Preface

The Loess Plateau Watershed Rehabilitation Project is aimed at promoting the sustainable development of regional agriculture，increasing the incomes of the farmers'households，improving the ecological environment and reducing the sediment flowing into the Yellow River.It is the first time for China to implement such a large-scale project for comprehensive soil and water conservation through the use of the foreign capital.The project proposal was approved in 1991.After three years of preparation and feasibility study，the Project successfully passed the World Bank's appraisal.The Project Agreement between the Chinese government and the World Bank was signed on June 7th of 1994 and it became effective on October 3rdof the same year.

The project covers seven prefectures（cities）and 22 counties（cities，banners）in Shanxi，Shaanxi，Gansu and the Autonomous Region of Inner Mongolia.The Central Project Management Office（CPMO）was set up at the Yellow River Conservancy Commission（YRCC）and was in charge of overall coordination and management.The implementation work was organized and carried out by the four provinces（regions）.After eight years of implementation，the project objectives have been fully achieved with remarkable ecological，economic and social benefits.The project has also trained a group of professional and administrative staff in soil and water conservation management.The farmers'scientific knowledge and practical skills have also been greatly improved.

The project has been accepted and highly praised by the Chinese Central Government leaders and the World Bank officials.In June 1997，Vice Premier Jiang Chunyun conducted a field investigation of soil erosion control and construction of ecological agriculture works in Yan'an and Yulin in Shaanxi Province.In August of the same year，the State Council organized a national workshop in northern Shaanxi to exchange experiences in soil erosion control and ecological agriculture construction.The representatives participating in the workshop visited the project areas to study the success of the project construction.The premier Zhu Rongji highly complimented the project achievement when he made an investigation in the project areas at Yan'an in 1999.When Mr.Wolfenson，the president of the World Bank visited Yanan in September 1995，he said：“The project area in Yan'an is one of the most outstanding project areas I've ever seen.There are similar projects in other countries，but only in China can such a great achievement be made”.The project has gained the reputation of the“Flag Project”among the agricultural projects financed by the World Bank.

The implementation of the Loess Plateau Watershed Rehabilitation Project has attracted more attention of the news media both domestically and abroad.Journalists from American Associated Press and other foreign news agencies visited the project area and informed the world of the developments they had seen.The reporters from Xinhua News Agency，People's Daily，Guangming Daily，Economic Daily have visited the project areas repeatedly and reported the project achievements nationally and internationally.