The goal of the project is to conserve and sustainably manage the natural forest resources through developing and adopting new methods, to improve and enhance the living standards of the rural masses around the forest areas, to establish the advanced nature reserve management model for the enhancement of biodiversity conservation and develop the commercial plantations for solving the growing timber shortage in the country. The implementation period was from 2003 to 2008.  

(a) The component of the natural forest management It’s planned to complete the scientific forest surveys, establish effective natural forest management model, comprehensively train the existing forestry employees and laid-off workers, and carry out the community activity among the 220,000 hm2 key natural forest area 6 counties of the 3 provinces of Sichuan, Hunan and Hainan, with the investment of 164.25 million RMB, of which the EU grant was 16.9 million Euros.  

(b) The component of protected areas management (TF050644-CHA) It’s planned to be implemented among the 13 nature reserves in 7 provinces of Sichuan, Hunan, Hainan, Guizhou, Hubei, Gansu, and Yunnan, with the protected area of 1.16 million hm2 and the investment of 189.66 million RMB, of which the Global Environment Facility grant was 16 million USD.    

(c) The component of the forest plantation creation (4659-CHA) It’s planned to be implemented among the 107 counties of 11 provinces of Hebei, Shanxi, Liaoning, Anhui, Shandong, Henan, Hubei, Hunan, Hainan, Sichuan and Gansu, with the afforestation of 234,000 hm2, including timber of 84,000 hm2, bamboo of 31,000 hm2, economic forest of 58,000 hm2, young forest thinning of 61,000 hm2, and the investment of 1.55102 billion, of which World Bank loan was 93.9 million USD.  

The implementation of the project will have good social and economic benefits. The components of natural forest management and protected areas management will provide the management experience for the natural forests and protected areas in China. The component of forest plantation creation will generate considerable economic benefits. The project will produce timber of 13.31 million m3, bamboo of 271 million kg, bamboo shoots of 43,000 kg and economic forest products of 4.7 billion kg.