Afforestation program launched in NE China with European loans

Northeast China's Liaoning Province launched a large afforestation program backed by loans from the European Investment Bank (EIB) on Wednesday.

The project will cost 480 million yuan (78 million U.S. dollars), from equal EIB and domestic loans, according to the provincial forestry department.

Under the program, more than 23,000 hectares of land will be afforested in 9 districts and counties in the cities of Fuxin and Chaoyang.

The program will increase forest coverage, reduce soil erosion, improve timber yield and incomes of forest farmers in the province. The completion date has not yet been set.

Liaoning is the first of eight Chinese provincial regions that have received approval from EIB on afforestation loans.

EIB is the European Union's nonprofit long-term lending institution established in 1958.