 

pH, NH3-N, DO, BOD5, CODCr , 

O&G, coliform bacteria and suspended 

Surface Water Jiulongcun 

Tianyukou 

solids 

LAeq b 1 time /month XEMCS EPB 

Noise Construction site 

boundaries and 

sensitive sites 

(including residential 

areas) 

SO2 ,NO2 , PM10 2 times/year XEMCS EPB 

Air SQBG 

Louguantai 

In-Situ Area 

Operation and 

Maintenance Phase 

pH, NH3-N, DO, BOD5, CODCr, O&G 2 times/year XEMCS WRB 

and coliform bacteria 

Drinking Water Standard 2 times/year XEMCS EPB 

pH, NH3-N, DO, BOD5, CODCr, O&G 4 times/year XEMCS EPB 

and coliform bacteria 

LAeq 4 time /year XEMCS EPB 

Surface Water Jiulongcun 

Tianyukou 

Groundwater SQBG 

HSDCC 

Effluent from WTP SQBG 

HSDCC 

Noise Dianzhen 

Jinniuping 

b 

The equivalent continuous sound level 

c 

Implementing agency 

d 

Supervision agency 

NH3-N =ammonia, DO =dissolved oxygen, BOD5 =biochemical oxygen demand, CODCr =chemical oxygen demand,

17 



O&G=oil and grease, SO2 =sulfur dioxide, NO2=nitrogen dioxide, PM10 =fine particulate matter 

Source PPTA Environmental Consultant and SPEPB



LAND ACQUISITION, RELOCATION AND RESETTLEMENT PLAN 

1. Qinling National Botanical Garden (QNBG), co-constructed by Shaanxi Provincial People’s 

Government, National Forest Bureau, Chinese Academy of Science and Xi’an Municipal People’s 

Government, is listed as a modal project by the State Council under the loans from Asia Development 

Bank (ADB) for study, protection and utilization of the biological diversity of Mt. Qinling district, one of 

the ten biggest ecological function zones. 

2. As an important part of the general plan of QNBG, the Project of ex-situ conservation area 

aims at: scientific study on biological diversity, popularization of scientific knowledge concerning 

biological diversity, protection of biological diversity and tour of biological diversity. The basic 

constructions are composed of ex-situ conservation of plants, industrial development and poverty 

relief and biological tourism. 

3. Located at in Zhouzhi County, Shaanxi Province, the planned land for the Project is up to 

269.3 ha (4,039.5 mu), and the total investment is estimated about CNY397.1069 million. The Project 

includes 18 special gardens, resource museums for popularizing science, and paleontology museums, 

like gymnosperm area, angiosperm area, area for special plants within Qinba Mountains, medical 

plant area and rock plant area, etc. Of the total 269.3 ha (4,039.5 mu) area, the land to be acquired 

totals up to 293.63 mu; and as for the remained land of 3745.87 mu, the right of use is to obtained by 

means of pooling of land. (The numbers here shall be determined finally in accordance with the signed 

agreement). Buildings demolished occupy up to 19,319.97 m 2 altogether, and there are 504 villagers 

in 115 households under the impact of the land acquisition, 617 in 143 households under the impact of 

the relocation. 

4. The total investment in the Project is estimated up to CNY981 million, of which the Qinling 

Botanic Garden investment is CNY 470 million of which CNY45.9 is estimated to be used in relocation 

and resettlement. The Project is planned to last for five years, commencing in 2008. 

5. The economic and technological feasibility studies of the Project as well as the initial 

preparation have been carried out one after another. The reports on the feasibility studies are 

undertaken by QBG of Shaanxi and Shaanxi Construction Investigation and Design Co., Ltd. and up to 

now, the first drafts of the reports have been accomplished. Relocation and Resettlement Plan (the 

first draft) is undertaken by Qinling Botanic Garden of Shaanxi and Shaanxi Kexin Consulting Co., Ltd. 

A. Impact 

6. The affected area, 50 km from Xi’an city, is located at Dianzhen Village, Zhouzhi County of 

Xi’an, Shaanxi Province, and totals up to 4,039.5 mu. Zhouzhi, located in the hinterland of Qinchuan 

plain running about 400 km, belongs to the temperate continental, monsoon climate zone. The annual 

average temperature is 13.2� in the plain. With a total area of 2,974 m 2 , the county has farmland 

more than 900,000 mu, a population of 630,000 living in nine towns, 13 townships and 379 

administrative villages, and it is one of the well-known large counties in Guanzhong Plain. By the end 

of 2006, the total output value reached CNY2.35 billion, the average net income in the rural area 

CNY1,822. 

7. Dianzhen Village, affected by the Project, is one of the poorest areas in Shaanxi Province, and 

the average net income of farmers is CNY1,547, equal to 68% of the average net income of farmers in 

the whole province, and 43.2% of that in the whole nation. There are 25 households with an average 

income per capita below CNY600. The main cause is that they have no other income resources 

besides farming, and some families even live on relief. Yet, their farming income mainly relies on grain 

crops, almost no economic crops. Due to weakness or illnesses of the main supporters, or lack of 

laborers, some families live in desperate poverty. 

8. There are no minorities living in the area, and all residents speak Chinese. 

1

2 

B. Supervision 



9. The investigation and supervision over the affected area of the Project are in the charge of the 

Development and Reform Committee and Foreign Loan Office of Shaanxi Province, and undertaken 

by Mt. Qinling Botanical Garden of Shaanxi and Shaanxi Kexin Consulting Co., Ltd. respectively. 

10. The supervision work at the early phase includes two main parts: one is surveys on the impact 

of the Project and on the social economy. By now, the overall survey on the development of social 

economy in Dianzhen Village and the affected districts and counties in the province, and on the 

population, land, houses, and coverings. The other is that the expert group from Shaanxi Kexin 

Consulting Co., Ltd., after analyzing and processing the data and information under the surveys, has 

compiled the “Land Acquisition, Relocation and Resettlement Plan under the Project of Ex-situ 

Conservation Area of Plants in Mt. Qinling National Botanical Garden”. � 

Table 1: Social and Economic Data of the Areas Affected by the Resettlement and Preservation 

Project for the Qinling Mountains National Botanical Gardens Land Acquisition Project 

Items County/ 

Discrict 

ZhouZhi County of Xi’an 

City 

Dian Zhen Village of the 

Zhou Zhi County 

Village 

Committee 

Population 

(10,000) 

Total 

Land 

Area 

(km 2 ) 

Farmland 

Area 

(10,000 

Acres) 

Farmer Net 

Average 

Income 

(CNY) 

63.0000 2,974.0 90.0 1,822 

C. Affected Quantities and Categories by the Project 

Land 

Average 

Production 

(CNY) 

0.3780 6,157.5 45.5 1,547 1,110 

Table 2: Different Aspects Affected by the Resettlement and Preservation Project for the 

Qinling Mountains National Botanical Gardens Land Acquisition Project 

Affected Land Demolited Buildings Attached 

Facilities 

Types Irrigated land � dry 

land�housing land 

�Uncultivated land 

Aspects 

Areas 

Zhou Zhi County 

Dian Zhen Village 

Brick & Concrete 

Brick & Wood, 

earth and wood 

simple 

fruit trees � useful 

woods 

enclosure etc 

Designated 

Facilities 

Irrigating facilities� 

power facilities, etc 

Young Crops 

Vegetables 

grain crops 

etc 

Table 3: Different Aspects Affected by the Resettlement and Preservation Project for the 

Qinling Mountains National Botanical Gardens Land Acquisition Project 

Total 

Area 

Affected 

(Acres) 

Land 

Acquisition 

Area (Acres) 

Number of 

Households 

Affected 

(People / 

Households) 

4,039.50 293.63 504 people / 

115 

Households 

D. Organization Setup 

Shareholder 

Land Area� 

(Acre) 

11. The organization setup of the Project is detailed as follows: 

Houses and 

Buildings 

Demolished 

Population 

Affected 

3,745.90 19,319.97 617 people / 

143 

Households 

Young 

Crops 

Affected 

(Acres) 

3,907.90



Figure 1: Qinling National Botanical Garden Relocation Protection Project – Land Acquisition, 

Demolition, Resettlement Organizations 

Shaanxi Provincial Government, State 

Forestry Administration, Chinese Science 

Academy, Xi’an Municipal Government 

Coordinating Committee of the Qingling 

National Botanical Garden Construction 

Director’s Office (Resettlement 

Arrangement Office) �� 5 � 

Zhou Zhi County Land Acquisition and Resettlement 

Coordinating Directors and Their Offices 

Ji Xian Town Land Acquisition Coordinators (2 people) 

Dian Zhen Village Land Acquisition Coordinators 

(2 people) 

E. Policies for Land Acquisition, Relocation and Resettlement 

Asian Development Bank 

External Supervising Organization 

(5 people) 

Internal Supervising Organization 

(3 people) 

1. National Laws and Regulations Concerning Land Acquisition and Relocation 

12. In accordance with the following legal documents, the construction unit is entitled to the land 

acquired upon compensating the affected units and people. 

(i) Law of Land Administration of the People's Republic of China (Enforced on Jan. 

1, 1999) 

Main contents: The right of use to land, overall planning of land use, protection of 

farmland, supervision and investigation, legal responsibilities, including the criteria for 

formulating relocation subsidy, land acquisition compensation fees in connection with 

resettlement and ways of relocation have been prescribed. 

(ii) Implementation Regulations for PRC Law of Land Administration (No. 256 

Decree of the State Council of the People’s Republic of China on Dec. 27, 1998) 

Main contents: Concrete implementation methods, in conformity with Law of Land 

Administration of the People's Republic of China, have been prescribed. 

(iii) Regulations on the Protection of Basic Farmland (No. 257 Decree of the State 

Council of the People’s Republic of China on Dec. 27, 1998) 

Main Contents: In accordance with Law of Agriculture of the People's Republic of 

China and Law of Land Administration of the People's Republic of China, concrete 

prescriptions concerning that the government carries out protection of basic farmland, 

mainly including demarcation, protection, supervision and administration, legal 

responsibilities, etc have been stipulated. 

(iv) Provisional Regulations of the People's Republic of China Governing Farmland 

Use Taxation (No. 27 Document [1987] of the State Council on April 1, 1987) 

Main contents: The standard for farmland use tax paid for the land used for national 

construction and scope of collection have been formulated. 

3

4 



(v) Implementing Measures of Shaanxi Province on ‘Law of Land Administration of 

the People's Republic of China’ (Approved by the standing committee at the 12th 

session of the Ninth People’s Congress of Shaanxi, on Nov. 30, 1999, and enforced 

on Jan. 1, 2000) 

Main Contents: In accordance with Law of Land Administration of the People's 

Republic of China and Implementation Regulations for PRC Law of Land 

Administration, concrete implementation regulations have been stipulated in the light 

of the actual conditions of Shaanxi. 

(vi) Detailed Implementing Rules of Shaanxi Province on Regulations on the 

protection of Basic Farmland (issued upon the No. 30 Decree of Shaanxi Provincial 

People’s Government on April 4, 1996) 

Main contents: In accordance with Law of Land Administration of the People's 

Republic of China and Regulations on the protection of Basic Farmland by the State 

Council as well as related legal documents and in the light of the actual conditions of 

Shaanxi, concrete regulations on Shaanxi Province’s protection of basic farmland 

have been stipulated. 

(vii) Decision on Furthering Reform of Land Management of the State Council (Guofa 

[2004] No. 28) 

(viii) Notice on Printing the Suggestions for Completing Compensation and 

Relocation System of Land Expropriation by the Ministry of Land Resources of 

People’s Republic of China (Nov. 3, 2004, Guotuzifa [2004] No. 238) 

2. Guiding Principles of ADB Concerning Relocation and Resettlement 

13. The policy on relocation and resettlement launched by The Asian Development Bank (ADB) 

aims to ensure that the relocated people can benefit from the Project. In specific, the policy includes 

the following items: 

(i) Try to avoid the involuntary migrants or reduce the number of the involuntary migrants 

to the minimum in a feasible way; 

(ii) If it is inevitable to relocate people, relevant relocation and resettlement plan shall be 

mapped out. The policy of ADB is released to help improve or, at least restore the life 

of the relocated people; 

(iii) The relocated people are entitled to compensations for their property loss, and to the 

profits generated from the Project, as well as obtain help in the process of relocation 

and resettlement; 

(iv) The relocated people shall be supported in terms of restoring their previous livelihood, 

income and production strength; 

(v) The special demand of the disadvantaged relocated people shall be fulfilled; 

(vi) Public participation is encouraged in the process of planning and implementation of 

the relocation and resettlement; 

(vii) The relocated people shall be integrated with the residents from the resettlement area 

in terms of social and economic aspects; and 8) Peasants affected by the Project shall 

be provided with land, house, infrastructures and other compensations. 

3. Comparison of Relocation Policies between ADB and China 

14. Comparatively speaking, the relocation policies between ADB and China are the same in the 

following aspects: trying to reduce the number of the relocated people; appropriately resettling down 

the production and life of the relocated people; ensuring that the livelihood and production level of the 

relocated people can keep pace with the previous level and even be greatly improved. The relocation 

policy of China advocates the exploitable relocation, and underlines that the concept of national 

compensation along with self-reliability shall be applied in relocation and resettlement work; while ADB 

emphasizes public participation and special concerns for the disadvantaged groups.



F. Compensation Standard for Land Acquisition and Resettlement Plan in the 

Implementing Area 

1. Policies and Principles 

15. In accordance with legal regulations concerning land acquisition and relocation by the national 

and local governments and guiding principles of ADB concerning relocation and resettlement, and 

especially in order to carry out the construction of the Project, the Project shall be implemented in 

adherence to improving or not lowering the production conditions and living standard of the affected 

people. The affected residents are entitled to get compensations from the implementation party that 

should help the affected residents to resume or improve the level of their income and life. In conformity 

to the above principles, the Foreign Loan Office of Shaanxi Province, the executing unit, and Mt. 

Qinling Botanic Garden of Shaanxi, the implementing unit, together with Shaanxi Provincial 

Department of Land Resources and other related departments, draw out relative policies and 

measures in respect of the Project as per the guidance and requirements of Decision on Furthering 

Reform of Land Management of the State Council (Guofa [2004] No.28) and Notice on Printing the 

Suggestions for Completing Compensation and Relocation System of Land Expropriation (Guotuzifa 

[2004] No. 238) by the Ministry of Land Resources. 

(i) Compensation shall be made in accordance with the actual condition of the 

demolished houses, regardless of their ownerships, in order to ensure that the 

demolished households can obtain the houses of the same structure and areas as 

their demolished ones stipulated in RAP. According to the guide for house relocation 

settlement and the structure and type of houses, the people affected by demolishment 

shall be compensated directly, and their previous houses shall not be depreciated; 

besides, the affected residents are entitled to the construction materials of their 

previous house. 

(ii) For villagers who lose their houses, the village and township government shall allocate 

land bases for them to build houses by themselves with the assistance of 

compensation fees and house removal fees; or they can ask the village and township 

government to build the house. No matter which way of rebuilding is adopted, the 

house cannot be demolished until the demolished households have removed to their 

new houses. 

16. In accordance with the assessment and approval of the real estate management bureaus of 

the county or the city, the compensation standard is as shown in Table 4 below. 

Unit: CNY/m 2 

Type Brick and 

Concrete 

(m 2 ) 

Table 4: Housing Compensation Standards 

Brick and 

Wood (m 2 ) 

Earth and 

Wood (m 2 ) 

Simple (m 2 ) 

Standard 520 450 350 150 

17. As to the illegal temporary constructions, only appropriate sum of removal fee shall be granted 

for timely demolition. 

2. Affected Land Compensation Standard 

18. Standard for land compensation fee and relocation subsidy – In line with the spirit and 

requirement of the Decision on Furthering Reform of Land Management of the State Council and the 

Notice on Printing the Suggestions for Completing Compensation and Relocation System of Land 

Expropriation (Guotuzifa [2004] No. 238) released by the Ministry of Land and Resources, land 

compensation fee and relocation subsidy shall be calculated according to the legal maximum of the 

summation of both land compensation fee and relocation subsidy, namely, totally 30 times of the 

average output of the land within the project area in the first three years since the land is expropriated. 

The young crops compensation shall be calculated according to the maximum of 40% to 90% of the 

average output of the land with damaged young crops in the first three years. Compensation for 

orchard, residential base and barren land shall be calculated according to the Implementation of ‘Land 

5

6 



Administration Law of the Peoples Republic of China’ of Shaanxi Province: compensation for farmland 

shall be made according to four to six times of the average annual output of the medium-sized arable 

land in the local county (city or district) with expropriated land in the first three years; land 

compensation for other lands shall be calculated according to one to four times of the average annual 

output of the medium-sized arable land in the local county (city or district) with expropriated land in the 

first three years; compensation for orchard shall be calculated according to six times of the legal 

maximum of the average output of dry land within the project area in the local county (city or district) 

with expropriated land in the first three years; compensation for residential base shall be calculated 

according to four times of the average output of the dry land within the project area, whereas 

compensation for barren land shall be calculated according to one time of the figure. Shaanxi 

Provincial Development and Reform Committee, Shaanxi Foreign Loan Office, Shaanxi Provincial 

Department of Land Resources and Shaanxi Provincial Bureau of Statistics jointly enact the 

compensation standard of the Project (see Table 5). 

Table 5: Project Land Compensation Standard 

Type 

Unit: CNY/mu 

Irrigated Land Orchard Dry Farmland Housing Land Uncultivated 

Land 

Standard 35,790 10,500 15,000 3,000 50 

Note � Land compensation and resettlement compensation are estimated together � housing land and 

uncultivated farmland are not included in the compensation 

Column 

Heading 

Unit: CNY/mu 

Table 6: GPD of the Affected Areas 

(based on the average of the three years from 2003-2006) 

Column 

Heading 

Column 

Heading 

GPD 1,193 According to dry 

land standard 

Column 

Heading 

500 

Column 

Heading 

Column 

Heading 

19. According to Article 47 of Land Administration of the Peoples Republic of China and the 

relevant regulations released by Shaanxi Provincial People’s Government, the formula for calculating 

the compensation fee for arable land is as follows: 

Q1=A a (e.g.: irrigable land 35,790 = 1,193 × 30) 

Among which: 

Q1 = land compensation fee 

A = average output of the land in the first three years since the land is expropriated 

A = coefficient of land compensation fee and relocation subsidy=30 

20. Compensation for young crops is calculated according to 90% of the average annual output of 

the land before expropriation in the first three years. See table 7 for the compensation standard. 

Table 7: Young Crop Compensation Standard 

Type Vegetable (10% of the young 

crop total) 

Unit: CNY/mu 

Other young crops (mainly grain 

crops) 

Standard 1,000 500



3. Other Affected Facilities 

21. After the assessment of the relevant authorities, compensation fee for the affected auxiliary 

facilities shall be fulfilled according to alternative prices of the facilities. See Table 8 below for the 

compensation standard. 

Scattered Fruit 

Trees (No.) 

Unit: CNY 

Table 8: Affiliated Facilities Compensation Standard 

Young Fruit 

Trees (No.) 

Useful Woods 

(No.) 

Useless Woods 

(No.) 

Brick 

Enclosure (m) 

7 

Earth 

Enclosure (m) 

60-80 5 10-20 5-10 40-80 10-40 

22. All specialized facilities, including facilities for hydraulic work, power and communication, as 

well as yards, pools and vault storeroom, shall be compensated according to relevant regulations of 

Shaanxi Provincial People’s Government and their real construction cost or alternative value. 

4. Evaluation of the Compensation Standard 

23. According to the spirit and requirement of the Decision on Furthering Reform of Land 

Management of the State Council (Guofa [2004] No. 28) and the Notice on Printing the Suggestions 

for Completing Compensation and Relocation System of Land Expropriation (Guotuzifa [2004] No. 

238) released by the Ministry of Land and Resources, the compensation standards for houses, 

affected land and young crops of this Project are proposed by Shaanxi Foreign Loan Office, namely 

the executing agent and the implementation agent of the Project along with Shaanxi Provincial 

Department of Land Resources and Shaanxi Provincial Bureau of Statistics, in the light of the social 

and economic development strength and features within the Project area of Shaanxi province, 

incorporating the part of suggestions put forward by every districts when they enact the uniform 

standard for annual output. Therefore, these standards are lifted by a large margin compared with the 

previous ones. The compensation standard for land and young crops of the Project has been 

stipulated with incorporation of the suggestions of the local government and residents, so it is highly 

rated by the local government and residents according to the feedbacks. 

5. Payment of Compensation Fee 

24. Compensation fee for land expropriation takes a part in the total investment of the Project, 

thus it has already been considered in the budgetary estimation. All the compensation fees are 

allocated by Shaanxi Foreign Loan Office; they shall be given to the affected collectivities and people, 

and no one shall intercept or embezzle them: land expropriator shall sign contract with the previous 

owner of the expropriated land; the compensation fee shall be drawn with the signature of the payee; 

and all the materials shall be kept in archives. 

25. Land compensation fee belongs to rural collective economic group, thus it shall be given 

directly to the village committee in a bid to develop production and restore the economic strength of 

the affected people. The affected people are entitled to discuss and participate in the economic 

restoration plan. 

26. Compensation fee for house, specialized facilities and auxiliary facilities, as well as young 

crops shall be directly paid to the entitled people. 

6. Demolition Subsidy 

27. The affected people shall be paid the demolition subsidy in addition to the house 

compensation fee according to the standards, including transition fees and the standard house 

removal fee of CNY500 to every household. 

28. If the land expropriation and relocation institution of the Project provides the temporary house 

for transition or demolishes the house after the new house has already been built up, the subsidy for 

transition shall not be covered. If houses for the production and business operation are suspended by

8 



demolition, appropriate sum of subsidy shall be provided. The maximum duration for payment of 

transition fees shall not exceed the production restoration period. 

G. Land Compensation and Dividend for the Voluntarily Pooled Land within the Project 

Area 

29. The Project will utilize 4,039.5 mu of land area, of which 293.63 mu of land will be 

expropriated, and the rest part of land, totally 3,745.87 mu, shall be utilized by the peasants within the 

project area through voluntarily buying shares. The land utilization and compensation of this area 

includes two aspects: the compensation for ground attachment and young crops of the pooled land; 

and the policy on dividend for the pooled land. The standard for the former two items shall comply with 

the relevant requirements of the national policy and ADB (Asia Development Bank). 

1. Compensation and payment for the ground attachment and young crops of the 

pooled land within the project area 

30. According to the research report on The Project of Land Expropriation, Relocation and 

Conservation of Mt. Qinling National Botanical Garden, it is preliminarily confirmed that the pooled 

land is 3,745.87 mu, of which the irrigable land and dry land take up 1,186.07 mu, and hillside land 

2,559.8 mu. The compensation standard for the ground attachment and young crops of the pooled 

land shall conform to that of the expropriated land of the Project. 

31. The pooled land shall not change its nature for agricultural use, thus all kinds of specialized 

facilities on the ground of the pooled land for hydraulic work, power, communication, as well as yard, 

vault storeroom shall not be ravaged or relocated. If compensation is necessary in the Project, it shall 

be fulfilled in accordance with the relevant regulations of the Shaanxi Provincial People’s Government 

and the real construction cost, or the alternative price. 

32. The compensation and payment for the ground attachment and young crops of the pooled 

land shall be fulfilled a month earlier prior to the implementation of the Project. 

33. Consultation, complaints, appeal, public participation, supervision and assessment procedure 

and method concerning the above-mentioned compensation standard and payment shall be in 

conformity with that of the expropriated land of the Project. 

2. Profit-sharing 

34. According to settlement policy on pooling of land in Instruction on Consummation of Land 

Appropriation Compensation System by the Ministry of Land and Resources (Guotuzifa�2004� 

No.238), the Project shall acquire land-use right of 3,745.87 mu by the way that farmers are 

shareholders with free will. Besides compensation of ground attachment and green seedling of 

appropriated land, the original land user shall share profit. In order to protect the interest of the original 

user on the appropriated land, profit sharing of the original land user shall be counted by fixed profit 

sharing and revenue profit sharing. 

35. The fixed profit sharing standard is CNY500 for irrigable land, CNY400 for dry land and 

CNY300 for sloping land at the first year. Since the second year, sharing of each category shall be 

elevated CNY20 per year. 

36. From the year Mt. Qinling National Botanical Garden gains admission income, the original land 

user shall enjoy operation profit sharing and the fixed profit sharing will not ascend. 

37. Operation profit sharing enjoyed by the original land user is admission dividend, with the 

standard of CNY7,500/mu for sloping land, CNY10,000/mu for dry land and irrigable land of 

CNY12,500/mu with land-use right of 50 years to be paid for shares. Decide ticket division proportion 

to be a percentage, according to the land investment proportion on the total capital stock of the 

Garden.



38. Legal representative of fixed profit sharing and operation sharing is Villager’s Committee of 

Dianzhen Village, Zhouzhi in affected areas, which shall grade the participating land according to its 

practical type and make sure that the amount of every mu is allocated to the participating original land 

user. 

3. Revenue analysis of land profit sharing 

40. The relocation and conservation project of Qinling National Botanical Garden will achieve the 

use right of 3745.87 mu land by farmers’ voluntary participating in the project area. Before the profit 

sharing, the 3745.87 mu land could obtain an annual net income of RMB1, 195,800 Yuan, with RMB 

320 Yuan every year per mu on average. The fixed dividend after the pooling is RMB400 Yuan for 

each mu per year. So the income after the pooling is RMB1, 498,300 Yuan for this part. Therefore, the 

income of farmers could increase by 25.25% annually merely from fixed dividend of land. According to 

this assessment, and the preliminary agreement with Denzhian villagers in relocation protection zone, 

all the participating land should take up about 6% of the total investment of Qinling National Botanical 

Garden. For budget purposes it is assumed that the share holder villagers will also receive 6% of the 

project net profit. The profit sharing will be much higher than the existing income. See Table 9 & 

Table 10. 

Dian Zhen 

Village 

Before 

becoming 

Shareholder 

After 

becoming 

Shareholder 

PPTA Cash 

Flow 

(CNY/mu) 

Shareholder 

return CNY 

per mu 

(PPTA 

figures) 

Land 

(mu) 

Origina 

l 

Net 

Profit 

(RMB 

10,000) 

Table 9: Shareholder Land Profit 

Original 

Net 

Profit 

(Yuan/ 

Mu) 

3,745.87 �� 

Annual 

Rental 

Payment 

receiv’d 

(RMB 

10,000) 

Earnings after opening business 

�6� of annual profit1 see table 10) 

�RMB 10,000� 

2011 2015 2020 2025 

3,745.87 0.00 149.83 �� 

3,745.87 0.00 149.83 

(400) 

�� 

�� 

�� 

�� 

9 

�� 

�� 

600 �� 

Note: The income cost and financial assessment after the project operation have been analyzed in 

details in the project research report of feasibility. This profit list adopts the analysis result of the 

research report of feasibility. 

1 This is based on the Chinese Feasibility Forecasts. The PPTA has reduced the rate of visitation in year one from 

600,000 to 350,000 effectively reducing the net cash flow and also the return to shareholding.

10 



Table 10 Income forecast table after the project completion (Unit: RMB10000 �� 

Year 2011 2015 2020 2025 

Gross income annually 8, 634.00 9, 345.72 10, 573.82 11, 963.31 

Total cost evaluation 5, 473.19 5, 148.05 4, 874.29 4, 639.89 

Annual profit 

(Feasibility Study) 

3, 160.81 4, 193.67 5, 699.53 7, 323.42 

PPTA Revenue 3,706 6,405 8,992 11,579 

PPTA NCF (Before Tax) - 9,140 2,492 5,220 7,956 

Note: The gross income annually consists of the income from ticket, food service, various facilities 

service, etc. The visitors consume RMB143.92 Yuan once on average. 

41. Therefore, the income of land affected households falls into two parts after the construction of 

Qinling National Botanical Garden: One is the annual fixed distribute bonus of RMB 400 Yuan/mu on 

average; the other is land sharing distributed income based on the profit of the Garden. And both of 

these two kinds of income greatly increase the income of farmers enjoying land share once the project 

is implemented. In 2011, the project will come into operation. The income will increase 83% or so than 

that prior to the project construction so as to greatly improve the farmers’ living standard in the project 

area. 

42. According to investigation, after participating of the farmland, the fixed profit sharing can 

increase the income of every farmer by 37.39%. If analyzing according to research report of feasibility, 

all the participating land of households in Dianzhen Village takes up about 6% of the total investment 

of Mt. Qinling National Botanical Garden and the operation profit sharing will be much higher than the 

existing income. See Table 9. 

4. Distribution and Surveillance of Village-level Land Compensation Fee 

43. Land compensation fee and relocation subsidy due to the Project shall be allocated to the 

lower level institutions by the construction unit through formal channels. According to Land 

Administration Law, the land compensation fee is directed at the owners and entitled users, whereas 

relocation subsidy shall be mainly used for the relocation of the agriculture residents after land 

expropriation. Therefore, land compensation fee shall be disposed by the village committee, while 

relocation subsidy shall be disposed by people who are in charge of the relocation work of the 

agriculture residents. If the affected people want to initiate their own business or dispose the money by 

themselves, the relocation subsidy shall be given to the affected people. No one shall intercept and 

embezzle the land compensation fee and the relocation subsidy. 

5. Measures of Restoring the Economy 

44. The most important point of the demolition and relocation plan for land expropriation of this 

Project is the appropriate reallocation of the land, assisted by other measures of restoring economy. 

45. According to relevant laws of the country, the land required by the Project, the demolished 

houses and the ground attachment shall be compensated by the construction unit. 

H. Implementation of the Plan 

46. The land expropriation and relocation work will start from _____ (month), ____ (year), and 

shall be finished one month earlier before the construction. The plan can be undertaken in three 

phases: first phase, preparation; second phase, implementation; third phase, 

examination/supervision/assessment (the external and internal supervision will run throughout the 

whole process of the construction).



Table 11: Land Acquisition Compensation Progress 

Year Responsible Party Jobs 

200 – 200 County Government 

Qinling Botanical Gardens 

Shaanxi Scientific and 

Communicational Consulting Co. 

200 – 200 Shaanxi Provincial Foreign Loan Office 

Qinling Botanical Gardens 

200 - Shaanxi Province Foreign Loan Office 

Zhou Zhi County Government 





2008.- Shaanxi Province Foreign Loan Office 



2008.- Shaanxi Province Foreign Loan Office 




I. Fund Budget and Compensation Cost 

1. Total Costs 

� Establish Project Management Offices 

� Project Promoting 

� Social and Economical Analyzing 

� Compile land acquisition and resettlement project 

proposal 

� Collect opinions from people and government at 

all levels 

� Continue project promotion 

� Distribute information brochures 

� Put land acquisition border dividers into place 

� Quantity measure and analyze 

� Sign agreement on the land acquisition 

� 

compensation 

Go through land use procedures 

� Distribute compensation payment periodically 

� Distribute all kinds of compensation payment to 

people affected 

� Check project progress 

� Supervise compensation payment distribution 

� Process appeals 

� Check fund distribution 

� Implement internal and external supervision 

� Follow up study of the affected villages 

� Evaluate the land acquisition project 

Breakdown 

Table12 : Land Acquisition and Resettlement Expenses 

Total (CNY) 

A. Basic Expenses 

1. Land Compensation 5,838,055.00 

2. Cultivating Land Compensation 1,957,631.21 

3. Farmland Compensation 880,890.00 

4. Soil Erosion Compensation 293,630.00 

5. Housing Compensation 6,143,716.90 

6. Land Use Fees for Newly Converted Construction Land 2,741,916.94 

7. Other Building Compensation 904,800.00 

8. Young Crop Compensation 2,149,350.00 

9. Irrigating Facilities Compensation 20,000.00 

10. Villages Resettlement Compensation 71,500.00 

11. Villager Transition Compensation 71,500.00 

Total Basic Expenses 21,072,990.05 

B. Administration Expense 590,043.70 

C. Service Charge (3% of the Basic Expenses) 632,189.70 

D. Supervision and Assessment fee 205,000.00 

E. Planning Expenses 60,000.00 

F. Unpredictable Expenses (30% of the Basic Expenses) 6,321,897.00 

Total 28,882,120.45 

11

12 



Type Irrigated 

Land 

Table 13: Land Compensation Breakdowns 

Dry 

Farmland 

Orchard Housing 

Land 

Uncultivated 

Land 

Quantity (mu) 133.0 42.2 29.7 42.9 88.7 336.5 

Compensation Standard 

(CNY) 

Compensation Expenses 

(CNY) 

35,790 15,000 10,500 3,000 50 

Total 

4,760,070 633,000 311,850 128,700 4,435 5,838,055 

Type Brick and 

Concrete 

(m 2 ) 

Table14: Housing Compensation Breakdowns 

Brick and 

Wood(m 2 ) 

Earth and 

Wood (m 2 ) 

Simple 

(m 2 ) 

Total 

Quantity (m 2 ) 776.82 4,151.20 8,564.51 5,827.68 19,320.21 

Compensation 

Standard (CNY) 

Compensation 

Expenses (CNY) 

Type 

Enclosing Wall 

(m) 

520 450 350 150 

403,946.4 1,868,040.0 2,997,578.5 874,152.0 6,143,716.9 

Table15: Demolition Breakdowns 

Power Cable 

(m) 

Telecommunica 

tion Cable (m) 

Power Cable 

Pole 

Power 

Converters 

Telecommunica 

tion Pole 

Quantity 3,541 960 1,125 16 1 17 1 7,150 

Compensation (CNY) 177,050 9,600 11,250 3,200 50,000 1,700 80,000 572,000 904,800 

Table16: Young Crop Compensation (including Shareholder Land Young Crops) 

Type Vegetables Other Crops Total 

Quantity (mu) 390.8 3,517.1 3,907.9 

Compensation Standard (CNY) 1,000 500 

Compensation (CNY) 390,800 1,758,550 2,149,350 

2. Fund Process 

47. Land acquisition, relocation compensation cost shall be paid directly to villager’s committee 

and affected individual by the County Project Office through the Bank and the Project Office of 

affected County People’s Government by the executing unit. 

3. Examination and Approval Requiring Added Costs 

48. Project executing unit are entitled to unexpected costs within the estimation. As for the 

unexpected costs and the rising prices exceeding the estimation, Shaanxi Provincial Development and 

Reform Committee and Foreign Trade Office to Development and Reform Committee and the Ministry 

of Finance shall make submission to the National Development and Reform Commission and the 

Ministry of Finance for approval, and then it can be added into the budget, which shall take less than 

one month. 

Water Well 

Trees 

Total



J. Complaints, Appeals and Public Participation 

1. Complain and Appeal 

49. In order to protect the affected individual’s interest, if anyone feel dissatisfied about the allocation 

work, he or she may make complaint and appeal to project offices at correspondent levels, further, he 

or she may take judicial proceedings to the People’s Count of county or municipal level.. 

50. Institutes transacting complaint and appeals are: Construction and Coordination Commission of 

Mt. Qinling National Botanical Garden and affiliated Construction and Coordination Office of Mt. 

Qinling National Botanical Garden, the Project Construction of the County, Coordination and Guidance 

Group and Project Office, People’s Government of the town and the Villager’s Committee. 

51. The appeal transaction institutes are People’s Count of the County and the Municipal 

Intermediate People’s Count. The appeal transaction institutes and procedures are listed as follows: 

� 

� 

� 

� 

People affected 

Figure 2: Appeals Procedure 

Municipal Intermediate People’s 

Court 

County People’s Court 

2. Propaganda and Public Participation 

52. As a vital social activity for land acquisition, resettlement and compensation, propaganda 

should be well-prepared with the aim to make every correlative individual acquaint with the 

� 

� 

� 

� 

�� 

�� 

� 

� 

County Resettlement Offices 

Town Government 

Village Committee 

13

14 



significance, processes, appropriation, compensation, appeal and the way of settlement and problems 

existing in the project construction and propaganda shall be carried on before hand. 

53. Land acquisition, resettlement and compensation shall be carried out by two methods: first, 

social medium; second, correspondent management mechanism. (2) The propaganda shall cover 

relevant contents about land acquisition, resettlement and project construction, and upon the approval 

on (Month) (Day), 200x, Amendment of APR shall be issued to Project Offices of affected counties 

and the Land Acquisition and Resettlement Information Manual (Revised edition) shall be sent to 

affected villages at the same time. 

54. Besides the propaganda, wide public participation shall also be taken into consideration, 

including inviting representatives of People’s Government of all levels and affected individuals to take 

part in the activity and have a better understanding about the courses of land acquisition, resettlement 

and compensation in accordance with the concrete articles of RAP and taking into consideration the 

interest of units and individuals. 

3. Public Inquiry 

55. Public inquiry includes objective, scope, land acquisition and resettlement policy, compensation 

standard, method of payment, executing institution and accomplishment plan etc. The acceptance 

institutions shall be project management institutions and villager’s committee. After the start-up of the 

Project, principals of project management institutions, their office address and telephone number shall 

be notified in the affected areas. 

4. Resettlement Information Manual 

56. In order to ensure that affected objects acquaint with the detailed information of resettlement 

plan, the project executing institution compiled Land Acquisition, Resettlement and Information Manual 

which include project introduction, affected scope, compensation standard, resettlement policy, 

responsibility institution, public participate, inquiry and appeal process. 

57. This Manual will be send to all the affected households, county or village people’s government 

and villager’s committee prior to (Month) (Day), 200x. See Annex I for the model of manual. 

K. Supervision and Evaluation 

58. In order to ensure that land acquisition, resettlement goes smoothly as scheduled, two 

supervision methods will be adopted by two independence institutions from two different aspects: 

First, interior supervision system made up of governmental departments through administration aspect 

according to RAP articles; Second, exterior supervision system consisting of sociologists for carrying 

on evaluation and supervision through social survey. 

1. Interior Supervision 

59. Interior supervision comprises supervision to correlative administration departments (including 

county and village or town people’s government and resettlement of affected individual, it shall be 

carried out according to articles of RAP. 

2. Exterior Supervision 

60. In order to ensure that land acquisition, resettlement and compensation of the Project go 

smoothly, a famous public Consulting institution is invited to carry out exterior supervision. Foreign 

Loan Supporting Project Management Office of Shaanxi Province, the executing institution, will entrust 

Shaanxi Kexin Consulting Co., Ltd. to carry out exterior supervision, with the supervision outline as 

follows: 

RESETTLEMENT ACTION PLAN (RAP) SUPERVISION OUTLINE 

61. Foreign Loan Supporting Project Management Office of Shaanxi Province, the executing 

institution invites Shaanxi Kexin Consulting Co., Ltd. to carry out supervision and check of land



acquisition, resettlement and compensation in an independent and candid manner so as to ensure 

that the policy objective of ADB is implemented broadly and accurately. 

A. Supervision Contents 

(i) Check if the acquisition and resettlement are carried out according to articles of RAP. 

(ii) Make sure works that should be finished prior to construction are accomplished. 

(iii) Decide an overall objective of acquisition and resettlement plan and the schedule of 

implementing RAP. 

(iv) Make sure that the lost fortune is equivalent to the replacement price, building 

dismantling and resettlement go smoothly, and affected individuals recover their 

original income. 

(v) Satisfaction degree of affected individuals about land acquisition and resettlement as 

well as the living standard recovery measures. 

(vi) Satisfaction degree of affected individuals about land acquisition and resettlement and 

quality and quantity of redistribution land. 

(vii) Satisfaction degree of affected individuals about location of resettlement and 

difference of environment with the original location. 

(viii) Satisfaction degree of affected individuals about compensation standard and method 

of dismantled houses, buildings, ground attachment. 

(ix) Satisfaction degree of affected individuals about subsidy standard and amount in 

resettlement. 

(x) In the course of acquisition and resettlement, whether correlative institution and local 

government consult fully with affected individuals and whether any forced dismantled 

and resettlement happened. 

(xi) Supervision on fund flow of land acquisition and resettlement. 

B. Schedule of Supervision 

61. The supervision shall begin from (Month) (Day), 200x and wind up as the general supervision 

evaluation is worked out upon the completion of the Project. 

15

GEFSEC PROJECT ID: 

EA PROJECT ID: 

COUNTRY: China 

PROJECT TITLE: Shaanxi Qinling Integrated 

Ecological Management Project 

GEF AGENCY: Asian Development Bank 

OTHER PROJECT EXECUTING AGENCIES: Shaanxi 

Provincial Development Reform Commission of the 

Shaanxi Provincial Government 

DURATION: 5 years 

GEF STRATEGIC OBJECTIVES: Biodiversity 

GEF FOCAL AREA STRATEGIC OBJECTIVES: BD-1; 

BD-2 (SLM-1; SLM-2) 

GEF OPERATIONAL PROGRAM: OP1; OP2; OP3; 

OP4; (originally OP12 under the PRC-GEF 

Partnership on Land Degradation in Dryland 

Ecosystems, and also responds to OP15) 

PIPELINE ENTRY DATE: 

EXPECTED STARTING DATE (PROJECT): 

MARCH 2008 

EXPECTED CEO ENDORSEMENT: 

GEF AGENCY FEE: $50,000 

David McCauley 

Senior Environment Specialist 

IA/ExA Coordinator 

Tel. and email: +632 632 6951/ 

dmccauley@adb.org 

PROJECT EXECUTIVE SUMMARY 

REQUEST FOR COUNCIL WORK PROGRAM 

INCLUSION 

UNDER THE GEF TRUST FUND 

Financing Plan ($) 

PDF/PPG Project 

GEF Total 225,000 4,270,000 

Co-financing Details provided in 

Section b: Co-financing 

GEF IA/ExA 40,000,000 

Government 

Others 

84,887,250 

Co-financing 

Total 

124,887250 

Total 129,157,250 

CONTRIBUTIONS TO KEY INDICATORS 

IDENTIFIED IN THE FOCAL AREA 

STRATEGIES:

1. PROJECT SUMMARY 1 

a) Rationale 

1. Shaanxi Province is part of western China where economic growth rates have lagged those in 

the eastern provinces. Shaanxi grew at an average of 7.5% from 1990 to 2000 compared with a national 

average of 10% to 11%. When coupled with population growth, GDP/capita fell from 75% of the national 

average to less than 60% over the same period. From 2000 to 2005 Shaanxi achieved an average growth 

rate of 9.8% per annum exceeding the national average and increasing the GDP/capita to 63% of the 

national average. A major stimulus for the increased growth was the additional investment made under 

China’s western development strategy under the Tenth Five Year Plan. Among the 31 provinces, 

autonomous regions and independent municipalities in China, Shaanxi currently ranks 16 th in terms of 

population size, 22 nd in terms of the size of the economy and production base (as measured by GDP and 

industrial production), and 26 th with respect to GDP/capita 2 . Shaanxi is home to about 2.8% to the 

country’s population, contributes 1.8% to its GDP, and has a land area of 206,000 sq. km. (2.1% of the 

nation’s total). 

2. Shaanxi’s economic development is limited by (i) continued dependence on primary sector 

production systems that are weakly linked to markets and local value addition, (ii) limited off-farm 

employment in rural areas, (iii) below average productivity and efficiency in productions systems due to 

the current structure of smallholder agriculture, (iv) low levels of industrial production and limited private 

sector investment, (v) low savings rates to support future investment, (vi) limited local government 

revenue for service provision, (vii) markedly lower levels of urbanization than in other areas (40% 

compared with 60% in eastern provinces), and (viii) limited export trade that amounts to only 7% of GDP 

(compared with 30% for PRC) and FDI inflow of 1.3% of GDP (compared with a national average of 

4%). Shaanxi has a predominantly rural economy that continues to lack the capacity to generate sufficient 

output for export trade, reinvestment and as a consequence the inability to generate sufficient employment 

to diversify the economy out of agriculture. 

3. The higher growth rates since 2000 derive largely from additional investment into infrastructure 

and from the expansion of tourism demand that utilizes the past investment into accommodation and 

product development in Shaanxi, especially in the capital Xian. Xian city accounts for 21% of provincial 

population but contributes over 40% of GDP. Shaanxi’s poorer rural counties have GDP/capita less than 

30% of the national average resulting in 55 of the 88 counties being classified as poverty counties. In 

2004, the average annual income of Shaanxi urban residents was CNY5,928 ($730 equivalent) while per 

capita income of the rural population was CNY1,050 ($130 equivalent). At these levels rural incomes are 

only 35% of the $1/day poverty criterion and approximately 50% of the average provincial income level. 

4. The Shaanxi Province 11 th Five Year Plan was approved on November 16, 2006. GDP is 

targeted to grow in real terms by 11.5 % per year, the population is to grow at a modest pace to reach 38.3 

million in 2010 compared with about 37 million at the present time, per capita GDP is targeted to increase 

to CNY16,000 – which equates to about $2,050, and government revenues are targeted to increase from 

the current level of CNY60 billion to about CNY100 billion, a real growth rate of nearly 14% per year. 

1 A more detailed description of the Project may be found in the Project Document that is an attachment to this submission. 

Greater detail on the environmental aspects of the Project can be found in the Environmental Assessment Report, available at 

http://www.adb.org/Documents/Environment/PRC/38660/38660-PRC-SEIA.pdf, while further detail on the social aspects of 

the Project can be found in the Resettlement Planning Document available at 

http://www.adb.org/Documents/Resettlement_Plans/PRC/38660/38660-01-PRC-RP.pdf. 

2 Used as a proxy indicator for the standard of living and consumer purchasing power at the provincial and sub-provincial levels.

i) Tourism 

5. One of the strongest sectors in the Shaanxi economy is tourism, which is benefiting from the 

strong growth in the Chinese tourism industry. The tourism industry is a major driver of the Shaanxi 

economy. China is now the largest tourist destination in Asia, and is currently ranked fourth in the world 

in terms of international tourist arrivals and sixth in terms of international tourism receipts. From 2000 to 

2006, international visitors to China rose by 7% per annum from 83.4 million to 124 million, providing a 

growth rate of nearly 7% per annum – despite a dip of 6.4% in 2003 because of the SARS epidemic. 

Foreign exchange earnings over the same period rose by 13% per year from $16.2 billion to $33.9 billion. 

From 2000 to 2006, the number of domestic tourists experienced even higher growth of 11% per annum 

from 744 million to 1.39 billion, while the revenues generated by domestic tourists increased from 

CNY317.6 billion to CNY623 billion, which provides an annual average growth rate of nearly 12% per 

year. 3 

6. The Shaanxi Tourism Bureau reports 1.06 million international visitors in 2006, nearly 70 

million domestic tourists (which accounts for 5% of the national total) 4 , and tourism receipts from all 

sources of $5.4 billion or about CNY42 billion. This amounts to about 10% of Shaanxi’s GDP in 2006. 

Currently international tourists spend $480 over 2.7 days, while domestic tourists spend $70 over a period 

of 2.9 days. 

7. The tourism industry’s enterprise structure is divided between hotels/accommodation facilities, 

travel and tour agencies, and tourism attractions and tourist sites. The province’s tourism base and 

supporting infrastructure are well developed. There are currently about 300 starred hotels in SP divided 

as follows: five star – 4 hotels, four stars – 24 hotels, three stars – 135, two stars or below – 137 hotels. 

The total number of beds in star rated hotels is 60,000. When the non-starred hotels are added, the 

province has well over 330,000 beds. Four and five star hotels are generally owned by the state and/or 

operated through foreign joint ventures. While some are under private ownership, most of the two and 

three star hotels are also owned by the state but their management is contracted out to the private sector – 

generally to domestic enterprises. 

8. The product structure of the SP tourism industry is dominated by historical and cultural products 

and ancient buildings and sites from a relatively few centuries in the province’s long history – mainly the 

Qin and Han dynasties. The Shaanxi Province Tourism Bureau plans to diversify the tourism product 

through: (i) placing greater emphasis on later historical periods; (ii) marketing Xi’an as an important 

international cosmopolitan city within the western region of China; and (iii) expanding eco-tourism and 

other resource-based tourism. This strategy recognizes ands hopes to capitalize on the strong growth now 

taking place in the international and national nature based tourism market. This is reputed to be the 

fastest growing sector of the tourist industry. While tourism has been growing year on year at around 4%, 

eco-tourism/nature-based tourism is growing at three times faster than tourism as a whole 5 (around 12%). 

The Shaanxi Tourism Bureau is currently preparing a strategy to support eco-tourism and other resourcebased 

and cultural tourism in the Qinling Mountains. The Bureau is seeking funding to conduct research 

3 See for example: World Tourism Organization, “Tourism Highlights: 2006 Edition “, 2006. 

4 The national tourism data classifies domestic tourists as travelers who stay away from home for more than six 

hours. The provincial tourism data noted below on average length of stay would suggest that most domestic 

tourists who are resident in SP or from other provinces stay overnight. Based on this classification, the country’s 

domestic tourists increased from 750 million to 1.2 billion from 2000 to 2005, providing a growth rate of about 10% 

per year over the first half of the current decade. The number of foreign tourists entering China (which as noted 

above excludes visitors from Hong Kong, Macao and Taiwan) nearly doubled over the same period to reach 20 

million foreign visitors in 2005. Shaanxi’s share of China’s foreign (other country) visitors is a little less than 4%. 

Therefore, Shaanxi’s shares of both foreign and domestic tourists is well over the province’s contributions to the 

country’s population and GDP, pointing out the importance of tourism to Shaanxi and the high reputation enjoyed 

by the province’s tourism sector in both national and international markets. 

5 The Ecotourism Society (2005) Ecotourism Factsheet Vermont

to support the development and implementation of the QM tourism strategy and to identify approaches to 

eco-tourism that are fully tailored to the needs and circumstances of the Qinling Mountains. Among other 

issues, the research would review the models and experiences elsewhere in China and other countries for 

using eco-tourism for promoting sustainable biodiversity conservation and sustainable livelihoods in a 

fully complementary manner, the experience with eco-tourism in the Qinling Mountains nature reserves 

in recent years and other PRC nature reserves. 

9. While tourism is an important source of economic strength, jobs, investment and business 

development in Shaanxi, the province’s and Xian’s tourism sector is losing ground to other PRC 

destinations particularly in attracting and lengthening the duration of stay of the higher spending 

international tourist. Tourism officials recognize that the industry remains too dependent on a narrow 

range of products associated with the Qin dynasty (e.g., the Terracotta Warriors). Product diversification 

and in particular the development of more specialized higher value products that will appeal to higher 

income market niches in both China and other countries is needed to attract greater numbers, increase the 

duration of stay, and increase the spending of each visitor to Shaanxi. 

10. More specifically, Shaanxi seeks to capitalize on potential tourism opportunities related to the 

Qinling Mountains biodiversity. There is an outstanding opportunity to promote conservation-based 

tourism linked to existing visitation at sites such as the Terracotta Warriors to increase the duration of 

visitor stays and the value per tourist. This requires not only appropriate product development and 

marketing but as well: (i) reversing the land degradation and biodiversity losses now taking place in the 

Project Area and the QM; and (ii) the preparation and enforcement of appropriate tourism standards and 

the training of local people living within or near the Project Area to fully participate as workers in, 

suppliers to, and/or owners of the tourism facilities established in the ex-situ area and the much larger insitu 

part of the Project Area. 

11. Tourism will play a major role in achieving the Shaanxi’s Provincial economic targets under the 

11th FYP. Based on projections provided by the provincial Tourism Bureau and contained in the SP 

Eleventh Five-Year Plan, it is estimated that from 2005 to 2010, the number of international tourists will 

expand from 930,000 in 2005 to 1.75 million in 2010, and the number of domestic tourists will grow from 

about 60 million to perhaps close to 110 million. Tourism receipts from both sources are expected to 

expand from about $4 billion to approach $10 billion in 2010 – contributing over 10% to the province’s 

gross domestic product in that year. 

12. To further strengthen the Shaanxi tourism base, provincial tourism planning is emphasizing 

intensive higher value-added tourism, providing a better balance between quantity, quality, efficiency and 

environmental protection. The Qinling Mountains are seen as important in strengthening and broadening 

the tourism products available in Shaanxi Province. The Shaanxi 11th FYP identifies ten major tourism 

sites one of which is the Qinling Botanic Garden to be developed in this project. In addition, the Qinling 

Mountain Ecological Tourism Area is one of six tourism “brands” to be emphasized in the tourism 

strategy under the Shaanxi 11th FYP. 

ii) Poverty-Land Degradation 

13. For Rural Shaanxi poverty rates often exceed 70% of households. Low living standards and 

high levels of poverty reflect structural inadequacies including small plot sizes, low levels of 

mechanization, limited value chain development, production systems that expanded onto marginal steep 

lands as part of historical incentives to increase production. A large proportion of rural residents suffer 

poverty as a result of past land-use decisions where farmers managed on a subsistence income derived 

from marginal and often steep land. Over time soil erosion increased, forest cover increasingly reduced 

and the impact of past land-use increasingly reduced the productivity of their land. As rural populations 

increased with migration and natural increase income per capita often fell.

14. Poor rural households had few options other than seek to recover lost income by further 

expanding production systems onto more marginal land or through intensification of production using 

agrichemicals, fertilizer and expanding livestock production. The outcome of this process was more short 

term gains but increased degradation, siltation of rivers and resultant flooding, land use change involving 

the conversion of remaining forest to cropping land and only short term improvement to incomes. The 

level of poverty continues to contribute to degradation processes as farmers search for more income from 

higher outputs through gains in efficiency or expansion agriculture onto even more marginal land. Most 

rural households lack the education and training to compete for permanent employment off-farm 

effectively locking them into casual day labor and agricultural activities. 

15. As a direct consequence of these processes policy development has sought to minimize the offsite 

costs relating to soil erosion and flooding events in neighboring provinces. The policy sequence has 

included major reforestation programs, engineering interventions for flood protection, natural forest 

management programs, land conversion schemes that sought to retire land from inappropriate land uses, 

grain for green programs that sought to subsidize the conversion of land out of damaging cropping 

practices, and ecological resettlement to move households out of remote fragile ecosystems. Further 

sector policies included the banning of all logging, bans of using natural forests and non-timber forest 

products and the withdrawal of production quota’s from the State Forest Farms. In total the policies seek 

to prevent degrading practices by withdrawing farmer rights to steep land agriculture and forest based 

livelihoods. 

16. The reality is that most rural households are poor in terms of their development assets from 

which they could exit poverty and introduce more sustainable land use practices. For example, most 

households have very limited or weak human resource development, there is only limited social capital, 

most live in remote areas with poor infrastructure which includes the withdrawal of many social services 

such as education and health, and have limited or no access to formal credit. They do have significant 

natural resources but without skills, finance, and services are unable to invest for more sustainable 

outcomes. The effect of the policy programs is to increasingly attenuate or withdraw their rights to these 

natural resources compounding their livelihood and poverty issues, which of course results in further 

degradation. 

17. Policy-makers continually seek to address this degradation cycle by adopting policy and 

decision making processes that seek to attenuate local resident’s rights to natural resources and land 

further i.e., if they do not manage it withdraw it as opposed to how can they be assisted to adopt 

sustainable practices. These policies have been implemented by using enforcement over resource use and 

through the encouragement of voluntary ecological resettlement. While some have resettled many of these 

have done so to gain access to education for children or to gain employment often retaining the rights to 

their land. Some even return to crop their land. Those that remain have few choices and are locked into 

existing poverty cycles. Those households that do not have the personal resources or will to relocate 

voluntarily have livelihoods that continue on a downward trend adding to future non-sustainable land use 

decisions. The current policy mix has simply reinforced the poverty-land degradation nexus and in some 

places simply added to the threat of continued degradation. 

18. The new Socialist Countryside Policy in the 11 th Five Year Plan represents the latest policy 

initiative to address rural poverty- land degradation issues and draws heavily on successful poverty 

alleviation programs. The Policy explicitly recognizes the disparity in economic opportunities between 

rural and urban economies created in favor of urban communities over the last three decades. This policy 

places emphasis on increasing farm production from crops, apples and other economic trees and 

strengthening county level economies. The county level economies will be targeted for the development 

of local industry based on local comparative advantage and through the strengthening the province’s 

system of agricultural service centers. The underlying context is to link rural areas to cities and rural

producers to enterprises. Rural counties and townships will have investment into improving water supply, 

electricity supply, social services and other public facilities at the village level, expanding local 

government revenues in counties, townships and villages, and enhancing democratic management and 

accountability at the local level. 

iii) Land Degradation and Conservation 

19. Increasing population pressures, cultural traditions, and economic development have degraded 

China's biological resources. The combination of a large population (over 1.3 billion people with an 

annual growth rate of 0.59 percent or nearly 8 million people) and limited land and water resources (only 

ten percent of the land area is arable and freshwater per capita is one fourth the world average) has caused 

extensive loss of habitats. As a result, the IUCN World Conservation Union Red List of globally 

threatened species in China includes 804 species in total, 442 plants, and 362 animals. China’s own Red 

Data Book of threatened species includes a larger total. 

20. In terms of biodiversity conservation, modern China presents a mosaic of apparent 

contradictions. Unprecedented rates of extinction and rapidly escalating human-caused threats to wildlife 

are occurring at a time when China’s nature reserve systems is growing rapidly toward a 2050 goal of 

2,000 protected areas. China’s policy, legal, and regulatory framework for nature conservation is among 

the world’s strongest, and is continually improving. China’s growing network of protected areas 

combined with its policy and legal framework could reverse most of the deteriorating trends in 

biodiversity if management, implementation and enforcement were effective and supported by updates to 

adapt to changing situations (such as the new nature reserve law now being drafted). 

21. The Forest Law (revised in 1986), specifies goals of maintaining an average of 30 percent forest 

cover over the entire country, including 40 percent in mountainous areas, and prohibits logging in 

protected areas. It also imposes strong penalties for illegal felling of trees and attempts to establish closer 

links between harvesting and reforestation. The Environmental Protection Law of 1989 promotes rational 

use of natural resources and facilitates the development of a comprehensive system of nature reserves. 

The Wildlife Conservation Law of 1989 includes categories of protection for endangered and threatened 

wildlife. 

22. China is increasingly active in international nature conservation efforts. China participates in 

the UNESCO Man and the Biosphere Program, and ratified the Ramsar Convention in 1992 and the 

Biodiversity Convention in 1993. China acceded to CITES, the Convention on International Trade in 

Endangered Species of Flora and Fauna, in 1994. National environmental strategies and actions plans 

have been prepared as required by China’s involvement in international conventions. A national nature 

conservation strategy was produced in 1987 that provided a general overview of conservation status and 

trends. A Biodiversity Conservation Action Plan was completed in 1993 with assistance from the Global 

Environment Facility (GEF) and IDA, and was approved by the State Council, which establishes national 

priorities in biodiversity. A National Environment Conservation Action Plan was approved by the State 

Council. China’s National Agricultural Conservation Action Plan was approved in 1999, and a National 

Wetland Conservation Action Plan was approved in 2000. Early in 2007 a revised National Biodiversity 

Framework as developed to specify revised priorities and strategies. 

23. Whilst the above land degradation and poverty problem is common in the PRC the effect of 

rural poverty within Shaanxi and especially the Qinling Mountains is particularly important. The 

importance reflects the effect of these on the ecological function of the Qinling Mountains. These 

functions include water supply to the Yangtze and Yellow Rivers, the source of water for Xian city, and 

the water and fuel sources of local residents. In addition, the remaining forest cover also contributes to 

absorption of carbon and climate moderation processes. Most importantly, the Qinling Mountains are 

regarded as a global hotspot for biodiversity with an impressive representation of PRC’s remaining flora

and fauna due in large part to the mountains forming the major divide between the subtropical/temperate 

south and the temperate north. 

24. In spite of the rapid growth in the protected area network and China’s impressive policy and 

legal framework, nationwide there are few situations where species and/or habitat conservation crises 

have been resolved with positive outcomes. The Qinling Mountains represent one location where this is 

happening. The coverage of protected areas is increasing, a range of stakeholders participate in natural 

resource management, sustainable use is not an abstract concept but a working goal, and the areas of 

many important habitats and wildlife populations that rely on them are either maintaining current levels or 

are recovering. 

25. The Qinling Mountains are a major watershed of the Huang He (Yellow) and Chang Jiang 

(Yangzi) rivers cover 50,500 km 2 in Shaanxi Province 6 and 76,500 km 2 in total 7 . The Qinling range is an 

important geographical divide between north and south China and between the Yellow and Yangzi River 

watersheds. The highest peak, Taibai Shan, is 3,767 m above sea level. The western part of the range 

reaches elevations from 2-3,000 m, while most of the eastern part is below 2,000 m. 

26. The Qinling Mountains remain well forested and while representing 0.6 percent of China’s land 

area supply 1.1 percent of China’s forests. On only 1.1 percent of China’s forested area, the Qinling 

supports nearly 14 percent of China’s vascular plant biodiversity and over 17 percent of China’s 

vertebrate faunal biodiversity. Based on its high levels of biodiversity (and its importance as part of the 

Yellow and Yangzi River basins) the Qinling was identified by SEPA as one of 10 national pilot sites for 

establishment of ecological function protection areas. A second testament to the importance of the 

biodiversity of the Qinling is its designation as one of 16 biodiversity hotspots in China designated in the 

National Forestry Nature Reserve System Plan. The Daba range immediately south of the Qinling was 

also selected as one of the 16 hotspots. Together they account for one eighth of the biodiversity hotspots 

identified in the SFA plan 8 . These two areas are combined in SEPA’s ecological function conservation 

area in the Qinling. 

27. The rich biodiversity in the region means that it is not feasible to address the conservation status 

and requirements of all 3769 vascular plants and 577 vertebrate animal species. There are a number of 

species considered to be of regional, national, or global conservation concern. Only those species listed 

as threatened by IUCN-World Conservation Union (IUCN), listed in China’s Red Data Book (RDB), 

restricted in international trade by the Convention on International Trade in Endangered Species (CITES), 

or included in conservation treaties are addressed in this summary. 

Table 1: Land and Forest Area, and Species in the Project Area, Qinling and China 

Project 

Area 

Total 

Qinling 

Total 

Project 

Area as a 

percent of 

Qinling 

China Total 

Qinling as 

a percent 

of China 

Land area (km²) 458 50,500 0.8 9,326,410 0.6 

Forest area (km²) 242 13,635 1.8 1,286,300 1.1 

Ferns (no. of species) 71 323 22.0 2,600 12.4 

6 Anon. 2006. Cities in Shaanxi Strive to Balance Environment, Development. 18 May 2006. China Daily. 

7 Tsun-shen Ying and David E. Boufford. 1998. Phytogeography of the Qinling Mountains and a Comparison with the 

Flora and Vegetation of Japan. In: Sino-Japanese Flora, its Characteristics and Diversification, Boufford, D. E. and 

H. Ohba (eds), 1998, The University Museum, The University of Tokyo, Bulletin No. 37, Tokyo. 

8 Li Diqiang, Song Yangling and Ouyang Zhiyun. 2003. Research on the National Forestry Nature Reserve System 

Plan. World Bank-GEF Forest Resources Development and Protection Project, Nature Reserves Management 

Project. China Land Press, Beijing, in Chinese and English.

Gymnosperm (no. of species) 12 45 26.7 193 23.3 

Angiosperm (no. of species) 1,219 3,401 35.8 24,357 14.0 

Total: vascular plants 1,302 3,769 34.5 27,150 13.9 

Fish (no. of species) 12 109 11.0 1,010 10.8 

Amphibians (no. of species) 7 19 36.8 220 6.8 

Reptiles (no. of species) 9 26 34.6 380 8.6 

Birds (no. of species) 91 308 29.5 1,186 26.0 

Mammals (no. of species) 35 115 30.4 509 22.6 

Total: vertebrate fauna 154 577 26.7 3,305 17.5 

28. Of the approximately 3,124 native species in the flora of the Qinling Mountains about 1,620 

(51.9%) are endemic to China. Of the 192 species restricted solely to the Qinling, 60 are woody, 128 are 

herbaceous, and four are lianoid. The woody species, except for Jasminum humile L. forma kansuense 

(Kobuski) Miao, are all deciduous. Among the 128 herbaceous species only four species (1.6%) are 

annual. The proportion of annual endemic species is low in this region. Among these endemic species, 

40 are restricted to the western Qinling, 12 to the eastern part, and 136 to the central part, of which 29 

extend westward to the western part and ten extend to the eastern part. Only four endemic species have a 

widespread distribution across the Qinling. Most of these endemic species occur between 800 and 2,000 

m elevation. In addition to the species that are strictly endemic to the Qinling, about 1,428 species in the 

flora of the Qinling Mountains are endemic to China. Among these, 1,181 are dicots, 219 are monocots 

and 28 are gymnosperms. 

29. The Qinling ecosystem is sufficiently biodiverse and distinct from other ecosystems that it is 

assigned its own biogeographic unit, the Qinling Mountains. Similar to the case for flora, the fauna of the 

Qinling Mountains reflects the meeting of temperate and sub-tropical faunas. Fauna species are listed in 

Table 2. 

Table 2: Numbers of Vertebrate Species in the Qinling by Taxonomic Order 


Fish 6 13 67 109 



Birds 17 49 166 308 

Mammals 7 27 81 115 

Total 35 104 462 577 

30. The fauna of the Qinling, similar to the flora, is distinguished by its diversity in general, and by 

its mammalian diversity in particular. Birds and mammals are the most thoroughly studied, whereas the 

invertebrate fauna is relatively unknown but promises to be rich as well. In an eight-year study of the 

butterfly fauna of the south slope of the Qinling 191 species were recorded, three of which were new to 

China and 44 were new to Shaanxi 9 . One new genus and three species of eriophyid mites were 

discovered in the Qinling in 2006 10 . Also in 2006 nine new Qinling species of linyphiid spiders were 

assigned to an existing genus while five more new species were assigned to a new genus 11 . Increased 

scientific attention to the Qinling invertebrate fauna would probably lead to additional discoveries of new 

taxa. 

9 

Zhou, X, L. Sun, W. S. Pan, Z. Lu, Y. Ni. 2002. The Faunal Study on the Butterflies of the South Slope of Qinling 

Mountains. Peking Univ. Vol.37 No.4 pp.454-469. 

10 

Xue, X.F., Z. W. Song and X. Y. Hong. 2006. A new genus and three new species of Phyllocoptini (Acari: 

Eriophyidae: Phyllocoptinae) from the Qinling Mountains, Shaanxi Province, northwestern China. Zootaxa1275:31- 

41. 

11 

Tanasevitch, A. V. 2006. On some Linyphiidae of China, mainly from Taibai Shan, Qinling Mountains, Shaanxi 

Province (Arachnida: Araneae). Zootaxa 1325:277-311.

31. The Qinling Mountain ecosystem is recognized as an extraordinary resource. The Qinling is 

renowned nationally and globally as a site supporting China’s “big four” species of wildlife: Giant 

Panda, Golden Snub-nosed Monkey, Crested Ibis, and Golden Takin. Several nature reserves in the 

Qinling support the three mammals. Extensive literature exists about the importance of the ecosystem 

including hundreds of scientific and popular manuscripts, mainly in the Chinese, on discrete issues. 

Despite this only for the giant Panda have long-term research programs been undertaken and summary 

results published in formats relevant to conservation management. For other species and groups of 

species the research efforts and literature are fragmented due to the scarcity of funding for applied longterm 

field research. Thus there is often detailed knowledge of the biology or ecology of a given species 

(e.g. the group sizes of Sichuan Golden Monkeys or Golden Takin and their seasonal distributions), but 

there is seldom adequate synthesis. This also results in part from the lack of funding for synthesis of past 

efforts and lessons learned. 

32. Examples of the need for consolidation and interpretation of scientific information are: (i) 

summary of the three giant Panda censuses and interpretation with respect to conservation of all recorded 

fauna besides giant Panda; (ii) summary of the semi-annual transect surveys carried out by WWF and 

SFD in terms of implications for species management and recovery, and overall conservation biology of 

the Qinling; and (iii) a third pressing need is for a consolidation of all Qinling research projects and 

publications related to biota and presentation of the results by species, community, vegetation type and 

other relevant categories. 

33. A major impact of the nexus between land degradation and rural poverty has been the 

transformation of natural habitats and forests into fragmented agricultural landscapes with continuing 

threats to the biodiversity. The history of the global icon of conservation - the giant Panda – provides a 

well documented example of the impact of land degradation forces with giant Panda numbers plummeting 

as habitat was lost or fragmented through forestry and agricultural land use changes. 

34. Initial conservation responses included the protection of the remaining islands of habitat through 

the creation of nature reserves. Within the Qinling Mountains and in most of PRC new nature reserves 

continue to be created. In the case of the Qinling Mountains this has evolved into the creation of habitat 

corridors that link, at least on paper, the small nature reserves. Throughout this process and with 

substantial input from donors and in particular GEF nature resource management systems were 

modernized with capacity building, equipment and new approaches being introduced. The current models 

of nature reserve management suggest that for some reserves this support has been relatively successful 

and led to more reserves and increased use of corridors along with far more participatory systems of 

management. The challenge remaining is how to affect these changes across a wider proportion of the 

Qinling Mountains and then how to restore much of the lost habitat to support the larger wild populations 

need to secure a species. 

35. The three types of protected areas that relate to the Qinling Mountains are nature reserves 

(NRs), forest parks (FPs), and ecological function conservation areas (EFCAs). The Qinling Mountains 

support 27 nature reserves and one EFCA. All but two of the nature reserves are administered by the 

forest sector and 98% of the protected land area is administered by Forestry. Water Resources Bureaus 

manage the remaining two nature reserves that account for 2% of the protected land area. Qinling nature 

reserves cover 557,298 ha or nearly 10% of the 5.05 million ha total area of the Qinling mountain area in 

Shaanxi Province. New reserves have been designated in the Qinling since 1965. The declining trend in 

gazettal of new reserve area reflects the increasing difficulty of establishing reserves in a humandominated 

landscape.

Figure 1: New Reserves in the Qinling Mountains 

Area (ha 

200,000 

180,000 

160,000 

140,000 

120,000 

100,000 

80,000 

60,000 

40,000 

20,000 

0 

1965-93 2001-2 

Year interval 

2006-10 


36. As a further safeguard giant Panda were moved into ex-situ management for captive breeding 

and research. These programs have eventually resulted in significant progress in assisted reproduction 

technology that is currently increasing the number of captive Pandas to the point that leading centers are 

achieving close to the reproductive potential of the captive population. Subsequent field research has 

confirmed through Panda census that the number of Panda in the wild has increased and is most likely 

limited by available habitat. Wild populations are self limiting by the amount of habitat available and the 

ex-situ captive population faces a singular future as a captive with little or no possibility of wild or 

controlled release programs. Without further development or restoration of habitat the need or purpose of 

increasing captive panda numbers remains unclear. 

37. The future priority for the Panda conservation program therefore lies in the ability to extend the 

area of suitable habitat to enable future numbers in the wild that will secure the population. There is scope 

for the development of habitat programs within the whole Qinling Mountains landscape that can enable 

either wild population increase or controlled reintroduction programs to be undertaken. However at this 

stage there is only limited science on which to undertake ecological and habitat restoration and the current 

set of Natural Forest laws prohibit intervention to assist restoration processes. 

38. While progress in conservation management is making significant progress in the Qinling 

Mountains there remain critical unresolved issues including 

(a) Developing a professional cadre requires sustained operational funding. The Qinling protected 

area system is outstanding in terms of its coverage of critically important habitats for Giant Panda and 

many other, often globally threatened, species. This represents many years of difficult and painstaking 

yet innovative work by many stakeholders to plan and establish various types of protected areas in one 

ecosystem. SFD often with GEF support and WWF involvement have led this effort and deserve 

recognition for their successes. 

39. One detractor from the effectiveness of the protected area system is the limited frequency of 

interaction between the many stakeholders. WWF has worked hard to involve more stakeholders in 

management of the Qinling and these efforts have achieved positive results. However, there is a need for

continuing communication among stakeholders to improve management of the system as a whole and 

there is a need for a more formal venue for interaction of individuals, groups, and agencies. 

40. For example, professional managers and scientists at nature reserves do not have adequate 

interaction with colleagues at other Qinling nature reserves. Similarly, researchers often interact with a 

single nature reserve to carry out a given project, but seldom extend their results to other nature reserves. 

Tourism, land management, and water resource agencies are stakeholders in Qinling resource 

management but there is no formal venue for exchange and discussion of their contributions. Village, 

township, and county leaders have limited opportunities to interact with resource managers in the Qinling 

except where Nature Reserve Managers have received training and project level support to do so. For a 

few NR’s such as Taibaishan, Zhouzhi and Foping significant and ongoing benefits to both eh NR and 

local communities is reported however the lack of sustained operational funding after Project completion 

is eroding many of the management gains. 

(b) From Reforestation to Habitat Restoration two species of exotic larch were planted in monocultures 

in the Qinling beginning in the 1950s and accelerating in the 1980s. In addition to introducing 

exotic species that are ecologically inappropriate to the Qinling, these plantations have also formed dense 

stands of trees with little or no under-storey vegetation. WWF has begun a program to plant indigenous 

bamboo species beneath the larch canopies for restoration of foraging habitat of the Giant Panda. This 

program is hampered by the institutional restriction against felling of trees on the Qinling (NFPP) and in 

protected areas (State Council regulation on activities permitted in nature reserves). These institutional 

barriers prohibit removal of unwanted, inappropriate trees that were planted during an era when 

introduction of exotics was seen as a fast means of establishing forest cover and wood supply and when 

exotic species were not viewed as an ecological threat. Retaining such trees precludes efficient planting 

of indigenous bamboos that are preferred by the Qinling flagship species, giant Panda, and would 

contribute directly to continued recovery of Panda populations in the Qinling Mountains. 

(c) Adaptive management and Learning. Recent programs for land conversion e.g., Natural Forest 

Protection Program (NFPP) and Steep Land Conversion Program (SLCP), have not received adequate 

monitoring to determine their ecological or socio-economic effectiveness. Natural forests have not been 

studied after the logging ban of NFPP in 1998 to assess recovery rates or ecological aspects of forest and 

vegetation recovery. Use of timber by villages in and around protected areas has not been assessed. 

Comparative analyses of remote sensing data have not been undertaken to assess NFPP impacts on total 

forest cover. 

41. SLCP was applied to 6,000-8,000 km 2 of the Qinling and the program continues through 2007. 

No monitoring has been undertaken to quantify effectiveness in terms of vegetation cover, tree survival, 

or outcomes in terms of farm economics. 

(d) Species Recovery. The captive populations of Crested Ibis have grown to unmanageable levels at the 

Yang County (over 200 birds) and Zhouzhi County (over 220 birds) breeding centers. Maintenance of 

such large numbers of captive birds of any species is ill advised, particularly in the era of SARS and avian 

influenza. China’s increasing network of wetland nature reserves provides a wealth of potentially suitable 

release sites for some of the captive birds. PRC is planning a release program as is IUCN-SSC through 

its Stork, Ibis and Spoonbill Specialist Group. Japan is also developing a release program at Sado Island 

based on recent successes in natural reproduction of captive birds (young fledged from nests built and 

tended by captive adult birds). Nature reserves in Russia and the Koreas have also expressed interest to 

participate in a release program. 

42. Similar to the giant Panda the Crested Ibis program has successfully bred and reared captive 

birds to te point that some breeding centers are financially unable to grow further due to the cost of forage 

or food. To date limited release of birds has been undertaken and even this is poorly monitored. There has

een a significant lack of research and development into the needs of wild or controlled release programs 

through which the value of captive breeding could be exploited through the establishment of a secure wild 

population. There needs to be significant field research into habitat availability and food sources to 

ascertain what habitat management is necessary to achieve successful reintroductions. 

(v) Diversity in Target Species Biodiversity inventories of Qinling protected areas are generally 

thorough except for invertebrate taxa. Of the 38 globally threatened species in the Qinling, 34 species are 

non-migratory. The big “four” species receive most research and conservation attention: Giant Panda, 

Golden Takin, Sichuan Golden Monkey, and Crested Ibis. The remaining 30 species have been little 

studied and are seldom the target of conservation programs. These include 11 species of indigenous 

plants, six species of wetland vertebrates (four amphibians and two reptiles), one upland bird and one 

wetland bird, and eleven mammals. Study of 11 indigenous plants should also be a priority for 

simultaneous species recovery and ecosystem restoration. One plant species (Brown Moccasin Flower) is 

Critically Endangered, the most threatened of IUCN Red List categories. 

43. The globally threatened amphibians include Chinese Giant Salamander (Critically 

Endangered 12 ), a flagship species for mountain wetlands in China. While restoration of forests will 

indirectly benefit Qinling wetland habitats of Chinese Giant Salamander, more direct intervention is 

needed because of the pressure on Qinling rivers for gold mining and abstraction for transfer to other 

basins. Great investments have been made in commercial rearing of Chinese Giant Salamander, but these 

have not been matched by investments in field conservation. The 11 mammals include two species that 

will not directly benefit from habitat protection for Giant Panda: Desert Cat (Vulnerable) and Asian Wild 

Dog (Endangered). These species have different habitat needs and these will require dedicated study and 

management projects. 

(v) Captive Propagation. Conservation biology increasingly focuses on science-based management of 

people, habitats, and ecosystems. One successful conservation project in Shaanxi Province is the 

collaborative effort of SFD and WWF to conserve the Giant Panda by protecting and restoring its forest 

habitats and movement corridors in the Qinling Mountains ecosystem. There is, however, a tendency to 

approach conservation of wildlife in China from the perspective of captive propagation. Examples are 

Giant Panda, Crested Ibis, species of sturgeon and other fishes, and two sub-species of tiger. While 

successes have been achieved in captive breeding of some of these species, none of these programs has 

yet led to significant conservation gains for wild populations. Giant Panda and Crested Ibis numbers are 

increasing in the Qinling Mountains because of successful habitat management---not because of release of 

captive bred animals. Fisheries biologists world-wide have concluded that release of captive-bred fish 

from hatcheries can cause more problems than it solves. Russia has shown that habitat protection is the 

key to tiger conservation and all efforts are made to avoid taking Siberian Tigers into captivity. The 

captive rearing approach is taken world-wide only as a “last chance” strategy when numbers of a species 

have declined to a level where extinction in the wild is certain. The Qinling eco-region does not need 

more captive rearing and breeding programs to save threatened wildlife. Rather, as in the case of the 

Giant Panda, habitat protection and restoration is the priority for future investment based on scientific 

knowledge of the requirements of the species targeted for conservation. 

iv) Proposed Project Area 

44. The Project area comprises 458 km 2 (less than 1% of the Qinling Mountains) and is located on 

the northern slope of the Qinling Mountains adjacent to Louguantai Township. It is located in Zhouzhi 

County, 50km south and west of Xian with a travel time from Xian of less than one hour. The Project 

area includes: (i) the Tianyu River and the Chiyu River Valleys, (ii) the hill and plain area to the north of 

the Qinling Mountains, (iii) the existing Louguantai Historical and Cultural Area, (iv) a Hot Springs 

12 

Yet still harvested from the wild to build captive breeding programs for the local restaurant trade with apparent 

impunity from law enforcement

development under construction, (v) an existing collection of bamboo species, (vi) an animal rescue 

center with endangered animals including giant Panda, Crested Ibis Golden Monkey and Takin, (vii) the 

ancient Dao temples regarded as the birthplace of the Daoist religion, and (viii) the Louguantai Forest 

Farm. 

45. The registered population of the Project Area is 20,400 of which approximately 16,000 live on 

the 6000ha of flat land to the north (zoned as ex-situ conservation zone for the Project) and 4,500 in the 

39,000 ha hill and mountain landscape (in-situ zone) in a mostly scattered settlement pattern. Recent 

policy has sought to encourage voluntary resettlement of residents from the in-situ zone and to convert 

people away from agricultural land use practices in the Grain for Green program. This policy has had 

mixed results, and along with logging bans leaves local residents with extremely limited livelihood 

options and currently some 70% of households in the in-situ zone are extremely poor. This compares with 

poverty levels in the flat lands that are estimated to be 28% of households. 

46. The Project Area is representative of the northern slopes of the Qinling Mountains and has welldeveloped 

tourism that generates revenues of about CNY17 million ($2.2 million) from 500,000 people 

each year mostly visiting the home of the Daoist religion for major festivals. As with the majority of flat 

and rolling toe slope land to the north of the Qinling Mountains the Project Area faces significant pressure 

from outside investment into intensive agriculture, demand for rural-residential land, and “wild” tourism 

development. Whilst the Project Area is not within Xian’s peri-urban belt much of the current pressure for 

land on the northern slope is speculative development seeking to benefit from the rapidly increasing land 

values and demand for rural lifestyles in large stand alone homes that are increasingly weekend urban 

retreats. To the south of the flat and rolling hill land the hill and mountain area currently ranges from 

degraded agriculture and forestry land to near pristine natural forest. The Project Area is mostly forest 

land held either by the Provincial Forest Bureau through the Louguantai Forest Farm or as collective 

forest land through Zhouzhi County. 

47. The Project will contribute to the economic growth of Shaanxi Province through diversifying 

the existing range of products within the tourism sector as part of the Shaanxi Province 11 th Five Year 

Plan. The focus of this diversification will be based on nature and wildlife tourism opportunities that fit 

within the tourism strategy to develop ecotourism as a means of increasing the value per tourism within 

Shaanxi. The Project will support tourism development within the Project Area on the north slope of the 

Qinling Mountains and will manage the impacts and effects of tourism through a zonation program. The 

Project area will be zoned for either (i) intensive mass tourism (ex-situ zone) or (ii) extensive low impact 

development (in-situ zone). Within the ex-situ zone investment will be associated to existing cultural and 

nature based tourist attractions including Daoist religious and temple sites, geothermal hot springs, an exsitu 

wildlife management center and will also develop a new botanic garden representing the plants of the 

Qinling Mountains. Within the in-situ zone the Project shall support the restoration of forest habitats, ecotourism 

and sustainable rural livelihoods. 

48. Three commercial tourism enterprises will be supported within the in-situ zone linked to 

biodiversity and nature tourism. In return for support each of these enterprises will reinvest a proportion 

of their revenue into conservation and livelihood programs in the in-situ zone to re-establish natural 

habitats, improve livelihoods and to demonstrate new technologies and approaches to conservation within 

the wider Qinling Mountains. The three enterprises are (i) the existing Shaanxi Animal Rescue Center, (ii) 

the Shaanxi Forest Bureau Hot Springs Joint Venture, and (iii) the Qinling Botanic Garden. The SARC 

and Hotsprings are adjacent to each other in Louguantai and the Daoist temples and museum that already 

attract a substantial visitation. The Qinling Botanic Garden will be located further east of Louguantai at 

Dian Zhen village. 

49. The Project will generate revenue streams that will be used to maintain conservation programs 

in the Qinling Mountains including the strengthening of livelihoods for Qinling Mountain residents. As

such the Project seeks to address: (i) the lack of rural investment and rural enterprise development in 

Shaanxi, (ii) diversification of revenue and economic development in rural areas, (iii) provide leadership 

in the development of eco-tourism to complement the cultural and history tourism sector, (iv) to 

demonstrate how the use of commercial tourism linked to biodiversity can be used to finance 

conservation programs in a more sustainable manner, and (v) to move conservation programs into an 

active habitat restoration and management program.

) Objective 

50. The impact of the proposed Project will be to improve the wellbeing of rural communities in the 

Project Area based on the sustainable conservation and use of Qinling Mountain resources. There will be 

increased smallholder incomes and skills for livelihood diversification including the ability of the rural 

poor to access higher paid employment. Income diversification will be supported through the 

development of Small and Medium Enterprises (SME), the expansion of pro-poor tourism and ecotourism 

opportunities, and the reallocation of land and adoption of appropriate forest based land use activities. 

Biodiversity conservation will be enhanced through habitat protection and restoration programs linked to 

conservation forestry, strengthened management and ex-situ species management programs and extensive 

awareness and education programs. 

. 

c) Outcomes 

51. The Project’s outcome is to introduce an integrated landscape management approach to provide 

sustainable livelihoods for the population of the Project area as a demonstration for the wider Qinling 

Mountains. The Project will address underlying causes and effects of both historical and contemporary 

resource degradation. The main targets and indicators will be (i) demonstration of an integrated spatial 

plan for Louguan Township and surrounding forest farm; (ii) livelihood improvement for up to 12,000 

farmers and 40 associated enterprises, (iii) environmental treatment of over 90% of all waste streams 

arising from mass tourism, (iv) management plans prepared for at least 6 endangered species, (v) 

measurable increases in the extent and quality of habitat within the Project area, (vi) increased tourism 

visitation from 300,00 to more than 1 million by 2020, and (vii) contribution to at least 2 managed 

conservation breeding programs. 

d) Activities/Project Components 

i). Component One: Tourism to support Conservation 

52. Component one will support three commercial enterprises to develop and expand their business 

models within the ex-situ zone. These enterprises include (i) Qinling Botanic Garden, (ii) the Shaanxi 

Animal Rescue centre, and (iii) Louguantai hot Springs Development. 

53. Qinling Botanic Garden (QBG) is a new business enterprise consisting of 269 ha of 

constructed gardens to represent the plants of Qinling and PRC. The gardens will be interlinked with 

walkways along which public education and awareness displays will inform the public on themes such as 

natural history, environment and biodiversity. The QBG will also construct a major exhibition hall to 

represent aspects of natural history and a service reception center including hospitality and restaurant 

functions. The gardens will be linked by walkways and a 1230m cable car to a series of Daoist temple 

sites that will be restored and protected. The vision of the botanic garden is that it will be the entry point 

for visitors to the “Lougauntai experience”. 

54. The 18 constructed gardens will amount to 57 ha interspersed amongst 25 ha of lawn. The 

garden display will be supported with a geothermal heated greenhouse operation for propagation and 

display purposes. The site will require utilities and infrastructure to minimize the visitation impact on the 

environment and the gardens themselves. Electric vehicles will be used to move people around the garden 

as needed.

55. The Qinling Botanic Garden (QBG) will use 4039.5 mu (269.3 ha) of collective owned rural 

land from Dianzhen village for development under this project. While the QBG has received approval to 

prepare the Project Feasibility Study for the Project Area the QBG currently has no land use rights. Two 

approaches have been proposed to access land use rights. These include (i) land acquisition amounting to 

293.63mu (19.64 ha) for the purpose of constructing infrastructure, and (ii) a land shareholding agreement 

for 3,746 mu (249.66 ha) for wider planting and landscaping where holders of current land use rights gain 

shares in the QBG enterprise. 

56. The enterprise has been granted permission to develop the Project and will need to establish 

land use rights. In doing so some 143 households will require resettlement of some 143 households whose 

land will be acquired outright. Most land will be rented through and compensated through a fixed 

payment per mu to farmers with a supporting profit-share agreement determined by the ratio of their 

shareholding to total capital. As the profit share increases it propsoed for the fixed payment to decline, 

however these detaisl have yet to be determined and will in all likelihood only happen after Project 

Completion. . In total the QBG will employ over 250 people with the local residents and affected persons 

having the first right of refusal for any employment opportunity. 

57. Revenues will be generated from day visitation and the use of entry tickets along with profits 

from attractions or services including the cable car, restaurants, rental cars, temples sites and exhibition 

hall. Visitor numbers are expected to rise from 350000 in 2011 to 478,000 on project completion to over 

1.1 million in 2035. Revenue forecasts indicate a revenue stream increasing from CNY 37million to CNY 

64 million in 2015 and CNY 158 million in 2036. Employment will move from the current 40 staff to 

over 250 staff by Project completion. 

Table 3: Forecast Financial Performance of QBG 

Year Visitor Numbers Revenue 

(CNY million) 

2011 350,000 37 -5 

2015 517,000 64 8.4 

2020 725,776 90 31 

2036 1,270,00 157 96 

NCF 

(CNY million) 

58. The Shaanxi Animal Rescue Center (SARC) currently operates from an existing site of 141 

ha within the Lougauntai Forest Farm. The main rescue center is based around a 6 ha site for animal pens. 

This area is open to the public. The current site is in poor repair with significant animal welfare issues. 

The center attracts 30,000 tourist visitors per year mostly to glimpse panda, golden monkey, crested ibis, 

and takin. The Project seeks to significantly expand and enhance the current facility to reposition it as a 

center of excellence in the management and display of threatened indigenous species. As such the center 

is intended to demonstrate to the rest of PRC the potential opportunities and benefits from establishing 

international standards in the care and welfare of the animals within this ex-situ conservation, education 

and research center. 

59. The project will modernize the center to meet international standards by: (i) increasing the 

personnel and their capacity in wildlife conservation, (ii) achieving more efficient rescue of wild 

endangered animals and their rehabilitation, (ii) developing a high quality tourism site, (iv) increasing the 

quantity and quality of research into wildlife, and (v) creating an awareness and education program for 

visitors and local communities on wildlife and biodiversity. The Project will achieve this by increasing 

the area of the rescue, breeding, research and husbandry facilities from the current 141 ha to 1,112 ha. 

The enlargement will include the development of three satellite sites in more natural environments for 

giant panda, crested ibis and golden monkey within the wider Project Area.

60. The current animal rescue and exposition site 13 will complete a refurbishment and 

reconstruction program designed to ensure animal welfare and animal presentation is world class. The 

Project will provide an international design expert to prepare site layouts, design specification and 

detailed terms of reference for the SARC design institute to follow in the completion of a detailed 

engineering design. To avoid potential public and media ridicule, ADB will require final detailed 

engineering design to be reviewed by ADB and the international expert to ensure compliance with the 

TOR’s provided. 

61. At Project completion the center will have 70% of the forage area developed and be able to 

support 80% of total planned numbers of iconic species. The center will undertake the science for 

controlled release of species from breeding centers as numbers and the science enables this to occur. It is 

proposed that the giant Panda Breeding Center be expanded to include 10 nursery rooms, 32 enclosures, 

and a research and feed growing areas. The Crested Ibis Center will include construction of an artificial 

wetland and mangement office to ensure a prey base is established and water quality will support the 

futrure Ibus Satellite center. The Golden Monkey site will involve 10ha of forested/treed land that will 

support 30 animals in a more natural environment. 

62. Being located one hour drive from Xian provides the SARC a major marketing advantage over 

competing panda attractions. It also has the added benefit of having access to other iconic Qinling 

Mountain species. The rapid expansion of Chinese tourism and the central role of Xian and the Terracotta 

Warriors in this growth offers a large accessible visitor population of both local and international tourists. 

A visitation management program will be introduced. 

63. Revenue will be generated through the visitation program. Visitation is projected to increase to 

430,000 by Project completion and then increase to over 1 million in 2030. Revenue levels will increase 

to CNY 33.3 million by Project completion, CNY 63 million by 2015, and CNY 130 million in 2036. 

SARC management will contract a commercial tourism operator to manage the commercial aspects of the 

site. Current staff levels of 28 full time and 12 part-time will increase to nearly 200 full time jobs. 

Table 4: Forecast Financial Performance of SARC 

Year Visitor Numbers Revenue 

(CNY million) 

2011 280,000 26.4 -1.5 

2015 519,000 63 21.7 

2020 829,000 100.6 50 

2036 1,100,000 130 77 

(Source: PPTA Estimates) 

NCF 

(CNY million) 

64. Hot Springs Center involves an existing development of the Shaanxi Louguan Daoism Hot 

Spring adjacent to the Animal Rescue Center. The first stage of development is due for completion during 

late 2007 and involves an accommodation and bath area. The Development is being undertaken as a joint 

venture between the Shanxi Forest Bureau (as represented by the Lougauntai Forest Farm 49%) and the 

Shaanxi Tourism Group Corporation (51%). The Project will support the second phase of the 

13 The Exposition site was originally scheduled for Phase two development after Project Completion. However the 

SARC has agreed that it is important to address the major animal welfare issues at the exposition center as it 

represents the “public window” of the center and how it will be judged. AS a result the SARC proposal will shift 

USD 7 million away from the crested ibis proposal to enhance the animal exposition center. This change is 

currently not included within the Project costab file due to the timing of the agreement , however as it will only 

involve the shifting of existing budgets the change will be cost neutral. The change will be made at the Final Report 

stage.

development to improve leisure tourism in the Project Area, to promote tourism and the Project Area as a 

tourism attraction, to stimulate growth in local industry through providing goods and services to visitors, 

and importantly to promote greater understanding of Daoism as a religion. 

65. The Project will support the construction of 18 multi-room villas with five bedrooms for two 

people each or a total capacity of 180 people per night. In addition the project will support development 

of a restaurant, bathing pool complex, internal utilities and site infrastructure, equipment and vehicles and 

staff training programs. Visitation is expected to derive from both over night stays and day visitors with 

the development providing the top end of available accommodation in or around Louguantai. 

Accommodation occupancy is expected to reach 70% by 2020. Day visitation would start from about 

300,000 in 2011 and reach 500,000 in 2023 at which level it would reach operational capacity. 

Management of the operation will be undertaken through a commercial management contractor with 

substantial experience in the tourism sector. The Shaanxi Tourism enterprise needs to raise private sector 

funding for the completion of the hot springs development 14 . 

ii) Component Two: Improved Village Livelihoods from sustainable management and 

conservation of natural resources 

66. Component two will support the implementation of an in-situ zone management strategy 

resulting in improved conservation values through increasing forest cover and manipulation of existing 

forests to improve their function as wildlife habitat. The in-situ zone supports 4,500 residents that lost 

income sources due to policies removing their access to forest products, livestock and agriculture on steep 

lands. 

67. Financing of in-situ conservation is a core outcome for the Project to ensure finance is made 

available after Project completion. The Project will introduce an innovative financing mechanism to 

achieve this based on the ex-situ enterprises (component one) supplying funds for in-situ reinvestment. 

The propsoed mechanism for this will be a charge against fixed assets including land creating the 

additional incentive for increased efficiency in capital utilization. Until assets are valued and final 

cashflows are prepared the actual terms of the charge are not defined. For the purpsoe of the feasibility 

study a proxy amounting to 8% of forecast net profit is used. Under this system the net profit during the 

construction period will be modest as capital is invested. By 2012 the profits involved increase 

substantially and will support investment into in-situ conservation beyond the Project Area with an 

estimated USD 400,000 being transferred to in-situ in 2012 from the Qinling Botanic Garden, SARC, and 

the Hotsprings development. 

68. The existing institutional arrangements for land use and the provision of a financing mechanism 

are a major risk to the reinvestment arrangement. The Project will support the rationalization of the 

institutional and organizational issues (see Component three) to increase the efficiency of the current 

management systems and also to provide a more practical option for managing the transfer of funds from 

the commercial enterprises to the in-situ zone. It is also recommended that the transfer be considered a 

cost of business and not a residual profiut redistribution to minimize avoidance. 

Table 5: Projected Financial transfers to the Eco-fund based on 15% of Net Cash Flow (after tax and loan 

repayment) - USD `000’s 

Source 2012 2013 2014 2015 2016 2017 2018 2019 2020 

CNY(0000) 300 338 304 347 390 432 475 518 561 

USD (000) 400 451 405 462 519 576 633 690 747 

14 

It is recommended that prior to ADB approval a Bank Guarantee or letter of credit should be provided to ensure 

that financing is available

Source (PPTA Estimates) 

69. The revenue available for in-situ funding is estimated based on 8% of after tax net cash flow 

from Qinling Botanic Garden, SARC, and the hotspring. These estimates indicate that by Project 

completion USD 400,000 would be transferred and that this would increase to $0.5 million after 5 years. 

It is suggested that in the last year of the Project that the transfer could be allocated according to the 

following guidelines (i) Monitoring 25% ($100,000), (ii) In-situ habitat development 25% ($100,000), 

(iii) implementation of endangered species management plans 25% ($100,000). (iii) social development 

and livelihood programs 25% ($100,000). As the amounts increase the funds allocated to wider 

livelihood and conservation programs can also increase including options such as scholarships for 

residents of the Qinling Mountains to work in conservation or livelihoods, livelihood enterprise grants 

etc. 

70. Improved Village and Forest-Based Livelihoods The Project will introduce technologies, 

infrastructure and business development resources to reduce poverty from the current 70% of households 

within the 16 administrative villages to 20% at Project completion. Livelihood improvement within forest 

based production systems will be demonstrated and evaluated to enable policy reforms and replication of 

successful models. The Project will result in 16 village development plans that include a community 

forest and natural resource plan being prepared for the collective forest land in a participatory planning 

process (see Appendix 7 and Supplementary Appendix 2 and 9). The plan will identify collective forest 

land that will be surveyed and demarcated, and the Shaanxi Forest Bureau will issue each collective with 

the necessary forest tenure certificates establishing rights to forest resources and the collective will assign 

these to individual households. If households resettle outside of the Project Area and land rights assigned 

to their households will be redistributed amongst the remaining households. During the planning process 

village forestry associations will be formed through which the conservation forestry program will be 

implemented. The Project will support the development of up to 5,000 ha of analog conservation forestry 

through the provision of technical support, planting materials, site management technologies including 

light penetration, shade planting, and intercropping. Mixed species forests that mature into forests that are 

analogous to natural forest will provide substantial wildlife benefits, reduced soil and water loss, and both 

forest and non-forest products for harvest. The area per household is unknown until areas are demarcated 

but estimates of 3.5 ha per household if 100% of the local population participates a figure that increases to 

over 5ha with 70% participation. 

71. QBCDA (in-situ) households will also have access to small business development grants to 

establish value-adding enterprises that tareget the processing of local produce and a rnage of producìton 

grants to produce medicinal and essential oil plants (See Supplementary Appendix 9) to provide raw 

materials for the processing enterprises. Opportunities and interest in such enterprises will be identified 

during the village planning process. These will be assessed through Project supported research studies 

into plant and plant extract opportunities including essential oils and medicinal plants. Additional support 

will undertake market research and market chain linkage studies to ensure viability and to maximize 

integration within value chains. Community based ecotourism home-stays for medium to high value 

clients will be developed to support the growing demand for overnight accommodation in wild or natural 

environments. It is proposed to differentiate these from existing home stays by providing a slightly higher 

quality of service and accommodation. Community infrastructure including 17.5 km of roads along the 

Tianyu River and 109 km of mountain pathways will be upgraded to reduce travel times and ensure 

access during adverse weather. Grants will also be available to either villages or households to develop 

social infrastructure especially alternative energy sources (biogas and solar) and water supply schemes 

where these are identified during the village development planning program. 

72. Demonstration of Conserving In-situ Biodiversity The in-situ area will be used as a 

demonstration and training program for those working in other parts of the Qinling Mountain. In effect it 

will become a field conservation training and demonstration area from which methods and skills are

developed and lessons disseminated. The project will prepare a detailed forest and habitat management 

plan for the in-situ area using a particpatory action learning process to provide training for wider Qinling 

Mountains conservation management staff. 

73. Habitat modification and restoration covering 2,000ha of newly established forest cover and 

further areas of monitored natural regeneration will be supported using ecological research, forest 

silviculture, under-storey planting, canopy manipulation etc. The objective of habitat restoration is to 

move the existing monoculture forest plantings into mixed species forest cover with the forest architecture 

similar to natural forests. Technical Assistance will be supported by GEF for defining and implementing 

the Conservation Forestry Programs. Research into tree and shrub species, ecological impacts and 

monitoring grad-sects, permanent sampling plots will be supported to assess the impact on regeneration, 

floral characteristics, environmental parameters, and overall forest structure. The data-set will provide a 

strong basis on which to develop future policy and government interventions within the Qinling 

Mountains and especially within the newly created corridors that link protected areas. Lessons learned 

should be incorporated into the proposed landscape planning exercise, biodiversity monitoring and 

information services and project dissemination program (see Component 3). 


hotspot through developing endangered species management programs that will operate both within and 

beyond nature reserve boundaries. Support will be provided to undertake the research and management 

planning for five to ten endangered species along with budgetary support for initial implementation 

programs. The in-situ endangered species management program will focus on using the Project Area as a 

field conservation research area from which monitoring and lessons can be disseminated throughout the 

conservation sector in the Qinling Mountains. The program will also seek to increasingly integrate the 

ex-situ species management program of the Shaanxi Animal Rescue Center and Qinling Botanic Garden 

(see Component one) with the in-situ endangered species management programs through making 

significant operational and management changes to SARC and its facilities and supporting planning 

programs that involve representatives of bothSARC and Qinling Botanic Garden. The integration will be 

facilitated through shared research, joint planning exercises and sharing of data and experiences. In the 

medium term options for controlled release programs and supporting research will be included in species 

management plans. 

iii) Component 3: Institutional arrangements to support market based approaches for 

biodiversity conservation 

75. The Component will develop the institutional arrangements and mechanisms to introduce 

programs supported by market based approaches. The component will deliver (i) effective Project 

Management, (ii) legal reforms , and (iii) a conservation replication and dissemination program. 

76. Project Management will be undertaken by a Project Management Office that will coordinate 

implementation amongst the three sub-borrowing Implementing Agencies: (i) Qinling Botanic Garden, 

(ii) Shaanxi Animal Rescue Center and (iii) Hot Spring Development Joint Venture. The PMO will be 

supported with 11 experienced staff, office facilities and equipment. Project Impact Monitoring contracts 

will be awarded in Project Years 1, 3 and 5. A resettlement monitoring expert will be contracted over the 

first three years and will report to both the PMO and ADB on resettlement outcomes. A total of 13 

professional job exchanges are offered for periods of approxiamtely two months and will be allocated to 

QBG (3), SARC (5), and other non IA’s and EA staff(5). Procurement planning will be undertaken by 

each of the Implementing Agencies and will be administered by a local bidding company contracted by 

the PMO on a fee basis.

77. Institutional Strengthening The Project will support essential legal reforms for the purpose of 

enabling project implementation and long term feasibility and sustainability of the Project strategy. The 

Project will undertake legal reviews and develop recommendations for the Government on four policy 

issues relating to (i) reform of collective land tenure in Shaanxi Province, (ii) the establishment of 

community partnerships in natural forest management, (iii) the development of policy guidelines for the 

implementation of more sustainable development programs, and (iv) the preparation of operational 

guidelines and standards for ecotourism in Shaanxi. The studies will be awarded as contracts to institutes 

and individuals with a strong knowledge in the subject matter. 

78. The amalgamation of the Qinling Botanic Garden, SARC and the Louguantai Forest Farm into a 

single organisation to manage the Project Area is a major innovation and provides a strong lesson into 

how improved natural resource and conservation management can be supported through institutional 

reforms and the linking of revenue streams to conservation and poverty reduction programs. It is propsoed 

that ADB provide an institutional strengthening Technical assistance grant to build capacity of current 

enterprises within the Project Area. The removal of the institutional uncertainty creates reduction to the 

risk to future decisions that is essential to achieve sustainable natural resources. 

79. The Qinling Botanic Garden enterprise is the latest unit to be formed and be allocated mandates 

within the Project Area. The result is that there is a complex of ambiguous, overlapping and often 

uncertain institutional arrangements regarding the jurisdictions and authority over resources and decision 

making in the Project Area. All these units including the Qinling Botanic Gardens are within the umbrella 

of the Shaanxi Forest Department and as such will be amalgamated into the QNBG government unit with 

each of the existing enterprises forming independent divisions under the collective management. The 

long term nature of the botanic garden, Shaanxi Animal Rescue Center and the associated benefits from 

joint marketing and promotions, the need for a legal mechanism for transferring funds (see appendix 7), 

the efficiency from moving towards a commercial manager of the commercial entities (as proposed 

already by SARC) need certainty in tenure and management authority to create the correct incentives for 

long term sustainable outcomes. 

80. The inclusion of the Louguantai Forest Farm is essential given its mandate and legal jurisdiction 

over land and forestry functions. Their inclusion would also address a major weakness in the initial 

Project proposal being the Qinling Botanic Garden control over the in-situ zone. The current management 

capacity, vision, and on-going desire to introduce high volume tourism into the in-situ zone by the QGB 

proponents indicates the total inadequacy of this organisation to fullfill this role. Given the forest 

restoration focus of the in-situ strategy the Louguantai Forest Farm has the current mandate and staff 

resoruces to best implement the strategy. Whilst Qinling Botanic Garden claim this role their proposed 

research agenda, roading and tourism development suggest very limited awareness of biodiveristy 

conservation needs. 

81. The QNBG will be established before Loan Negotiations and all assets and business interests 

transferred into the new organization. No long-term investment into the Project, SARC, the Qinling 

Botanic Garden should be approved prior to the formation of the QNBG to ensure that reforms are 

enacted in a timely basis. It is recommended that ADB consider a stand-alone technical assistance grant to 

support this process by financing a 1 to 2 year institutional strengthening program. 

82. Under the QNBG the requiremetn for devleoping sustainable financing mechanisms is 

facilitated. Under the consolidated organization, a share of the revenue raised from commercial 

enterprises determined as a capital levy can be captured and then earmarked for conservasiton of the insitu 

area. These funds can be managed through the internal accounting system and transferred to a 

separate ledger account and even Bank account if necessary. These funds would become the revenue for 

the proposed in-situ Louguantai Forest Farm division. It is suggested that the access to funds be based on

a decision by the Board of Directors based on a rolling three year work plan and an annual work plan 

budget. Provision for this arrangement will need to be written into the constitution of the new 

organization. 

83. Conservation Monitoring and Awareness Program The Project will undertake a series of 

participatory programs involving biodiversity expertise from over the whole Qinling Mountains using the 

Project Area as a basis for developing and testing approaches to field conservation. Shaanxi Forest 

Department is currently working through out the Qinling Mountains with WWF to implement an wide 

ranging conservation monitoring program. This program operates under a three year MOU based on 

WWF provision of funding and seeks to move toward a wider landscape approach to the conservation and 

management of Biodiversity through the linking of Nature Reserves with corridors and the remaining 

forest farm lands. 

84. The Project shall support a process of defining and testing a landscape planning and 

management model for the Qinling Mountains where the total Project Area shall be used to complete a 

landscape planning and management model. The model will be evaluated and then used to prepare 

landscape management guidelines for the Qinling Mountains. The approach seeks to develop consensus, 

understanding and skills, as well as identify existing data and approaches that could be applied to the 

Qinling Mountains Landscape planning program. Participants will form a professional communication 

network for conservation workers that form a central commuication system for the dissemination 

program. This network also seeks to build a stronger professional cadre across geographically and 

institutionally scattered personnel. An integral part of the landscape plan will be a master tourism plan for 

the ex-situ zone and Louguantai in particular. The project will assist stakeholders to develop a tourism 

spatial plan that can guide the ongoing investment program in terms of spatial layouts, design 

specifications and marketing. 

85. An important part of the replication program will be the capture and analysis of data and its 

subsequent dissemination. Support is provided for the development of a data collection system including 

field monitoring equipment such as camera traps, GPS etc., data collection costs for 4 years including the 

purchase and interpretation of imagery, training for existing Louguantai Forest Farm staff to form a field 

monitoring team. The tema will be trained by WWF for two years and the data collected will be provided 

to the SFD an incorproated into the Qinling Mountains monitoring data base and GIS for analysis and 

reporting purposes. WWF is selected due to its existing extensive monitoring program in the Qinling 

Mountains and it close association with the Shaanxi Forest Department– the likely owner of the proposed 

QNBG. The GIS capability of SFD will form the basis of an information service provider for the Project 

and planning processes within the Project. These include a range of research and planning contracts to be 

undertaken in other components. The Project will develop a biodiversity monitoring framework for the 

Project Area based on work completed to data and similar initiatives being support by SFD through 

WWF. Technical assistance is provided for developing advanced field monitoring techniques and for the 

provision of field monitoring equipment. The baseline will be formed through a series of contracted field 

survey and research studies involving (i) vegetation studies, (ii) vertebrates, (iii) invertebrates, (iv) fish 

and aquatic biodiversity, (vii) amphibians, (viii) soil microbial organisms. While the ability to detect and 

quantify biodiversity impacts will be limited within the life of the Project, the data sets and analysis will 

be used in future evaluations and management decision making. 

86. The dissemination program shall be contracted by the PMO to an NGO or institute with proven 

experience in awareness and communication in rural China and the Qinling Mountains in particular. The 

program will develop a communication strategy for the project as a whole and will work with the SFD 

GIS and information services. The Program will include communication of data, analysis and lessons 

learned from the project to a wide set of stakeholders in conservation and government administrations 

within the Qinling Mountains. The program will also provide training programs for the development of

awareness and understanding of market based approaches to senior officials and to field level staff and 

their managers. 

e) Key Indicators, Assumptions and Risks 

22. Key indicators include 

(i) Objective Indicators 

� Area experiencing land degradation and soil erosion reduced by 15% by 2020 

� Critical habitats covered by protected area -- e.g. growth in protected area that 

successfully protects endangered and non-priority species 

� Increased tourism revenues from both mass and high value tourism 

� Investment and business opportunities increased with 40 new small businesses 

started and $1 million investment by 2015 

� Increased rural smallholder incomes with skills to complete for off farm 

employment and self employment 

(ii) Outcome Indicators 

� By 2013 integrated landscape management is demonstrated 

� 7,000ha of forested land managed 

� 3 large scale commercial enterprises providing a minimum of 8% of profits to the 

in-situ conservation program 

� In-situ poverty household decline from 900 to 200 (from 70% to 20% of total hh) 

by 2020 

� Ex-situ poverty count (hh level) declines from 980 to 260 (from 28% to 7% of 

total hh) 

� Environmental protection from mass tourism is treating over 90% of all waste 

streams 

� 5 globally threatened species are protected through habitat regeneration and 

management Endangered species of giant panda, takin, golden monkey, crested 

ibis, giant salamander, red panda, clouded leopard, brown-eared pheasant, 

Manchurian trout, gingko tree, Chinese mountain larch, one flower kingdonia, 

mao-tai maple, and Chinese fir are monitored with numbers increasing by 2015 

� Tourism visitation increases from current 300,000 per year to 800,000 by 2015 

and 1.2 m. by 2020 

� Ex situ enterprise revenue increases from CNY 62 million to RMB 158 million 

by 2015 and RMB 415 million by 2035 

� 500 jobs for in-situ community members 

� 870 jobs for the ex situ community members 

� Approximately 15,000 full time job equivalents during construction 

(iii) Outputs Indicators 

87. Component 1: (i) 269 ha botanical garden established with 18 formal gardens and walkways 

and supporting public education facilities (ii) 870 jobs created for community members in the ex-situ 

zone (iii) 143 households resettled, (iv) 18 Daoist sites restored, (v) 1 cable car constructed, (vi) Qinling 

Botanic Garden revenue increasing from CNY 30 million to 65 million by 2015, (vii) Botanic garden 

investing 15% of its Project profits into the in-situ Project Area, (viii) Animal rescue centre extended and 

refurbished with extensive enclosures with satellite areas for Ibis, Panda, and golden monkey, (ix) 

Upgraded animal exposition center, (x) SARC investing 15% of net profits into In-situ program, (xi) 

Phase II of hot springs development/Daoist cultural center completed and operating, (xii) tourism 

visitation increases from current 300,000 per year to 800,000 by 2015 and 1.2 million by 2020.

88. Component 2: (i) 16 Village development plans prepared including conservation forest and 

nature resources plans, (ii) 5000ha of collective forests with certificates awarded to individual households 

planted and maintained as conservation forests, (iii) 40 business development grants awarded and 10 

homestay tourism enterprises started, (iv) 17.5km of road upgrading completed, (v) 109km of mountain 

pathways upgraded, (vi) 100 alternative energy (biogas) and 100 water supplies completed, (vii) In-situ 

(Louguantai Forest Farm) habitat restoration plan prepared and 2000ha of habitat management 

implemented, (viii) Endangered species recovery management plans for 5 species prepared and being 

implemented with supporting research contracts. 

89. Component 3: (i) Project Area management organization formed and operating with annual 

profits reinvested and 11 full time staff employed, (ii) Project disbursement ratio targets achieved more 

than 85% of the time, (iii) Annual work planning and evaluation achievement completed on time, (iv) 

Five legal reform studies completed and proposed reforms submitted to the SPG, (v) New QNBG formed 

by loan effectiveness and implementing an institutional strengthening program by end of PY 1, (vi) 15 job 

exchanges completed before the end of PYr 4, (vii) Sustainable financing program operating by the end of 

Yr 4 as part of new institution, (viii) integrated landscape habitat management plan for the Project Area 

completed within a action planning and capacity building approach by Yr 4 including a tourism master 

plan completed as part of the Landscape Habitat Management Plan, (ix) conservation monitoring contract 

awarded and implemented by mid PY 2, (x) ecological research contracts awarded and completed by Pyr 

3, (xi) data collated for the PA, remote sensing analysis completed and stored with operational database 

accessible to staff by PY 4, (xii) public education and awareness program implemented and lessons 

learned disseminated. 

90. The Project formulation uses the assumption that there is a strong commitment to biodiversity 

conservation using commercial market based approaches. These approaches will also address (i) 

economic development goals, (ii) sustainable natural resource management and rural livelihoods, and (iii) 

the sustainable financing of new biodiversity conservation approaches within the Project Area and the 

Qinling Mountains through the reinvestment of profits. The ability to diversify the economy in a 

sustainable manner based on commercial tourism will require a significant change from existing tourism 

practice and requires management expertise to support the development and marketing of niche tourism 

operations that can link to an established tourism sector. A significant risk is the ability of the existing 

enterprises to move from cost recovery and revenue generation into a relatively sophisticated tourism 

niche that demands quality at all levels. While SARC recognize this the current Qinling Botanic Garden 

enterprise does not have the same level of understanding or appreciation within their existing staff and 

management. 

91. Building commercial enterprises on conservation and natural resources requires a commitment 

from all resource users to ensure best practice and to recognize that if one enterprise or attraction fails to 

maintain best practice the overall “Louguantai experience” may suffer. The almost total lack of 

coordination and collaboration of the separate entities prior to the PPTA suggest that there is no 

commitment to a unified tourism product that complements existing attractions. The current situation is 

characterized by competitive behavior for control over land and resources and not a commitment to a 

singular and common goal for the Project Area. Developing and committing to a unified tourism market 

for all of Louguantai is an essential factor in future success. This requires incorporating conservation 

values (including religious, natural resource and social-cultural) into future decisions on land and water 

use, farming practices, commercial tourism and recreation. Key assumptions also include that the 

regulations enacted and the institutions to support these will provide clear land and water rights and 

contractual agreements for stakeholders and commercial interests. Consultants need to be mobilized and 

studies done, and the planned institutional arrangements need to be effective. It is assumed that agreement 

over in-situ management will be reached and implemented. Without such an agreement there is no basis 

for GEF investment.

92. The main risk to the Project’s success arises from the prevailing models of economic 

development and lack of consideration for natural resource and biodiversity. SPG and PRC commitment 

to fast economic growth with inadequate attention to the environment has resulted in loss of habitat, 

fragmentation of habitats, and further ecosystem degradation. The risk can be partly mitigated through the 

technical studies, demonstrations, extra knowledge gained through training of project participants, public 

participation and education and exposure to ecosystem recovery, and the linking of commercial revenues 

to conservation values. To achieve science-based solutions for sound ecosystem management from profits 

requires the work of the Project to be fully understood and endorsed by political leaders who will act as 

“champions” for reform. Other key risks include (i) the ex-situ conservation program being poorly 

managed and resulting in wild harvest – especially for giant Panda and giant Salamander; (ii) endangered 

species are mismanaged for commercial advantage, (iii) invasive species a Qinling Botanic Garden, and 

(iv) no resolution of organizational issues. 

2. COUNTRY OWNERSHIP 

a) Country Eligibility 

93. The PRC is party to (i) the Convention on Biological Diversity (CBD) (ratified 5 January 1993). 

Within the framework of the CBD, the PRC completed its Biodiversity Action Plan (BAP) in June 1994 

that outlines a strategy and a set of strategic actions designed to conserve the country’s rich biodiversity. 

The United Nations Convention on Combating Drought and Desertification (UNCCD) was ratified in 

1997. 

b) Country Drivenness 

94. The Project is consistent with the priorities and national and regional plans of the Government 

of the PRC. Since ratification of the CCD the PRC has progressively increased its conservation 

investment with currently 15.5% of total land being included in the national reserve system, however 

much of this remains unmanaged or under-performs its conservation role. The Shaanxi Province have 

further increased the land allocated to conservation through the creation of habitat and wildlife corridors 

within the Qinling Mountains and the creation of the Ecological Function Conservation Areas. The 

movement of land out of agricultural production in the ex-situ zone for conservation of Qinling 

Mountains flora and the movement of land from damaging agricultural practices to more forest based land 

uses all indicate a strong commitment to resolve the issue of land degradation and the associated impacts 

upon biodiversity and water and soil protection functions. The proposed Project Area while not a 

protected area is to be managed for conservation and its size exceeds the largest existing Qinling 

Mountain nature reserve. The acceptance of the need to move commercially generated revenues to 

finance conservation and habitat restoration also demonstrates a willingness to forgo revenue to obtain the 

long term benefits of conservation. 

95. The 11th Five Year Plan outlines Shaanxi’s proposed program that includes new approaches 

and initiatives to address resource degradation, the effect of rural poverty on sustainable resource 

management and to introduce new mechanisms to finance conservation. These include the new socialist 

countryside program, the development of ecotourism, the introduction of urban and regional development 

that links urban to rural communities, and the improved coordination for the implementation of programs. 

96. The willingness of the SP to borrow approximately USD $40 million, and to invest a further 

USD $85 million of its own resources into the Project in addition to the anticipated $5 million GEF 

contribution is indicative of the ownership of the need for change. The willingness to finance public 

goods relating to rural livelihoods, habitat restoration, recreation and public education including the 

provision of subsidies to the rural poor to adopt more sustainable land use and achieve improved

livelihoods, are signs of strong ownership. Other indications include the SPG willingness to address key 

legal and policy reforms in a manner that ensures best practice is identified and then applied to the 

development of institutional arrangements for managing multi-purpose forest based landscapes is a major 

recognition of the acceptance of the need to change.. 

3. PROGRAM AND POLICY CONFORMITY 

a) Fit to GEF Focal Area Strategic Objectives and Operational Program 

97. The project is an integral part of the PRC-GEF Partnership on Land Degradation in Dryland 

Ecosystems, and was referred to in the Framework Brief that was approved by the GEF Council in 

October 2002. As noted, the Partnership is governed by a Country Programming Framework (CPF) which 

covers a 10 year period (2003-2012). The CPF supports a sequenced set of priority activities that: (i) 

strengthen the enabling environment and build institutional capacity for integrated approaches to combat 

land degradation; and (ii) demonstrate viable integrated ecosystem management models for widespread 

replication. 

98. The CPF is consistent with the GEF Operational Strategy, with Operational Program #12: 

Integrated Ecosystem Management (OP12), and with recently approved GEF guidance on the 

programmatic approach as contained in relevant GEF documents. The project is also consistent with and 

will contribute to the accomplishment of goals of OP15, OP3, OP4 and OP1. Although the project draws 

exclusively from Biodiversity Focal Area funding, GEF’s publication “A Conceptual Design Tool for 

Exploiting Inter-linkages between the Focal Areas of the GEF” has been referenced during project design. 

The Project meets the eligibility criteria as set forth in the CPF (Attachment 2 shows the linkage between 

the Project and the CPF). The project is also consistent with the GEF-4 programmatic approach that 

seeks to secure a larger and sustained impact on the global environment, through integrating and 

mainstreaming global environmental objectives into local government development strategies and plans, 

through partnership with local government stakeholder institutions. 

99. The Project builds on the findings of the ADB, Government and GEF-funded capacity building 

program, which has recently completed the preparation of the Shaanxi Provincial Strategy and Action 

Plan for addressing Land Degradation. These studies have highlighted the centrality of biodiversity 

conservation within Shaanxi and the threats to biodiversity arising from land degradation especially on 

the north slope of the Qinling Mountains. The strategy and action plan highlights the need to address 

more effective land management for soil and water protection and biodiversity conservation in the 

Qinling Mountains and the integration of conservation and ecosystems values within wider economic 

development pressures. 

1. PRC Biodiversity Conservation Priorities 

100. In order to redress the fundamental governance (policy, institutional, managerial and incentives) 

weaknesses in the current approach to biodiversity conservation, to exploit unique opportunities, and to 

significantly lessen threats to biodiversity nationally, the Government of China is proposing a new goal: 

to address the governance drivers of biodiversity loss. In this case the term governance is used broadly to 

encompass; policy and planning, institutional coordination and capacity, the “vertical” connect between 

national policy and local implementation, incentives, management and technical expertise. The 

framework has four inter-connected themes: (i) strengthening the overall enabling environment for 

biodiversity conservation; (ii) mainstreaming biodiversity conservation into socio-economic sectors and 

development; (iii) protecting biodiversity inside protected areas, and (iv) protecting and sustainable 

utilization of biodiversity lying outside of protected areas. Hence, the activities cover the required shortterm 

measures to conserve biodiversity (Themes iii and iv), and the required longer term measures to

modify the drivers of biodiversity loss (Theme ii). Theme i will provide the overall direction and 

coordination, and further ensure that activities are to become fully integrated into the national 

development process. The Linkage of Project activities with the National Biodiversity Priorities is 

presented in Table 6 below.

Expected 

Project Output 

Table 6: Linkage of Project to National Biodiversity Framework 

National Biodiversity 

Project 

Performance 

Activities 

Contribution 

Indicators 

Theme 1: Improving Biodiversity Governance. 

Under this theme, relevant policies, strategies, institutions, communication systems and human resources in China will be strengthened or developed to conserve biodiversity. 

Development of measures to address the threat of climate change to biodiversity is also included under this theme. The focus of activities will initially be at the national level, but will be 

increasingly at provincial and lower levels over the coming decade. The contributions of the Project to the relevant indicators are listed below. 

1. The national legal and policy system � Development of demonstrations of habitat restoration � Demonstrable examples of sustainable 

for biodiversity conservation is effective � Development of landscape based conservation planning conservation and analog forestry 

� Endangered Species recovery management guidelines � Endangered spp managed for Qinling 

� Conservation forestry models based on analog forestry Mountains to demonstrate how national species 

for biodiverse collective forests 

management plans can be developed and 

� Ex-situ species management guidelines 

implemented 

� Ecotourism guidelines 

2. Nationally, law enforcement is Not applicable other than the use of market based incentives to 

integrated and strengthened 

increase local stakeholder contribution to protection 

3. An institutional framework for � Landscape planning approaches to biodiversity � Collaborative planning for entire Qinling 

biodiversity is established across sectors conservation 

Mountains demonstrated with guidelines for 

and over administrative levels 

� Endangered species recovery programs for Qinling landscape scale planning systems 

Mountains not simply Nature Reserves 

� Information sharing amongst Qinling Mountains 

� Monitoring and information dissemination programs conservation staff along with professional 

across all stakeholders 

development training and participation forums 

� Establish Shaanxi Qinling Biodiversity Promotions Ltd 

as a unitary organization that reinvests profits into 

biodiversity conservation and sustainable livelihood 

programs 

4. Financial flows to biodiversity � Project investment during project construction period � US $ 5million invested by GEF and $5 million 

conservation increase over current � Increased revenue for commercial ex-situ botanic invested by SPG 

baseline 

gardens and SARC 

� Starting 2012 USD $ 390,000 reinvested from 

� Financing via eco-fund mechanisms 

commercial enterprises increasing to USD $1 

million plus by 2025 from ex-situ enterprises 

� Conservation forestry supporting small and

Expected 

Project 



Activities 

Performance 

Contribution 

Indicators 

medium sized enterprises built on production of 

local Qinling Mountains plants 

� Awareness and education products developed to 

international standard at each ex-situ site plus 

information sharing programs 

5. The general public is supportive of 

conserving biodiversity 

� Increased involvement of research institutes, 

universities, design institutes, NGO’s, township, 

county and provincial agencies 

� Increased partnering within planning processes, 

and plan implementation 

� Conservation education and awareness roles and 

programs at QBG and SARC 

� Monitoring and information services disseminating local 

Louguantai success stories 

� Tourism Marketing information and campaigns on 

benefits and resources of Louguantai 

� Dissemination programs for GEF programs throughout 


� Re-integration of in-situ communities into conservation 

forestry programs 

� Employment to biodiversity linked enterprises and 

programs 

� WWF involvement in monitoring and information 

sharing programs 

� NGO contracted for Village Development Planning 

programs 

� Ex-situ communities involvement as shareholders in exsitu 

QBG 

� Competitive grants for research contracts 

� Community biodiversity SME programs 

� Training programs 

� Participatory planning 

� Conservation forums and planning systems for the 

Qinling Mountains as a whole that use the PA in-situ 

area as a field conservation pilot area 

� Reforestation of 7,000ha 

� New policy and guidelines for forest management in 


6. Communities, NGOs and private sector 

play an adequate role in biodiversity 

conservation 

Trained staff in Project Area and wider Qinling Mountains 

for the conservation of biodiversity, ecotourism, planning 

and rural livelihoods 

. Human resources and capacity for basic 

research and experimental ability are 

enhanced 

� Increased forest cover within the Project Area 

� Increased natural revegetation in in-situ area 

� Reduced deforestation rates in the wider Qinling 

8. Biodiversity conservation adapted to 

climate change

Expected 

Project 



Activities 

Performance 

Contribution 

Indicators 

Mountains 

Theme 2: Mainstreaming Biodiversity into Socio-Economic Sectors, Plans and Investment Decision-Making 

The actions under this theme will focus on the national and local socio-economic planning systems that determine government spending priorities – including on 

biodiversity. The aim here is to integrate biodiversity so that it will be seen increasingly as an important ‘development issue’ rather than a separate and unlinked 

issue. Under this theme, regulations, tools, mechanisms and procedures will be developed and operationalized for all sectors (including private production 

sector), for all levels of administration and all components of the economy. A strong emphasis will be to develop strong economic incentives frameworks. The 

contributions of the Project to the relevant indicators are listed below. 

Not applicable 


10. Biodiversity conservation and 

sustainable use are mainstreamed into 

national development plans 

11. Biodiversity is mainstreamed into 

relevant plans and laws of sector 

ministries and departments 

� Planning systems agreed and demonstrated 

� Plans being used to guide implementation and 

day to day operational management 

� Endangered species programs being 

implemented and new [plans being proposed for 

the National and Shaanxi Provincial level 

� Landscape plan 

� Forest use and conservation forest principles 

demonstrated 

� Policy studies 

� Endangered species recovery management plans 

� Legal studies 

� Joint monitoring and information sharing 

� Ex-situ reinvestment financing mechanism 

� Conservation forestry rights 

12. Biodiversity conservation and 

sustainable use is mainstreamed into local 

plans 

� Evidence of reinvestment into in-situ zone 

� Potential of a public good fund research and 

options for implementation recommended 

� Increased reinvestment from ex-situ business 

� New models of forest based sustainable 

livelihoods demonstrated 

� New enterprise development incentives result in 

increased local added value 

� In-situ livelihood program addressing access to natural 

resources, physical infrastructure, social capital 

development, human capital development and access to 

grants and employment 

� Ex-situ householders become shareholder and employee 

13. An incentive framework for the 

natural-resource based business sector to 

conserve or sustainably use biodiversity is 

established 

14. Biodiversity conservation and poverty 

alleviation programs in China are 

mutually supportive

Expected 

Project 



Activities 

Performance 

Contribution 

Indicators 

of commercial enterprises 

� Landscape planning to link social ecological and 

economic planning 

� Ecotourism development at enterprise and community 

level 

� SME development grants 

Theme 3: Investing Effectively in Reducing Biodiversity loss in Protected Areas 

Under this theme, the framework of the national system of protected areas will be strengthened as well as capacities to effectively manage individual protected areas. Under this theme, 

work will be undertaken so that nature reserve system is well designed, well managed and is protecting habitats and species in all important ecosystems. The contributions of the Project 

� A consensus based landscape planning 

procedure for the Qinling Mountains with 

landscape planning guidelines produced 

to the relevant indicators are listed below. 

� Landscape planning that covers nature reserves, 

biodiversity corridors and associated collective and State 

Forest Land 

� Endangered species management plans 


17. Harmonized and effective national 

system for selecting and designing, 

managing and monitoring protected areas 

� Increased non-government funding for 

conservation 

� Market based systems demonstrated 

� Access to additional finance offered in medium term 

options to develop similar mechanisms elsewhere in 


18. Key and priority individual protected 

areas are effectively managed 

19. Key and priority individual protected 

areas have stable and sufficient finance 

� Landscape, habitat and conservation forestry 

plans adopted and being implemented 

� Landscape planning and access to conservation resources 

in the long term 

20. At key and priority individual 

protected areas, local communities, NGOs 

and/or the private sector are involved in 

PA co-management 

Theme 4: Investing Effectively in Reducing Biodiversity loss outside Protected Areas: This theme focuses on the significant portion of Chinese biodiversity that lies outside protected 

areas and is unlikely to be brought into the protected area system in the near future. The two results under this section will ensure that socio-economic actions in biodiversity rich areas 

outside of protected areas are using biodiversity in a sustainable manner. The contributions of the Project to the relevant indicators are listed below. 

21. Land-use planning and management � Landscape planning for biodiversity planning 

� Plans completed using participatory process and 

systems contribute effectively to � Louguantai town spatial tourism master plan 

agreed by SPG decision-makers 

conserving biodiversity 

� Habitat and conservation forestry management plans 

� Village development and forestry /natural resource

Expected 

Project 



Activities 

Performance 

Contribution 

Indicators 

� 7,000ha of forest cover under conservation 

forestry and habitat management programs 

� Ongoing investment into the up-scaling of 

habitat management programs 

management plans 

� Landscape planning for the Qinling Mountains 

Conservation analog forestry on collective land 

Habitat restoration in Louguantai Forest Farm 

Natural and assisted regeneration programs 

Conservation agriculture programs 

22. Restoration of forest, agricultural, 

ocean, freshwater, grasslands, drylands 

and urban ecosystems demonstrate 

incorporation of biodiversity objectives 

Theme 5: Cross-Cutting and CBD Emerging Issues: This theme encompasses measures to address a range of issues that have recently emerged under the Convention on Biological 

Diversity coherently and strategically. The Results under this theme also address key cross-cutting issues, such as invasive alien species and access and benefit sharing. The contributions 

of the Project to the relevant indicators are listed below. 

23. Effective and strategic ex-situ � Ex-situ wildlife program for Qinling Mountains species � International standard ex-situ management for 

conservation and reintroduction of based at SARC within an increasing wild or natural Qinling Mountains fauna and flora in ex-situ 

endangered species 

environment with supporting research program 

zone supporting research and monitoring 

� Ex-situ plant collection at the Qinling Botanic Garden programs that are integrated with in-situ 

with supporting ecological science program 

programs and plans 

� Endangered species recovery programs 

� Habitat restoration programs 

24. Effective ex-situ conservation of � Ex-situ wildlife program for Qinling Mountains species � Successful SARC enterprise 

commercially-important species and based at SARC within an increasing wild or natural 

varieties 

environment with supporting research program 

� Ex-situ plant collection at the Qinling Botanic Garden 

with supporting ecological science program 

� Production of commercial plant varieties for value 

adding – essential oils and medical plants 

25. Indigenous knowledge is contributing 


to biodiversity conservation and 

indigenous people are benefiting from 

genetic resource use based on indigenous 

� Enterprise operating guidelines 

Not applicable however the protocols for the QBG will need to 

address potential GM plants and their role in the botanic garden 

knowledge 

26. An effective risk evaluation, 

management and monitoring for genetic 

modified organisms operating

Expected 

Project 



Activities 

Performance 

Contribution 

Indicators 

� Enterprise operating guidelines 

QBG will need alien invasive species management and operational 

procedures 

27. An effective risk evaluation, 

management and monitoring systems for 

invasive alien species operating 

23. Effective and strategic ex-situ 

conservation and reintroduction of 

endangered species 

� Endangered species recovery management 

program operating at the Qinling Mountains 

level with demonstrable impacts on decision 

making 

� Reintroduction research and policy dialogues 

developed 

� Endangered species management planning 

� Habitat management planning 

� National species management for iconic species 

including crested Ibis, Golden Monkey, Takin and other 

priority species in the Qinling Mountains 

� Qinling Mountains landscape planning and monitoring 

programs increasingly address species level information

3. GEF Strategic Objective Fit 

101. The proposed Project is closely aligned to the biodiversity criteria and strategy for GEF. In 

particular there is strong association with Strategic Objectives 1 and 2 and also with Strategic Objective 4 

(see Table 7). The recently revised Biodiversity Conservation Focal Area Strategy emphasizes geographic 

focus premised on the same principles and fundamentals as the IEM approach, and this reflected in the 

Project’s design. 

102. Major threats to conservation occurring across the wider landscape require systemic approaches 

if issues relating to land conversion, urban expansion, pollution, habitat loss, water loss, water 

contamination, tourism impacts, invasive species, and inappropriate use of biodiversity are to be 

addressed in an effective manner. The project seeks to support the SPG priority for the introduction of 

effective spatial planning through the support for training and implementation of planning systems within 

the Project area to build capacity, information systems and ensure the scope of such systems includes 

conservation values including existing biodiversity and potential future habitats. 

Strategic Objectives 

and 

Indicative Priority 

Activities 

Table 7: Proposed GEF investment by GEF Strategic Objective 1 

GEF Biodiversity, Priority 

Outcomes 

Proposed GEF 

Project Activities 

Overall goal of conserving biodiversity and instituting sustainable land management in a geographically continuous manner through: 

BD Strategic Objective 1: Catalyze Sustainability of Protected Area Systems 

BD Strategic Objective 2: Mainstream Biodiversity Conservation in Production Landscapes/Seascapes and Sectors 

A: Capacity Building 

Systemic capacity 

building 

Institutional capacity 

building 

Targeted individual 

capacity building 

B: Financing and 

revenue systems 

C: Community and 

Indigenous 

involvement initiatives 

A: Systems level protection 

and management 

development 

B: Individual PA 

management to demonstrate 

new tools and approaches 

C: Individual PA 

Management to secure 

globally endangered species 

BD Strategic Objective 3: To Safeguard Biodiversity 

A: Capacity Building. Training program using conservation, habitat 

restoration, tourism spatial planning systems, endangered species management 

for whole of Qinling Mountains 

B: Systems level procedures. Legal, regulatory and policy development linked 

to the management and restoration of habitat in forest landscapes. 

A: Qinling Mountains. Endangered species management plan, including 

population research and management. Landscape planning and corridor 

integration with habitat modification programs 

A: Qinling Mountains in-situ and ex-situ species management of up to 8 

priority species. 

B: Sustainable financing programs for conservation in the Project Area and the 

wider Qinling Mountains 

C: Village forestry associations actively involved with conservation forestry 

and habitat restoration programs 

D: Integration of conservation with tourism through the botanic gardens, 

animal rescue center and the development of ecotourism products 

1 Strategic Objectives as described in GEF/C.31/10 – “Focal Area Strategies and Strategic Programming for GEF-4”.

Strategic Objectives 

and 

Indicative Priority 

Activities 

A: Building capacity 

for the implementation 

of the Cartagena 

Protocol on Biosafety 

B: Prevention, control 

and management of 

invasive alien species 

GEF Biodiversity, Priority 

Outcomes 

a) strengthening the policy 

and 

institutional environment; 

b) prevention using an 

ecosystem approach; c) 

appropriate risk 

analysis procedures; 

d)early detection and rapid 

response 

e) managing priority alien 

species 

Invasions 

in pilot sites to ensure 

conservation and sustainable 

use of biodiversity. 

BD Strategic Objective 4: Build Capacity on Access and Benefit Sharing 

A: Information 

systems and access to 

up to date information 

B: Capacity building 

through exchange of 

information and 

lessons – regionally 

and locally 

C: Demonstration of 

new approaches for 

replication 

Outcome 1: Design and 

implementation build on 

good practice 

Outcome 3: Countries 

effectively formulate Access 

and Benefit Sharing 

mechanisms that facilitate 

the implementation of the 

Bonn Guidelines 

Proposed GEF 

Project Activities 

A: Legal reforms for managing natural forests and the provision of financing 

B: Management of habitats that have been modified due to the introduction of 

two alien species into the Qinling Mountains to develop improved natural 

forest landscapes 

A: Design. Builds on OP12 land degradation strategy and the 11 th five year 

plan for linking tourism to conservation and sustainable land management 

B: Implementation. Horizontal coordination through multi-sector coordination 

committee. Support for involvement of WWF /SFB monitoring program within 

the Qinling Mountains in the Project Area and endangered species 

management plan. 

User based monitoring/evaluation linked to the information service. Education 

and awareness strategies extended lessons learned throughout the wider 

Qinling Mountains. 

Technical training through international secondments, research contracts and 

habitat monitoring 

Demonstration of habitat and endangered species management programs, 

landscape planning and integrated tourism and conservation spatial plans. 

Workshops and Qinling Mountains symposia to share lessons learned and 

work within the Project Area as a field conservation experimental plot. 

Development and incorporation of conservation data sets for biodiversity and 

habitat management across the Qinling Mountains. 

A: Legal and policy reforms. 

B: Sustainable financing through revenue transfer from commercial enterprises 

for in-situ conservation programs 

C: Information sharing was a condition for lending. Wetland management. 

D: Ecological and spatial management zones regulated.

) Sustainability (including Financial Sustainability) 

103. Adopting an market based conservation and tourism strategy for the Project Area in ways that 

are commercially viable and environmentally sensitive, is a cornerstone of Project design. Financial 

benefits are envisaged to accrue from the adoption of integrated approaches to biodiversity conservation 

through commercial tourism enterprises, which will yield flow-on benefits to the wider Project Area and 

local rural beneficiaries. These benefits will accrue through the transfer of revenue to the in-situ 

conservation programs including habitat restoration, rural livelihoods and conservation forestry, 

conservation monitoring and extension. 

104. Complementary local and global benefits are expected to result in the long-run, as policies and 

planning systems and financing mechanisms adjust resource incentives to encourage local inhabitants to 

protect forested habitats and landscapes that will provide increasing value as habitat for wildlife. From a 

social and environmental perspective, sustainability will be achieved through strengthening resource 

rights, generation of off-farm employment, developing forest based livelihoods, tourism and SME 

enterprises. 

105. Specific legal reforms will ensure the sustainability of the Project are addressed through the 

following: (i) regulatory reforms to provide a clear legal basis and empowerment for the management of 

natural forests and conservation forests in the medium term; (ii) institutionalization of Project Area 

management into a single organizational entity; (iii) strong information and monitoring systems that are 

linked to the existing successes of the SFB/WWF partnership which will be further strengthened as a 

focal point for the Qinling Mountains (iv) ecosystem zoning and spatially planned management of zones 

within ecosystem capacities and not site-specific management guidelines; (vi) addressing systemic 

resource management problems to avoid further inappropriate land use, habitat loss, and the underlying 

cause relating to poverty. 

106. Financing of in-situ conservation will continue after Project completion through the three exsitu 

enterprises involvement in a profit share and redistribution program. During the construction period 

of the Project the profits will be modest. After 2014 the amounts involved could increase substantially 

and be able to support in-situ conservation beyond the Project Area. The existing institutional 

arrangements for land use and the provision of a financing mechanism are a major risk to the profit share 

arrangement. The Project will support the rationalization of the institutional and organizational issues (see 

Component three) to increase the efficiency of the current management systems and also to provide a 

more practical option for managing the eco-fund and the transfer of monies from the commercial 

enterprises to the in-situ zone. It is also recommended that the transfer be based on an asset charge (levy 

on land and capital assets) to create incentives for efficient use of land and to ensure funds are available to 

the in-situ program 

. 

Table 8: Projected Financial transfers based on 8% of Net Cash Flow (after tax and loan 

repayment) 

Source 2012 2013 2014 2015 2016 2017 2018 2019 2020 

CNY 

(0000) 300 338 304 347 390 432 475 518 561 

USD 

(000) 400 451 405 462 519 576 633 690 747 

Source (PPTA Estimates) 

107. The revenue available for in-situ conservation funding is estimated based on 8% of after tax net 

cash flow from Qinling Botanic Garden, SARC and the Hot srping development. These estimates indicate 

that by Project completion USD 400,000 would be transferred and that this would increase to $0.5 million

after 5 years. It is suggested that in the last year of the Project that the transfer could be allocated 

according to the following guidelines (i) Monitoring 25% ($100,000), (ii) In-situ habitat development 

25% ($100,000), (iii) implementation of endangered species management plans 25% ($100,000). (iii) 

livelihood grants etc 25% ($100,000). As the amounts increase the funds allocated to wider livelihood and 

conservation programs can also increase including options such as scholarships for residents of the 

Qinling Mountains to work in conservation or livelihoods, livelihood enterprise grants etc. Increasing the 

percentage of the NCF transferred can increase the transfer dramatically – see Table 7. 

Table 7: Projected Revenue Flows to In-Situ Conservation (USD ‘000) 

% Post Tax 

NCF 

Transferred 

2012 2013 2014 2015 2016 2017 2018 2019 2020 

5% 255 288 259 295 332 368 405 441 477 

8% 400 451 406 463 520 577 634 691 748 

10% 533 601 541 617 693 769 845 921 997 

15% 711 802 721 822 924 1,025 1,126 1,228 1,329 

c) Replicability 

108. The Project Area contains habitat and ecological functions that are typical of those found in the 

wider Qinling Mountains. The Project seeks to demonstrate the following conservation innovations that 

can be replicated through out the Qinling Mountains. These are (i) market based approaches that link 

commercial enterprises to the funding of field conservation programs, (ii) landscape planning systems, 

(iii) ex-situ research and reintroduction programs, (iv) Landscape planning systems, (v) habitat restoration 

and modification, (vi) conservation forestry, (vii) community tourism and SME development, (viii) 

endangered species management programs, and (ix) conservation management monitoring. 

109. The approach to conservation will be to use the Project as a training and development 

opportunity for building capacity and linkages throughout the Qinling Mountains and move toward a 

more landscape based approach. Through linking Project activities to the conservation cadre throughout 

the Qinling Mountains it is envisaged that new skills and consensus will emerge on priority conservation 

management techniques and their application in the Qinling Mountains. 

d) Stakeholder Involvement 

110. The Project had significant stakeholder involvement during the preparation phase: (i) each 

subcomponent has been developed through extensive stakeholder consultations which are reflected in 

design. Rural smallholders have been consulted regarding their participation, perspectives, current 

situation, proposed needs, and preferred options; (ii) a detailed survey has assessed rural livelihoods 

especially their development assets and vulnerability assessments, and rural focus groups and interviews 

have been conducted; (iii) Project design assessments were conducted using three stakeholder workshops 

to review every aspect with smallholders and agency staff; (iv) the IAs have been involved at every step 

and participated in reviewing progress and restructuring of proposals including the PRC agencies for 

safeguards such as the Poverty Reduction Office, the Environment Protection Bureau; (v) implementation 

will involve farmer’s associations, and the use of contract land use systems; (vi) a total of four major 

workshops have been held to review and restructure the project proposals. 

111. The most significant aspect of this Project is the integration of tourism, forestry and agricultural 

sectors in a manner that builds capacity and cooperation During preparation, implementing agency 

proposals were revised and supported with the inclusion of ecotourism and in-situ conservation programs,

technical capacity building, improved management processes, needed legal reforms, absence of planning 

systems, and monitoring and evaluation needs. This process was further extended and indicated that (a) 

bottom-up implementation will involve associations/groups and the wider Qinling Mountains 

conservation community; (b) lending programs need to capitalize and build on existing programs and 

visitation and empower community -based grassroots institutions, enabling them to become self-reliant. 

e) Monitoring and Evaluation (M&E) 

112. Monitoring and evaluation will conform to both GEF and ADB guidelines for project 

implementation, monitoring and evaluation. As an ADB project, it will be subject to the standard M&E 

procedures, reporting and supervision arrangements. The use of the WWF/SFD monitoring framework 

within a reformed set of organizations for the Project Area will play a major role in M&E as this will 

create the basis for the new organizations MIS. 

113. ADB’s standard monitoring procedures include financial and work progress, compliance with 

environmental and social safeguards, and performance monitoring. The Government and ADB will 

review the Project at least twice a year for the first three years and annually thereafter. A comprehensive 

mid-term review will also be undertaken. To monitor the progress of the Project in achieving the planned 

outcome and outputs, the PMO will establish and maintain a project performance management system 

(PPMS), which will be designed to permit adequate flexibility to adopt remedial action regarding Project 

design, schedules, activities and development impacts. The PPMS will adopt the following agreed 

indicators (i) project progress, (ii) enabling framework improvements (policies legal/regulations 

harmonization and clear institutional mandates), (iii) results of capacity development, (iv) progress 

towards demonstration and field targets, (v) environment improvements, and (vi) related social impacts of 

the Project. At Project inception, the PMO, in consultation with each sub-borrower and with the 

assistance of a contracted service provider, will develop comprehensive PPMS procedures to establish 

baseline values and systematically generate data on inputs and outputs of the project activities; and the 

socioeconomic, agricultural, and environmental indicators to measure project impacts. 

114. The PMO will refine the PPMS framework, confirm achievable targets, firm up monitoring and 

recording arrangements, and establish systems and procedures no later than 6 months after Project 

implementation. Baseline and progress data will be reported at the requisite time intervals by the IAs to 

the PMO, including annual reporting on the environmental management plan. The PMO will be 

responsible for analyzing and consolidating the reported data through its management information 

system, and for reporting the outcome to ADB through the quarterly progress reports 

115. The monitoring program is based on agencies monitoring their implementation of project 

activities and the immediate outputs with all data transferred to the WWF supported SFD data bases 

where it will be shared, analyzed and reported. Implementing agencies will be responsible for the routine 

monitoring as part of their management information systems and adaptive management program, 

including (i) threat assessments; (ii) problem status and changes; (iii) beneficiary assessments; (iv) input, 

output and impact monitoring; (v) economic, social and environmental; (vi) resource efficiency 

monitoring; and (vii) institutional monitoring. 

116. The PMO will hold an annual evaluation workshop for all implementing stakeholders who 

would present their progress and reasons for deviations and then the whole project would assess these for 

input into the next annual plan. Baseline and impact monitoring will be contracted to suitable local 

institutes for surveys and assessment in Yr 3 and Yr 5 and will be reported as part of a Project Area status 

report. The mid-term surveys will inform the mid-term review which will use an adaptive management 

approach by redirecting the project towards successes and away from areas that progress less than 

expected. The final survey will form the basis of the completion report evaluation and the assimilation of

the lessons from the Project. All monitoring data will be fully integrated and communicated within the 

wider dissemination program. 

4. FINANCING 

a) Project Costs 

Project Components/ Outcomes Co-financing 

GEF 

Total 

($’000) 

($’000) 

($’000) 

1. Commercial Ex-situ Enterprise 

101,775 174 101,949 


2. Sustainable Livelihoods and Conservation 

15,855 1,181 17,036 

of in-situ resources 

3. Strengthening Institutions 2,780 2,915 4,186.9 

4. Charges 6,200 0 5,985 

Total Project Costs 124,857 4,270 129,157

) Project Management Budget/Cost 2 

Component Estimated GEF Other Sources Project Total 

Staff- Weeks ($000) ($000) ($000) 

Locally recruited personnel/consultants 

Internationally recruited consultants* 

2,860 0 439.6 439.6 

Office facilities, equipment, vehicles and 

communications (including recurrent costs: 

vehicle O&M and office equipment) 

Travel (included under budget line items 

for consultants) 

307.2 307.2 

Total 0 746.8 746.8 

* Local and international consultants in this table are those who are hired for functions related to the management of project. 

Note that ADB does not use GEF funds to cover the compensation of ADB staff. For those consultants who are hired to do a 

special task, they would be referred to as consultants providing technical assistance. For these consultants, please provide 

details of their services in c) below: 

c) Consultants working for technical assistance components: 

Component Estimated GEF Other Sources Project Total 

Staff-weeks ($’000) ($’000) ($’000) 

Personnel 0 0 0 

Local consultants 228 139 183.9 322.9 

International consultants 112 392 208.7 600.5 

Total 340 531 392.6 923.4 

d) Co-financing Sources 3 

Name of 

Co-Financier 

(Source) 

Classification 

Co-financing Sources 

Type Amount ($) Status* 

ADB Multilateral Agency In cash 40,000,000 Committed 

Govt Local Government In cash 84,886,500 Committed 

Total 12,886,500 

117. The estimated total cost of the project is US$129.2 million. ADB will provide a loan of US$40 

million and manage a supporting GEF grant of $4.27 million that will be matched by a government 

counterpart contribution equivalent to US$ 84.9 million. 

5. INSTITUTIONAL COORDINATION AND SUPPORT 

a) Core Commitments and Linkages 

118. The Project has the full commitment of the principal co-financier, the ADB. The objectives of 

the Project are consistent with ADB’s Country Partnership Strategy (2008-2010) which stresses 

improving environmental management and reducing poverty. ADB’s operations will support the 11 th FYP 

and focus on the broad themes of equity and environmental sustainability. Project activities are aimed at 

promoting sustainable rural development with emphasis on ecosystem management and addressing rural 

poverty through livelihood programs. The Project is also fully consistent with ADB’s recent Country 

Environmental Assessment for China (2007). 

6 For all consultants hired to manage project or provide technical assistance, please attach a description in terms of their staff 

weeks, roles and functions in the project, and their position titles in the organization, such as project officer, supervisor, 

assistants or secretaries. 

3 Refer to the paper on Cofinancing, GEF/c.206/Rev.1

119. The SPG commitment is demonstrated in its commitment to (i) invest in the preparation of the 

Project, (ii) the alignment of the Project with the 11 th FYP reflecting Government’s initiatives to improve 

conservation management and address rural development inequities as part of the wider “new socialist 

rural countryside” portfolio. The Executing Agency (EA), the Shaanxi Provincial Development Reform 

Commission, will take responsibility for overall implementation of the ADB loan and GEF grant financed 

projects, and coordinate the three sub-borrowers (Qinling Botanic Garden, Shaanxi Animal Rescue 

Center, and Louguantai Fuda Hot Spring Joint Venture) in ensuring that the Project achieves its 

objectives in the way it has been designed. 

120. GEF’s commitment to the ongoing CBCLDP in SPG (also supported by ADB) and the other 5 

provinces/regions has laid the basis for developing far greater awareness of land and resource degradation 

issues and has started to develop understanding of potential means to address the underlying causes of 

degradation. The Project aims to keep building on this through further demonstrating new approaches to 

achieve sustainable development outcomes. 

b) Consultation, Coordination and Collaboration between IAs and EAs 

121. The PRC-GEF Partnership on Land Degradation in Dryland Ecosystems has provided the 

umbrella mechanism for coordination of GEF IA and EA contributions. With ADB serving as the lead 

GEF agency, the Partnership and its Capacity Building to Combat Land Degradation Project has helped to 

establish a long-term and comprehensive strategy embodied in the Country Programming Framework 

(CPF). Through this mechanism, there has been strong coordination of all participating GEF agencies – at 

this stage, including the World Bank (through the ongoing Gansu-Xinjiang Pastoral Development Project) 

and IFAD. IFAD is preparing a project aimed at improving comprehensive agricultural capacity for food 

production in Ningxia (to the south of this Project) which will build on and replicate the Project’s 

approach. The Project Identification Form (and PDF/PPG allocation) for this project – the Dryland 

Ecological Conservation and Rehabilitation Project – has been included in the pipeline of 2007 IFAD 

projects under the framework of the PRC-GEF Partnership on Land Degradation in Dryland Ecosystems. 

Close coordination will be maintained between these two GEF-assisted projects. 

c) Project Implementation Arrangements 

122. The Project will be implemented through the SPFD as the Chinese EA with support of a Project 

Management Office operated by SPDRC and staffed from SFD, PDRC, DOF. The selection of SFD as the 

EA reflects the mandate of SFD and its relationship to QNBG enabling SFD to have sufficient influence 

over the Implementing Agencies to ensure agencies respond to Project’s needs; a lesson from the other 

donor programs is the need for sector level cordination of Project work programs. The SPG has formed a 

high level Project coordination committee with representatives of sector agencies and Provincial 

adminstration under the chairmanship of the Vice-Governor that will provide coordination across sectors 

and levels of administration, undertake high level reviews of proposed institutional reforms, and provide 

decisions for project implementation. Inter-sector conflict or implementation issues requiring higher level 

authority will be addressed through the Coordinating Committee. 

123. The Project Management Office (PMO) will operate from the SPDRC. While the PMO will not 

implement investment activities financed by ADB, it will be responsble for implementing institutional 

strengthening programs using GEF and counterpart funds and will also contract the use of GEF funds. 

The will provide implementation reports to the Coordination Committee and ADB. It will also provide 

implementation coordination by consolidating work plans, planning and implementing procurement, 

financial management, and safeguard monitoring. The PMO will link to the implementing agencies that 

will form Project Implementation Offices (PIO) and will ensure the PIO staff are fully trained in Project 

adminstration, reporting and procurement procedures.

124. The QNBG will be the sub-borrower. The Project Implementing Agencies will be QNBG and 

include the: (i) Qinling Botanic Garden, (ii) Shaanxi Animal Rescue Center, (iii) Louguantai Forest Farm 

and (iv) the Louguantai Fuda Hot Springs Joint Venture. The implementing agencies will develop 

consolidated work plans for the activities under their jurisdiction, supervise implementation, provide 

counterpart funds, and provide the supporting project management, reporting and administration 

functions. Each Chinese Implementing Agency will operate through Project Implementing Office (PIOs). 

125. The PMO will also undertake a number of implementation functions relating to the use of GEF 

funds and through the contracting of implementation. This will include a significant contract for 

WWF/SFD for the application and implementation of their biodiversity monitoring framework to the 

Project Area . The Project will be implemented over five years, with year one being used for mobilization, 

establishment of project management capacity and procedures, the completion of detailed engineering 

designs and Government and ADB approvals. The period from year 2 through 4 are envisaged as the 

major investment period during which most of the Implementing Agency work program will be 

completed although the in-situ program will be implemented through to Year Five and will continue 

thereafter through the sustainable financing mechanism proposed. The final year will have outstanding 

investments being completed and a significant process of Project evaluation and review to identify key 

lessons. 

126. Each year the Chinese Implementing Agencies will develop an annual plan based on the Project 

design which they will then pass to the PMO for review and assessment. The PMO will ensure (i) that the 

Project objectives are followed, (ii) that the proposed work program does not create unexpected effects of 

their sector programs and (iii) to ensure that opportunities for joint programs and supporting programs are 

coordinated. Once the PMO has approved all plans it will provide a consolidated plan to the Coordinating 

Committee and ADB for review. The process will require iteration between the Coordinating Committee 

and PMO/PIO’s. Once ratified the annual work plan will be implemented. The PMO will coordinate 

procurement and implementation programs. Counterpart funding will be provided through each subborrower 

and there various agreements and will require coordination of procurement activities with all 

procurement contracts being signed by both the PMO and the respective borrowers. 

127. The Chinese Implementing Agencies will provide monthly accounts and quarterly reports that 

will be consolidated by the PMO and submitted to the SPG and ADB. Each year there will be an 

evaluation workshop where each key stakeholder will present the findings of its monitoring and 

implementation progress for discussion amongst all agencies and to inform the following year planning 

process. In Year 3 and 5 a detailed benefit and project impact monitoring study will be used to identify 

the future needs and priorities of the project and to audit past monitoring reporting. 

128. ADB/GEF will hold 6 monthly review missions in the first 3 years and work closely with the 

FDMO to ensure that Project implementation progress is as expected. 

129. The PMO will be responsible for reporting on GEF financed activities presented in Table 2. The 

GEF will finance activities in components one, two and three that are directly related to strengthening the 

conservation of biodiversity in the Project area and the Qinling mountain range. GEF funds target the 

global benefits from globally threatened species and the GEF priority biodiversity conservation themes 

related to biodiversity conservation outside of nature reserves in the wider landscape and the sustainable 

financing of biodiversity. The approach to the use of funds from GEF emphasizes the development of 

communication and shared information and lessons through wider participation in conservation planning 

and decision making, the demonstration of new management systems related to landscape wide planning, 

the development of species management plans over the total Qinling Mountain, new technologies 

including monitoring and information systems, the use of analog forestry models and ecologically defined 

habitat restoration programs.

130. In output 1, GEF financing of US $174,000 is used to support the SARC ex-situ species 

recovery and management technical expertise for Giant Panda, Crested Ibis, and Golden Monkey. In 

addition ex-situ conservaiton faciltity design expertise will be provided to advise the detailed design 

process. The expertise will ensure that a world class ex-situ breeding program is undertaken and the these 

programs are consistent with national priorities and plans. 

131. In output 2, GEF will provide US $ 1.2 million of funding into the demonstration of 

conservation of biodiveristy (subcomponent 2). Specifically the funding will be used to support (i) the 

preparation of a habitat and natural forest management plan ($99,600), (ii) ecological research grants 

($318,700) to develop the data sets and to test silviculture systems for habitat restoration, (iii) 

conservation forestry technical assistnace to support the habitat restoration programs. Additional suppoirt 

is provided for the developmet of capacity and programs for endangered species recovery including (i) 

field survey contracts ($ 378,600), (ii) species recovery management plans ($151,100) and (iii) initial 

implementation of recovery implementation programs ($160,900). 

132. In output 3, GEF funding of $ 2.9 million will support (i) 4 legal reform studies and drafting 

programs, (ii) landscape conservation planning ($749,700), (iii) field conservation monitoring including 

monitoirng contracts ($151,100),WWF technical support and training contract ($44,000), monitoring 

equipment ($35,000) and monitoring training ($42,100), (iv) Technical assistance for species and 

monitoring expertise, (v) monitoring baseline research contracts ($576,200), (vi) support 15 job exchange 

opportunities for technical conservation staff, and (vii) a replication and awareness program ($291,800). 

These programs involve an on-going planning process that seeks to develop a communication process 

between conservation stakeholders, define how to do biodiversity conservation planning within the 

Qinling Mountains landscape and actually demonstrate this within the Project Area. This process will not 

adopt a nature reserve focus but will focus on key species and their management within the Qinling 

Mountain Range and how the scattered management units and their staff can jointly contribute to the 

overall goal. 

133. Replication systems rely heavily on shared data and through the process of joint planning and 

discussions, the ongoing piloting of ideas and technologies in the Project Area, ecological and species 

research programs. These activities will generate substantial data, information and lessons that will 

captured within the Qinling Mountains GIS held by SFD and supported by WWF. A WWF contract will 

be awarded for year one and two to provide technical monitoring training to QNBG. 

Table 8 Project Use of GEF Funds 

Component 

Item Amount 

Subcomponent 

(USD ‘000’s) 

Component One Technical assistance for captive breeding 174 

Component Two 

2.2 - In-situ conservation of biodiversity - Habitat Plan 99.6 

- Ecological research 319 

- Conservation Forestry Expert 72.4 

- Endangered species program – (5 plans, research 

contracts and initial implementation grants) 

690.6 

Component Three 

3.2 - Institutional Strengthening Legal Reforms 330 

3.3 - Replication Programs Qinling Mountains Landscape Planning 750 

Monitoring and information 

- SFD monitoring costs 151.1 

- WWF training 44 

- Training in monitoring 42.1 

- Monitoring equipment (SQNBG) 35

Component 

Item Amount 

Subcomponent 

(USD ‘000’s) 

- TA 517.7 

- Research Monitoring Contracts 576.2 

Job exchange 176.6 

Dissemination programs 291 

Total GEF Investment 4,270

Tracking Tool for GEF Biodiversity Focal Area Strategic Priority One: 

Catalyzing Sustainability of Protected Area Systems at National Levels 

Incremental 

Cost – GEF 

(b) – (a) 

Option B 

USD 

$millions 

Global Benefit Description 

Increment – what is 

additionally achieved with 

GEF $ for global importance 

Total Project 

Investment 

USD 

$millions 

(b) 

Domestic Benefit Baseline 

Description – what is achieved 

with just loan and counterpart 

Annex 1: Incremental Cost Aalysis 

Components, Item Baseline 

and 

Investment 

Subcomponents 

USD 

$millions 

(a) 

1.0 Establishing Successful Ex-situ Enterprises 

The Project develops three commercial enterprises being (i) Qinling Botanic Garden, (ii) Shaanxi Animal Rescue Centre, (iii) Hot Springs Joint 

Venture 

1.1 Qinling 55.4 � 269 ha of botanic garden 55.4 0 

Botanic 

developed including 59ha 

Garden 

of planted gardens, 

Develope 

landscaping, 18 Daoist 

d 

temples upgraded, 

Greenhouse displays, 

exhibition halls and cable 

car, and general 

administration buildings 

8.5 � 0 

8.5 � Villa accommodation , 

swimming and bathing 

complex, restaurant 

developed 

1.2: Hot Springs 

Joint 

Venture 

Phase 2 

developed 

0.174 

38.06 � Ex-situ breeding 

Technical assistance to 

ensure world standards 

are incorporated into 

breeding programs and 

animal exposition 

facilities 

38.06 � SARC extended from 145ha 

to 1150 ha including the 

establishment of 3 satellite 

areas for Panda research, 

Crested Ibis, Golden 

Monkey and upgrading of 

the animal rescue center 

and animal exposition 

programs 

1.3 Shaanxi 

Animal 

Rescue 

Center 

Upgraded 

and 

expanded 

� � 

47

Component 1 

101.78 101.95 0.174 

Total 

2.0 Sustainable In-Situ Livelihoods and conservation of In-situ Biodiversity 

The Project will introduce a village development planning process for 16 in situ communities through which forest use rights will be confirmed, 

conservation forestry introduced to 5000 ha , conservation agriculture demonstrated, small and medium enterprises developed, community home 

stays tourism operations, infrastructure. On forest land a forest habitats management plan will guide 2000 ha of habitat development based on 

silviculture manipulation of existing plantation orientated planting, ecological research, endangered species recovery management. 

2.1 Sustainable Village 1.83 16 village development plans 1.83 

livelihood Developm 

completed 

ent 

Planning 

Conservatio 4.47 (i) establish forest rights and 4.47 

n Forestry 

demarcate collective land 

Implemen 

(ii) complete planting on 

ted 

5,000ha 

Conservatio 0.07 (i) 16 SALT demonstrations 0.07 

n 

developed 

Agricultur 

e (SALT) 

demonstra 

ted 

Small and 2.27 (i) Biodiversity businesses 2.27 

medium 

researched 

enterprise 

(ii) Market Research studies 

s 

(iii) Training, 

0.43 

0.43 10 community home stay 

businesses operating 80 

rooms 

4.48 17.5 km of roads and 105 km 

of pathways upgraded 

developed 

Home stay 

Tourism 

4.48 

Road and 

pathway 

upgrading 

1.64 

1.64 Priority alternative energy and 

water supplies schemes 

Social 

Infrastruct 

ure 

0.1 

0.1 (i) Habitat management plan 

outlining programs to 

increase forest cover and 

the quality of existing 

forest cover to increasingly 

reflect and mimic the 

architecture of natural 

forest habitats resulting in 

increasing trends in 

0.0 Louguantai Forest Farm 

Habitat Management Plan 

Conservation 

of In-situ 

biodiversity 

48



0.32 

biodiversity 

0.0 Ecological Research contracts 0.32 Research findings to inform 

habitat restoration and 

forest manipulation 

0.67 0.0 

0.67 Implementation of habitat 

Management plan for a total 

of 2000ha of treatments 

Habitat 

Restoratio 

n 

Program 

0.073 

0.073 (i) Conservation forester to 

develop biodiverse 

planting models (0.024) 

(ii) SARC design and 

Wildlife vet inputs to 

ensure international 

standards apply to new 

satellite and animal 

exposition 

0.0 (i) Conservation forester to 

prepare silviculture practices 

0.69 

0.69 (i) 5 priority species 

management plans 

prepared for the Qinling 

Mountains 

(ii) Research contracts to 

generate information to 

inform species 

management programs 

(iii) implementation of 

management plans started 

0.0 Endangered Species Recovery 

Management 

Component 2 

15.86 17.04 1.18 

Total 

Sub Component 3.1: Institutional arrangements to support market based approaches for biodiversity conservation. The Project will develop the 

institutional arrangements and mechanisms to introduce programs supported by market based approaches. The component will deliver (i) effective 

Project Management, (ii) institutional reforms and strengthening, and (iii) a conservation replication and dissemination program 

3.1 Effective 

Project 

Managem 

ent 

Staff Costs 0.44 Staff contracted to PMO 0.44 0.0 

Training 0.014 PMO staff trained to ensure 0.014 

biodiversity is included in 

work plans and is reported 

Office 0.02 Functioning Office 0.02 

49

Equipmen 

t 

Office rent 0.15 Functioning Office 0.15 

Project 0.06 Project Monitoring and 0.06 

Monitorin 

reporting to include the 

g 

biodiversity parameters 

Resettlemen 0.03 Resettlement plan compliance 0.03 0.0 

t 

monitorin 

g 

0.75 0.75 0 

Subtotal 

Project 

Management 

3.2: Institutional strengthening for market based Conservation of biodiversity 

Legal reforms 0.330 Legal studies on (i) reform of 0.330 

collective land tenure in 

Shaanxi Province, (ii) the 

establishment of community 

partnerships in natural forest 

management, (iii) the 

development of operational 

guidelines and standards for 

ecotourism in Shaanxi, (iv) an 

assessment of options for 

developing a managed for 

public-good fund (Eco-fund) 

for the long term financial 

sustainability of natural 

resource management. 

Sub component 

0.33 0.33 

total 

Conservation Awareness, Dissemination and Awareness Program 

Conservation landscape 0.75 (i) Conservation professional 0.75 

planning 


develop consensus on 

Landscape planning and 

use Project Area to pilot 

techniques and applications 

(ii) Project area management 

plan including social, 

ecological and economic 

planning layers used to 

provide future protection of 

landscape, Louguantai 

landscape features 

50



(iii) mainstreaming of 

biodiversity conservation 

and biodiversity 

conservation outside 

protected areas 

0.507 0.0 

0.507 Spatial plan to management the 

negative effects of wild tourism 

development that would not 

support the proposed 

Louguantai ecotourism models 

0.02 Contract of information services 

to WFF/SFB to integrate PA 

conservation monitoring with 

Qinling Mountains monitoring 

initiatives being implemented by 

SFB with support of WWF, job 

exchanges 

Louguantai 

Township 

Tourism 

Spatial Plan 

1.54 

1.56 (I) Information sharing 

through out the Qinling 

Mountains 

(ii) sharing of lessons learned 

in Project area within the 

wider Qinling Mountains 

conservation programs 

Field studies involving (i) 

vegetation studies, (ii) 

vertebrates, (iii) 

invertebrates, (iv) fish and 

aquatic biodiversity, (vii) 

amphibians, (viii) soil 

microbial organisms 

completed 

Outputs included in 

monitoring systems and 

information disseminated 

throughout the QM 

Biodiversity 

Monitoring 

and 

information 

services 

0.29 

Dissemination Program 0.29 (i) Lessons learned from the 

Project activities and results 

of research and 

implementation programs 

monitored reported through 

out the Qinling Mountains 

(ii) joint planning and sharing 

of information forums 

(iii) media releases 

0.52 3.109 2.59 

Sub 

component 

total 

Component 

1.22 4.19 2.92 

total 

Charges 6.2 6.2 0.0 

51

124.887 129.157 4.270 

PROJECT 

TOTAL 

52



Annex Two: Strategic Tools – Tracking document 

i. Section One: Project General Information 

I. Project General Information 

1. Project Name: The Shaanxi-Qinling Mountains Integrated Ecosystem Management 

Project 

2. Project Type: 

3. Project ID (GEF): 

4. Project ID (IA): TA 4721- PRC 

5. Implementing Agency: Asian Development Bank 

6. Country(ies): People's Republic of China 

Name of reviewers completing tracking tool and completion dates: 

Name Title Agency 

Work Program Inclusion 

Project Mid-Term 

Final Evaluation/Project Completion 

7. Project Duration: Planned: 5 years Actual ___ years 

8. Lead Project Executing Agency: SRDC 

9. GEF Operational Program: 

dry lands (OP 1) 

� coastal, marine, freshwater (OP 2) 

� forests (OP 3) 

� mountains (OP 4) 

agro-biodiversity (OP 13) 

� integrated ecosystem management (OP 12) 

� sustainable land management (OP 15) 

10. Project coverage in hectares 

53

2. Targets and Timeframe 

Achievement 

at Final 

Evaluation of 

Project 

Achievement 

at Mid-term 

Evaluation of 

Project 

Foreseen at 

project start 

557,298 

Project Coverage 

Extent in hectares of protected 

areas targeted by the project 

54



TA 4721–PRC: Preparing the ShaanxiI–Qinling Mountains Integrated Ecosystem Management Project 

List of nature reserves targeted by the Project 

Category 

No. Name of Protected Area New? Area (ha) Global Designation Local Designation IUCN Category 

1 Taibaishan No 56,325 Man & Biosphere Reserve National IV 

2 Foping No 29,240 Man & Biosphere Reserve National IV 

3 Zhouzhi No 56,393 National IV 

4 Changqing No 29,906 National IV 

5 Zhouzhi Laoxiancheng No 12,611 Provincial IV 

6 Ningshaan No 26,732 Prefecture IV 

7 Guanyinshan No 13,500 Provincial IV 

8 Tianhuashan No 25,485 Provincial IV 

9 Sangyuan No 13,800 Provincial IV 

10 Wuliangshan No 13,700 Provincial IV 

11 Motianling No 11,700 Provincial IV 

12 Niuweihe No 13,087 Provincial IV 

13 Yingzhuishi No 10,732 Provincial IV 

14 Qingmuchuan No 10,200 Provincial IV 

15 Huangboyuan 2006 25,409 Provincial IV 

16 Pingheliang 2006 17,275 Provincial IV 

17 Niangniangshan* 2008 17,000 Provincial IV 

18 Panlong* 2008 18,844 Provincial IV 

19 Banqiao* 2008 36,130 Provincial IV 

20 Baofengshan No 29,500 Provincial IV 

21 Luoyang Dani 2006 5,740 Provincial IV 

22 Niubeiliang No 16,418 National IV 

23 Zhuhuan No 37,550 Provincial IV 

24 Xushui No 5,740 Prefecture IV 

25 Lingkou Dani 2006 5,715 Prefecture IV 

26 Long Xian No 6,559 Prefecture IV 

27 Huashan No 12,007 Prefecture IV 

557,298 

*Not gazetted by mid 2007 

55

Section Two: WB/WWF Site-Level Management 

Effectiveness Tracking Tool for Protected Areas 

Note that the Proposed Area contains no protected areas but is part of the overall Qinling 

mountain range where there are 27 government protected areas. The ADB-GEF-PRC Project 

will indirectly and directly affect the conservation management regimes in these nearby 27 

protected areas. For this reason, a single tracking tool is shown here for the entire range and 

its 27 protected areas. 

NATURE RESERVES ON THE QINLING MOUNTAIN RANGE 

Contacts 

Mr. Lei Yinghu, Vice Director, 

Shaanxi Forestry Department 

56 

Date July 2007 

Telephone 13509185620 E-mail 8takin@gmail.com 

Address Shaanxi Province Forestry Department, Nature Reserves & Wildlife Division 

Name of reserve Qinling nature reserves (27 reserves in total) 

Management Authority Shaanxi Province Forestry Department, Nature Reserves & Wildlife Division 

Geographic location Shaanxi Province, Qinling Mountain Range 

Date of establishment earliest 

in 1983 

Class of reserve 

national, 

provincial, 

local 

Type of reserve conservation of fauna, deciduous broadleaf forest 

Date approved to be 

national or provincial 

reserve 

Size of reserve (ha) 557,298 Area of core zone (ha) not known 

Protection targets 

No of staff 

5 national, 

17 provincial, 

5 prefectural 

Giant Panda, Golden Takin, Golden Snub-nosed Monkey, Crested Ibis, associated habitats, 

broadleaf deciduous and coniferous forest 

Permanent 

staff 

not 

known 

Planned staff not known Part-time not known 

No of residents in reserve not known No of residents around reserve not known

Tracking Tool for GEF Biodiversity Focal Area Strategic Priority Two: 

Mainstreaming Biodiversity in Production Landscapes/Seascapes and Sectors 


Qinling 

Issue Criteria 

Qinling Comments Next steps 

Score 

1. Legal status The protected area is not gazetted 

pursue upgrades of provincia 

0 

24 nature reserves gazetted as national national nature reserves; 

Does the protected 

and provincial reserves since 1983; 

The government has agreed that the protected area 

gazette five corridors as exten 

area have legal 

1 

should be gazetted but the process has not yet begun 

three proposed reserves and five 

of nature reserves; 

status? 

corridors not yet gazetted; 

The protected area is in the process of being gazetted 

gazette three proposed nature 

2 

but the process is still incomplete 

application for upgrade to national 

reserves as extensions of 

reserve is in preparation for several existing reserves; 

The protected area has been legally gazetted (or in the 

Context 

nature reserves 

case of private reserves is owned by a trust or similar) begin consolidating reserves 

3 

feasible and advantageous 

2. Protected area There are no mechanisms for controlling inappropriate 

0 

regulations 

land use and activities in the protected area 

Older, better established reserves are 

Mechanisms for controlling inappropriate land use and 

well protected but road and tourism 

activities in the protected area exist but there are major 1 developments threaten integrity; 

Are inappropriate 

land uses and problems in implementing them effectively 

Poaching is largely controlled; 

activities (e.g. Mechanisms for controlling inappropriate land use and 

Timber harvest in reserves is stopped 

poaching) controlled? activities in the protected area exist but there are some 2 but in adjacent areas, household 

problems in effectively implementing them 

use of firewood continues to 

Mechanisms for controlling inappropriate land use and 

degrade forests (15m 

Context 

activities in the protected area exist and are being 3 

effectively implemented 

3 Integrate nature conservation 

land use. 

Publicize and adhere strictly t 

national regulations gover 

use of core, buffer, and 

experimental zones of natu 

reserves; 

Convene annual meetings of r 

per 

managers to review laws, 

household per year). 

regulations, and assess 

performance 

3. Law 

The staff have no effective capacity/resources to 

Provide additional resources t 

0 Resources and capacity for 

enforcement 

enforce protected area legislation and regulations 

increase staffing and enha 

enforcement are limiting in newer 

There are major deficiencies in staff capacity/resources 

capacity for enforcement; 

and smaller nature reserves; 

Can staff enforce to enforce protected area legislation and regulations 1 

Organize periodic training ses 

Reserves typically disregard national 

protected area rules (e.g. lack of skills, no patrol budget) 

to enhance performance o 

regulations that prohibit virtually all 

well enough? The staff have acceptable capacity/resources to 

enforcement personnel; 

activities in core and buffer zones; 

enforce protected area legislation and regulations but 2 

Strictly adhere to national 

Reserves typically disregard national 

some deficiencies remain 

regulations to prevent dam 

regulations that allow only limited 

Context 

The staff have excellent capacity/resources to enforce 

core, buffer and experimen 

3 activities in experiemental zones. 

protected area legislation and regulations 

zones. 

4. Protected area No firm objectives have been agreed for the protected 

Conservation objectives have been Draft and/or update managem 

0 

objectives 

area 

written into management plans for plans with explicit conserv 

The protected area has agreed objectives, but is not 

older, larger, and better established objectives; 

Have objectives been managed according to these objectives 1 reserves; 

Include a monitoring & evalua 

agreed? 

Newer reserves require management plan as an appendix to eac 

The protected area has agreed objectives, but these 

plans with clear descriptions of 

management plan to track 

are only partially implemented conservation objectives and 

reserve performance. 

2 monitoring protocols to assess 

Planning 

57


Qinling 

Score 


progress towards achievement of 

objectives. 

The protected area has agreed objectives and is 

managed to meet these objectives 3 

Improve PA network by gazett 

proposed reserves and co 

and consolidating these in 

existing reserves where fe 

to avoid duplication of per 

and infrastructure. 

Extend the PA network down 

to lower elevations to inclu 

winter habitat for elevation 

Current design of nature reserve 

network is well suited to 

conservation (large, contiguous 

protected areas with corridors 

joining them). 

Design and efficiency could be 

enhanced by consolidation of some 

proposed reserves and corridors 

into existing reserves 

Inadequacies in design mean achieving the major 

management objectives of the protected area is 0 

impossible 

Inadequacies in design mean that achievement of 

1 

major objectives are constrained to some extent 

Design is not significantly constraining achievement of 

major objectives, but could be improved 

2 

Reserve design features are particularly aiding 

achievement of major objectives of the protected area 3 

5. Protected area 

design 

Does the protected 

area need enlarging, 

corridors etc to meet 

its objectives? 

migrants (e.g. takin, panda 

Planning 

Assess the potential impacts 

boundary demarcation; 

Assess the potential impacts 

demarcating internal PA zo 

Undertake demarcation only i 

areas where public awaren 

will be enhanced and ecolo 

impacts minimized. 

Additional demarcation might be 

needed to inform local residents 

but the habitat impacts of this must 

be carefully weighed against 

potential benefits: It might not be 

advisable to demarcate if it requires 

excessive removal of vegetation or 

fragmentation of habitats. 

0 

The boundary of the protected area is not known by the 

management authority or local residents/neighbouring 

1 

2 

land users 

The boundary of the protected area is known by the 

management authority but is not known by local 

residents/neighbouring land users 

The boundary of the protected area is known by both 

the management authority and local residents but is not 

appropriately demarcated 

58




Qinling 



Score 

The boundary of the protected area is known by the 

management authority and local residents and is 

appropriately demarcated 

3 

Is the boundary 

known and 

demarcated? 

Draft or update management, 

and recovery plans for all 

reserves; 

Integrate management of adja 

reserves to enable them to 

in concert. 

Include quantifiable conserva 

Management plans were prepared for 5 

reserves by World Bank GEF 

project; 

Other reserves need assistance to 

develop and implement plans. 

Older plans need to be updated and 

expanded to include conservation 

There is no management plan for the protected area 

Context 

7. Management plan 

0 

1 

2 

A management plan is being prepared or has been 

prepared but is not being implemented 

An approved management plan exists but it is only 

being partially implemented because of funding 

constraints or other problems 

Is there a 

management plan 

and is it being 

implemented? 

59


Qinling 

Score 


objectives in all manageme 

plans. 

objectives, Monitoring & 

Evaluation, Habitat Recovery, and 

Species Recovery. 

Planning An approved management plan exists and is being 

implemented 3 

Duplicate the World Bank GEF 

participatory planning proc 

all reserves. 

Incorporate research on Giant 

that lists abundant reason 

abandoning attempts to re 

pandas to the wild. 

Schedule periodic (annual) rev 

of management plans to in 

annual Monitoring & Evalu 

by an independent agency 

(possibly an NGO). 

The planning process allows adequate opportunity for 

key stakeholders to influence the management plan +1 

Additional points 

World Bank GEF project included 

stakeholders in planning at five 

reserves. 

Other reserves are planned in a topdown 

process starting with a 

master plan for construction of 

infrastructure and with little scope 

for stakeholder input; 

There is an established schedule and process for 

periodic review and updating of the management plan +1 

The results of monitoring, research and evaluation are 

routinely incorporated into planning 

Planning 

+1 

Add impact assessment to reg 

work plans that call for 

construction of roads, buil 

or other tourism infrastruc 

Add Monitoring & Evaluation t 

work plans to determine w 

projects were completed, i 

budgets were properly use 

what were project outcome 

0 

No regular work plan exists 

8. Regular work plan 

Work plans exist and are carried out 

but not scientifically monitored. 

Work plans seldom address impacts of 

proposed infrastructure such as 

roads and buildings. 

1 

A regular work plan exists but activities are not 

monitored against the plan’s targets 

A regular work plan exists and actions are monitored 

against the plan’s targets, but many activities are not 2 

completed 

A regular work plan exists, actions are monitored 

against the plan’s targets and most or all prescribed 3 

activities are completed 

There is little or no information available on the critical 

habitats, species and cultural values of the protected 0 

area 

Information on the critical habitats, species and cultural 

values of the protected area is not sufficient to support 1 

planning and decision making 

Information on the critical habitats, species and cultural 

values of the protected area is sufficient for key areas 

of planning/decision making but the necessary survey 

2 

work is not being maintained 

Information concerning on the critical habitats, species 

and cultural values of the protected area is sufficient to 

support planning and decision making and is being 

maintained 

There is no survey or research work taking place in the 

protected area 0 

Is there an annual 

work plan? 

Planning/Outputs 

9. Resource 

inventory 

Base management more fully 

research and monitoring re 

Fill the important gaps in the 

protected area network an 

management approaches; 

Spread research and monitori 

funding to cover other thre 

species. 

Long-term monitoring supported by 

SFD and WWF since 2005 produces 

data but information quality and 

utility are not yet determined. 

Inventory focuses on the “big four” 

species and little is known of other 

globally threatened species. 

Do you have enough 

information to 

manage the area? 

Context 

3 

Use research and monitoring 

to guide management plan 

and implementation (e.g. u 

Older national reserves have excellent 

programs but newer reserves lack 

sufficient funding and capacity for 

10. Research 

60




Qinling 



Score 

There is some ad hoc survey and research work 

research and monitoring. 

the 2001 habitat suitability 

1 

Research and monitoring results are analyses for reintroduction 

There is considerable survey and research work but it 

not widely used to guide 

Crested Ibis). 

is not directed towards the needs of protected area 

management. 

If Golden Takin and Wild Boar 

2 

management 

problematic due to increas 

populations, research 

There is a comprehensive, integrated programme of 

management options; 

survey and research work, which is relevant to 

management needs 3 

Where exotic trees have been 

in revegetation, research o 

for removal and replanting 

Is there a programme 

of managementoriented 

survey and 

research work? 

Inputs 

Strictly protect known ecolog 

requirements of threatened 

wildlife; 

Carry out additional research 

monitoring to understand 

requirements of Non-Big-F 

species; 

Manage adaptively to remove 

trees from plantations to p 

natural succession in natu 

reserves; 

Publicize success stories suc 

the recovery of the Qinling 

Panda. 

2 

Requirements for active management of critical 

ecosystems, species and cultural values have not been 0 

assessed 


ecosystems, species and cultural values are known but 1 

are not being addressed 


ecosystems, species and cultural values are only being 

partially addressed 


ecosystems, species and cultural values are being 

substantially or fully addressed 3 

11. Resource 

management 

Road building and tourism 

development threaten habitat 

integrity in some reserves; 

Villages and agriculture threaten 

habitat suitability for Crested Ibis at 

prospective release sites. 

Is the protected area 

adequately managed 

(e.g. for fire, invasive 

species, poaching)? 

Exotic trees have been planted to 

restore forest but natural 

succession is limited in such areas. 

Process 

0 

There are no staff 

12. Staff numbers 

Hire and train additional 

conservation personnel fo 

reserves and corridors. 

Older, national nature reserves have 

adequate staffing levels; 

New and proposed reserves have few 

or no personnel. 

Staff numbers are inadequate for critical management 

activities 1 

Are there enough 

people employed to 

manage the 

protected area? 

2 

Staff numbers are below optimum level for critical 

management activities 

Staff numbers are adequate for the management 

needs of the site 

Problems with personnel management constrain the 

achievement of major management objectives 

Problems with personnel management partially 

constrain the achievement of major management 

objectives 

Inputs 

3 

Fund positions and hire addit 

conservation personnel at 

reserves and five corridors 

Fund training programs for 

personnel at new reserves 

Personnel management is good but 

emphasis needs shifting in favour 

of strict conservation objectives; 

Salaries and benefit packages (such as 

education and training) are not 

0 

13. Personnel 

management 

1 

Are the staff 

61


Qinling 

Score 


corridors. 

Enhance salaries and benefits 

as training) to attract grad 

in wildlife and forestry scie 

adequate to attract graduates in 

wildlife and forestry sciences. 

2 

3 

managed well Personnel management is adequate to the 

enough? 

achievement of major management objectives but 

could be improved 

Process Personnel management is excellent and aids the 

achievement major management objectives 

14. Staff training Staff are untrained 

Fund and implement additiona 

training programs to includ 

periodic field trips to neigh 

reserves to develop more 

cooperation for conservati 

management. 

Fund and develop short- and 

term training programs bo 

country and internationally 

0 

Many nature reserve personnel are 

recruited from other disciplines and 

have no knowledge of nature 

reserve or wildlife management; 

1 

Is there enough 

training for staff? 

Field staff do not have adequate 

training opportunities in nature 

conservation. 

2 

Staff training and skills are low relative to the needs of 

the protected area 

Staff training and skills are adequate, but could be 

further improved to fully achieve the objectives of 

management 

Staff training and skills are in tune with the 

management needs of the protected area, and with 

anticipated future needs 

There is no budget for the protected area 

Inputs/Process 

3 

Most reserves lack adequate funding 

for staff training, conservation 

education, research and 

monitoring, public awareness and 

other activities; 

Budget shortfalls are made up by 

commercial activities that do not 

promote conservation but rather 

degrade nature reserves; 

Budget allocations favor infrastructure 

development rather than 

conservation management and this 

degrades PAs. 

0 

15. Current budget 

Increase allocations for 

conservation projects but 

roads, tourism and other 

infrastructure developmen 

without adequate environm 

safeguards; 

Increase allocations for salari 

benefits to attract qualified 

personnel 

1 

The available budget is inadequate for basic 

management needs and presents a serious constraint 

Is the current budget 

sufficient? 

2 

to the capacity to manage 

The available budget is acceptable, but could be further 

improved to fully achieve effective management 

The available budget is sufficient and meets the full 

management needs of the protected area 

II. INPUTS 

3 

0 

16. Security of 

budget 

Is the budget secure? 

Increase funding to provincial 

local reserves to enhance 

management. 

Budgets for national reserves are 

secured to some extent by national 

funding from SFA. 

All 27 nature reserves in the Qinling PA 

network contribute to conservation 

of all species but provincial and 

lower reserves have little budget 

security and often must develop 

outside sources of funding such as 

tourism. 

1 

2 

Inputs 

3 

Drop the focus on consrtructi 

realign activities to achiev 

There is too much focus on building 

and too little on active management 

0 

There is no secure budget for the protected area and 

management is wholly reliant on outside or year by 

year funding 

There is very little secure budget and the protected 

area could not function adequately without outside 

funding 

There is a reasonably secure core budget for the 

protected area but many innovations and initiatives are 

reliant on outside funding 

There is a secure budget for the protected area and its 

management needs on a multi-year cycle 

Budget management is poor and significantly 

undermines effectiveness 

17. Management of 

budget 

62




Qinling 



Score 

Budget management is poor and constrains 

of habitats, ecosystems, and 

conservation objectives. 

Is the budget effectiveness 1 species. 

managed to meet 

critical management 

needs? 

Budget management is adequate but could be 

improved 2 

Budget management is excellent and aids 

effectiveness 3 

Process 

0 

There is little or no equipment and facilities 

18. Equipment 

Purchase additional equipmen 

research, monitoring, and 

conservation activities. In 

use of auto-trigger camera 

other remote technologies 

monitoring. 

There is some equipment and facilities but these are 

wholly inadequate 1 

The main gap is in research, 

monitoring, and conservation 

equipment for field and office use. 

Is equipment 

adequately 

maintained? 

2 

There is equipment and facilities, but still some major 

gaps that constrain management 

Process There is adequate equipment and facilities 

3 

There is little or no maintenance of equipment and 

facilities 0 

19. Maintenance of 

equipment 

There is some ad hoc maintenance of equipment and 

facilities 1 

Is equipment 

adequately 

maintained? 

2 

There is maintenance of equipment and facilities, but 

there are some important gaps in maintenance 

Process Equipment and facilities are well maintained 

3 

0 

There is no education and awareness programme 

Communities need additional 

awareness training, particu 

in schools to educate yout 

about conservation values 

Public awareness of nature 

conservation is addressed mainly 

by SFD and WWF programs and 

publications; 

Some PAs have museums that include 

conservation education materials; 

Homestay programs have boosted 

conservation awareness in some 

reserves. 

1 

2 

There is a limited and ad hoc education and awareness 

programme, but no overall planning for this 

There is a planned education and awareness 

programme but there are still serious gaps 

There is a planned and effective education and 

awareness programme fully linked to the objectives 

and needs of the protected area 

20. Education and 

awareness 

programme 

Is there a planned 

education 

programme? 

3 

Process 

63


Qinling 

Score 


Convene annual meetings of 

protected area managers; 

Carry out joint training of pers 

Carry out joint monitoring and 

research. 

Adjacent land users are mainly nature 

reserves and forest farms; 

Cooperation is lacking between nature 

reserves on management of natural 

resources and on research and 

monitoring. 

Management is the responsibility of 

state or provincial agencies. There 

are few indigenous peoples on the 

Qinling thus little opportunity for 

input by indigenous or traditional 

peoples. 

Encourage all reserves to follo 

Taibaishan model of comm 

participation in reserve 

management. 

Carry out training of PA perso 

Taibaishan NNR. 

Villagers participate in provision of 

tourism services and facilities. 

In some reserves, villagers also have 

direct involvement in other reserve 

management issues such as 

construction of infrastructure (e.g. 

Taibaishan). 

+1 

Extend the Taibaishan commu 

involvement programs to o 

reserves. 

21. State and There is no contact between managers and 

0 

commercial 

neighbouring official or corporate land users 

neighbours 

There is limited contact between managers and 

Is there co-operation neighbouring official or corporate land users 

1 

with adjacent land There is regular contact between managers and 

users? 

neighbouring official or corporate land users, but only 2 

limited co-operation 

Process There is regular contact between managers and 

neighbouring official or corporate land users, and 3 

substantial co-operation on management 

22. Indigenous Indigenous and traditional peoples have no input into 

people 

decisions relating to the management of the protected 0 

area 

Do indigenous and Indigenous and traditional peoples have some input 

traditional peoples into discussions relating to management but no direct 1 

resident or regularly involvement in the resulting decisions 

using the PA have Indigenous and traditional peoples directly contribute to 

input to management 

2 

some decisions relating to management 

decisions? 

Indigenous and traditional peoples directly participate 

Process 

3 

in making decisions relating to management 

23. Local Local communities have no input into decisions relating 

0 

communities 

to the management of the protected area 

Local communities have some input into discussions 

Do local communities relating to management but no direct involvement in 1 

resident or near the the resulting decisions 

protected area have Local communities directly contribute to some 

input to management decisions relating to management 

2 

decisions? 

Local communities directly participate in making 

Process 

3 

decisions relating to management 

Additional points There is open communication and trust between local 

stakeholders and protected area managers 

Programmes to enhance local community welfare, 

Outputs 

while conserving protected area resources, are being 

implemented +1 

Carefully plan visitor facilities 

accordance with national 

regulations for nature rese 

management. 

Carry out impact assessments 

In the older and better established 

reserves there is communication 

with local communities. 

The homestay program enhances 

community welfare as do programs 

at Taibaishan where villagers are 

guides, wardens, and monitors. 

Older, larger reserves have adequate 

facilities. 

There is a risk of overbuilding facilities 

to earn income from tourism. 

There are no visitor facilities and services 0 

24. Visitor facilities 

1 

2 

Visitor facilities and services are inappropriate for 

current levels of visitation or are under construction 

Visitor facilities and services are adequate for current 

levels of visitation but could be improved 

64 

Are visitor facilities 

(for tourists, pilgrims 

etc) good enough?




Qinling 



Score 

Visitor facilities and services are excellent for current 

tourism developments. 

Outputs 

levels of visitation 

3 

25. Commercial There is little or no contact between managers and 

0 

tourism 

tourism operators using the protected area 

There is contact between managers and tourism 

Carefully balance developmen 

Do commercial tour operators but this is largely confined to administrative 1 There is a wide range of interaction tourism with conservation 

operators contribute or regulatory matters 

between protected area managers of habitats, ecosystems, a 

to protected area There is limited co-operation between managers and 

and tourism operators. In some species. 

management? tourism operators to enhance visitor experiences and 

reserves, it is good. In others, not 

2 

Follow the Zhouzhi NNR Houz 

maintain protected area values 

yet developed. 

model where tourism facili 

Process There is excellent co-operation between managers and 

are good and concentrated 

tourism operators to enhance visitor experiences, 3 

protect values and resolve conflicts 

26. Fees 

Although fees are theoretically applied, they are not 

0 

If fees (tourism, fines) collected 

Investigate potential for levies 

are applied, do they The fee is collected, but it goes straight to central 

Entry fees are levied at some reserves, ecological services such a 

help protected area government and is not returned to the protected area or 1 but not all. 

water purification and sup 

management? its environs 

Revenues are used to cover operating especially with respect to t 

The fee is collected, but is disbursed to the local 

Outputs 

authority rather than the protected area 

2 expenses. 

South-North water transfer 

scheme. 

There is a fee for visiting the protected area that helps 

to support this and/or other protected areas 

3 

Important biodiversity, ecological and cultural values 

The Qinling as a whole is reasonably Protect areas at lower elevatio 

0 

are being severely degraded 

well covered by protected areas at Recover degraded resources, 

Some biodiversity, ecological and cultural values are 

higher elevations. 

1 

particulary forest and wetl 

being severely degraded 

Lower elevations are not protected. habitats and wildlife popul 

Some biodiversity, ecological and cultural values are 

The intensifying focus on transport Remove exotic Japanese Larc 

being partially degraded but the most important values 2 development and tourism results in encourage natural habitat 

have not been significantly impacted 

65


Qinling 

Score 


succession. 

Develop regulated hunting pro 

to earn revenues for the PA 

from hunting surplus anim 

some loss of biological resources. 

With improving protection, some 

wildlife populations will increase 

out of control in the absence of 

predators (e.g. Golden Takin, Wild 

Boar). 

Biodiversity, ecological and cultural values are 

predominantly intact 

3 

Is the protected area 

being managed 

consistent to its 

objectives? 

Outcomes 

There are active programmes for restoration of 

degraded areas within the protected area and/or the 

protected area buffer zone. 

Improve restoration technolog 

through application of scie 

address ecological needs 

globally threatened specie 

Remove exotic species to enc 

natural forest recovery 

Forest protection and restoration is 

effective in some areas but not in 

others. 

Exotic species used in reforestation 

are problematic. 

Species recovery is not integrated with 

reforestation and habitat protection 

initiatives. 

+1 

Outputs 

66




Qinling 



Score 

Carefully control spatial and 

temporal distribution of to 

with respect to wildlife and 

habitat resources. 

Access control is effective except in 

some PAs where tourism is 

developing rapidly. 

3 

Carefully control tourism 

developments to ensure th 

do not degrade natural 

resources. 

Extend the Taibaishan model 

other reserves to develop 

alternative incomes for far 

and loggers. 

The main benefit is the homestay 

program. It was started by WWF 

and is successful. The risk is that it 

grows out of control and degrades 

conservation values. 

Taibaishan NNR provides economic 

benefits to villagers who serve as 

guides, porters, wardens and 

monitors. 

Villagers also build infrastructure in 

Taibaishan. 

2 

28. Access 

Protection systems (patrols, permits etc) are ineffective 

assessment 

in controlling access or use of the reserve in 0 

accordance with designated objectives 

Are the available Protection systems are only partially effective in 

management controlling access or use of the reserve in accordance 1 

mechanisms working with designated objectives 

to control access or Protection systems are moderately effective in 

use? 

controlling access or use of the reserve in accordance 2 

with designated objectives 

Outcomes Protection systems are largely or wholly effective in 

controlling access or use of the reserve in accordance 

with designated objectives 

29. Economic benefit The existence of the protected area has reduced the 

assessment 

options for economic development of the local 0 

communities 

Is the protected area The existence of the protected area has neither 

damaged nor benefited the local economy 

1 

providing economic 

benefits to local There is some flow of economic benefits to local 

communities? communities from the existence of the protected area 

but this is of minor significance to the regional economy 

There is a significant or major flow of economic 

Outcomes 

benefits to local communities from activities in and 

around the protected area (e.g. employment of locals, 

3 

locally operated commercial tours etc) 

30. Monitoring and There is no monitoring and evaluation in the protected 

evaluation 

area 0 

Additional monitoring technol 

needed for biota and habit 

provide information for 

management. 

Completed academic research 

projects must be reviewed 

understand their implicatio 

management. 

WWF-SFD support semi-annual 

transect wildlife monitoring over 

most of the Qinling. This began in 

2005 and results are not yet been 

available for use by management. 

1 

There is some ad hoc monitoring and evaluation, but 

no overall strategy and/or no regular collection of 

2 

results 

There is an agreed and implemented monitoring and 

evaluation system but results are not systematically 

used for management 

A good monitoring and evaluation system exists, is well 

implemented and used in adaptive management 

Planning/Process 

3 

TOTAL SCORE 66 

67

134. 

135. 

APPENDIX 3 –Tracking Tool for GEF Biodiversity Focal Area Strategic Priority Two, Mainstreaming Biodiversity in 

Production Landscapes/Seascapes and Sectors 

I. Project General Information 

1. Project Name: The Shaanxi-Qinling Mountains Integrated Ecosystem Management Project 

2. Project ID (GEF): 

3. Project ID (IA): TA 4721- PRC 

4. Implementing Agency: Asian Development Bank 

5. Country(ies): People's Republic of China 

6. Name of reviewers completing tracking tool and completion dates: 

Name Title Agency 

Work Program Inclusion 

Project Mid-Term 

Final Evaluation/Project Completion 

7. Project Duration: Planned: 5 years Actual ___ years 

8. Lead Project Executing Agency: SRDC 

9. GEF Operational Program: 

dry lands (OP 1) 

� coastal, marine, freshwater (OP 2) 

� forests (OP 3) 

� mountains (OP 4) 

agro-biodiversity (OP 13) 

� integrated ecosystem management (OP 12) 

� sustainable land management (OP 15) 

10. Production sectors and/or ecosystem services directly targeted by project: 

10. a. The main production sectors involved in the project. (“P” indicates sectors that are primarily and directly targeted 

by the project and “S indicates those that are secondary or incidentally affected by the project). 

Agriculture S 

Fisheries 

68




Forestry P 

Tourism P 

Mining 

Oil 

Transportation 

Other (please specify) 

10 . b. For projects that are targeting the conservation or sustainable use of ecosystems goods and services, specify the 

goods or services that are being targeted, for example, water, genetic resources, recreation, etc. 

1. genetic resources (goods) 

2. non-timber forest products (goods) 

3. timber forest products (goods) 

4. biodiversity conservation (service) 

5. recreation (service) 

6. soil conservation (service) 

7. conservation of water quantity (service) 

8. conservation of water quality (service) 

II. Project Landscape/Seascape Coverage 

10. a. The extent (in hectares) of the landscape where the project will directly or indirectly contribute to biodiversity 

conservation or sustainable use of its components. 

Targets and Timeframe 

Achievement at 

Final Evaluation of 

Project 


Mid-term Evaluation 

of Project 

Foreseen at 

project start (ha) 

Project Coverage 

45,800 

5,050,000 

Landscape area directly 1 

covered by the project 

Landscape area indirectly 2 

covered by the project) 

1 

Direct coverage refers to the area that is targeted by the project’s site intervention. For example, a project may be mainstreaming biodiversity 

into floodplain management in a pilot area of 1,000 hectares that is part of a much larger floodplain of 10,000 hectares. 

69

Explanation for indirect coverage numbers: The Qinling mountain range is estimated to cover 5.05 million ha. 

The Project is expected to indirectly cover the entire Qinling range. The Project Area covers 45,800 ha, which would 

be the third largest protected area on the Qinling range if the entire Project Area were gazetted (see list in item 10b). 

10. b. List of protected areas within the landscape covered by the project by name, category, and extent 

(shaded reserves were not gazetted by year-end 2006). 

Category Area 

No. Name 

China IUCN (ha) 

1 Taibaishan National IV 56,325 

2 Foping National IV 29,240 

3 Zhouzhi National IV 56,393 

4 Changqing National IV 29,906 

5 Zhouzhi Laoxiancheng Provincial IV 12,611 

6 Ningshaan Prefecture IV 26,732 

7 Guanyinshan Provincial IV 13,500 

8 Tianhuashan Provincial IV 25,485 

9 Sangyuan Provincial IV 13,800 

10 Wuliangshan Provincial IV 13,700 

11 Motianling Provincial IV 11,700 

12 Niuweihe Provincial IV 13,087 

13 Yingzhuishi Provincial IV 10,732 

14 Qingmuchuan Provincial IV 10,200 

15 Huangboyuan Provincial IV 25,409 

16 Pingheliang Provincial IV 17,275 

17 Niangniangshan Provincial IV 17,000 

18 Panlong Provincial IV 18,844 

19 Banqiao Provincial IV 36,130 

20 Baofengshan Provincial IV 29,500 

21 Luoyang Dani Provincial IV 5,740 

22 Niubeiliang National IV 16,418 

23 Zhuhuan Provincial IV 37,550 

24 Xushui Prefecture IV 5,740 

25 Lingkou Dani Prefecture IV 5,715 

26 Long Xian Prefecture IV 6,559 

2 

Using the example in footnote 5 above, the same project may, for example, “indirectly” cover or influence the remaining 9,000 hectares of the 

floodplain through promoting learning exchanges and training at the project site as part of an awareness raising and capacity building strategy 

for the rest of the floodplain. Please explain the basis for extrapolation of indirect coverage when completing this part of the table. 

70




27 Huashan Prefecture IV 12,007 

557,298 

III. Management Practices Applied 

11. a. Management practices employed by project beneficiaries that integrate biodiversity considerations and the area of 

coverage of these management practices are listed in the table below. Note: this could range from farmers applying organic 

agricultural practices, forest management agencies managing forests per Forest Stewardship Council (FSC) guidelines or other 

forest certification schemes, artisanal fisher folk practicing sustainable fisheries management, or industries satisfying other 

similar agreed international standards, etc. 



Project 

(hectares) 

Targets and Timeframe 


Mid-term 

Evaluation of 

Project 

(hectares) 

Area of coverage 

foreseen at start of 

Management practices 

project 

that integrate biodiversity 

(hectares) 

1 Reforestation w/ 

5,000 

native species 

2 Forest Farm forest 

2,000 

conservation 

3 SALT Pilot Area to 

reduce agro-chemical 100 

inputs 

4 Sustainable tourism 45,800 

5 Use of biogas sludge 

100 

as compost/fertilizer 

6 Botanic Garden 269 

7 Biodiversity and 

45,800 

landscape planning 

11. b. Is the project promoting the conservation and sustainable use of wild species? 

� Yes __ No 

Sustainable use of the following wild species is promoted by the project. 

71

HERBAL MEDICINE &ESSENTIAL OIL PLANTS OF THE PROJECT AREA 

Essential Oil 

Herbal Medicine Plants 

Herbal Medicine and Essential Oil Plants 

Producing Plants 

Found in Project Area 


Allium macrostemon 

Allium senescens 

Allium tubiflorum Rendle 

Allium victorialis 

Asarum sieboldii 

Asparagus cochinchinensis 

Atractylodes chinensis 

Belamcanda chinensis 

Betula platyphylla 

Betula utilis 

Broussonetia papyrifera 

Cannibis sativa 

Caryopteris tangutica 

Castanea mollissima 

Commelina communis 

Convallaria majalis 

Coriandrum sativum 

Cyperus rotundus 

Daucus carota 

Dioscorea opposita syn. Batatas 

Foeniculum vulgars 

Fritillaria taipaiensis 

72




Essential Oil 






Gastrodia elata – Blume 

Ginkgo biloba 

Gymnadenia conopsea 

Hypericum perforatum 

Iris ensata – Thunb 

Iris tectorum 

Juglans cathayensis 

Juglans regia 

Lilium brownie 

Lindera glauca 

Lindera obtusiloba 

Liriope spicata 

Macrocarpium officinale 

Mentha haplocalyx 

Morus australis 

Morus alba – L 

Nepeta cataria 

Ophiopogon japonicus 

Origanum vulgare 

Physalis alkekengi 

Polygonatum cirrhifolium 

Polygonatum odoratum 

73

Essential Oil 






Polygonatum sibiricum 

Populus simonii – Carrière 

Potentilla chinensis var. chinensis introduced 

Pteroceltis tatarinowii 

Quercus aliena – Blume 

Quercus dentata – Thunb 

Quercus variabilis – Blume 

Salix caprea 

Saruma henryi 

Saururus chinensis 

Sedum majus endemic to area? 

Ulmus macrocarpa 

Ulmus parvifolia 

Ulmus pumila 

Valeriana officinalis 

Verbina officianalis 

Potential Essential Oil Supplimentary List (further 

investigation required) 

Abies chensiensis 

Abies fargessii 

Picea wilsonii 

Pinus armandii 

Pinus taebulaeformis 

74




OIL PLANTS FROM QINLING MOUNTAINS 

NAME FAMILY DISTRIBUTION HABITAT PURPOSE CURE ENGLISH 

NAME 

vapor distilment Chinese fir 

oil from timber, resist 

erode 

low altitude plain area 

Yangtse River 

Basin and 

south QLM 

Taxodiaceae 

Cunninghamia 

lanccolata 

(Lamb.)Hook. 

solvent extraction 

resin is an industrial 

fragrant, adding into 

cigarette and soap. 

refined maple resin can 

add into toothpaste to 

prefer sunshine, around 

village of flat region and 

sub-natural forest of hill 

QL and 

southern Haihe 

river 


Liquidambar 

formosana Hance 

cold squeeze mandarin 

stanche and acesodyne 

oil from per carp. Flavor 

for foodstuff and 

cosmetics 

Rutaceae southern QLM 

Citrus reticulata 

Blanco 

solvent extraction lily of the valley 

costful flavor, for 

cosmetics 

altitude 850 to 2500 

meter. Growth under 

forest or beside stream 

on shadow slop, prefer 

Convallariaceae Shaanxi 

Convallaria 

majalis Linn. 

vapor distilment, 


Flavor extract from 

steam and roots. Costul 

humidity 

sunshine slopes, prefer 

growth on edge of forest 

and stream 

�� Shaanxi 

Iris tectorum 

Maxim. 

vapor distilment, 


flavor for cosmetics. 

oil could directly add 

into cosmetics. Mint 

ketone can be extracted 

from oil. 

�� Shaanxi on hillside 

Cymbopogon 

distans (Nees) A. 

Camus 

oil is flavor vapor distilment catmint 

distrube under altitude 

2500m. Growth under 

bush or beside 

Labiatae Shaanxi 

Nepeta cataria 

Linn. 

vapor distilment 

oil prepare to be 

essence 

residence 

altitude 500 to 3600m. 

Beside road, side hill 

and under forest. 

�� Shaanxi 

Origanum vulgare 

Linn. 


and solvent 

oil contain with 

ambergris. Use for 

originally from 

European. 

�� 

Salvia sclarea 

Linn 

75



NAME 

extraction 

cosmetics, foodstuff and 

chinese wine� 

Cultivation in 

Shaanxi, 

Henan etc. 


oil from stem and roots 

execute stearine. 

Refined oil can confect 

to be other kind of 

essence like tuberose, 

side hill, under forest 

and grassland 

Shaanxi and 

northern-china 

�� 

Atractylodes 

chinensis Koidz. 


lilac, sunflower 

oil can be ingredient of 

essence material 

on altitude 2500m. Dry 

side hill 

Shaanxi, Hebei 

etc 

original from 

mediterranean. 

Cultivation in 

Shaanxi, 

northern/southe 

�� 

Caryopteris 

tangutica Maxim. 


and solvent 

extraction 

oil from seeds can be 

flavor and season 

linalool in oil can be 

materials to synthesize 

flavor 

�� 

Coriandrum 

sativum Linn. 

rnwest china, 

etc 


oil from flower use 

directly for cosmetics, 

like perfume and soap 

Mountain forest 

Shaanxi and 

other province 

�� 

Chimonanihus 

praecox (Linn.) 

Link 

ingredient of essence vapor distilment 

altitude between 500- 

2500m, sunshine slop 

shaw forest 

Shaanxi and 


�� 

Betula luminifera 

H. Winkl. 


oil use directly to 

cosmetics and foodstuff 

and ingredient of 

essence. Citral can also 

be extracted from oil. 

altitude 800 to 2300m. 

Beside stream and 

under/beside the forest 

on sunshine slop 

Shaanxi and 


�� 

Litsea pungens 

Hemsl. 


oil from leaf can be 

ingredient of cosmetic 

essence and soap 

under the altitude 1000, 

side hill, valley, beside 

stream and under forest 

Shaanxi and 



oil from per carp use for 

ingredient of soap 

etc. 

under altitude 900, side 

hill and edge of forest 

Shaanxi and 


Lindera 

erythrocarpa �� 

Makimo 

Lindera glauca 

(Sieb.et Zucc.) Bl. �� 

76






NAME 

and road essence 

Lindera obtusiloba hair oil 

on altitude 500 to 

1500m. Prefer sunshine 

southern of and worm and humidity. oil of turpentine; oil from 

Pinus massoniana 

�� 

Han river basin Tolerant to drought, leaf and fruit can be vapor distilment 

Lamb. 

of Shaanxi bare soil growth well in ingredient of cosmetics 

fertility humidity and 

profound soil 

Juniperus 

formosana Hayata �� 

dispersive distribute in 

Shaanxi and forest. Altitude between oil from stem and roots 

other province. 200 to 500 in eastern use for ingredient of vapor distilment 

Only in China. china and 1800 to 3400 cosmetic essence 

in western china 

Mentha 

oil Corn mint 

haplocalyx 

Verbina 

Vervain herb 

tincture 

officianalis 

Tincture 

77



TA 4721–PRC: Preparing the ShaanxiI–Qinling Mountains Integrated Ecosystem Management 

Project 

11. c. For the species identified above, or other target species of the project not 

included in the list above (E.g., domesticated species), please list the species, check 

the boxes as appropriate regarding the application of a certification system, and identify 

the certification system being used in the project, if any. 

Certification 

Species 

None 

A certification 

system is 

being used 

A 

certification 

system will 

be used 

IV. Market Transformation and Mainstreaming Biodiversity 

79 

Name of certification 

system if being used 

A certification 

system will not be 

used 

12. a. The Project seeks to develop a range of commercial tourism enterprises at the 

Louguantai township to build on current visitation and to link increased tourism visitation to 

nature and wildlife. The close integration of tourism products, forestry, and Daoism religious 

leaders offers a unique opportunity to develop ecotourism that is associated with both iconic 

wildlife and unique religious identities. Linked to these enterprises is the potential 

development of new ecotourism products linked to the ex-situ conservation program 

including giant Panda, Golden Monkey and Crested Ibis. The proposed botanic garden, 

animal rescue center visitor programs and attractions linked to exhibitions and the recreation 

opportunity created by the hot-springs development will generate a new niche in the local 

tourism market building on current visitation to the Terracotta warriors and other historical 

and cultural attractions. 

The sectors and sub sectors and measures of impact are listed in the table below. 

Name of the market 

that the project 

seeks to affect 

(sector and subsector) 

Unit of 

measure of 

market 

impact 

Market 

condition at 

the start of 

the project 

Traditional tourism visitors/year 300,000 

Ecotourism visitors/year 10,000 

Small and medium Enterprises 0 

enterprises based on 

biodiversity – flora 

Market 

condition at 

midterm 

evaluation 

of project 

Market 

condition at 

final 

evaluation 

of the 

project 

12. b. Please also note which (if any) market changes were directly caused by the project. 

The Project represents the first and potentially most important nature and ecotourism 

development in Shaanxi province and will develop this niche as an additional product with

the current tourism portfolio. This will include community based tourism, private sector 

based eco-lodge development and the mix of nature and religious tourism. 

V. Improved Livelihoods 

13. For those projects that have identified improving the livelihoods of a beneficiary 

population based on sustainable use /harvesting as a project objective, please list the targets 

identified in the logframe and record progress at the mid-term and final evaluation. 

Improved livelihood 

measure 

Number of 

targeted 

beneficiaries 

(if known) 

Local or 

indigenous 

communities 

project is 

working with 

80 

Improvement 

foreseen at 

project start 

Increased jobs in-situ 4,000 all 500 

Increased jobs ex-situ 15,800 all 750 

VI. Project Replication Strategy 

Achievement 

at Mid-term 

evaluation of 

Project 

Achievement 

at final 

evaluation of 

Project 

14. a . Does the project specify budget, activities, and outputs for implementing the 

replication strategy? Yes__x_ No___ 

14. b. Is the replication strategy promoting incentive measures & instruments (e.g. trust 

funds, payments for environmental services, certification) within and beyond project 

boundaries? 

Yes_x__ No___ 

If yes, please list the incentive measures or instruments being promoted: 

1. Eco-Fund will support a micro-credit scheme that will enable villagers to construct 

eco-friendly projects including: solar energy; biogas; homestay lodges, wind power; and 

conservation agriculture.




14. c. For all projects, please complete box below. 



Project 

Achievement at Midterm 

Evaluation of 

Project 

Replication target 

foreseen at project 

start 

Replication Quantification Measure 

1. Conservation forestry (ha) 2,000 

2. SALT (ha) 100 

3. Conservation farming and alternate crops (ha) 5,000 

4. Alternative energy projects (number) 100 

5. Community Homestays (number) 8 

6. Monitoring biodiversity (percent of area) 80% QM 

7. Monitoring & land use (percent of area) 80% QM 

VII. Enabling Environment 

For those projects that have identified addressing policy, legislation, regulations, and their implementation as 

project objectives, please complete the following series of questions: 15a, 15b, and 15c. 

15. a. Please complete this table at work program inclusion for each sector that is a primary or a secondary focus of the 

project. 

Sector 

Statement Agriculture Fisheries Forestry Tourism 

Biodiversity considerations are mentioned in sector policy Yes Yes Yes ? 

Biodiversity considerations are mentioned in sector policy through specific 

Yes Yes Yes ? 

legislation 

Regulations are in place to implement the legislation Yes Yes Yes ? 

The regulations are under implementation Yes Yes Yes ? 

The implementation of regulations is enforced Yes Yes Yes ? 

Enforcement of regulations is monitored ? ? ? ? 

15. b. Please complete this table at the project mid-term for each sector that is a primary or a secondary 

focus of the project. 

81

Please answer YES or NO to each statement under the sectors that are a focus of the project. 

Other 

(please 

specify) 

Sector 

Agriculture Fisheries Forestry Tourism Other 

(please 

specify) 

Statement 

Biodiversity considerations are mentioned in sector policy 

Biodiversity considerations are mentioned in sector policy 

through specific legislation 

Regulations are in place to implement the legislation 

The regulations are under implementation 

The implementation of regulations is enforced 

Enforcement of regulations is monitored 

15. c. Please complete this table at project closure for each sector that is a primary or a secondary focus of 

the project. 

Please answer YES or NO to each statement under the sectors that are a focus of the project. 

Sector 

Other 

(please 

specify) 

Other 

(please 

specify) 

Agriculture Fisheries Forestry Tourism 

Statement 

Biodiversity considerations are mentioned in 

sector policy 

Biodiversity considerations are mentioned in 

sector policy through specific legislation 

Regulations are in place to implement the 

legislation 

The regulations are under implementation 

The implementation of regulations is enforced 

Enforcement of regulations is monitored 

82

All projects please complete this question at the project mid-term evaluation and at the final evaluation, if relevant: 

15. d. Within the scope and objectives of the project, has the private sector undertaken voluntary measures to incorporate biodiversity considerations 

in production? If yes, please provide brief explanation and specifically mention the sectors involved. 

An example of this could be a mining company minimizing the impacts on biodiversity by using low-impact exploration techniques and by 

developing plans for restoration of biodiversity after exploration as part of the site management plan. 

_______________________________________________________________________________________________________________________________ 

_______________________________________________________________________________________________________________________________ 

VIII. Mainstreaming biodiversity into the GEF Implementing Agencies’ Programs 

16. At each time juncture of the project (work program inclusion, mid-term evaluation, and final evaluation), please 

check the box that depicts the status of mainstreaming biodiversity through the implementation of this project with 

on-going GEF Implementing Agencies’ development assistance, sector, lending, or other technical assistance 

programs. 

Time Frame 

Mid-Term Evaluation Final Evaluation 

Work Program 

Inclusion 

� 

Status of Mainstreaming 

The project is linked to IA development assistance, 

sector, lending programs, or other technical assistance 

programs. 

� 

Natural Forest 

Protection Program; 

Sloping Lands 

Conversion Program 

(Grain-for-Green); 

Forest sector corridors 

and nature reserves 

� 

Forest Farm 

management; 

threatened species 

recovery 

� 

provincial tourism 

development; Shaanxi 

The project is indirectly linked to IAs development 

assistance, sector, lending programs or other technical 

assistance programs. 

The project has direct links to IAs development 

assistance, sector, lending programs or other technical 

assistance programs. 

The project is demonstrating strong and sustained 

complementarity with on-going planned programs.

Ecological Function 

Conservation Area 

IX. Other Impacts 

17. Please briefly summarize other impacts that the project has had on mainstreaming biodiversity that have 

not been recorded above. 

84

1 



PROBLEM TREE ANALYSIS 

Problem Tree Analysis 

OP 12: Improved biodiversity conservation and reduction of land degradation in the Qinling Mountains 

IMPACT 

OP 12: Establishment of sustainable biodiversity conservation and land management in the Qinling Mountains 

OUTCOME 

TA 4721-PRC 

A commercially sustainable initiative for biodiversity 

conservation and land management in Qinling 

Mountains 

Pollution of globally 

important terrestial 

and aquatic 

ecosystems 

prevented 

Reduced net 

emissions and 

increased storage of 

greenhouse gases in 

terrestial and aquatic 

ecosystems 

Improved 

conservation 

and sustainable 

use of water 

bodies 

Increased 

awareness of 

integrated 

ecosystem 

management 

Causes and negative impacts 

of land degradation on 

ecosystems mitigated 

Improved conservation and 

sustainable use of 

biological diversity 

INTERMEDIATE 

OUTCOME 

Reduction in 

water quality 

and quantity 

Lack of knowledge of 

fragility and real value 

of environmental 

goods and services 

provided by the 

ecosystem 

Lack of civil 

society 

participation 

Lack of 

enforcement 

regulations 

Direct and 

indirect 

reduction in 

wildlife 

population 

Structural 

extraction, 

degradation and 

habitat 

destruction 

ISSUE/ 

PROBLEM Encroachment of all 

available land for 

production activities 

Lack of policies and/or 

infrastructure to control 

pollution 

Polices and 

regulations in 

agriculture, livestock 

and forestry sectors 

have encouraged 

unsustainable 

practices 

Limited local 

management 

capacity 

High poverty 

Underdeveloped 

economy and 

limited use of 

technology 

ROOT 

CAUSES/ 

UNDERLYING 

CAUSES 

Low 

income 

Low 

commercial 

exchange 

Low 

investment 

Low 

production 

Lack of 

financial 

services 

Limited 

business 

opportunities

ADB TA 4271 Shaanxi Qinling Biodiversity Conservation and Demonstration Project 


A. Background 

INSTITUTIONAL STRENGTHENING PROPOSAL 

1. The Shaanxi Qinling Biodiversity Conservation and Demonstration Project will develop three 

commercial tourism enterprises adjacent to Louguantai Township on the lower Northern slopes of the 

Qinling Mountains approximately one hours drive from Xian. These enterprises will generate revenues 

to support a wider conservation and rural livelihood program within the Project Area of approximately 

45,000 ha most of which includes the existing Louguantai Forest Farm. 

2. The three tourism enterprises will include (i) the establishment of a new botanical garden 

and surrounding park landscape including visitor attractions such as cable car, Daoist religious 

temples, exhibitions and conservation education centers, (ii) the enhancement of the Shaanxi Animal 

Rescue Center for the exposition, research and captive breeding of endangered species including four 

major iconic species being the Giant Panda, Crested Ibis, Golden Snub-Nosed Monkey and Takin, 

and (iii) the existing Louguantai Fudi Tourism Development Group that will extend its geothermal Hot 

Spring Development to include high end accommodation and spa facilities. 

3. These enterprises will transfer a share of profit to the conservation program to be 

implemented by the Louguantai Forest Farm which holds a 49% shareholding in the Hot spring 

development. To achieve this will require a consolidation of the above enterprises into a unified 

management structure as the investment are long term and need to have clear unambiguous 

mandates, authority and jurisdictions over the Project Area. A further requirement for the consolidation 

is that it provides a legal basis for the sustainable financing of the conservation program as to collect 

and then transfer funds is not currently legal in PRC. 

4. The SPG has agreed to complete the consolidation of the Qinling Botanic Garden, Shaanxi 

Animal Rescue Center, and Louguantai Forest Farm into one Government Unit the Shaanxi Qinling 

National Botanical Garden (SQNBG). The transfer of financing to conservation will therefore be an 

internal accounting transfer which is expected to be set at 8% of forecast post tax net cash flow and in 

the case of the Hotsprings enterprise 49% of the rate. The total forecast revenue transferred at this 

rate would be $400,000 in 2012 and increases thereafter. 

5. Until profit streams are created the Project will finance the initial investment into the 

conservation demonstration area program through support for conservation planning, landscape 

planning, habitat restoration planning and implementation, endangered species recovery, and 

conservation monitoring systems. Livelihood improvement for the 4,593 local residents will b e 

supported through the development of social capital in a village level development planning exercise 

that will identify opportunities and interest in the establishment of collective level forestry associations, 

the creation of formal and secure use rights to collective forest land, forest planting and development 

programs, small enterprise development, homestay tourism enterprises, and social infrastructure 

programs. 

6. The proposed project was developed by each individual enterprise which prepared an 

investment program for their own enterprise priorities and interests and as such the wider 

development issues relating to poverty reduction and conservation of biodiversity in the interior 

mountainous region of the Project Area were not adequately addressed. Another shortfall was the lack 

of commercial orientation to the structure of the enterprises with most being expanded and technically 

focused despite requiring commercial success before being a viable investment. Technical capacity 

strengthening was included in the enterprise investment proposal however there was no institutional 

strengthening for the commercial management and the consolidated QNBG which was finally agreed 

at the completion of the PPTA. 

7. The following paper presents a summary of the current institutional setting and the need for 

an institutional strengthening investment into QNBG for the development of commercial management 

capability and organizational systems. Without this investment the PPTA concludes that the QNBG will 

most likely fail both commercially and financially. 

1

2 



B. Overall Institutional Framework 

8. The overall institutional framework governing project implementation is currently 

characterized by a large number of national and provincial government agencies with at times 

overlapping responsibilities. In addition to oversight from national agencies based in Beijing, the 

following province and local government agencies have the potential to influence development see 

table 1. 

Qinling Botanic 

Gardens, and 

subsidiary Co. 

Shaanxi Animal 

Rescue Center 

Shaanxi Provincial 

Government 



Reform Comsn 


Survey and Design 

Institute 


Environmental 

Bureau 

Shaanxi 

Environmental 

Monitoring Center 

State Environmental 

Protection Agency 


Department 

State Forest 


Shaanxi Water 

Resources Bureau 

Land Resources 

Authority 

Shaanxi Wildlife and 

Nature Reserve 


Animal Research 

Institute 

Loan 

Repayments 

Table 1: Institutional Responsibilities 

Planning 

Approvals 

Land ownership 

Use & 

Resettlement 

Water use and 

Discharge 

Biodiversity and 

Conservation 

Replication 

Scientific 

Research 

Monitoring 

Natural 

Resources 

Protected Areas 

Agriculture Mgt 

Tourism 

Interests 

� � � � � � � � � � � 

� � � � � � � � � � � 

� 

� � � 

� � 

� � � � 

� � 

� � 

� � � � 

� 

� � 

� � 

� � � 

Civil Affairs Office � 

Ministry of 

Communications 

� 

Ministry of 

Construction 

� 

Ministry of Land and 

Resources 

� � 

Ministry of Power 

and Industries 

� 

Business 

Development

3 



Ministry of Water 

Conservancy 

Chinese Academy of 

� � 

Science (Shaanxi 

Branch) 

Eco Systems 

� 

Function 

Conservation Area 

Louguan Fudi 

� 

Tourism 

Development Ltd 

� � � � � � � � � � � 

Louguantai Forest 

Park 

National 

� � � � � 


Reform Commission 

NW Institute Forest 

Inventory, Planning 

Design 

� 

State Administration 

of Cultural Heritage 

� 

Xi’an Municipal 

Government 

� 

County of Zhouzhi, 

and Land Bureau 

� � � � � 

Townships of Jixiam, 

Juifeng, Louguan 

� � � � � 

Shaanxi Tourism 

Bureau 

� � � 

Shaanxi Tourism 

Group Corporation 

� � 

Xi’an Tourism 


� 

Dao Community 

China Bank 

� 

Regulatory 

Commission 

� 

Total Number 4 9 6 6 6 5 5 2 4 2 3 8 5 

9. What the table does not show, because there is insufficient information available, is the 

degree of interaction and overlap with other national or provincial initiatives in terms of research and 

sharing of information. This applies within and beyond the Province. For instance, the work of the 

Shaanxi Animal Rescue Center should align with, and supplement other research programs on panda 

breeding and habitat, while breeding and release of Crested Ibis can support similar national and 

international programs 1 . Research initiatives of Qinling Botanical Garden should complement the 

National Plant Conservation Strategy announced in June 2007 2 . 

10. The entities within the Project Area include (i) the Qinling Botanic Garden, (ii) SARC, and (iii) 

Louguantai Forest Farm. The Qinling Botanic Garden has two subsidiary entities although none trade 

in a commercial sense. Currently the Qinling Botanic Garden consists of 20 staff under the leadership 

of a researcher. The Qinling Botanic Garden staffing is proposed to increase to over 250 in three 

years. SARC is a small trading entity focusing on wildlife rescue, breeding and research that is 

supported by both PRC and commercial revenues. The current staffing (excluding day labor) is 

1 For instance, the Japanese have a long established Crested Ibis Program. 

2 One such example is the recently publicized development of plant conservation strategies announced between 

SFA, the Chinese Academy of Science, and the State Environmental Protection Agency.

4 



between 30 and 40 all of whom are part of the Louguantai Forest Farm cadre of nearly 300. On the 

completion of the merger of enterprises the QNBG could have a core staff of close to 600 paid 

employees. Few of these employees and managers have direct commercial experience and often 

technical skills may not be well developed for the envisaged roles. Further the QNBG will have direct 

financial relationships with approximately 4,000 resettled individuals and a further 4359 CDA residents 

through livelihoods and forestry programs. 

11. Within the Project, each enterprise has included in their feasibility study and investment that 

development of their staff technical capacity resulting in a comprehensive training investment for both 

staff and their stake-holding beneficiaries. The building of QNBG is however not included in these 

proposals reflecting (i) the late agreement for the QNBG model and (ii) the lack of commercial and 

managerial focus in the original feasibility studies for the Qinling Botanic Garden. The decision to 

implement the QNBG as the main Project Implementation Agency while providing an organizational 

structure within which the issues relating to mandate, authority and jurisdiction are technically 

resolved. What is not addressed is the underlying capacity and systems to enable the QNBG to fulfill 

its role in the Project Area in an effective and cost efficient manner. Given its status and role as the 

unitary organization for the management of the Project Area including the commercial tourism 

developments and the wider conservation and development objectives QNBG requires effective and 

strategic management input with a strong commercial focus. In summary while the QNBG resolves the 

institutional overlaps it has not addressed the underlying functional and strategy issues that will 

underpin a successful commercially orientated institution. Without these in place the Project is 

considered to be a risky business venture. The issues raised by this are summarized in the following 

section. 

A. Problem Analysis 

12. The QNBG represents a significant change in the institutional arrangement for the Project 

Area. While this consolidation of institutional jurisdictions, authorities and mandates has been 

accepted by the SPG the allocation of the three enterprises into a consolidated institution does little to 

address the significant shortfalls in leadership, vision, skills and capacity that have been identified as 

under-mining the likely success of the Project 

13. The QNBG needs to be viewed as a long run entity and not simply as a project 

implementation organization. The institution needs to be strengthened to fulfill its multiple roles 

including that of (i) a commercial entity, (ii) a conservation and development instrument, and (iii) a 

project implementation unit. Most importantly is the need to establish an effective commercial entity 

as without commercial success the conservation and development and project implementation will not 

be effective either. 

14. To achieve an effective commercial entity will need the component parts of the QNBG to 

work in a coordinated manner and for the QNBG to act in a unified and strategic manner. As such the 

QNBG needs to develop its identity and culture as a collective organization as opposed to simply three 

disparate but linked enterprises. The institutional strengthening necessary was not included in the 

Project design due to the manner in which the Project feasibility was undertaken. The proponents of 

the feasibility studies adopted a structural approach where the existing institutional entity’s proposed 

investments for their own best interest and not necessarily into the interests of the wider Project Area 

and the institutional needs for the Project Area. The failure to adopt a holistic approach to the 

management of the Project Area has created a significant weakness in the design and the Project 

achievement of a holistic management and conservation objective for the Project Area. 

15. Each enterprise division needs to have its own responsibility and functions that will be 

delivered not only for project implementation but for a successfully operated division that is well-lead, 

targeted, and efficient at achieving its overall organizational goals and outputs in a planned and cost– 

effective manner. Once this is achieved, there is a need to ensure that there is full integration between 

the three operating divisions to ensure least-cost and a highly efficient operation is in place. Without 

this integration the potential project cost escalations and delays could be extreme and threaten the 

viability of the Project investment, the enterprises, and the QNBG itself. 

16. The proposed Project design also demands a change to the functions assigned to existing 

staff in each of the enterprises. This is especially so for the Louguantai Forest Farm that will be

5 



responsible for implementing conservation spatial planning, conservation and social forestry, 

biodiversity conservation through habitat restoration, and forest-based livelihood promotion. These 

changes are significant changes that need to be undertaken and completed in a structured and timely 

manner. The nature of these changes will be demanding on management and staff and there is clear 

evidence that such changes required planned and effective change management processes to be 

successful. To date few, if any, senior management staff of QNBG has change management 

experience or training. Most have not experienced any significant public sector reform programs from 

which to design, lead and implement an effective change management process within the three 

enterprises and the QNBG. 

17. Qinling Botanical Garden as a totally new enterprise with no management or commercial 

expertise or track record will employ over 250 staff and operate assets valued in excess USD 35 

million. While acting as a determined Project Champion the leadership of the Qinling Botanic Garden 

does not have the prerequisite skills to operate large commercial enterprises. This has been 

highlighted throughout the entire PPTA including the Qinling Botanic Garden attempt to complete the 

feasibility report without technical expertise, and with no recognition of the commercial needs relating 

to marketing, business development, commercial outlet management such as retail outlets, ticketing 

systems, cash management systems etc. 

18. SARC management has a more sophisticated existing business than the other enterprises in 

QNBG. The current management does however recognize its lack of experience in commercial 

management through the inclusion of contracting costs for commercial tourism management. While 

this is provides important additional capacity it does not address the need for strategic operational 

management that guides the strategic planning and development of SARC into an international 

standard animal exposition and rare animal protection and breeding center. SARC management 

needs to introduce major improvements to the standards of animal welfare while also integration the 

SARC into the wider conservation and endangered species management programs in both the Qinling 

Mountains and the PRC national programs. To achieve this will require a far wider strategic approach 

to the future management and growth of the SARC. 

19. The success of QNBG will be defined in terms of the achievement of commercial objectives 

yet the proposed senior management was appointed based on highest graded official from existing 

cadres in the three enterprises. Seniority is not considered to be the best indicator of managerial 

capability and may result in additional and significant risks to establishing a successful commercial 

operation. The proposed management do not have commercial or tourism sector experience with all 

individuals coming from technical and research driven public sector backgrounds. 

20. Existing staff within the current enterprises have little knowledge or understanding of the 

Project beyond their own enterprise interest other than the awareness raised through consultative 

processes. They have less understanding of the requirements of a commercial entity and have no 

experience or training in the range of institutional procedures that will be necessary to operate SNBG 

successfully. The impact of the consolidation and the expected requirements of the QNBG are likely to 

be daunting at best - threatening at worst. As a consequence the proposed organization changes will 

be slowed and even side tracked as staff resent or oppose necessary change. Effective change 

management leadership will be essential however as mentioned above this is unlikely to evolve form 

the existing management without significant support and strengthening. Without committed and skilled 

staff QNBG will fail. 

B. IS Approach 

21. Experience and the lessons learned from institutional strengthening programs (ISPs) 

identifies main principles that need to be applied if the goal, purpose and other development outcomes 

of the Project are to be achieved. Lessons learned and suggested priorities for ISP are: 

� Start with the end in mind: Sustainability must commence with the design of the 

project, featuring an explicit exit strategy. By the end of the project staff need to have 

the confidence to deliver service without support and the project must provide this 

opportunity. Assessment of staff competencies and the subsequent capacity building 

program will be undertaken in association with senior staff.

6 



� Strategy before function, before organizational structures, before “technical” inputs: 

ISPs must follow the lessons from successful public sector and organizational reform 

projects. Without a clear sense of direction, clear priorities, and aligned with the 

tourism and conservation sector and QNBG staff, the project will not yield the planned 

outcomes. Technical aspects have received most attention because traditionally this 

has been the donor role. A technical focus will not provide sustainability for QNBG. 

Corporate and sector planning and organizational development must precede the 

technical inputs for sustainable benefits. 

� Match absorptive capacity of QNBG with the proposed inputs. The QNBG is a new 

organization and there is a real risk that the Project activities could overwhelm staff. 

Either the QNBG work program or the project will suffer – commonly both will be 

compromised. Overcoming the limitation of absorptive capacity will be achieved by 

aligning the SQBNG and project work plans in a strategic planning framework. 

� Capacity building inputs must not create a dependency: The ISP advisers should 

facilitate the development of QNBG staff, but they must not undertake tasks on behalf 

of the staff. Sustainability of the QNBG requires that the focus is upon developing the 

skills and knowledge of the QNBG staff to more effectively fill their respective roles 

and achieve the goals of the Corporate Plan. 

� Effective partnerships must be created with partners: private sector, community-based 

organizations, small holders, and government agencies: Development of the QNBG 

role as a commercial manager requires the development of strong and effective 

partnerships with the other members of the tourism and conservation sector. It is 

important that the QNBG is strategic in its approach.

7 



C. Proposed TA Approach and Methodology 

1. Organization development 

22. The TA purpose is institutional strengthening of the QNBG so that it can improve the 

implementation performance for the Project. The methodology employed to achieve organization-wide 

development should be firmly based on the principles outlined in Section D above. 

23. The focus upon strategy and function before structure is essential to underpin 

organization development. The strategy formulation will respond to defined priorities and needs, as 

opposed to the existing institutional and organizational structures and procedures. The strategy needs 

to be reflected in a Corporate Plan and reflect a shift from past functions to the management of 

commercial tourism linked to conservation. The participatory development of the Corporate plan will 

ensure strong sector support for the Corporate Plan and to draft a functional workplan that will guide 

the rest of the project implementation. 

24. The QNBG staff must also be committed to the plan and contribute to workshops where the 

plan is reviewed; their involvement is essential and to ensure the role of the IS TA is limited to 

Facilitation, Negotiation and Collaboration with QNBG staff. The responsibility for critical functions will 

be confirmed followed by an organizational phase of defining the necessary strategies to successfully 

implement these functions. Once strategies are agreed by senior management the TA will develop 

programs to strengthen organizational structure and systems both internally and externally including 

administrative procedures; work planning and budgeting, job descriptions and performance 

assessments and monitoring. The approach effectively builds internal systems, skills and corporate 

culture while developing external functions and programs. The methods that will be used are 

straightforward. They are built upon participatory methods and the principles of change management 

which are explained in the Change Management section below. 

25. The methods associated with undertaking these tasks and implementing their outcomes 

must, however, recognize that the QNBG is a new organization with a limited absorptive capacity. The 

Corporate Plan is important in that it provides the strategic direction for the organization, but it must be 

broken down to an operational level through annual work plans. The annual work plan preparation 

process affords the opportunity for the QNBG staff to have a significant role in planning the direction of 

the organization. It also provides the opportunity for the QNBG to link with the sector by involving 

stakeholders in the assessment, and preparation, of plans. The IS TA will conduct a series of capacity 

building activities that not only assist the staff to prepare plans but are also based upon performance 

measures. Monitoring and reporting systems, that measure QNBG performance against output 

indicators, will be developed over the life of the TA. 

26. The TA role is to ensure that the necessary steps, tasks and processes are identified, 

sequenced, resourced for implementation and then evaluated. Where skill gaps exist, awareness and 

training sessions will be provided at the appropriate step in the process. For the remainder of the 

program the TA role is mentoring the responsible managers and staff to implement the change 

programs and auditing of their performance. As such the TA needs to operate over a minimum period 

of two financial years. 

27. This requires facilitating development of skills and capacity in work planning and budgeting 

within the corporate internal systems, as well as work planning, for the provisions of services and 

programs to clients. Successful capacity building programs are driven by learning-by-doing and 

reinforcement of skills while institutionalizing the agreed procedures and approaches that support staff 

to undertake their roles efficiently. 

28. The TA Role in Change management will be central to the success of the associated Project. 

Change in the QNBG will result from the necessary functions to be undertaken as well as those 

assigned to contributing organizations. How best the organizational structure “fits” with these defined 

roles and functions i.e., can the current structure effectively deliver the services required under the 

new QNBG, will be an important first step.

8 



29. The move to a commercial delivery culture is a significant change and will require sound 

management. An approach based upon the drivers of change method 3 will be used by the IS TA to 

facilitate change management. It is emphasized that the QNBG Board and the CEO must be leaders 

in the change process. The IS TA cannot be the leader and will only facilitate and guide the QNBG 

management in these matters. 

30. There are a number of aspects that need to be considered in successful change 

management and these include: 

31. Address the “human side” systematically. Any significant transformation creates “people 

issues.” New leaders will be asked to step up, jobs will be changed, new skills and capabilities must 

be developed, and employees can be uncertain and resistant. A formal approach for managing 

change — beginning with the leadership team and then engaging key stakeholders (farmers, tourists, 

wholesalers, transporters, retailers, research organizations, national and provincial government and 

local administration.) need to developed early, and adapted often as change moves through the 

organization. The change-management approach should be fully integrated into program design and 

decision making, both informing and enabling strategic direction. 

32. Start at the top. Because change is inherently unsettling for people at all levels of an 

organization, when it is on the horizon, all eyes will turn to the leadership team for strength, support, 

and direction. The leaders themselves must embrace the new approaches first, both to challenge and 

to motivate the rest of the institution. They must model the desired behaviors and champion the 

change process 

33. Involve every layer. As transformation programs progress from defining strategy and setting 

targets to design and implementation, they affect different levels of the organization. Change efforts 

must include plans for identifying leaders throughout the QNBG and relevant stakeholders and 

pushing responsibility for implementation down, so that change “cascades” through the organization. 

34. Make the formal case. Individuals are inherently rational and will question to what extent 

change is needed, especially stakeholders who already hold a level of scepticism over QNBG ’s role. 

They will question whether the Agency is headed in the right direction, and whether they want to 

commit personally to the goals stated in the Corporate Plan. The creation of a written vision statement 

are invaluable opportunities to create or compel leadership-team alignment. 

35. Create ownership. Ownership requires more than mere buy-in or passive agreement that 

the Corporate Plan goals are acceptable. It demands ownership by leaders of each stakeholder group 

willing to accept responsibility for making change happen in all of the areas they influence or control. 

Ownership is often best created by involving people in identifying problems and crafting solutions. This 

demands extensive participatory processes throughout the TA. 

36. Communicate the message. The role of the communication will be to reinforce the core 

messages through regular, timely advice that is both inspirational and practical. Communications are 

targeted to provide QNBG staff and stakeholders the right information at the right time and to solicit 

their input and feedback. 

37. Address culture explicitly. The diagnosis of current QNBG culture will identify the core 

values, beliefs, behaviors, and perceptions that must be taken into account for successful change to 

occur. They serve as the common baseline for designing essential change elements, such as the new 

corporate vision, and building the infrastructure and programs needed to drive change. Once the 

QNBG organizational culture is understood, it should be addressed thoroughly. Leaders should be 

explicit about the culture and underlying behaviors that will best support the new way of doing 

business (such as the shift to a customer-satisfaction model), and find opportunities to model and 

reward those behaviors. 

3 

The drivers being (i) agreement over the need for change, (ii) an agreed future or vision, (iii) the resources (skills 

and finances), and (iv) the first actionable steps.

9 



38. Prepare for the unexpected and adapt. Effectively managing change requires continual 

reassessment of its impact and the organization’s willingness and ability to adopt the next wave of 

transformation. Fed by real data from the monitoring and evaluation framework activities are 

supported by solid decision-making processes, IS TA technical advisers and QNBG management can 

then maintain momentum and drive results. 

39. The TA Needs to Facilitate, Negotiate, and Consult through ensuring participation in the IS 

process by stakeholders being involved in decisions that affect their lives. Three types of participation 

are required: 

� Process participation: the direct involvement of people in specific development 

interventions, e.g. through the choice of issues for analysis, the collection of data 

(quantitative and qualitative), to a degree in the analysis, and in the design and choice 

of the intervention. 

� Democratic participation: the influence citizens exercise over decisions made by the 

state bodies and organizations which represent them and/or control the territory in 

which they reside. In the Project QNBG needs to be seen to be responsive to these 

participants in terms of resettled land use right holders, visitors and CDA local 

residents 

� Systemic participation: the creation of institutions and conditions that foster and 

promote participation broadly in society. 

40. Incentives: Primary stakeholders will participate if it is their interest to do so, and if there is 

low political or economic risk. Projects must be designed to provide appropriate incentives to motivate 

active participation 

41. Participatory Research: A range of participatory methodologies can be used to enhance 

primary stakeholder participation in analyzing farmer issues and needs, program planning, and 

evaluation of program impact. Participatory Rural Appraisal (PRA) is often used for assessing needs, 

context, and impact at the village level. Other methods include a range of participatory and more 

conventional research approaches such as socio-economic surveys, mapping, conflict analysis, 

stakeholder analysis, and ecological studies. 

42. Consensus-building strategies: Central to reaching consensus is forming business 

linkages with industry partners and the enterprises it controls. The QNBG must be seen as partners 

with the local industry be it tourism, agricultural enterprise or conservation and not simply competitors. 

43. Training and capacity building: Capacity-building activities themselves can be a 

mechanism to catalyze participation. Activities can be implemented to increase participants’ 

understanding and practical skills in conflict resolution, SLM education, participatory research 

methods, and project monitoring. The conservation programs in the CDA are all designed on planning 

systems that build involvement and consensus and QNBG will need to the vision and capacity to lead 

these processes. 

44. Information sharing: Printed materials such as research reports, workshop proceedings, 

and training materials, as well as accessible maps and posters, designed to reach different audiences, 

from policymakers to local villagers, are crucial for dissemination of results, education and extension 

efforts, as well as for stimulating discussion and negotiation over conservation and corporate 

management decisions. 

D. Strategic IS tasks to be completed 

45. The following tasks need to be undertaken in an ISP approach. The QNBG will need to 

develop the capacity building response to the initial findings, and emerging understanding derived 

from: 

� Strategy for QNBG confirmed: As part of the inception phase the QNBG strategy as 

outlined in the Corporate Plan needs to be confirmed with the stakeholders. If 

modifications to the overall strategic direction of the QNBG are required these should 

be highlighted and an action plan prepared. This will involve meetings with the SFD

10 



and the QNBG management team followed by a workshop through which the strategy 

can either be confirmed or defined in the form of a mission or vision statement that 

specifies the scope of business for QNBG. 

� Role and functions of the QNBG: Defining the role of functions of the QNBG will 

occur in the preparation of the Corporate Plan. This needs to be reviewed, especially 

if the strategic direction is modified. The project purpose highlights the need to clarify 

the role of QNBG in the tourism and conservation sector. The TA will need to hold 

enterprise / QNBG division level workshops to confirm the role and functions of each 

unit and how these contribute to the overall QNBG mission statement. Once the 

enterprise workshops are completed each enterprise management team will prepare a 

enterprise function statement that will be presented to the senior management team. 

The Senior management team will consolidate the function statements into the 

beginning of a corporate plan and will work closely with the enterprise mangers to 

develop a complete corporate plan for the next five years. 

� Review organizational structure: Alignment of the organizational structure to its role 

and function is essential. The internal structure of the organization must be designed 

to meet the new role and functions. Further reorganization may be required as the 

project evolves and the focus moves from investment to operational capacity and 

growth. The QNBG mission, strategy and corporate plan will then be used to review 

the QNBG structure and how the structure fits to the agreed function and strategy. A 

structural reform program will be outlined where necessary for example, it may be 

more efficient to move marketing and commercial management arrangements into the 

senior management team of QNBG and have these resources provide a collective 

response. 

� Assess internal operational processes: Assessments of the main functional areas 

including: financial management; HR management; planning, reporting and 

monitoring; technical services; etc. These need to be assessed and a program to 

strengthen them prepared. Once the structural program is complete the necessary 

organizational systems required to operate the division and the QNBG in totality will 

be assessed and strengthened. A critical aspect of this is the need to review staffing 

and training needs. Once programs are agreed each Division will prepare an annual 

work plan as part of the IS program. 

� Capacity of the staff: The QNBG staff must have the skills to implement the 

Corporate Plan. Assessing their current skill levels and matching that to skills needed 

for the QNBG delivery capacity will lead to the preparation of a HR development plan. 

The Training need assessment will be used to build a HR policy and HRD plan for 

QNBG and its Divisions. This will be facilitated through assessment of work 

requirements within the enterprise divisions and the senior management team, the 

training needs once identified will be reconciled against proposed Project investment 

into training and the training programs adjusted accordingly. 

o The assumed number of staff for training are: 

� Qinling Botanic Garden 20 management and 230 field operations staff 

yet to be appointed 

� SARC 18 management and approximately 130 field staff 

� Louguantai Forest Farm 20 management and 130 field staff 

(assuming all SARC staff are part of Louguantai Forest Farm) 

� Performance measure systems: The IS will develop a M&E system for the QNBG, 

but the QNBG needs to develop performance measures that assess its performance. 

The Corporate Plan should contain indicators and these need to be reviewed and 

further developed. Through the development of the QNBG mission, strategy, 

corporate plan, annual work plans the process will identify performance indicators for 

inputs, outputs, and impacts. These will be reviewed by senior management and a 

reporting system developed for each level of the organization that clearly indicates the 

status and impacts of each divisional work plan. 

� Prepare and implement a communications strategy: Communications, both 

internally and external, is essential. Internally, communication is essential to get buy-in 

and co-operation for the impending change management. It is also important that the 

QNBG clients and stakeholders gain a clear understanding of the project and what it 

will deliver so they know how they will benefit and therefore willingly participate.

11 



� Effective delivery – supporting initial winners: The QNBG implementation role will 

be reviewed and the capacity of its technical services assessed. The TA, and QNBG 

management, during the inception phase should identify areas where service delivery 

can be enhanced early in the project. These early “winners” provide a visible example 

to stakeholders of what the future holds. The institution role of the Project is primarily 

this i.e., to provide SNBG the first steps and early winners on which it can develop a 

successful future. 

E. Proposed TA inputs 

46. An ADTA provided by the ADB over the first two years of the Project is proposed. The TA 

would provide (i) technical support through the contracting of international and national experts, (ii) 

support the capacity development of QNBG senior management through training, study tours and 

exchanges visits, (iii) communication and awareness programs within QNBG through staff seminar 

and workshop programs. In addition the TA would support the provision of office equipment and the 

completion of policy studies for the successful institutionalization of SNBG. The total Budget is 

estimated to be US $0.562 million of ADB TA grant funds. 

Table 2: Proposed TA Budget 

Item Units Total Cost (USD) 

1: Technical Assistance $270 

1.1: International $120 

- Organizational and strategic 

planning expert 

6 persons months $120 

1.2: National 30 person month $150 

- Training and HRD 6 person months $30 

- Organizational systems 12 persons months $60 

- Financial Management 6 person months $30 

- IT Specialist 6 person months $30 

2: Management Development $192 

2.1 Study tours $85 

- Hong Kong (wetlands center) 4 

people 3 days per year 

- London Zoological Society 6 

people 7 days/yr 

$1600 per person $5 

$3,300 per person $40 

- Kew Gardens 6 people 7 days/yr $3,300 per person $40 

2.2 Management Short Courses $32 

- 4 people 10 days per each per 

year (Hong Kong) (8 in total) 

- 4 people Xian Management 

Course MBA 



2.3 Staff Seminar and Workshops $75 

- Management (3 per year) $1,500 per each 9.0 

- Enterprise staff (Qinling Botanic 

Garden – 4 per year) 

- Enterprise Staff – Louguantai 

Forest Farm (4 per year) 

- Enterprise Staff – SARC 2 per 

year 

$1,000 per each 8.0 

$2,000 per each 16.0 

$ 1,000 per each 4.0 

- SQBNG Stakeholders $1,500 each 6.0 

2.3 In House training courses 

- contracting of trainers 

(2 trainers per event, 20 events per 

year at 3days per each per year) 

240 days @$50 per day 12.0

12 



- training materials 20 

3.0 Essential Equipment $30 

3.1 Training Computer sets 

(5 sets) 

$2000 per set incl. printer 10 

Photocopier $3,000 for one – total two 6 

Production of training materials and 

digital projector 

4.0 Institutional studies and 

advice contracts 

$14,000 14 

5 @$4000 – Management Studies 

and Jiahong University or 

equivalent 

5.0 Contingency 10% $50 

Total $562 

F. Terms of Reference 

1. International Organizational Specialist 

1. The specialist shall have qualifications in business strategy and organizational development 

with at least 10 years experience in undertaking organizational reviews and restructuring. The 

specialist shall be responsible for the following: 

� Work with the enterprises to ensure that there are clear strategies for achieving the 

planned outcomes 

� Ensure that financial reporting systems reflect these non financial targets 

� Assist each of the individual enterprises to identify all resource requirements (staff, 

finance, buildings and other assets) necessary to operate efficiently, bearing in mind 

projected work volumes and estimated time required to complete tasks 

� Ensure that all major functions have been evaluated, bearing in mind that many 

functions will be new to the organization 

� Work with the managers to determine the optimum organization structure, bearing in 

mind levels of delegated authority and accountability, and the associated workloads 

� Assist the managers to determine skill requirements for all positions, and appropriate 

employee selection criteria 

� Provide high level workshops for Shaanxi Forest Bureau and the proposed Shaanxi 

Biodiversity Promotions in principles of governance and the different roles of Boards 

of Directors and company mangers, ensuring that the senior managers are equipped 

with the necessary skill and knowledge to fulfill their functions 

2. Specifically the consultant shall undertake the following tasks: 

� Working with each of the existing entities and the consultant team assist in the 

definition of operational guidelines for the QNBG for (i) governance systems, (ii) 

executive decision making, (iii) business group operational procedures. 

� The business operational guidelines will specify levels of delegated authority, decision 

making procedures, work planning and accountability, financial budgeting, staffing 

levels and administrative procedures 

� Assist the Shaanxi Forest Department to formally establish and transfer staff and 

resources to the QNBG 

� Work with both the Board of Directors and the executive to develop a corporate plan 

and mission statements and then work with the business unit management to develop 

medium term work plans and detailed annual work plans. 

� Undertake staff awareness and training for the newly established entity including the 

development of commercial management skills 

� Develop an overall annual planning model, including criteria relating to the level of 

detail expected within each part of the submission, that can be used as the basis for 

submission from operating Divisions to QNBG Board of Directors, and approval of all 

annual plans 

$20

13 



� Present a specially tailored workshop for PDRC and the Shaanxi Forest Department 

into the techniques they can use to appraise the quality of strategic plans submitted 

covering the commercial, scientific, biodiversity conservation and livelihoods groups 

funded under the project, 

� Present detailed strategic planning workshops that can be used as the basis for 

developing specific strategies for each of the institutions included in the TA 

� Include guidance on how to consider associated resource requirements at the time 

that such strategies are developed 

� Ensure that agreed strategies are reflected in any bidding documents for operation of 

commercial functions for the botanic gardens, the animal rescue centre and the hot 

springs facilities 

� In association with the Marketing Specialist, prepare criteria to evaluate marketing 

proposals submitted to the institutions’ with commercial interests 

� Work with Shaanxi Forest Department to ensure that all other institutions having an 

interest in ecosystems management and biodiversity conservation and livelihoods 

improvement are consulted and have the opportunity to contribute to proposed 

strategic goals and strategies, and that there is full alignment between all stakeholders 

� Develop an approach for later mainstreaming and replication of project successes 

� Prepare a medium term strategic plan for (i) the establishment phase of two years and 

(ii) the ongoing operational phase of the preferred option. The strategic plans shall 

include (i) Corporate level plans, (ii) business group plans 

� Provide capacity building to all staff in the QNBG to implement planning procedures 

through mentoring and facilitating each business group and also for senior 

management 

� Prepare planning procedural documentation for including into the corporate procedural 

manual including reporting against planned programs and the procedures under which 

plans are updated or revised. 

2. National Training Specialist 

3. The Consultant shall have experience in undertaking both training needs assessments and the 

preparation and coordination of training plans for donor funded projects. The consultant shall 

undertake the following: 

� Review the final QNBG institution and its staffing, staff qualifications and experience at 

all levels 

� Working with the QNBG HRD manager prepare in a participatory manner a training 

needs assessment and report this to the PMO and management of QNBG 

� Identify potential training providers and assess their capacity, availability of courses 

and timing 

� Identify the need for a training of trainers programs, if necessary develop using the 

Technical assistance resource in the Project 

� Prepare a training and HRD plan for QNBG and provide awareness and training with 

management and operational directors. The training programs may be developed by 

Technical assistance including the preparation of training materials 

� Ensure the training plan includes a program for institutionalizing the training into 

existing training providers and university programs. 

3. National Organizational Specialist 

4. The candidate shall have worked in the public and private sector on organizational reform 

and restructuring and shall have a proven knowledge of State Owned Enterprise reforms and 

establishment in China 

5. The Consultant be responsible for: 

� Review existing governance and performance management systems and procedures 

in use within the institutions involved in detailed project implementation and 

governance, and obtain agreement on where improvements are required

14 



� Work with the other team specialists to develop detailed management reporting 

systems that provide successive levels of detail for the purposes of governance and 

management, including consideration of both commercial and non commercial 

objectives 

� Assist with both high level workshops and more detailed workshops at lower levels on 

the use of governance and performance management tools 

� Provide subsequent mentoring in the development and use of annual planning and 

performance monitoring tools 

� Act as advisor to PDRC, Shaanxi Forest Department and the Board of Directors of 

QNBG during initial governance reviews and the first annual planning cycle 

� Provide check lists of matters to be considered during future planning and 

performance reviews 

4. National Financial Specialist 

6. The candidate shall have a minimum of ten year experience of financial analysis and 

financial systems development for commercial enterprises and or State Owned Enterprises. 

7. The specialist will be responsible for:: 

� Review existing financial systems where these exist at present, and their adequacy or 

otherwise for the future 

� Develop specifications for financial reporting for each institution, reflecting the major 

objectives of that institution and requirements for more detailed internal analysis 

� Specify how individual financial reports from each enterprise will be consolidated 

within the financial reporting for QNBG 

� In those cases where the institutions currently have existing financial and accounting 

staff, assess the changes that this may involve in existing systems 

� Prepare estimates of staffing requirements and computer systems necessary to 

compile the proposed financial reports 

� Prepare training material relating to the new financial systems, for use when the new 

companies become fully operational 

� Recommend appropriate audit trails 

� Recommend safeguards against internal cross subsidization which distorts the true 

cost of individual “product lines” 

� Identify relevant audit trails 

� Prepare financial management guidelines for the SBP and for each of the cost center 

and business groups 

� Develop financial budgeting and fiduciary policy for inclusion within the operating 

manuals 

� Develop and train all staff in financial management systems and techniques 

� Facilitate the QNBG to develop a full set of financial projections for the 2009 year 

including physical targets – provide training as required 

� Assist the CEO to develop a consolidated budget and hold training and awareness 

programs for the senior management team members 

5. National Management Information and IT Expert 

47. The expert shall have experience in the development of organizational management 

information systems and the provision of an IT platform to support this. The consultant shall undertake 

the following tasks: 

� Review current IT platforms and information systems within each individual enterprise 

and identify potential commonalities 

� Prepare an IT strategy based on the needs and planning systems identified by other 

consultants to be included within the three recommended options 

� Implement the IT change strategy including the development of IT policies, IT 

operational procedures and guidelines

15 



� Work with the management team to develop a MIS system for the initial period of 

establishment and train staff in the implementation and use of the MIS 

� Pilot test the MIS system for each business group and address any gaps and 

weaknesses 

� Train staff in the IT and MIS systems 

� Ensure the financial and physical records of the QNBG are able to be captured and 

stored appropriately.

16 



TRAINING 

48. The proposed training program is incorporated within each component of the project design. 

The logic for this reflects both the manner in which the proposals were developed and also from the 

technical focus of most of this training. The training for the CDA area was proposed mostly by the 

PPTA and is included in Component two. 

49. Much of the conservation planning programs and monitoring programs are all part of both 

training and IS programs. These programs include village development planning, conservation and 

landscape planning, habitat and forestry management plans and tourism planning. All of these are 

integral parts of action based research and implementation designed to develop local capacity to build 

adapt and implement the programs. 

50. The role of the consultants within the program is an integral part of the training programs and 

the proposed IS program. The consultants shall be considered as a training resource that will be used 

to develop training materials, train trainers and to assist in the delivery of training programs. The 

purpose of the technical assistance is to add new approaches, technology and international 

experience to the action based programs to ensure that new opportunities are not forgone. 

51. Given the lack of agreement over the staffing details and organizational arrangements for the 

Project and the fact that nearly 40% of the staff of the enterprises are still to be employed a training 

needs assessment will be required. This is included as one of the building blocks for the IS program. 

52. The following table summarizes the proposed training programs for the enterprises and the 

beneficiaries.

17 



Training Summary Table 3: Over view of Project Capacity Building Program 


[To be included in Proposed 

ADTA] 

Needs Assessment agreed with 

PMO/SQNBG 

Training plan prepared for 

Project including QNBG and 

project partners and 

beneficiaries 

Training Needs Assessment 

consultant 2 person months 

Shaanxi Qinling National Botanic 

Garden Unit 

42 Manager courses 

20 persons international 

exposure tours 

Strategic planning ( 2 courses - 

14 personnel) 

Team building and 

communication (1 course 

14personnel) 

Investment appraisal (2 courses 

– 8 people per course) 

Corporate planning and work 

planning ( 14 people ) 

Strategy 

Investment and Business 

Management 

Corporate Plan 

Annual Work plans 

Unit Budget and financial 

Performance 

Human Resource Management 

Monitoring and Reporting 

Total = 14 

� Director 

� Deputy Director 

� Commercial Manager and 

deputy 

� Public Relations and deputy 

� Financial Manager and 

deputy 

� Support staff 6 

A: Management 

[ Proposed ADTA for Institutional 

Strengthening ] 

Local level training – 14 admin 

courses 

Each Dept to receive 2 training 

courses per year for 3 years. 

Total – 3 dept, 2 courses, 3 

years to be defined by staff skills 

appointed 

Administration support for Unit 

Project Record keeping and 

reporting 

MIS systems 


� Finance Dept (4) 

� Admin Dept (5) 

� HR Dept (4) 

� Office Staff (5) 

� Project support (4) 

B: Administration 

Project admin included in 

Component 3 

Operational managers and 

professional staff training 93 

local courses included in the 

loan project 

Manager and Deputy’s 

� Planning 

� Budgeting 

� MIS 

� Promotion and marketing 

In house staff training 

� Guiding 

� Environmental education 

Enterprise management 

Planting, 

Maintenance, of gardens 

Repair and maintenance 

Education and awareness 

programs 

Visitor Management 

C: Botanical Garden Division Total Staff = 219 plus 20 

management 

� Full time 105 

� Part Time 114 

114 workers trained in botanical 

garden skills – identification of 

plants, planting, maintenance



18 


Job exchange for senior staff 

related to education and 

awareness and visitor 

management , and botanic 

garden management 

and awareness 

� Botanical garden 

management 

� Visitor management 

� Part time staff will receive 

basic horticulture and 

planting training as an inhouse 

training program 

Included in Subcomponent 1.2 

including international exchange 

inputs and design inputs 

Commercial management and 

visitor management will be 

developed through contracting 

commercial services 

Commercial Management and 

visitor programs 


Management (20) 

1. Center Manager 

2. Director Research and 

Breeding 

3. Director Marketing 

4. Director Operation and 


� Admin – 5 

� Research and monitoring 

Staff – 10 

� Rescue and animal hospital 

– 12 

� Compliance 12 

� Keepers 50 

� Visitor management 6 

� Market (19 provided by 

contract b y tourism dept) 

D: Animal Rescue Center 

Division 

70 staff trained in local courses 

or through TA supported 

courses 


management 

Endangered species training – 

work based programs with 

support from national and 

international TA 

Vet and wildlife recovery skills 

TA expertise for animal recovery 

and breeding programs for 

Panda, Ibis, Golden Monkey, 

Takin 

Captive breeding technology 

Animal exposition and 

management 

Operational management and 

admin included in ADTA 

Conservation Education and 

Awareness 

Included in component 2 and 

Component three (GEF) 

A: Planning processes and 

option developed in consultation 

with wider conservation 

programs and staff 

A: Planning – habitat and 

conservation forestry, 

Landscape 

Existing Staff excluding 30 

SARC staff – approximately 120 

� Manager Operations 

� Forest Park 

� Conservation Forestry 

Programs 

E: Field Conservation Division 

(Louguantai Forest Farm) 

Livelihood Program 

� 20 village planning 

facilitators 

Capacity building through 

Village planning and community 

livelihoods



19 


� Community Forestry 

undertaking a planning program � Technical assistance 

Programs 

Collective /community forestry 

(domestic) 6 pmnths 

� Compliance and Protection programs 

Village development planning � Economic Plants and SME 

� Monitoring 

training of planning facilitators development training for 

� Species Recovery 

agency staff in Qinling 

Biodiversity identification 

Management 

Mountains by IMPLAD for 2 

Conservation and community years 

Habitat restoration 

forestry based on analog and 

conservation forestry systems 

designed for social and local 

Conservation forestry 

Conservation Forestry 

conditions 

� Habitat and forestry master 

plan (plan by doing) with 40 

Field Patrolling 

Habitat restoration – Project and to 60 people trained 

other forestry experts to provide � Technical assistance to 

Monitoring and data training 

support training and 

management 

planning processes 

Plant identification course 

(9pmnths domestic) a total 

Endangered species 

of 40 trained staff 

management and recovery 

� Endangered species 

Field patrolling – Project office 

recovery training and 

staff 

planning for 4 years – 50 to 

75 people trained – a total of 

Biodiversity monitoring training 15 trained staff 

Landscape Planning 

� Planning process (100 

trained by doing) 

� 24 IA staff 

� 250 agency and institute 


� Planning working groups 

with support of TA 


Tourism Planning 

� Implementing Agencies 

agency and Qinling 

Mountains staff (50) 

- TA (international) – 10 

pmnth 

- TA (domestic) – 24



20 


pmnth 

- 12 local tourism 

planning facilitators 

Conservation Monitoring 

� Monitoring contract (WWF 

technical support for training 

– 2 years) 

� Implementing Agencies and 

conservation staff in Qinling 

Mountains training 100 per 

year for 3 years 

� Technical assistance for 

Training and capacity 

development 

- International – 15 pmnth 

- National – 15 pmnth 

� International/regional job 

exchanges – 15 ( 3 for 

Qinling Botanic Garden, 6 

SARC, 6 for non- 

Implementing Agencies 

staff) 

� A total of 50 staff trained in 

conservation monitoring 

under WWF technical 

support contract 

� 4 year education and 

dissemination program in 


B: Project Management 

PMO (11) 

Training provided by ADB head 

office and PRCM prior to loan 

effectiveness 

ADB procedures training – 

before effectiveness 

In-house training of 

Implementing Agencies staff 

Procurement 

Disbursement and 

replenishment procedures 

Project BME and MIS 

Follow on training provided in 

Component 3 

Project planning 

Project procurement 

Project administration 

Project disbursement 

Project reporting 

Directors, Management, and 

Administrative staff of QNBG 

(15)



21 


Component 2 training 

� 16 SALT demonstrations 

� 160 mu in 16 Forest Plant 

production demonstrations 

� Small enterprise 

demonstration (10 to 16) 

� Farmer training program (2 

year NGO contract) 

� Farmer and household 

education program for 3 

years 

� Homestay tourism training 

- 70 employees trained 

- 10 manager courses 

Course training facilitators 

Planning exercises for all 

agencies staff including staff 

from agencies operating outside 

the Project 

Group formation 

Spatial planning and 

prioritization 

Forest land allocation 

Community forestry programs 

- tree and shrub planting 

- tree shrub maintenance 

- biodiversity awareness 

- small business development 


- marketing and promotion 

- hosting 

- cleanliness 

- cooking and food preparation 

- guiding and value adding 

SALT 

- agro-ecology 

- contour planting and 

management 

- agricultural technologies 

Project Beneficiaries 

Local Residents in in-situ area Village planning 

Community forestry 

Small enterprise development 


SALT 

Forestry Group training days 

using TA input and SFB staff 

Implementation planning and 

oversight through LFF 

Enterprise training programs 

SALT Demonstrations and 

farmer training

Final Report - Asian Development Bank

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