The Asian Development Bank (ADB) has approved a loan of 80 million US dollars to promote environmentally sound farming practices in southeastern Chinese province of Fujian to raise poor people's incomes and diversify income sources.

The Fujian Soil Conservation and Rural Development II Project aims to narrow the income disparity between urban and rural households in fragile environments of the province, particularly mountainous and coastal areas, the Manila-based ADB said Thursday in a statement.

The project will address continued land degradation and key constraints in rural development by promoting market mechanisms that incorporate conservation and poverty reduction into agricultural systems of production, processing, and marketing, with rural infrastructure and institutional support, the ADB said.

It will also help the private sector respond to market opportunities in agricultural production and rural infrastructure.

"Improvements in rural infrastructure and basic services, such as markets, roads, water supply, and electricity, will provide better opportunities to raise incomes and reduce poverty in the province," says Tahir Qadri, an ADB Principal Natural Resources Specialist.

"The Project will promote private sector involvement in sustainable farming techniques to rehabilitate orchards and farms, develop aquaculture in poor coastal areas and inland waterways, and expand agro processing to help increase rural incomes and narrow the widening rural-urban divide."

Fujian Province has experienced rapid economic growth over the last few decades.

The Project, which is due for completion in June 2010 with a total cost of 285.96 million dollars, covers a population of 18.8 million in 50 counties, 198 townships, and 497 villages.

Source: Xinhua