Pakistan: Agribusiness Development

Sovereign Project | 33364-013

Summary

The goal of the Project is to support economic growth and employment generation through agribusiness develoment. The Project purpose is to develop a competitive and sustainable agribusiness sector. Project activities will be focused in particular on improving agribusiness enterprise access to Business Development Services (BDS), strengthening BDS providers to enhance skills throughout the agribusiness sector, expanding access to agribusiness finance, and developing institutional capacity. The Project comprises: (i) agribusiness support service provision, (ii) agribusiness finance development, (iii) agribusiness capacity building, (iv) agribusiness policy and enabling environment development, and (v) project management support.

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Project Name Agribusiness Development
Project Number 33364-013
Country Pakistan
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2171-PAK: Agribusiness Development
Asian Development Fund US$ 31.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change
Sector / Subsector Agriculture, natural resources and rural development - Agricultural policy, institutional and capacity development - Agro-industry, marketing, and trade
Finance - Infrastructure finance and investment funds
Gender Equity and Mainstreaming
Description The goal of the Project is to support economic growth and employment generation through agribusiness develoment. The Project purpose is to develop a competitive and sustainable agribusiness sector. Project activities will be focused in particular on improving agribusiness enterprise access to Business Development Services (BDS), strengthening BDS providers to enhance skills throughout the agribusiness sector, expanding access to agribusiness finance, and developing institutional capacity. The Project comprises: (i) agribusiness support service provision, (ii) agribusiness finance development, (iii) agribusiness capacity building, (iv) agribusiness policy and enabling environment development, and (v) project management support.
Project Rationale and Linkage to Country/Regional Strategy
Impact Growth in the agribusiness sector is improved
Project Outcome
Description of Outcome

More competitive and

sustainable agribusiness sector

Progress Toward Outcome Shall be assessed during PCR
Implementation Progress
Description of Project Outputs

Output 1

Agribusiness support service provision enhanced

Output 2

Improved access to market, and delivery of agri-business financing

Output 3

Enhanced public and private sector capacity to provide services to agribusiness producers and entrepreneurs

Output 4

Improved agribusiness policy and enabling environment

Output 5

Effective project management support provided

Status of Implementation Progress (Outputs, Activities, and Issues)

The agribusiness sector has been expanding slowly as a result of lack of access to credit from the formal financial sector and slow to negligible adoption of requisite policy changes necessary for the sector to thrive. For example, adoption of international certification standards is behind schedule. Rule of law is weak. The expected partial credit guarantee necessary to encourage domestic financial institutions to expand lending to the agribusiness sector has not materialized, and will only do so with positive engagement from Government. Training programs were implemented with delays.

Based on data provided by the Agribusiness Support Fund, over 1189 farmer enterprise groups have been formed, business development service support has been provided to 241 existing agribusiness enterprises and 65 start-up enterprises, eight research and extension programs, and 16 private sector-agriculture extension projects. Despite these numbers, the Project is unlikely to attain the expected impact nor fully achieve the target outcomes.

PMU management capacity remained weak. In February 2009, the State Bank of Pakistan Agribusiness Finance Capacity Building program suffered a setback when consultants withdrew as a result of security issues. Progress with implementation of the DALPMG Export Certification component also suffered as consultants were not willing to come to Pakistan, again because of security coniderations. The DALPMG Private Market Information service has not materialized as per the project concept. Strengthening of FSCRD progressed well. The PHDEC trainer of trainer program was also implemented, but with delays. The Livestock and Dairy Development Board is established and fully functional.

Overall, project achievement has been mixed. As of 31 March 2011, 100% of the project period elapsed. The overall implementation progress was estimated at 52%. The project completion report will be prepared in the fourth quarter of 2011.

Geographical Location
Safeguard Categories
Environment FI
Involuntary Resettlement
Indigenous Peoples
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services Consultants will be selected and engaged in accordance with ADB's Guidelines on the Use of Consultants by ADB and its Borrowers and other arrangements satisfactory to ADB for engaging domestic consultants. A total of 221 person-months of international and 128 person-months of domestic consulting inputs will be financed under the Project. Consulting services will be engaged in two packages. Under the first package there will be three contracts. One contract will be issued for agribusiness support fund promotion, and project management and studies. Consultants will be selected by MINFAL A second contract will be issued for agribusiness capacity building, and agribusiness policy and regulatory framework development. Consultants will be selected by PMU. A third contract will be used for agribusiness finance awareness building and monitoring. Consultants will be selected by SBP. Each contract will engage an international firm in association with domestic firms. The second consultant package will be to establish and operate an agribusiness lending function within selected PFIs. There will be three to five separate performance-based contracts, one for each PFI. A high degree of flexibility will be written into each consulting contract to allow implementing agencies to recruit consultants according to needs determined as project implementation proceeds. The ASF general manager will be recruited directly by ASF's board.
Procurement Goods and related services financed by ADB will be procured following ADB's Guidelines for Procurement. Supply contracts for equipment or materials are not expected to exceed $500,000, but should such a contract be required it will be awarded on the basis of international competitive bidding. Those costing less than $500,000 will be awarded on the basis of local competitive bidding. Direct purchase will be used for small or off-the-shelf items valued at least than $100,000. The PMU will procure the equipment and vehicles.
Responsible ADB Officer Donneth Walton
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Pakistan Resident Mission
Executing Agencies
Ministry of Food, Agriculture and LivestockMr. Amjad NazirIslamabad, Pakistan
Livestock and Dairy Development BoardImplementing Agency
76 W, 1st Floor, Umar Plaza, Jinnah Ave.
Islamabad, Pakistan
State Bank Of PakistanImplementing Agency
I. I. Chundrigar Road
Karachi, Pakistan
Pakistan Horticulture Development and Export BoardImplementing Agency
30 N, Model Town, Extension,
Lahore, Pakistan
Agribusiness Support FundImplementing Agency
79-E, Al-Rehman Chambers,1st Floor,
Fazal-ul-Haq Rd,Blue Area,Islamabad PAK
Timetable
Concept Clearance 08 Mar 2005
Fact Finding 23 Nov 2004 to 02 Dec 2004
MRM 11 Jan 2005
Approval 19 May 2005
Last Review Mission -
PDS Creation Date 15 Dec 2006
Last PDS Update 22 Jun 2011

Loan 2171-PAK

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
19 May 2005 14 Jun 2005 09 Jan 2006 31 Mar 2011 - 30 Sep 2011
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 49.00 Cumulative Contract Awards
ADB 31.00 19 May 2005 12.99 0.00 100%
Counterpart 18.00 Cumulative Disbursements
Cofinancing 0.00 19 May 2005 12.99 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Partly satisfactory Satisfactory Satisfactory - - Satisfactory
Title Document Type Document Date
Agribusiness Development Project Project/Program Completion Reports Sep 2012
Agribusiness Development Project Reports and Recommendations of the President Apr 2005

Safeguard Documents

See also: Safeguards

No documents found.

Evaluation Documents

See also: Independent Evaluation
Title Document Type Document Date
Pakistan: Agribusiness Development Project Validations of Project Completion Reports Nov 2014

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