Project Introduction of China Desertification Control
 
Desertification simply refers to the degradation of the land, which is caused by climate change and the irrational economic activities of human beings, these factors caused the desertification of the land in the area of arid, semi-arid and sub-humid areas suffering drought disasters. In today’s many environment problems of humans, desertification is one of the most serious disasters.
 
The situation of desertification in our country is very serious. The area of the our country’s desertification land is 2.622 million square kilometers, which accounting for 27.4% of the nation’s land area. According to the international cooperation project research from China, United States and Canada, China’s direct economic losses from desertification is about 54.1 billion Yuan.
 
The desertification tackling includes the activity of land comprehensive development in arid, semi-arid and sub-humid areas, which is conducted for the sustainable development. The purpose of which is to prevent or reduce land degradation, to rehabilitate part of the degradation land some deserted land, to tackle and mitigate these impacts, and to reduce the activities which are easily affected by social and natural systems, and to realize the best protection of the biodiversity. This is the grand cause to improve all human living environment.
 
In order to rehabilitate and construct a sound ecological environment and make contributions to global ecological balance. Through many years preparation and under the attention approval of Premier Wen Jiabao of State Council and the senior leaders of the nation, China Railway Investment Group (Hong Kong) Limited and the experts of desertification control, the institutes who concerns China’s desertification control set up China Foundation for Desertification Control in September, 2006.
 
Premier Wen Jiabao personally wrote the principle in tackling the desertification as follows: “To tackle scientifically and seek practical results.”
 
On January 1^st, 2008, China Foundation for Desertification Control formally decided to set up a company named as China Desertification Control (Hong Kong) Limited. The company promoted the tenet of China Foundation for Desertification Controlto the international level, and it will be the sole international marketing platform of China Foundation for Desertification Control. The purpose of which is to appeal to people both domestic and overseas to attach importance to China’s environmental problems, and to publicize the spirit of China Foundation for Desertification Control both in Hong Kong and overseas. To adopt the ways of investment and donation to raise money, and take the efforts to solve the increasingly serious problem of desertification, and to expand the global influence of the Foundation and make contributions to the global ecology of the nation, the society and the people.
 
China Foundation for Desertification Control and China Desertification Control(Hong Kong) Limited planned to invest 500-1000 million Yuan within 1-2 years, and to invest 2-5 billion Yuan within 5 years for the comprehensive development of China’s desertification projects.
 
China Foundation for Desertification Control has large tracks of land projects of desertification control across the country. Most parts of the land are suitable for growing alternative fuels of coal and oil, which not only effectively tackle the land desertification, but also get the further support from the national policy as the environmental protection project.
 
The capital needed for the project can be invested as the form of project investment, in this way, it can meet the purpose of the desertification control, meanwhile to get a lot of preferential policies to meet the investors’ economic benefit, and to form a sound circle.
 
Timetable for Desertification Control
 

Year	Name of the projects	Total Investment (Million Yuan)	Total Revenue (Million Yuan)	Areas of Managing (Ten thousand Mu)
2008	To develop 30,000 mu desertification land in Yunmen city	65	200	3
	The comprehensive development of desertification control in Hulun Buir city	1000	1000	50
2009	The construction of the socialist rural areas in Sanhe city	1000	2500	5
2010	New Baltic tiger Mongolia Desertification Control	300	800	30
2011	Others	1000	1000	100
Total		3365	5500	188

 
To take 500,000 mu of comprehensive development project in Hulun Buir City as the example.
 
The constructive contents of the project is to establish a complete shelter forest of Pines. The productive facilities, such as roads, wells, electricity and plumping, etc. and the living facilities, such as houses, should be constructed in the project areas. To build ten thousand Mu high standard nursery base to plant the medical plants such as Licorice and Parsnip, etc. To construct storage facilities, early processing and deep processing workshops. To plant nursery stocks such as Pines, Poplar, Salix psammophila to meet the needing of the project construction. To build the forage grass cultivation base, reserves for forage and the industry of high-protein forage production and processing.
 
The total investment of the project is 1 billion RMB. Investment return period is 3.2 years, the financial internal rate of return is 40%. And to tackle 500 thousand Mu desertification land and improving local ecological environment, at the same time to achieve economic benefits.
 
The cooperative modal of desertification control project can be adopted as the cooperation with China Desertification Control (Hong Kong) Limited to conduct the development of some desertification control project. And also to join China Desertification Control (Hong Kong) Limited to develop all the desertification control projects of China Foundation for Desertification Control. The percentage of stocks is under discussion.
 
Document list of desertification control projects:
 

NO.	Name of the Documents
1	Confidential Guarantee Letter
2	The business plan for desertification control projects
3	The approval of establishing China Foundation for Desertification Control by Premier Wen Jiabao.
4	The approval on China Foundation for Desertification Control by Ministry of Civil Affairs.
5	The registered certificate of China Foundation for Desertification Control
	The introduction of China Foundation for Desertification Control
	Articles of Association of China Foundation for Desertification Control
	The organizing frame for China Foundation for Desertification Control
6	The approval on agreeing to set up China Desertification Control (Hong Kong) Limited
7	The related approvals and permits of China Railway Billion Wealth Farm Investment and Management Limited
8 9	Found management for the Foundation
	Articles of management for the Foundation
	List and Introduction of some of the projects 1、            The development plan for 30 thousand Mu of desertification land in Yumen City. 2、            The related materials for desertification control in New Barag Left Banner 3、            The project plan for the construction of new socialist rural areas in Sanhe City. 4、            The comprehensive project plan for desertification control in Hulun Buir City 5、            The business plan for Qingdao Ecological Park.
10	The related documents: 1、     The approval on development and construction of 30 thousand Mu of desertification land by Yumen Government. 2、     Comment on desertification control project in Tiger Bar Chen Qi government in Inner Mongolia 3、     Comment on desertification control project inEwenki Zi Zhiqi People's Government. 4、     Letter on agreeing China Foundation for Desertification Control to conduct the desertification control project in HulunBuir Cityby Hulun Buir Government . 5、     The application on assisting the Chinese Traditional Medicine Base to conduct the desertification control project by China Foundation for Desertification Control.