The proposed loan for the Shandong Groundwater Allocation and Protection Project will explore and implement restoration approaches for over-exploited groundwater resources in Weifang and Zibo cities in Shandong province, People's Republic of China (PRC). The proposed loan will optimize surface and groundwater allocation and usage, increase retention of storm water, and rehabilitate the management of wetlands to improve groundwater recharge. PRC draws groundwater heavily, a large proportion of which is used to irrigate more than 40% of the country's farmlands. Especially in the Northern China plain (NCP), rapid economic development has caused severe over-exploitation of its groundwater resources, and groundwater levels have dropped to critical levels in many areas.
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