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Final Report - Asian Development Bank

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52 Main <strong>Report</strong><br />

176. The Hot-Spring development does not involve any resettlement or land compensation issues.<br />

C. Environmental Impact<br />

177. The Project area does not include a nature reserve or protected area however it is classified<br />

as forest lands with the majority being natural and conservation forest classification. The recently<br />

completed and ADB financed Land Degradation Strategy for Shaanxi identified the North slopes of<br />

the Qinling Mountains as the highest priority ecological zones in the Province requiring significant<br />

protection. SEPA has also included the Qinling Mountains as a national priority for the Ecological<br />

Function Management Area recognizing the critical ecological functions provided in supporting<br />

biodiversity and the soil and water process that directly influence the wider Shaanxi province including<br />

the water supply of nearby Xian city.<br />

178. The Project area has national and international cultural and religious values relating to the<br />

Daoist movement. The Louguantai area is acclaimed as the birth place of Daoism and there are a<br />

number of existing temples that have been restored and continue to be used. The Project proposes to<br />

intervene at a further 18 historical and religiously important temple sites that will require safeguard<br />

procedures to be followed.<br />

179. The Qinling mountains is globally recognized as a biodiversity hot spot due to the high levels<br />

of biodiversity represented and the high levels of associated endemism in the range. There are 37<br />

globally endangered species within the Qinling Mountains including major iconic species such as the<br />

giant Panda (the Qinling mountains has 20% of the PRC population), the Crested Ibis, Golden<br />

Monkey, Golden Takin, Chinese Giant Salamandar. Historical deforestation and loss of habitat has<br />

created system-wide threats too much of the biodiversity. In response donors and international<br />

community have provided substantial foreign investment in an attempt to reverse threat and to secure<br />

the future of existing biodiversity. A major gap in the protected area coverage has been the toe slopes<br />

on both the North and South side of the Qinling Mountains where the Project Area is located. The<br />

Biodiversity is also supported through the ex-situ activities of the Shaanxi animal rescue center and its<br />

management of “rescued animals” and their welfare comes under direct scrutiny both nationally and<br />

internationally.<br />

180. The project investments will have a number of potentially positive impacts on the environment<br />

through support for the introduction of improved land use practices including forest cover and<br />

biodiversity within the CDA zone and the development of world class ex-situ collections. These<br />

activities will continue long after the project through financing provided from the enterprises being<br />

developed in the ex-situ zone of the Project. A significant threat is the added risk of the proposed<br />

QBG to introduce non-native non-Qinling plants into the Botanical garden and how these have the<br />

potential to become invasive species. Both the CBD and GEF have prioritized the management of<br />

risks arising from potentially invasive species and these have been discussed in full with the QBG,<br />

however they still propose to include such species without appropriate skills or systems in quarantine<br />

or control of plant materials. Equally important is the likely impact on iconic faunal species including<br />

Panda and Crested Ibis both in the wild and in captivity. For example, currently the SARC is only 2<br />

breeding Pandas are from Wollong and not the Qinling sub-species. The proposed scale of the Panda<br />

breeding unit of 60 Panda’s suggests that significant numbers would need ot be wild harvested to use<br />

this capacity.<br />

181. To achieve this the Project will support a number of commercial enterprises that will<br />

undertake significant construction of buildings including exhibition halls, offices, tourism<br />

accommodation and restaurants, animal exposition and display areas, animal enclosures, roads and<br />

infrastructure including drainage systems, lighting, water supply and irrigation investments, and into<br />

the Daoist temples. Of special concern is the level of impact from road investments that include<br />

bridges and supporting drainage systems, water supply systems for the QBG and Dian Zhen village,<br />

the damming of the river for the Crested Ibis artificial wetland, and the impact arising from massive<br />

increases in the number of visitors.<br />

182. While the direct impact of these constructions and interventions will be significant they have<br />

been assessed to be sufficiently managed within the current set of concept designs provided –see<br />

Appendix 18 for the initial environmental assessment.

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