Final Report - Asian Development Bank

18
TA 4721-PRC: Preparing the Shaanxi-Qinling Mountains Integrated Ecosystem Management Project
Final Report Appendix 7
� 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.