The impact of the TA is to ensure that farm debt resolution successfully proceeds under the Government's Farm Debt Resolution Strategy (FDRS). The outcome of the TA is to ensure that the governing body for implementation of the FDRS, the Independent Commission, establishes fair, timely and systematic mechanisms for farm debt resolution on a per-farm basis. The TA is expected to result in farm analyses/farmer awareness processes being completed on a schedule agreed upon between farmers, creditors, and the IC, and about 50% of indebted farms finalizing debt workout arrangements within five years of TA completion.
|Project Name||Farm Analysis and Awareness-Raising for Debt Resolution|
|Project Type / Modality of Assistance||Technical Assistance
|Source of Funding / Amount||
|Strategic Agendas||Inclusive economic growth
|Drivers of Change||Governance and capacity development
Private sector development
|Sector / Subsector||
Finance / Inclusive finance
|Gender Equity and Mainstreaming||No gender elements|
|Description||The impact of the TA is to ensure that farm debt resolution successfully proceeds under the Government's Farm Debt Resolution Strategy (FDRS). The outcome of the TA is to ensure that the governing body for implementation of the FDRS, the Independent Commission, establishes fair, timely and systematic mechanisms for farm debt resolution on a per-farm basis. The TA is expected to result in farm analyses/farmer awareness processes being completed on a schedule agreed upon between farmers, creditors, and the IC, and about 50% of indebted farms finalizing debt workout arrangements within five years of TA completion.|
|Project Rationale and Linkage to Country/Regional Strategy||
In 2004, ADB completed a comprehensive study of cotton farm debt. It documented $240 million in estimated unpaid debt (principal and accumulated interest) as of January 2004. Of this amount, approximately $180 million is due to formal creditors, rather than overdue payments for electricity, water, and salaries. About 108 of the large cotton farms account for 70% of the debt. The unpaid cotton debts are closely associated with low productivity and poor profitability. The TA workshop in 2004 spurred engagement of other funding agencies. The World Bank, the United States Agency for International Development (USAID), and the Department for International Development (DFID) studies, all involving detailed consultation processes at the farm level, deepened the ADB finding that for the agriculture sector, particularly cotton, to be more productive and profitable and reduce poverty, an integrated approach is required that includes reforms in policy, institutions, and structures at the farm level. While the National Bank of Tajikistan (NBT) and the Government had started addressing cotton debt default, the ad hoc nature of the process provided insufficient results. A unified approach was clearly demanded, one that required a four-way arrangement between farmers, creditors, the Government, and funding agencies.
The Government has responded to this significant challenge. On 4 March 2005, the President of Tajikistan approved the Cotton Farm Debt Resolution Strategy. It has a two-part approach to facilitating debt workouts between private lenders and private borrowers. One part focuses on short-term measures to ensure fair and equitable resolution of the debt on a farm-by_farm basis. The second part focuses on the medium-term policy, legal, and institutional measures to enable a properly functioning cotton market. These reforms include such complex areas as land reform and farm privatization. The strategy calls for the establishment of the IC to oversee implementation.
The IC was established in May 2005, including senior ministers, representatives of two nongovernment organizations (NGOs), and the World Bank and ADB resident representatives. Commissioners developed the terms of reference, action plan, and guiding principles during an ADB-led, multidonor-funded retreat. The first priority of the action plan is the startup of the debt analysis and workout strategy for each farm. The most crucial step now is to commence farm debt reviews on an initial subset of heavily indebted farms, as they hold more than two thirds of the farm debt and employ a large proportion of the impoverished cotton workforce. Based on the initial farm debt reviews, standardized farm debt review and restructuring protocols can be established for use on all other farms. A database can also be established, using data generated in the farm reviews and incorporating information from a variety of sources, to track progress and provide a starting point for the farm-by-farm reviews. The TA will provide technical support in these important initial tasks. A loan-cum-grant, Sustainable Cotton Subsector Project, is being designed to provide significant additional assistance to the subsector (see 38603-TAJ Farm Productivity Improvement) and a proposed Japan Fund for Poverty Reduction project is expected to provide substantial assistance to cotton farm workers to increase and diversify their income sources.
|Description of Outcome|
|Progress Toward Outcome|
|Description of Project Outputs|
|Status of Implementation Progress (Outputs, Activities, and Issues)|
|Summary of Environmental and Social Aspects|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design|
|During Project Implementation|
The TA will engage two international consultants for a total of 9 person-months (pm) as a Farm Management Specialist (5 pm) and a Cotton Production Specialist (4 pm). Ten domestic consultants (for 63 person-months) will be recruited as Legal Counsel (7 pm), Accountant (7 pm), Social Scientist (8 pm), Farm Management Specialist (8 pm), Land Management Specialist (6 pm), two Bookkeeping/Analysts (6 pm each, total 12 pm), Database Specialist (6 pm), Farmer Awareness Specialist (5 pm), and Cotton Specialist (4 pm).
Individual consultants will be recruited in accordance with the Guidelines on the Use of Consulting Services and other arrangements acceptable to ADB for selection of domestic consultants.
|Responsible ADB Officer||Wilkinson, Betty|
|Responsible ADB Department||Central and West Asia Department|
|Responsible ADB Division||Energy Division, CWRD|
Office of the President
Mr. Matlubhon S. Davlatov
Office of the President, Dushanbe, Tajikistan
|Concept Clearance||21 Dec 2004|
|Fact Finding||03 May 2005 to 10 May 2005|
|Approval||04 Oct 2005|
|Last Review Mission||-|
|PDS Creation Date||23 Feb 2006|
|Last PDS Update||18 Apr 2008|
|Approval||Signing Date||Effectivity Date||Closing|
|04 Oct 2005||07 Mar 2006||07 Mar 2006||31 Oct 2006||31 Dec 2007||-|
|Financing Plan/TA Utilization||Cumulative Disbursements|
|0.00||1,300,000.00||145,000.00||0.00||0.00||0.00||1,445,000.00||04 Oct 2005||1,169,923.43|
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.
The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.
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|Title||Document Type||Document Date|
|Farm Analysis and Awareness-Raising for Debt Resolution||TA Completion Reports||Sep 2008|
|Farm Analysis and Awareness-Raising for Debt Resolution (Financed by the Poverty Reduction Cooperation Fund)||TA Change in Scope, Amount, and Implementation Arrangements||Aug 2006|
|Farm Analysis and Awareness-Raising for Debt Resolution (Financed by the Poverty Reduction Cooperation Fund)||Technical Assistance Reports||Oct 2005|
Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.
None currently available.
Evaluation Documents See also: Independent Evaluation
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The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.
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