The Asian Development Bank (ADB) has approved a $150 million loan equivalent to improve the ecological and environmental restoration of Dongting Lake in Hunan Province, the People’s Republic of China (PRC).
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The Hunan South Dongting Lake Wetland Ecological Restoration and Sustainable Development Project will serve as the first flagship investment under ADB’s regional flyway initiative (RFI).
The RFI is a regional program that aims to support the preservation of internationally significant wetlands sites that are essential for the livelihoods of millions of people in Asia and the Pacific. These wetlands also serve as resting and breeding grounds for hundreds of migratory waterbird species. The RFI was launched at the 15th Conference of Parties to the Convention on Biological Diversity in Kunming in 2022. Its goal is to raise $3 billion over the next ten years to help protect priority wetland clusters in eight developing member countries along the East Asian–Australasian Flyway, in partnership with BirdLife International.
Supported by the RFI, the project will enhance the South Dongting Lake ecosystem, which will improve the ecosystem services that support the local economy through livelihoods and economic activity. The project will serve as a model for replication in other RFI sites, especially in other significant wetlands in Asia and the Pacific.
Dongting Lake, the second-largest freshwater lake in the PRC, plays a vital role in regulating and storing water from the Yangtze River and the rivers of Hunan. The lake provides vital ecosystem services such as biodiversity habitat for endangered species, potable and freshwater for agriculture, and climate regulation to people in the region. It supports critical habitats for migratory waterbirds in the East Asian–Australasian Flyway. However, human activities have contributed to degrading wetlands and driven habitat loss in the lake area.
“The project will deliver significant regional and global public goods, including biodiversity conservation and climate change adaptation and mitigation,” said ADB Country Director for the PRC Safdar Parvez. “The project will benefit around 722,600 residents through stronger climate resilience and increased socioeconomic benefits.”
The project will adopt nature-based solutions to ecologically restore the nature reserve by developing shallow marshes and constructing small islands, which will provide a habitat for migratory waterbirds. The project will also create skilled jobs for women during construction and operations.
The project also establishes an eco-compensation mechanism to incentivize farmers to adopt eco-friendly farming and aquaculture practices. The sustainability of the eco-compensation mechanism will be ensured by channelling contributions from income-generating activities such as eco-tourism and the commercial harvesting of reeds from the lake. It will also develop a comprehensive development plan that will support the construction of eco-tourism facilities and nature-based businesses. It is expected to be completed in 2031.
The total cost of the project is $308 million equivalent, with $93 million in counterpart financing from the government. The Agence Française de Développement will provide $65 million loan equivalent in cofinancing to be administered by ADB. About $107 million of ADB’s financing contributes to climate mitigation and adaptation.
About ADB
The Asian Development Bank (ADB) is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific while sustaining its efforts to eradicate extreme poverty. It assists its members and partners by providing loans, technical assistance, grants, and equity investments to promote social and economic development. Established in 1966, it is owned by 69 members—49 from the region.
