ADB Approves $150M Loan for Ecological Restoration of Dongting Lake in China

The initiative will improve local biodiversity, strengthen climate resilience, and enhance the livelihoods of approximately 722,600 residents.

The Asian Development Bank (ADB) has approved a $150 million loan to support the ecological and environmental restoration of Dongting Lake in Hunan Province, People’s Republic of China (PRC). This initiative, under the Hunan South Dongting Lake Wetland Ecological Restoration and Sustainable Development Project, is the first flagship investment of ADB’s Regional Flyway Initiative (RFI), launched in 2022.

Dongting Lake, the PRC’s second-largest freshwater lake, is a critical ecological resource, regulating water flow from the Yangtze River and providing potable water, agricultural resources, and habitats for endangered species. It also serves as a vital stopover for migratory birds along the East Asian–Australasian Flyway. However, human activities have led to habitat degradation, threatening biodiversity and ecological balance.

Project Highlights

The project, supported by RFI, aims to restore and enhance the South Dongting Lake ecosystem. The initiative will improve local biodiversity, strengthen climate resilience, and enhance the livelihoods of approximately 722,600 residents. Key components include:

Wetland Restoration: Adopting nature-based solutions to create shallow marshes and small islands, providing habitats for migratory birds.

Eco-Compensation Mechanism: Incentivizing farmers to adopt eco-friendly practices through sustainable funding generated by eco-tourism and commercial reed harvesting.

Eco-Tourism and Green Development: Building facilities to promote eco-tourism and supporting nature-based businesses to foster local economic growth.

Climate Adaptation and Mitigation: Approximately $107 million of ADB’s financing is allocated toward climate-related interventions.

Partnerships and Funding

The total project cost is $308 million, co-financed by the PRC government ($93 million) and the Agence Française de Développement ($65 million). ADB’s involvement includes managing these resources and ensuring alignment with global climate and biodiversity goals.

Global and Regional Significance

The project is a model for replication across Asia and the Pacific, particularly in other critical wetlands along the RFI’s focus areas. Safdar Parvez, ADB’s Country Director for the PRC, emphasized its broader impact, stating, “The project will deliver significant regional and global public goods, including biodiversity conservation and climate adaptation.”

Additional Impact

Employment Creation: The project will generate skilled jobs for women during construction and operations.

Enhanced Biodiversity: Focused restoration will directly benefit species reliant on the lake’s ecosystem, addressing challenges like habitat loss.

Sustainable Growth: Eco-tourism and green businesses are expected to provide long-term economic benefits while maintaining environmental integrity.

Scheduled for completion by 2031, the Dongting Lake restoration project represents a critical step in securing both environmental sustainability and socioeconomic development in Hunan Province. It underscores ADB’s commitment to integrating climate resilience with sustainable livelihoods across its member countries.