Final Report - Asian Development Bank

TA 4721-PRC: Preparing the Shaanxi-Qinling Mountains Integrated Ecosystem Management Project
Final Report Appendix 16
38. Legal representative of fixed profit sharing and operation sharing is Villager’s Committee of
Dianzhen Village, Zhouzhi in affected areas, which shall grade the participating land according to its
practical type and make sure that the amount of every mu is allocated to the participating original land
user.
3. Revenue analysis of land profit sharing
40. The relocation and conservation project of Qinling National Botanical Garden will achieve the
use right of 3745.87 mu land by farmers’ voluntary participating in the project area. Before the profit
sharing, the 3745.87 mu land could obtain an annual net income of RMB1, 195,800 Yuan, with RMB
320 Yuan every year per mu on average. The fixed dividend after the pooling is RMB400 Yuan for
each mu per year. So the income after the pooling is RMB1, 498,300 Yuan for this part. Therefore, the
income of farmers could increase by 25.25% annually merely from fixed dividend of land. According to
this assessment, and the preliminary agreement with Denzhian villagers in relocation protection zone,
all the participating land should take up about 6% of the total investment of Qinling National Botanical
Garden. For budget purposes it is assumed that the share holder villagers will also receive 6% of the
project net profit. The profit sharing will be much higher than the existing income. See Table 9 &
Table 10.
Dian Zhen
Village
Before
becoming
Shareholder
After
becoming
Shareholder
PPTA Cash
Flow
(CNY/mu)
Shareholder
return CNY
per mu
(PPTA
figures)
Land
(mu)
Origina
l
Net
Profit
(RMB
10,000)
Table 9: Shareholder Land Profit
Original
Net
Profit
(Yuan/
Mu)
3,745.87 ������ ������
Annual
Rental
Payment
receiv’d
(RMB
10,000)
Earnings after opening business
�6� of annual profit1 see table 10)
�RMB 10,000�
2011 2015 2020 2025
3,745.87 0.00 149.83 ������� ������� ������� �������
3,745.87 0.00 149.83
(400)
�� �������
������
�������
������
9
����
�������
600 ���� ���� ����� �����
Note: The income cost and financial assessment after the project operation have been analyzed in
details in the project research report of feasibility. This profit list adopts the analysis result of the
research report of feasibility.
1 This is based on the Chinese Feasibility Forecasts. The PPTA has reduced the rate of visitation in year one from
600,000 to 350,000 effectively reducing the net cash flow and also the return to shareholding.