Final Report - Asian Development Bank

28 Main Report
integrated spatial plan for Louguan Township and surrounding forest farm; (ii) livelihood improvement
for up to 12,000 farmers, (iii) up to 40 small enterprises established, (iv) environmental treatment of
over 90% of all waste streams arising from mass tourism, (v) management plans prepared for at least
6 endangered species, (vi) measurable increases in the extent and quality of habitat within the Project
area, (vii) increased tourism visitation from 300,00 to more than 1 million by 2020, and (viii)
contribution to at least 2 managed conservation breeding programs.
75. The Project has three outputs: (i) successful tourism development that supports
conservation, (ii) improved livelihoods from sustainable management and conservation of natural
resources, (iii) project management and institutional arrangements for sustainable management of
resources established and demonstrated.
B. Outputs
1. Component One: Tourism Development to Support Conservation
76. Component one will support two commercial enterprises to develop and expand their
business models within the ex-situ zone. These enterprises include (i) QNBG (incorporating the
Qinling Botanicalal Garden, SARC, Louguantai Forest Farm) and (iii) Louguantai Hot Springs
Development. SPG has proposed a two-phased approach, with ADB and GEF helping to finance
phase 1 during 2008–2013, and the Shaanxi government and enterprises entirely financing phase 2
during 2014–2018. The second phase will be about the same magnitude as the first phase but will
allow for (i) expansion of the infrastructure for tourism in PA, (ii) preparation of plans for improving
biodiversity conservation in the other nature and forest reserves in QM, and (iii) incorporation of
lessons learned from phase 1. The Project in phase 1 will support two public-sector enterprises that
will undertake significant construction of buildings including exhibition halls, offices, tourism
accommodation and restaurants, animal exposition and display areas, animal enclosures, roads and
infrastructure including drainage systems, lighting, water supply and irrigation investments, and Daoist
temple and related building renovations.
77. Qinling National Botanicalal Garden (SQNBG) is a new business enterprise consisting of
269 ha of constructed gardens that represent the plants of Qinling. The gardens will be interlinked
with walkways along which public education and awareness displays will inform the public on themes
such as natural history, environment and biodiversity. The QBG will also construct a major exhibition
hall to represent aspects of natural history and a service reception center including hospitality and
restaurant functions. The gardens will be linked by walkways and a 1230m cable car to a series of
Daoist temple sites that will be restored and protected 16 .
78. The 18 constructed gardens will amount to 57 ha interspersed amongst 25 ha of lawn. The
display will be supported with a greenhouse for propagation and display purposes. The site will
require utilities and infrastructure to minimize the visitation impact on the environment and the
gardens themselves. Electric vehicles will be used to move people around the garden as needed.
The enterprise has been allocated permission to use land; however, this land will require resettlement
of some 143 households and a limited amount of land acquisition. The remaining land will require
3,780 affected persons to be compensated through a fixed payment to farmers and a profit share
agreement based on share of capital in the QNBG. As the Revenues increase forecast profit share
revenues increase. In total the QBG will employ over 250 people with the local residents and affected
persons having the first right of refusal for any employment opportunity.
79. Revenues will be generated from day visitation and the use of entry tickets along with profits
from attractions or services including the cable car, restaurants, rental cars, temples sites and
exhibition hall. Visitor numbers are expected to rise from 350000 in 2011 to 478,000 on project
completion to over 1.1 million in 2035. Revenue forecasts indicate a revenue stream increasing from
16 The restoration program will be jointly undertaken by the Qinling Botanical Garden and the Daoist Community
with the Daoist community participating in the identification of “legitimate sites” and also in the specifications of
design. The Daoist community will be required to provide their ratification of the final designs to the PMO prior
to any ADB approval for the financing of these sites. This approval will include design, and operational
parameters including the sharing of revenue if required.