The FINANCIAL — The Asian Development Bank (ADB) has approved a $150 million loan that marks its first ever investment targeted specifically at protecting strained groundwater resources in the People’s Republic of China (PRC).
The loan will help Weifang and Zibo prefectures in Shandong Province recharge and conserve their groundwater resource in a project designed to demonstrate a fully integrated approach to restoring aquifers and managing water resources more effectively, according to ADB.
“Falling groundwater tables from over-extraction is a widespread problem in the PRC and poses a serious threat both to agricultural output and food security,” said Frank Radstake, an ADB Principal Environment Specialist. “This project, which was prepared with cofinancing from the Water Financing Partnership Facility, brings together a wide range of measures to revive, conserve, and manage the resource more effectively, including by using best international practices and innovative technologies. The project will potentially serve as a pilot for replication in other provinces in future.”
The project area, which is the main vegetable producer for Beijing, has the largest overexploited aquifer in the province, and the second largest in the PRC. The project is expected to benefit about 4 million people, directly and indirectly.
The lack of quality groundwater in some parts of the two prefectures has resulted in a complete halt to agricultural activity, while fluctuating seasonal rainfall is not enough to recharge aquifers due to excessive pumping in dry periods. Rainfall is projected to decrease as a result of climate change, while seawater intrusion, which has already extended 35 kilometers inland from the coast, is also likely to worsen. As a result of unsustainable water use practices, the water quality has declined, with both agricultural and domestic supplies at risk. Some areas have also suffered significant financial damage from land subsidence.
The project activities will include the rehabilitation and construction of about 880 hectares of wetland areas, including canals, to help recharge groundwater in Huantai County and Shougang City. Support will also be given to Gaomi and Qingzhou cities and Huantai County to rehabilitate surface water flow systems and to construct connections between small rivers, canals and reservoirs, as well as to help Changle County and Gaomi City increase their reservoir capacity to improve storage of surface water. On the administration side, training and other capacity building support will be given on water and wetland management, including policy making and pricing; water harvesting and storage technologies for agriculture, including ‘smart’ greenhouses; the establishment of a card-controlled water use system for monitoring and managing groundwater demand for agricultural and rural water users; and the development of a groundwater trading system.
ADB’s assistance will be complemented by counterpart support equivalent to more than $194 million from participating local governments. The project will run for around 6 years with an estimated completion date of 30 June 2022.
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