Final Report - Asian Development Bank

24
TA 4721-PRC: Preparing the Shaanxi-Qinling Mountains Integrated Ecosystem Management Project
Final Report Appendix 13
tourism facilities after Project implementation is completed from 2014 on. Finally, the eco-fund loans,
repayable contributions and grants will generate additional direct and indirect employment and income
benefits once the eco-fund is established. These benefits cannot be estimated at this time. It should
be stressed that employment and livelihood benefits to PA and in particular in-situ households and
businesses will not happen automatically. These will require major Project and related government
and enterprise investments in training, capacity building, and village development to ensure that these
potential benefits are actually realized.
96. A set of benefits, only partially captured in attendance projections, benefit-cost analysis and
employment estimates, is the value that people place on improvements to the bioresources of the PA
and wider Qinling. To some degree, these benefits can be quantified and given monetary values
through willingness to pay surveys and through the donations that private individuals, foundations,
corporations and other groups may provide to accelerate government and international efforts to
restore the bioresources of the Qinling to approach the biodiversity found in the distant past. This
quantification was not possible within the resources of the PPTA.
97. The estimated EIRR for the whole project is 11% based on the total Project costs being offset
against the benefits quantified for Component one only. Additional benefits not quantified relating to
biodiversity conservation, ecological function improvement, and rural livelihoods benefits will only
increase the overall economic performance. The investment is considered economically feasible within
the caveats of the benefit stream estimation described above. The EIRR is well above the PRC hurdle
rate of 8%
Table 32: Project EIRR and NCF through to 2015 (CNY 0,000’s)
Subcomponent NCF 2008 2009 2010 2011 2012 2013 2014 2015
Qinling Botanic Garden -9302 -24346 -2935 -353 2181 2698 2218 2796
SARC -3434 -8254 -10761 181 2040 2857 3233 3931
Hotsprings -5587 1262 1281 1281 1281 1281 1138 1147
Component One NCF -18323 -31337 -12415 1109 5503 6837 6589 7875
EIRR Component One 14.19%
Economic Costs Comp. Two -564 -1713 -4043 -2572 -2086 -10979
Economic Costs Comp. Three -458 -1194 -633 -336 -278 -2899
Project NCF -19345 -34244 -17092 -1799 3139 -7042 6589 7875
EIRR Project 10.92%
NPV (10%) 8190