Final Report - Asian Development Bank

TA 4721-PRC: Preparing the Shaanxi-Qinling Mountains Integrated Ecosystem Management Project
Final Report Appendix 6
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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