FY2007 Japanese ODA Loan to China

December 5, 2007

1.  The Government of Japan has decided to extend to the Government of the People’s Republic of China a Japanese ODA Loan totaling 46,302 million yen, with a view to extending assistance based on the Economic Cooperation Program for China.  Notes to this effect were exchanged on December 1 (Sat) in Beijing between Mr. Masahiko Koumura, Japanese Minister for Foreign Affairs, and Mr. Yang Jiechi, Minister of Foreign Affairs of the People’s Republic of China.

The following are the projects and their maximum amounts:

   (1) Gansu Province Lanzhou City Atmospheric Environmental Improvement Project

up to 7,400 million yen

   (2) Qinghai Ecological Environmental Improvement Project

up to 6,300 million yen

   (3) Xinjiang Environmental Improvement Project (Phase II)

up to 3,802 million yen

   (4) Henan Province Nanyang City Environmental Improvement Project

up to 11,500 million yen

   (5) Hunan Municipal Solid Waste Treatment Project

up to 10,500 million yen

   (6) Anhui Municipal Solid Waste Treatment Project

up to 6,800 million yen

Total Amount : up to 46,302 million yen

  2. Outline of the Projects

    (1) Gansu Province Lanzhou City Atmospheric Environmental Improvement Project

       This project is intended to reduce airborne pollutants and to mitigate air pollution in Lanzhou City in Gansu Province by improving the centralized heat supply facilities and curbing the use of such pollution-generating equipment as small coal boilers.

    (2) Qinghai Ecological Environmental Improvement Project

       This project is intended to restore multiple functions of the forests and grassland, and to prevent desertification in Qinghai Province by afforestation, restoration of deteriorated grasslands, improvement of small-scale sand-control dams, and bank protection work.     

    (3) Xinjiang Environmental Improvement Project (Phase II)   

       This project is intended to strengthen sewage treatment and water supply capabilities, and to reduce water and air pollution by improving the facilities for water supply, sewage treatment, and centralized heat supply in local cities in Xinjiang.  

    (4) Henan Province Nanyang City Environmental Improvement Project

       This project is intended to reduce the amount of water pollutants discharged into rivers in Nanyang City in Henan Province and to ameliorate air pollution by improving sewage treatment facilities and facilities for supplying less-polluting gas.

    (5) Hunan Municipal Solid Waste Treatment Project

       This project is intended to promote appropriate solid waste disposal in local cities of Hunan Province by improving their solid waste disposal systems.

    (6) Anhui Municipal Solid Waster Treatment Project

       This project is intended to promote appropriate solid waste disposal in local cities of Anhui Province by improving their solid waste disposal systems.   

  3.  Terms and conditions of the loan:

    (1) Projects

    Gansu Province Lanzhou City Atmospheric Environmental Improvement Project

    Qinghai Ecological Environmental Improvement Project

    Xinjiang Environmental Improvement Project (Phase II) (sewage treatment, heat supply, city gas supply, and training)

    Henan Province Nanyang City Environmental Improvement Project

    Hunan Municipal Solid Waste Treatment Project

    Anhui Municipal Solid Waste Treatment Project

        a. Interest rate: 0.65 % per annum (preferential terms)

        b. Repayment period: 40 years (including a 10-year grace period)

        c. Procurement method: general untied

    (2) Project

    Xinjiang Environmental Improvement Project (Phase II) (water supply)

        a. Interest rate: 1.4 % per annum (general terms)

        b. Repayment period: 25 years (including a 7-year grace period)

        c. Procurement method: general untied

(END)


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