India: Agribusiness Infrastructure Development Investment Program - Tranche 2

Sovereign Project | 37091-033 Status: Approved


The program will increase the value of horticulture products in 2 integrated value chains (IVC) in Nashik and Aurangabad-Amravati regions of Maharashtra.

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Project Name Agribusiness Infrastructure Development Investment Program - Tranche 2
Project Number 37091-033
Country India
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2837-IND: Agribusiness Infrastructure Development Investment Program - Tranche 2
Ordinary capital resources US$ 11.20 million
Strategic Agendas Inclusive economic growth
Drivers of Change Private sector development
Sector / Subsector

Agriculture, natural resources and rural development - Agro-industry, marketing, and trade

Gender Equity and Mainstreaming Some gender elements
Description The program will increase the value of horticulture products in 2 integrated value chains (IVC) in Nashik and Aurangabad-Amravati regions of Maharashtra.
Project Rationale and Linkage to Country/Regional Strategy

The Multitranche Financing Facility (the MFF) to the Government of India for the Agribusiness Infrastructure Development Investment Program (AIDIP) (MFF 0045-IND) was approved by the Board for $170 million in Sep 2010. The investment program aims to address three main constraints on agriculture growth: (i) outdated technologies and management, (ii) lack of public investment in linking infrastructure (such as roads from production areas to collection points), and (iii) lack of private investment and management in modern marketing infrastructure (such as cold chains, controlled atmosphere storages, and automated grading).

Using an integrated value chain (IVC) approach, the investment program will invest in physical and institutional links along horticultural value chains by supporting (i) site development and agribusiness infrastructure, (ii) infrastructure links to ensure connectivity and basic services across the value chain, (iii) backward links to the production areas through contract farming and producer companies, and (iv) capacity building to strengthen technical and managerial skills along the value chain. The investment program area covers selected regions of Maharashtra.

Impact Increased producer returns from HVC from increased private sector investment in value adding infrastructure from value chains in Maharashtra.
Project Outcome
Description of Outcome Expanded agricultural value chains and better integration of small scale farmers into IVCs in the Nashik and Aurangabad-Amravati regions
Progress Toward Outcome After a first, unsuccessful bid, the PPP model and bid documents were revised, based on additional consultation with potential stakeholders. The new bid is expected to be launched by early August 2015, following additional roadshows at local IVC level.
Implementation Progress
Description of Project Outputs

1. IVCs Infrastructure in Nashik and Aurangabad-Amravati regions set up and functional

2. IVC stakeholders effectively participate in and manage IVCs

3. Project Management support strengthened

Status of Implementation Progress (Outputs, Activities, and Issues) After completion of TAG1 work, a new set of consultants were recruited to support the rebidding process. The consultants are supporting MSAMB with the new bid and the roadshows.
Geographical Location
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects Tranche 2 subprojects are consistent with the design of MFF which avoid or minimize environmental impacts. The Initial Environmental Examination for Tranche 2 has been carried out within the legal environmental framework in India and ADB Safeguard Policy Statement (2009) and in accordance with the Environmental Assessment and Review Framework. The initial environmental examination (IEE) conducted showed that the project, including its sub-components, has minimal detrimental effects and of low significance and short-term impact during pre-construction, construction and operation phase which could be avoided with the implementation of Environmental Management Plan (EMP). The EMP will be continuously updated and revise with incorporation of mitigation measure throughout the project.
Involuntary Resettlement

A Resettlement Framework has been developed to guide and ensure that resettlement impacts if identified at implementation level will be effectively addressed.

The resettlement framework prepared for the MFF outlines the objectives, policy, principles, and procedures for involuntary resettlement, and related assistance measures for affected persons. The Project will exclude any subprojects that will entail land acquisition or any involuntary resettlement including relocation.

Indigenous Peoples No adverse issues relating to indigenous people are anticipated. They would benefit with the overall increase in incomes and value addition in agriculture.
Stakeholder Communication, Participation, and Consultation
During Project Design The consultation processes adopted during the Project preparation have been inclusive and have ensured participation of all relevant stakeholders at the national as well as local level. Primary stakeholder interactions covered 500 small farmers, medium farmers, large farmers, small traders and women in Maharashtra. Over 100 secondary stakeholders, including village heads, local villagers, women and cooperative representatives were also consulted. Consultations with the Government, and participating state departments were extensive. Consultations with relevant donor partners were also undertaken.
During Project Implementation Participation of all relevant stakeholders will be continued during project implementation
Business Opportunities
Consulting Services Consulting services packages include (i) a Technical Advisory Group, (ii) Market and Value Chain Design and PPP and PMU Implementation Support Teams, and (iii) individual consultants. The PMU will be responsible for the procurement of all consulting services under the project and for items not under the concession agreement.
Procurement Procurement packages are few due to two large concession contracts that total $25 million of the total project cost (or after the input of equity totaling at least $15 million a total of only $9 million). Procurement of civil works and plant and machinery will be undertaken by the successful concessionaire and supervised by the Procurement Specialist and the Project Management Unit.
Responsible ADB Officer Paolo Spantigati
Responsible ADB Department South Asia Department
Responsible ADB Division Environment, Natural Resources & Agriculture Division, SARD
Executing Agencies
Maharashtra Dept. of Cooperation, Mktng. & Textile
Mantralaya, Mumbai - 400 032
Maharashtra, India
Concept Clearance -
Fact Finding -
Approval 19 Dec 2011
Last Review Mission -
Last PDS Update 28 Jul 2015

Loan 2837-IND

Approval Signing Date Effectivity Date Closing
Original Revised Actual
19 Dec 2011 18 Jan 2012 09 Apr 2012 31 Dec 2015 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 17.20 Cumulative Contract Awards
ADB 11.20 19 Dec 2011 0.87 0.00 8%
Counterpart 6.00 Cumulative Disbursements
Cofinancing 0.00 19 Dec 2011 0.49 0.00 4%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - - - Satisfactory

Safeguard Documents

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Title Document Type Document Date
Agribusiness Infrastructure Development Investment Program (Tranche-2) Environmental Assessment and Measures Aug 2011

Evaluation Documents

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Related Publications

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