| Brief Profiles Of Investment Projects
For China's Agenda 21 |
| Title | Planting and Processing of Desert Flora | ||||||||||||||||||||||||
| Type | New cultivation of desert flora with associated harvesting and processing | ||||||||||||||||||||||||
| Description | |||||||||||||||||||||||||
| The cultivation of desert flora for medicinal use will be integrated with land conservation practices to prevent the further desertification of areas of the Ningxia Hui Autonomous Region. Four demonstration districts in different counties will be gradually established with total area of 20,000 ha. over a period of 8 years. Desert flora will be cultivated in 15,000 ha. and another 5,000 ha. will be planted to forage grass. A pilot area for test cultivation will be included. The desert flora to be cultivated have medicinal and other applications. A plant for processing these desert flora will be constructed and the medicinal products will be marked domestically. | |||||||||||||||||||||||||
| Rationale | |||||||||||||||||||||||||
| Ningxia Autonomous Region has about 9 million ha. of land which is which is either desertified, eroded or degraded. The demonstration zones to be developed are presently desert areas with little vegetation. Relatively well-developed techniques for the cultivation of these species are available as they been grown in other areas with similar climatic features in China. The cultivation practices will correct the problems of land erosion and desertification. The demand for these products, ephedra sinica, licorice root and derivatives and other species is strong. The estimated markets for these products are as follows: Ephedra sinica (used in high quality medicines), 80,000 -100,000 tons worldwide, expanding at 60-80% p.a. The recent price is US$ 60 thousand per ton.; Licorice root and its acid, 2000 tons to Korea in 1990; in 15-20 years the total national market is estimated at 100,000 tons; recent price is US$ 700-800 per ton. Combined with other plant products the estimated value of output is US$ 50 million per year. | |||||||||||||||||||||||||
| Outputs | |||||||||||||||||||||||||
| Medicinal Plants: Ephedra Sinica (used in high quality medicines): 500 t/y; Licorice Root Acid (98%): 200 t/y; Other Plant Products. | |||||||||||||||||||||||||
| Location | Zhongning county etc., Ningxia Autonomous Regio. | ||||||||||||||||||||||||
| Available Information | Market Study, Technical Study and Feasibility Study | ||||||||||||||||||||||||
| Total Investment (US$) | 50 million |
Foreign Currency (US$) |
10 million | ||||||||||||||||||||||
Financing |
Co-operation Sought | ||||||||||||||||||||||||
| Equity (US$) | 10 million |
Compensation Agreement | |||||||||||||||||||||||
| of which Foreign equity (US$) | 5 million |
Equipment Purchase | |||||||||||||||||||||||
| Loan (US$) | 30 million |
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| Others(Grant) (US$) | 10 million |
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| Indicators of Viability | Total Value of Output: US$ 50 million; Pay-back Period: 10 years | ||||||||||||||||||||||||
INFORMATION ON SPONSOR | |||||||||||||||||||||||||
| Name | Ningxia Condict Green-agriculture Development Co. | Tel | +86-951-5044729 | ||||||||||||||||||||||
| Address | Hi-Tech Development Zone, Yinchuan city, Ningxia | Fax | +86-951-5044023 | ||||||||||||||||||||||
| Annual Turnover (US$) | 1993 | 1994 | 0.5 million | 1995 | 2.5 million | ||||||||||||||||||||
| Year of Establishment | 1994 | No. of Employees | 200 | Ownership | State | ||||||||||||||||||||
| Fixed Assets (US$) | 5 million | Registered Capital (US$) | 1.2 million | ||||||||||||||||||||||
| Land (ha.) | 840 | Building (m*m) | 10,000 | Equipment (US$) | 0.4 million | ||||||||||||||||||||
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