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1. Project Summary and Relationship to China's Agenda 21

This project seeks to formulate an overall planning for the exploitation and utilisation of various resources and to achieve a balance in the use and development of natural resources in the relationship between development and environmental protection, between local economic and social development and the development of the neighbouring areas so that this region will really embark on the way of sustainable development with rational exploitation and sustainable utilisation of resources and co-ordinated development of economy and the environment. The project is based on programme areas 11E and 16C of China's Agenda 21, and is related to programme areas 8A, 11C, 14A, 14B, 14C, 16A, 16B, 16D and 17C.

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2. Background

The Jinshanmeng Area is the juncture area of Shanxi, Shaanxi and Inner-Mongolia and is famous for its abundance of coal and natural gas resources. As an important development field of Northwest Energy Resources Base, it will become an important energy and heavy chemical industry base of China in the next century. But at the same time, the eco-environment there is fragile with serious soil erosion, which has become a major source of coarse sand deposit into the Yellow River. In recent years, because of lack of overall planning and unified management during the process of resources exploitation, land desertification and soil erosion have deteriorated. The amount of coarse sand deposited into the Yellow River has increased greatly, and solid waste and slug have blocked the river course. This has not only influenced flood discharge, polluted water quality, but also affected the resources exploitation, local economic development and peopleís life. Furthermore, it also threatens the safety of the downstream of the Yellow River. Therefore, to ameliorate the eco-environment of the area and reverse the vicious cycle of economic impoverishment and environmental degradation, sustainable resources development has become an important and essential prerequisite for the sustainable economic development of the area. Improvement of environment, development of economy and technological progress require all-out cooperation among local society, local governments and specialists concerned. The local people and governments of Shanxi, Shaanxi, and Inner Mongolia have accumulated considerable experience in the conservation of water and soil and in combating sand problems. Moreover, in addition to local knowledge, the availability of labour force with a desire to achieve upward economic-environmental mobility is also a great asset. The Chinese Government has formulated special policies, laws and plans for the Shanxi, Shaanxi, Inner Mongolia Energy Resource Base for the protection of environment and investment in environmentally sound mining technologies. A specific control and management plan has been issued for water and soil conservation in the Loess Plateau Region of the Yellow River Valley, for water and soil conservation in coal mining and for the provision of jobs for the poorest households. Since the 1950ís, organisations such as the Chinese Academy of Sciences have analysed energy resources in the region and the problem of environmental protection. The State Planing Commission has taken the lead in the formulation of the overall plan for the development, management and environmental protection of the Shanxi-Shaanxi-Inner Mongolia Energy Resources Base. At present, the Plan has been completed and is being implemented. Besides, the Asian Development Bank has financed a technical assistance project in remote sensing and monitoring, and the fragile environmental management in the contiguous area of Shanxi, Shaanxi and Inner Mongolia. As an initial result of this project, the geographical information system has been finished.

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3. Objectives

3.1 Long-term Objective By the year 2010, it is anticipated to effectively restrict the trend of eco-environmental degradation of the whole area, enhance the rate of vegetation coverage, mining land reclamation and pollutant treatment in towns as well as key mining districts. It is also expected to enlarge the square of grass land, promote soil erosion treatment and effectively check the desertification for the purpose of realising the positive cycle of economic development, environmental improvement, and the development of local agricultural economy. 3.2 Immediate Objectives * To conduct ecological protection engineering with the restoration of vegetation as the focus to alleviate soil erosion, wind and sand hazards, and strictly control the amount of coarse sand deposited into the Yellow River; * To implement the mining land reclamation plan by stages in order to raise the reclamation rate to 30% by the year 2000.

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4. Outputs and Activities

4.1 Forest belt construction for water and soil conservation along the Yellow River banks * To survey and examine land quality and properties of the area where the Yellow River passes through; to select proper kinds of trees and determine the proportion of economic forest and commercial forest according to the survey results; * To formulate a forest belt construction plan for water and soil conservation; and * To realise the construction plan stage by stage. Monitoring Indicators: the construction of water and soil conservation forest belt for 66.7 thousands ha. within the area of 5 kilometres along the Yellow River banks. Implementing Agencies: National Environmental Protection Agency, the Ministry of Water Resources, the Ministry of Construction, the Ministry of Geology and Mineral Resources, and relevant local governments, all under the direction of the State Planning Commission.

Time Schedule: January 1997 - December 2000

4.2 Woods and grass vegetation construction in Ulan Moron River Area

* To make an on-the-spot investigation along the Ulan Moron River banks for the purpose of formulating specific schemes for integrated planting of arbour, shrub and grass;

* To cultivate scattered wood and grass vegetation in accordance with the different features of loess and sandy hill area in the Ulan Moron River Area for water, soil conservation and sand control. Monitoring Indicators: afforest windbreak and sandbreak forest of 66.7 thousands ha., integrating the planting of arbour, shrub and grass along the banks of the Ulan Moron River. Implementing Agencies: National Environmental Protection Agency, the Ministry of Water Resources, the Ministry of Construction, the Ministry of Ecology and Mineral Resources, and relevant local governments, all under the direction of the State Planning Commission.

Time Schedule: January 1997 - December 2000

4.3 Mining land reclamation and treatment

* To conduct an all-round investigation of damaged land in the mining areas and to organise experts to study and demonstrate reclamation methods and technical line;

* To introduce key technology and equipment systematically from abroad, and through pilot experiments and demonstrations, set up experiment demonstration districts;

* To cultivate a batch of professionals, to improve reclamation quality effectively;

* To determine the unit to undertake the task of reclamation and to set up a professional construction team with the aim of implementing the reclamation plan in stages. Monitoring Indicator: reclamation rate of 30% Implementing Agencies: National Environmental Protection Agency, the Ministry of Water Resources, the Ministry of Construction, the Ministry of Ecology and Mineral Resources, and relevant local governments, all under the direction of the State Planning Commission.

Time Schedule: January 1997 - December 2000

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5. Inputs

5.1 Chinese Inputs Chinese inputs will be used for the introduction of part of the equipment, demonstration pilots, recruitment of national experts, data collection and contingency expenses.

5.2 International Inputs International inputs will be used for the recruitment of international experts, personnel training, procurement of equipment from abroad, apparatus as well as part of the demonstration pilots.

5.3 Budget About US$ 17.4 million will be needed to implement this project, of which domestic input will account for 8.6 million and international for US$ 8.8 million.

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Table 1. Budget by Item (in million US dollars)

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Table 2. Budget by Output (in million US dollars)

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6. Benefits The construction of forest and grass vegetation will enhance and enlarge the role of ìNortheast, North-China and Northwest Forest Shelter-Belt", decrease soil erosion, control desert expansion, protect biological diversification and ameliorate climate condition. At the same time, land reclamation will be able to constrain, mitigate even eliminate the impact of human activities on environment, thus ensuring environmental stability and ecological equilibrium. When the reclamation plan is carried out, the amount of soil lost caused by soil removal and abrogation will be decreased and basically controlled, creating a clean and beautiful environment in the mining district. In the long term, the completion of this project will check and retard the damages exerted by natural forces on environment and lead eco-environment onto the track of positive cycle.

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7. Risks The project involves the coordination, cooperation and division of labour of the local governments of Shanxi, Shaanxi Provinces and Inner-Mongolia Autonomous Region. Therefore, the State Planning Commission will have to pay great attention and play a full role of organisation and coordination. Meanwhile, project financing and the choice of reclamation technology are key factors for the success of the project. For this reason, project implementing agencies will raise funds actively through various channels and will strive for government support and international assistance.

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