ADB to Improve Rural Livehoods, Ecosystems and Climate Resilience in Qixia City, Shandong, PRC

MANILA, PHILIPPINES (30 October 2024) — The Asian Development Bank (ADB) has approved a $150 million loan to enhance the ecological and climate resilience, as well as rural livelihoods in Qixia City in Shandong Province, the People’s Republic of China (PRC).  

“The Shandong Qixia Ecological Function Conservation Demonstration Project will provide a model of integrated city ecosystem management,” said ADB Country Director for the PRC Safdar Parvez. “The project will benefit more than 429,000 residents through enhanced natural resources, environmental living conditions, and livelihood opportunities. The practices and experiences in this ecologically sensitive area could be replicated in other parts of the PRC, as well as in other countries.”

Qixia City serves as the primary water source for coastal Yantai municipality in northeast Shandong Province, a major apple-growing area. However, intensive use of agricultural chemicals and plastic has damaged soil and water quality in the vicinity. Climate change is also increasing the frequency and magnitude of weather-related disasters. The degradation of natural capital in the city is disrupting agriculture and food security.

To improve sustainability practices for agriculture and rural livelihoods, the project will conduct soil testing and apply organic fertilizers and soil conditioners to improve soil quality, as well as promote ecotourism to provide a sustainable source of income for local communities, while also raising awareness about the importance of conserving the ecosystem.

The project will pilot a smart orchard system that will have modern and environment-friendly practices, such as sensors, data analytics, automation, optimized fertigation, and pest control. It will also strengthen rural solid waste collection management. All contribute to more sustainable production systems with reduced chemical fertilizer and pesticide use.

To protect natural capital, the project will rehabilitate degraded river courses through bank protection, flood control, and excavation of river blockages. It will also construct forest fire prevention pathways and implement sustainable forest pest control. Institutional capacity and coordination on integrated ecosystem management will also be strengthened.

As part of ADB’s Yellow River Ecological Corridor Program, aligned with the PRC’s Yellow River Basin Ecological Protection and High-quality Development Plan, the project aims to adopt a model of integrated ecosystem management and building climate resilience. It has significant regional benefits, as it addresses the complex ecological and environmental challenges in the Yellow River region.

The total project cost is estimated to be $362 million, with $212 million counterpart financing from the government, which includes $85 million cofinancing from the Agricultural Development Bank of China. More than $99 million of the ADB financing is earmarked for climate adaptation and mitigation. It is expected to be completed in 2030.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 69 members—49 from the region.