Project Data Sheet

Project Data Sheets (PDS) contain summary information on the project or program: Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

PDS Creation Date 21 Apr 2006
PDS Updated as of 02 May 2014

Project Name Commercial Agriculture Development
Country Nepal
Project/Program Number 34308-022
Status Closed
Geographical Location Eastern Development Region of Nepal
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
Sector Agriculture, natural resources and rural development
Subsector Agricultural Production and Markets
Strategic Agendas
Drivers of Change
Gender Equity and Mainstreaming Categories Effective gender mainstreaming

Financing

Type/Modality of Assistance Approval Number Source of Funding Approved Amount (thousand)
Grant0063Asian Development Fund18,000
TOTAL US$ 18,000

Safeguard Categories

For more information about the safeguard categories, please see http://www.adb.org/site/safeguards/safeguard-categories

Environment B
Involuntary Resettlement C
Indigenous Peoples C

Summary of Environmental and Social Issues

Environmental Aspects
The project has been implementing acceptable level of environmental safeguards. The environmental safeguards are incorporated in subproject concept notes (SCN) and subproject detail proposals. Implementation is being monitored by environment consultant, district-based CAA monitoring officers and district technical office (DTO) staff. The adherence to labor-based approach, disposal of spoil, drainage management, replantation for cleared trees, protection from erosion, and encroachment of private land are a few important issues require carefully screened and addressed in subprojects. Infrastructure built under the Project are engineered and supervised for quality control by DTO and PMU engineers and users committees. It was agreed to intensify environmental monitoring in project implementation; avoid use of private property or submit as an annex to SCN a consent letter signed by owners and endorsed by village development committee or an independent NGO confirming that lands were donated voluntarily to subproject; prohibit use of heavy equipment for construction works and adopt labor-based approach; replant cleared trees at 1:25 ratio; carefully implement integrated pest management; and select subprojects based on priority. It was also agreed to increase technical staff for timely preparation, implementation monitoring and quality control of infrastructure subprojects. The quarterly progress report will include a section on status of environmental safeguards compliance in infrastructure and non-infrastructure subprojects.
Involuntary Resettlement
There is community infrastructure included in the commercial agriculture packages but no proposal from the beneficiaries has been accepted that might involve involuntary resettlement. However, the resettlement component is reflected in each of the proposal selection criteria. While selection of subprojects, the Project is carefully considering that no person is adversely affected due to land acquisition, resettlement or land donation and in terms of ADB's Policy on Involuntary Resettlement and the prevailing laws and regulations of the country.
Indigenous Peoples
The Project has no negative impact on indigenous people. The Project has been addressing the issues of social and economic exclusion through its component 2: inclusive development of stakeholders, which assists disadvantaged people and poor subsistence farmers to develop and participate in income-generating agricultural activities. Social Development Specialist at PMU has been assisting in ensuring the equitable distribution of project resources and equal access to project activities and structures. The associated JFPR grant targets and benefits the most disadvantaged people by focusing on building their capacity and on income generation opportunities through a specialized package of targeted support to ensure their participation. The Project has made a considerable progress in achieving the targets. Out of 274 CAA members, women comprise 48%, dalit 6%, janajati 41%, and others4 53%, which meets the GAP target. Of the total CAA members, farmer groups are 47%, cooperatives 32%, traders 11%, and processors 10%. Out of the total farmer groups, women only groups are 12%, while women only cooperatives are 20%. Rest of the farmer groups and cooperatives has women and men members. The traders (16) and processors (13) are mostly male groups. Of the total 25,144 subsistence and semi-commercial members, women are in high numbers 66% subsistence and 51% semi-commercial. Similarly, representation of dalit (26%) and janajati (53%) are also high in subsistence groups. The Project has institutionalized the systemic collection of disaggregated data from the field to centre, and proper formats have been used for periodic monitoring and reporting.

Stakeholder Communication, Participation and Consultation

Stakeholders consultations and participatory planning workshops were carried out during the project preparatory technical assistance and loan processing phase. The project activities, including the Commercial Agriculture Fund investments, social inclusiveness initiatives, market information dissemination, and capacity enhancement of project partners, will be largely shaped in response to demands, capacities, and constraints of the project beneficiaries, and market opportunities for commercial agriculture development. A midterm review planned for later in 2010 will further consult with beneficiaries.

During Project Design
Participatory design workshops with stakeholders conducted at several stages during PPTA implementation.
During Project Implementation
The Project will reduce rural poverty in the EDR through equitable and sustainable commercialization of agriculture. Impacts include increased economic activities and jobs in the project area. Social inclusion activities will promote the participation of all stakeholders including the poor, disadvantaged, and women in commercial agriculture; help them receive fair benefits from such participation; and in turn contribute to restoring peace and stability in the EDR. The Project will directly generate employment opportunities for subsistence stakeholders by promoting HVC production and marketing, transporting products from the field to storage and processing centers, and assisting small-scale community-based market infrastructure development. The landless poor will, through skill-based training, be made more employable and capable of income generation. Commercial stakeholders will be assisted to add value to agriculture products and encouraged to adopt socially inclusive behavior to help the less advantaged.

Description

The Project will reduce poverty in the rural communities of 11 EDR districts through equitable and sustainable commercialization of agriculture. The project outcome will be improved efficiency of production, marketing, and processing of HVCs such as vegetables, fruits, tea, and spices in the EDR. The project outputs include (i) increased public and private investment in commercial agriculture, (ii) inclusion of poor and semicommercial stakeholders in commercial agriculture, (iii) timely availability of market information to farmers, and (iv) enhanced capacity of project partners in supporting farmers.

Project Rationale and Linkage to Country/Regional Strategy

The Project builds on existing initiatives; responds to the needs of stakeholders; and ensures fairer benefits to poor disadvantaged communities and women. The Project is timely and based on sound experience; its design is consistent with ADB?s strategic focus under the CSP to (i) increase agricultural productivity (ii) increase agricultural income and employment opportunities for rural people, and (iii) increase commercialization of agriculture. ADB?s 2005?2009 country strategy and program (CSP) for Nepal links future ADB assistance to results sought by the Government to deal with the underlying causes and possible long-term effects of the recent conflict. Broad-based and inclusive social and economic development to achieve a steady decline in poverty is the adopted strategy. The results are in line with the objectives of the Government?s poverty reduction strategy (Tenth Five-Year Plan), which is built on four pillars: (i) broad-based and higher economic growth, (ii) social development, (iii) targeted programs for socially excluded groups, and (iv) good governance. The main thrusts of the CSP are (i) promoting greater development balance in different regions; (ii) improving access of the poor to basic services, opportunities for social advancement, and participation in the development process; and (iii) addressing the needs of disadvantaged ethnic groups, castes, and women. In project design, the CSP requires (i) simple design, (ii) service delivery through local stakeholders, (iii) demand-driven assistance, (iv) results-focused support, (v) flexible implementation modalities, (vi) community participation with social inclusion in overall project implementation, and (vii) greater transparency and accountability. These requirements guided design of the Project and are incorporated in its framework.

Development Impact

Reduced poverty in the rural communities of 11 districts in the Eastern Development Region (EDR) of Nepal through equitable and sustainable commercialization of agriculture

Project Outcome

Description of Outcome
Improved efficiency of marketing and processing high-value crops (HVCs) such as vegetables, fruits, tea, and spices in the EDR
Progress Towards Outcome
Project implementation completed on 30 June 2013. The EA has submitted the recipient's project completion report in December 2013. The grant account closed on 11 February 2014. Detail project outcome will be assessed at ADB's PCR.

Outputs and Implementation Progress

Description of Project Outputs
1. Increased public and private investment in commercial agriculture 1.1 Establishment of the commercial agriculture alliance (CAA) 1.2 Community-based market infrastructure investments 1.3 Noninfrastructure investments add value to agriculture products 2. Inclusion of poor and semi-commercial stakeholders in commercial agriculture 2.1 Development of subsistence stakeholders 2.2 Enhancement of semicommercial stakeholders 2.3 Promotion of social inclusiveness among commercial stakeholders 3. Timely availability of market information to farmers 4. Enhanced capacity of project partners in supporting farmers
Status of Implementation Progress (Outputs, Activities, and Issues)
CAA has 502 active members Membership comprises farmer group 55%, co-operative 28%, traders 10%, and processors 7%. Six annual general meetings held, regular district meetings were also held. Of the 76 subprojects, farm to market roads are 22, market shed 23, collection centers 17, storage/godown 3, small irrigation 9 and other 2. 322 non-infrastructure subprojects implemented. 76 market infrastructure developed jiuntly with DDC and concerned user groups. All the market infrastructures are being managed by communities. 77% of sub-projects include HVC promotion. 11% of sub-projects are for quality control. 1% of sub-projects include equipment for product testing. 11% of subprojects are agro-processing technology, equipment and machinery. CAA members participated in 9 promotional visits (Palpa ? 1 visit on commercial vegetable farming; Darjeeling 1 ? on tea processing; Dhupgadi (India) 1 ? tomato and chilly farming; Pusha (India) 1 ? on honey production/marketing; Ludhiyana (India) 1 ? national level agri fair; Bhagalpur (India) 1 ? state level agri fair; Thailand 1 ? OVOP and cooperative marketing), Bangalore international agri fair-1, Chandigarh agri fair-1, Pusa/Delhi agri fair-1. General members participated in the fairs on agri-business organized in Siraha, Morang and Panchthar. One event of Trade Expo (Birat expo 2011) organized. Project organized an orientation program to CAA members on intellectual property right protection CAA members have been provided 3 events of skill based promotional training on home processing, branding and labelling 5 promotional activities and one national level workshop have been organized for HVCs promotion and industry networking. These include: tea farmers/processors/traders visit to India (April 2010), workshop on honey and visit to different markets for producers (2010), one workshop on potato, chilli and tomato among different stakeholders (2010) Partnered with 11 NGOs for development of subsistence stakeholders in 11 districts. Additional inclusive development activities implemented through IA. NGOs and PMU assisted 23,379 households in implementing income generating activities. 165 HVC production pockets and 35 marketing points identified by the partner NGOs. 31 farmer groups/cooperatives received CAA membership. ? 81 quality improvement groups established comprising of 1704 households ? 15 groups comprising 375 households formed, capacitated and mobilized in improving post-production and quality improvements. ? 15 training events organized in post-harvest, value addition and quality improvement. 378 groups adopting small scale commercial activities, and providing jobs to 1,100 persons. 255 farmer groups (semi-commercial and other stakeholders) graduated in to marketing entities. 81 marketing groups and agribusiness stakeholders facilitated to emerge as marketing entities on key HVCs like ginger, cardamom and tea. 902 farmer groups formed, trained, and mobilized. 5,684 landless people identified, organized into groups, and provided skill training. Contract signed with 11 partner NGOs for promotion of semi-commercial stakeholders in 11 districts. - 22 NGOs as service providers contracted as per demand - 17 other service providers (training and logistics providers) contracted. 749 commercial stakeholders oriented on gender, social mobilization, inclusion, and environment management. CAA investment was largely inclusive. 17 group/cooperative based market information system (GMIS) established and functional. 17 group/cooperatives assisted in operating and maintaining the market information system. Consolidated district data systemized, integrated with centralized system and disseminated through AMIS website www.amis.gov.np, monthly bulletins, daily price e-bulletin, FMs Radios, SMS mobile phone services, monthly TV program, weekly FM Radio, AMIS centre at APMCs-3 and DCCIs-4, GMIS Centers-17 and scrolling price notice board-2 Altogether 202,659 people benefited by various means of mass media releases, of them 49% are female. 43 project standardization training completed. 136 basic marketing development training completed. 39 training to partner NGO staff completed. 50 training to DADO staff completed. 90 events including 24 training to CAA staff and 65 events to members, completed.
Status of Development Objectives
Material Changes

Business Opportunities

Date of First Listing 2006 Apr 21
Consulting Services
A team of consultants will be engaged, through two firms, by MOAC to support project management, and to provide technical advice and assistance in implementing specific interventions. The consulting services requirement is estimated at a total of 420 person-months, comprising 103 international nd 317 domestic person-months.Two key experts, the international advisor and the lawyer, will be recruited individually.
Procurement
Procurement of goods and services under the Project will be carried out in accordance with ADB's Guidelines for procurement.
Procurement and Consulting Notices
http://www.adb.org/projects/34308-022/business-opportunities

Timetable

Concept Clearance 22 Sep 2004
Fact-finding 02 Feb 2004 to 14 Feb 2004
Management Review Meeting 28 Jul 2006
Approval 16 Nov 2006
Last Review Mission

Milestones

Approval No. Approval Signing Effectivity Closing
Original Revised Actual
Grant 0063 16 Nov 2006 23 Feb 2007 06 Aug 2007 30 Jun 2013 11 Feb 2014

Utilization

Date Approval Number ADB (US$ thousand) Others (US$ thousand) Net Percentage
Cumulative Contract Awards
16 Sep 2014 Grant 0063 14,884 0 99.00%
Cumulative Disbursements
16 Sep 2014 Grant 0063 14,884 0 99.00%

Status of Covenants

Covenants are categorized under the following categories—audited accounts, safeguards, social, sector, financial, economic, and others. Covenant compliance is rated by category by applying the following criteria: (i) Satisfactory—all covenants in the category are being complied with, with a maximum of one exception allowed, (ii) Partly Satisfactory—a maximum of two covenants in the category are not being complied with, (iii) Unsatisfactory—three or more covenants in the category are not being complied with. As per the 2011 Public Communications Policy, covenant compliance ratings for Project Financial Statements apply only to projects whose invitation for negotiation falls after 2 April 2012.

Approval No. Category
Sector Social Financial Economic Others Safeguards Project Financial Statements
Grant 0063 Satisfactory Satisfactory Satisfactory Satisfactory Satisfactory

Contacts and Update Details

Responsible ADB Officer Govinda P. Gewali (ggewali@adb.org)
Responsible ADB Department South Asia Department
Responsible ADB Divisions Nepal Resident Mission
Executing Agencies Ministry of Agriculture and Cooperatives
Tek Bahadur Bam

Links

Project Website http://www.adb.org/projects/34308-022/main
List of Project Documents http://www.adb.org/projects/34308-022/documents