Brussels, 21/04/2009 (Agence Europe) - The European Investment Bank (EIB) is providing a US$160 million loan to the People's Republic of China (PRC) to help finance the reconstruction plan set up by the Chinese government for the areas hit by the May 2008 Sichuan earthquake.
The loan will be used for the restoration of pre-existing forestry ecosystems destroyed by landslides and for consolidation works in irrigation and drinking water reservoirs (528 dams). The European Commission is also involved in this plan, together with other multilateral institutions, such as the World Bank, the Asian Development Bank and the International Fund for Agricultural Development. The EIB facility will complement the grants provided by the European Commission. The support for the reforestation component of the investment programme is in line with EU's policy to mitigate climate change, while the reservoir repair component will contribute to promote natural resources management. The repair of reservoirs is necessary to ensure appropriate supply of both drinking water and water for agricultural production, and is, therefore, a high economic priority. Both components of the EIB-supported programme will contribute to environmental sustainability, one of the core objectives of the Bank's external lending mandate in Asia. (O.L./transl.rt)