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||28 Oct 2013|
|Project Name||Commercial Agriculture Development|
|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 and/or Subsector Classification||Agriculture and natural resources
/ Agricultural Production and Markets
|Thematic Classification||Capacity development
Private sector development
|Gender Mainstreaming Categories||Effective gender mainstreaming|
|Type/Modality of Assistance||Approval Number||Source of Funding||Approved Amount (thousand)|
|Grant||0063||Asian Development Fund||18,000|
For more information about the safeguard categories, please see http://www.adb.org/site/safeguards/safeguard-categories
Environmental analysis of the Project indicates that some minor adverse impacts may be generated. These impacts may arise from intensified use of land and water resources, increased use of agrochemicals (fertilizers and pesticides), and upgrading of small-scale rural infrastructure. An initial environmental examination suggests that possible negative impacts will be small, localized, and readily mitigated. For example, rural road improvements will be limited to upgrading and rehabilitating existing roads. Minor irrigation will be limited to introducing innovative technology such as sprinkler systems and drip irrigation. Proposals for CAF financing will require environmental impact assessments. Environmental and social impact specialists will be engaged to ensure that the environmental and social concerns of ADB and the Government are incorporated into work planning and monitoring of the Project. The Project s objectives and incentives to promote cross-cutting values on equity, partnership, participation, gender, and transparency on commercial agriculture development will be openly expressed and guide project implementation. These values will become the standard by which implementation activities are assessed, and during implementation will begin to change behavior and attitudes of the stakeholders. This is expected to result in reduced vulnerability, poverty, inequity, and social conflict. Social inclusion initiatives of the Project directly support subsistence farmers and landless poor with information, skills, technology, group organizing, and business opportunities that will allow them to pursue microenterprises, self-employment, or other opportunities in commercial agriculture. Positive impacts on social and gender development will occur by (i) expanding opportunities for the poor and women to engage in commercial activities, (ii) reducing any vulnerability of disadvantaged groups arising from commercializing agriculture, and (iii) enhancing capabilities to engage directly in or benefit indirectly from commercial agriculture.
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.
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.
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.
|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.
|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.|
|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.|
|Reduced poverty in the rural communities of 11 districts in the Eastern Development Region (EDR) of Nepal through equitable and sustainable commercialization of agriculture|
|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
The area covered by HVCs has increased by additional 21,599 ha to that of 154,740 ha in 2006 due project intervention alone, and the production of HVCs has increased by 52% (205502 mt) compared with 135,000 mt in 2006. In terms of monetary value, HVC production has increased by 42% (NRs 13,902 million from NRs 9,803 million in 2006) among the beneficiaries as a result of the project interventions. The infrastructure subprojects supported through the commercial agriculture fund (CAF) for farm-to-market roads (71 km) and collection centers and market sheds (serving 1,165 ha HVC production area) have contributed to enhanced market accessibility of the target communities, while irrigation subprojects have helped bring new areas (1200 ha) under HVCs production. Similarly, the non-infrastructure subprojects supported under CAF, which include production and processing of HVC, seed production and marketing, packaging and processing, and compost production and inclusive development activities (for semi-commercial and subsistence stakeholders) have also contributed to the increased cropped area under HVCs. The marketed volume of HVCs has increased by 75% per farm household and to 13,159 kg from 7534 kg in the baseline data of project intervention areas. The export volume of selected HVCs (Large cardamom, fresh vegetables, Ginger and Tea) has increased by 26% (13901 MT) in 2012 as compared with 2006/7. The Project has placed due priority in balanced use of fertilizers. The non-infrastructure SPs has also contributed to increased organic fertilizer production (vermin-compost) and utilization in fruits, vegetables and tea. This has resulted in the adoption of sustainable soil management practice and contributed to the production of better quality HVCs. The support provided through component 1 activities has resulted in increased public, private and community investment in commercial agriculture. Against the actual total CAF investment of NRs. 354 million, the local government has funded NRs. 33 million, and the private investment has reached NRs. 218 million. Furthermore, the communities have contributed NRs. 26 million in the development of market infrastructure. The completed SPs are directly as well as indirectly contributing towards sustainable and equitable commercialization of agriculture in the Project area. Besides, those SPs have helped improve the value chain of targeted HVC.
|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 532 active members - Membership comprises farmer group 55%, co-operative 28%, traders 10%, and processors 7%. - Six annual general meeting held, regular district meetings are being held. - 76 market infrastructure subprojects approved and agreements signed between DDC and concerned user groups, all completed. Of the 76 subprojects, farm to market roads are 22, market shed 23, collection centers 17, storage/go down 3, small irrigation 9 and other 2. - 100% of the completed market infrastructures are being managed by communities. 322 non-infrastructure subprojects approved, of which, 319 sub-projects are completed and 3 dropped. - 77% of sub-projects include HVC promotion. - 11% of sub-projects include quality control. - One percent of sub-projects include equipment for product testing. - 11% of sub-projects include agro-processing technology, equipment and machinery. - CAA members participated in promotional activities such as observation visits -9 (Palpa 1 visit on commercial vegetable farming; Darjeeling 1 on tea; Dhupgadi (India) 1 on tomato and chilly farming; Pusha (India) 1 on honey production/marketing; Ludhiyana (India) 1 on national level agri fair; Bhagalpur (India) 1 on state level agri fair; Thailand 1 on 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 organised 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) - Contract signed with 11 NGOs for development of subsistence stakeholders in 11 districts. - A total 902 group formed and mobilized - 165 HVC production pockets and 35 marketing points identified by the partner NGOs. - NGOs and PMU assisted 23,379 households in implementing income generating activities. - 902 farmer groups formed and mobilized. - 5,684 landless people identified, organized into groups, and provided training. - 378 groups adopting small scale commercial activities. - Contract signed with 11 partner NGOs for promotion of semi-commercial stakeholders in 11 districts. - 255 groups formed and mobilized - 255 farmer groups (Semi and Other Stakeholders) graduate as marketing entities. - Efforts have been made to affiliate 81 marketing groups and other agribusiness stakeholders with existing associations of key HVCs like ginger, cardamom and tea in project districts - 57 cooperatives graduate as marketing entities. - 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. - 31 farmer groups/cooperatives received CAA Membership. - 22 NGOs as service providers contracted as per demand - 17 other service providers (training and logistics providers) shortlisted - 749 commercial stakeholders oriented in gender, social mobilization, inclusion, and environment management. - 21 group/cooperative based market information system (GMIS) established and functional. - 21 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 service, Monthly TV program, weekly FM Radio, AMIS centre at APMCs-3 and DCCIs-4, GMIS Centers-17 and scrolling price notice board-2 - 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 (24 training to CAA staff + 66 events to members completed). No major issues were noted during the implementation. However, the following issues need attention: - There is a growing concern among the CAA stakeholders about its long term sustainability. None of the Project related documents speaks about the operational modalities of CAA after the Project completion. So, these concern need to be addressed - Continuation of market information system established by the Project even after the closure of the project - Linking farmers primary institutions (groups and cooperatives) with private sector/agribusinesses and service providers to facilitate increased value addition and achieving greater role in respective value chains
|Status of Development Objectives
|Date of First Listing||2006 Apr 21|
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 of goods and services under the Project will be carried out in accordance with ADB's Guidelines for procurement.
|Procurement and Consulting Notices
|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||–|
|Grant 0063||16 Nov 2006||23 Feb 2007||06 Aug 2007||30 Jun 2013||–||–|
|Date||Approval Number||ADB (US$ thousand)||Others (US$ thousand)||Net Percentage|
|Cumulative Contract Awards|
|10 Dec 2013||Grant 0063||15,344||0||85.00%|
|10 Dec 2013||Grant 0063||14,693||0||82.00%|
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.
|Sector||Social||Financial||Economic||Others||Safeguards||Project Financial Statements|
|Responsible ADB Officer||Govinda P. Gewali (firstname.lastname@example.org)|
|Responsible ADB Department||South Asia Department|
|Responsible ADB Divisions||Nepal Resident Mission|
Ministry of Agriculture and Cooperatives
Tek Bahadur Bam
|List of Project Documents||http://www.adb.org/projects/34308-022/documents|