Financial protocol book | Page 85

Cooperation and Development—Celebration of the 20th Anniversary of the Government Loan Cooperation between the People’s Republic of China and the State of Israel The Water-saving Agriculture Project of Ningxia Hui Autuonomous Region Ningxia Hui Autonomous Region (hereinafter as Ningxia) is located in the northwest inland plateau. The climate in this region is arid. The precipitation is limited while the evaporation is intensive. Due to the unbalanced distribution of water and land resources, the agricultural production is seriously restrained by water resources. In order to promote water-saving agriculture in Ningxia, construct irrigation facilities with demonstration purpose and enhance technical upgrading and innovation in water-saving irrigation, Ningxia applied for an Israeli Government Loan to implement Ningxia water-saving Agriculture Project (hereinafter as the Project) in 2012. The total investment of the project is RMB 481.96 million, including USD 60 million (or RMB 367.80 million; 78% of total investment) Israeli Government Loan and RMB 103.96 million Chinese counterpart fund (22% of total investment). The construction period of the Project is 3 years (2015 - 2017). The construction of the Project is centered with a water-saving irrigation objective set by the Ningxia Autonomous Region Government. The project has remained relevant despite local industrial structure adjustments. The project gives priority to viniculture development along the eastern piedmont of Mt. Helan, covering 7 counties of Shizuishan, Yinchuan and Wuzhong City, and 2 state-owned farms within the agricultural reclamation system. It is planned that the total construction area will be 9200 ha, including 1356 ha in Huinong District and Dawukou District in Shizuishan, 5884 ha in Helan County, Xixia District, Yongning County and agricultural reclamation system in Yinchuan, and 1960 ha in Hongsibao Development Area and Qingtongxia in Wuzhong. The project agreement came into effect in April 2015. The first batch of imported goods was transported to the project site on July 11st, 2015. By March 2016, the use of the Israeli loan amounted to USD 10.69 million and 16 sets of a drip irrigation system were imported from Israel. The drip irrigation and water-saving area had covered 800 ha. 2 training courses have been conducted and 110 various agricultural technical personnel were trained. The implementation of this project has pushed forward the construction of the water-saving society, popularized water-saving irrigation and improved water utility efficiency in Ningxia. This is significant to the development of the local superiority characteristic industry and the local industrial structure adjustment is beneficial to the new rural construction and harmonious society. In general, the project has strong and comprehensive demonstrative effects. 79