The lack of a project feasibility study and normally required environmental procedures did not stop Inner Mongolia’s Oasis Modern Agricultural Development Limited Liability Company (Oasis L.L.C.) from concluding terms for a large scale agricultural development project in Inner Mongolia’s Alshaa Right Banner. This is where Beijing’s sandstorms originate, an area where serious damage has been done to the eco-system. State Environmental Bureau vice president and spokesman Fan Yue commented that the western region’s eco-system is fragile and once destroyed, recovery would be very difficult.

Reportedly, in accordance with its initial contract signed with Alshaa Right Banner Government, Oasis L.L.C. initiated a massive agricultural development project in August 2001 proposing to use 40,000 mu (2,680 hectare) land including the already cultivated 10,000 mu (670 hectare) with a total investment of 30 million Yuan (3.75 million USD). During the project implementation, Oasis L.L.C. blindly opened up large areas of virgin land without taking into account the local natural conditions and having a solid cultivation plan. This not only has led to a series of cultivation failures but also turned large areas of land useless, creating an additional 2,100 mu (141 hectare) desert. On the scene, one could see the severe damage to the eco-system; randomly crossing driveways in widths of 8-12 meters and a large parcel of land cultivated earlier now totally turned to desert.

According to statistics, annual soil water volume of this area is only 9,176,600 cubic meters. To maintain a sustainable balance of water resources for development, this region’s irrigable area must not exceed 25,000 mu (1,675 hectare) even if the irrigation takes place in a strict economic manner. However, on-the-spot investigations reveal that the age-old and inefficient irrigation method, “flood irrigation” is being used, and this will permanently deplete the local water resources if the 40,000 mu (2,680 hectare) land is entirely opened up as specified by terms in the contract.

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