Public-Private Partnership Practice Case Analysis

Abstract

Yili Resources Group’s original production base is located in the abdomen of Kubuqi Desert, which has suffered greatly. Specifically, the management of the Kubuqi Desert was forced to withdraw. At that time, because Haizi, the birthplace of Yili Resources, was blocked by Kubuqi Desert, the transportation of products and raw materials had to detour 330 kilometers to reach the railway station. Therefore, the annual cost will exceed 15 million yuan, almost offsetting the company’s profits. The Kubuqi Desert makes it difficult for local farmers and herdsmen to see a doctor and go to school and shop. It has become the biggest obstacle for people in the desert to become rich. In order to protect lake mineral resources such as trona, thenardite, and salt, which the group depends on for its survival, Yili Resources set up a forestry fund as early as 1988 to extract 15 yuan per ton of products for ecological construction and set up a forestry team. A forestry team specialized in research, afforestation, and management has been established. At first, only sand barriers, Caragana, willow, and poplar were set up by the lake. From 1997 to 1999, Yili Resources invested in the construction of the first sand-crossing highway. Due to the fluidity of the Kubuji Desert, it is impossible to stop sand or protect roads. In this way, Yili Resources were forced to take the road of preventing and controlling desertification, which opened the prelude of Yili Resources desert control and sand industry development.