Final Report - Asian Development Bank

TA 4721-PRC: Preparing the Shaanxi-Qinling Mountains Integrated Ecosystem Management Project
Final Report Appendix 13
(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