Final Report - Asian Development Bank

Table 5: Project Investment Plan
($ million)
Item Amounts a
A. Base Cost b
1. Component A Commercial Ex-Situ Business 93.6
2. Component B CDA Livelihoods and Conservation 15.1
3. Component C Institutional Arrangements 5.9
Subtotal (A) 112.6
B. Contingencies c
10.6
C. Financing Charges During Implementation d 5.9
D. Commitment charge 0.1
Total (A+B+C+D) 129.25
a
Includes taxes and duties of $6.0 million.
b
In mid 2007 prices.
c
Physical contingencies computed at 5% for civil works; and 5% for field research and development,
training, surveys and studies. Price contingencies computed at 1.9% on foreign exchange costs and
2.2% in 2008 and 3% thereafter on local currency costs; includes provision for potential exchange
rate fluctuation under the assumption of a purchasing power parity exchange rate.
d
Includes interest, commitment charges and front end fees. Interest during construction has been
computed at the five-year forward London interbank offered rate plus a spread of 0.4% after waiver.
Source: PPTA estimate 30 August 2007
F. Financing Plan
127. The Government of Peoples Republic of China has requested a loan of US $40 million from
ADB’s ordinary capital resources to help finance the Project. The loan will have a 25 year term,
including a grace period of 6 years, an interest rate determined in accordance with ADB’s London
interbank offered rate 5.4% -based lending facility, a commitment charge of 0.75% per annum, 19 .and
such other terms and conditions set forth in the draft loan and project agreements. The Government
has provided ADB with (i) the reasons for its decision to borrow under ADB’s LIBOR-based lending
facility on the basis of these terms and conditions. ADB loan funds will contribute 31% of the total
cost of financing. GEF will finance $4,27 million or approximately 3.3% of the total project cost. The
remaining US $ 84.93 million (66%) will be contributed by the Shaanxi Provincial Government as
counterpart funds or from enterprise revenues.
128. The Government of PRC shall on end the loan funds to each Implementing Agency on the
same terms and conditions of the loan. Counterpart funding will be managed by each of the
Implementing agencies from their own resources or those guaranteed from other Government
Agencies. Counterpart funds will be provided for the Qinling Botanical Garden Enterprise on a 1 to 1
ratio between loan and counterpart funds. The counterpart funds for the Qinling Botanical Gardens
will be provided by State Forest Administration (SFA), Chinese Academy for the Advancement of
Sciences (CAAS), Shaanxi Provincial Government (SPG) at 28.5% per each while the remaining
14.25% will be provided by the Xian Municipality. For the Shaanxi Animal Rescue center counterpart
funds will be provide by the Shaanxi Forest Bureau. The Hot springs counterpart funds will be
provided by the management entity FUDI Tourism Development Co Ltd – which is a joint venture
company representing Shaanxi Tourism Group Company (51%) and Louguantai Forest Farm (49%).
19
{Where commitment charges form part of interest during construction, show these as separate line items in the
cost estimate table.}
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