ADB Approves $150M Loan to Boost Ecological Resilience and Livelihoods in Qixia City, China

Qixia City is a vital water source for the coastal Yantai municipality and is renowned for its apple production.

The Asian Development Bank (ADB) has approved a $150 million loan aimed at enhancing ecological and climate resilience, as well as improving rural livelihoods in Qixia City, located in Shandong Province, People’s Republic of China (PRC). This funding will support the Shandong Qixia Ecological Function Conservation Demonstration Project, which is designed to serve as a model for integrated city ecosystem management.

According to ADB’s Country Director for the PRC, Safdar Parvez, “The project will benefit more than 429,000 residents through enhanced natural resources, improved environmental living conditions, and expanded livelihood opportunities. The practices and experiences gained in this ecologically sensitive area could be replicated in other regions of the PRC and beyond.”

Qixia City is a vital water source for the coastal Yantai municipality and is renowned for its apple production. However, the area's intensive agricultural practices, including the use of chemicals and plastics, have negatively impacted soil and water quality. Climate change has exacerbated these challenges, leading to an increase in the frequency and severity of weather-related disasters, disrupting agriculture and threatening food security.

To address these issues, the project will implement sustainable agricultural practices, including soil testing and the application of organic fertilizers and soil conditioners to enhance soil quality. Additionally, it will promote ecotourism to provide a sustainable income source for local communities while raising awareness about the importance of ecosystem conservation.

A key feature of the project will be the introduction of a smart orchard system that employs modern, environmentally friendly practices, such as sensors, data analytics, and automation for optimized fertigation and pest control. The initiative will also focus on improving rural solid waste collection management, contributing to more sustainable production systems with reduced reliance on chemical fertilizers and pesticides.

In an effort to protect natural capital, the project will rehabilitate degraded river courses through bank protection, flood control, and removal of river blockages. It will also construct fire prevention pathways in forests and implement sustainable pest control measures. Furthermore, the project will work to enhance institutional capacity and coordination for integrated ecosystem management.

This initiative is part of ADB’s broader Yellow River Ecological Corridor Program, which aligns with the PRC’s Yellow River Basin Ecological Protection and High-Quality Development Plan. The project aims to establish a model for integrated ecosystem management and bolster climate resilience, addressing complex ecological and environmental challenges faced by the Yellow River region.

The total cost of the project is estimated at $362 million, with the government contributing $212 million, which includes $85 million in cofinancing from the Agricultural Development Bank of China. Of the ADB financing, more than $99 million is allocated for climate adaptation and mitigation efforts. The project is expected to be completed by 2030, marking a significant step toward sustainable development in the region.