Nepal: High Mountain Agribusiness and Livelihood Improvement Project

Sovereign Project | 37292-042 Status: Approved

Summary

tbd

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Project Name High Mountain Agribusiness and Livelihood Improvement Project
Project Number 37292-042
Country Nepal
Project Status Approved
Project Type / Modality of Assistance Grant
Source of Funding / Amount
Grant 0248-NEP: High Mountain Agribusiness and Livelihood Improvement (HIMALI) Project
Asian Development Fund US$ 20.00 million
Strategic Agendas Environmentally sustainable growth
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 Effective gender mainstreaming
Description tbd
Project Rationale and Linkage to Country/Regional Strategy
Impact Improved incomes in selected high mountain areas

Project Outcome

Description of Outcome Mountain agribusinesses are commercially viable in selected high mountain areas.
Progress Toward Outcome To date 446 agribusinesses have been contracted out for a cumulative value of $8.83 m of which ADB grant share is $6.49 m.
Implementation Progress
Description of Project Outputs

1. Increased number of mountain agribusinesses making use of agribusiness grants

2. Mountain agribusinesses have knowledge and access to improved production technologies and value-addition.

3. Effective project management at central and district levels

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

The PMU has signed Grant agreement with 446 Agribusiness enterprises (including 29 Cooperatives and 417 are firm/companies). Out of 2442 BPs received by PMU, 1297 BPs are yet to be reviewed; 1145 BPs are reviewed by three Grant Assessment Committees (GAC).

Out of 1145 reviewed, 446 (including 89 women) have been contracted out; 16 are ready for contract signing; 215 are under process; and 468 BPs are rejected.

Out of 446 Sub-projects in implementation, 275 (62%) are small agribusinesses (including 61 women owned). 157 (35%) medium sized (including 24 women owned), and 15 (3%) are large agribusinesses including 4 women entrepreneurs.

125 Sub-projects in the districts have generated the estimated revenue of Rs 70,230,093 (USD 0.817 million).

46 district, regional and central level facilities of Department of Agriculture and Department of Livestock Services have been constructed/rehabilitated. 8 such facilities are at the final stage of construction completion.

Altogether 11784 people were trained in agribusiness development. Participants include 34.5.0% women, out of which 9.7% are Dalit, 52.1% indigenous groups, 35.9% B/C and 2.3% Others.

PPMS in all 10 districts established, M&E Manual (both in English and Nepali) circulated and reporting using web-based software started. For effective monitoring of ongoing Sub-projects, the grantees have maintained information on expenditure and income (revenues) in Agribusiness Diary provided by the project.

Preliminary study shows the damage of 72 Sub-projects (loss worth of estimated NPR 21 million) in Dolakha, Rasuwa and Solukhumbu due to April earthquake.

PMU was established in February, 2012. District Project Coordinators (DPCs) were appointed in March, 2012. Annual Program Budget of FY 2015/16 for PMU, RDs and DPCs has been approved and delegated to the respective offices for implementation. Social Mobilization Coordinators and Social Mobilizers are already mobilized in all 10 districts.

Geographical Location

Safeguard Categories

Environment B
Involuntary Resettlement C
Indigenous Peoples B

Summary of Environmental and Social Aspects

Environmental Aspects

The project is categorized B regarding potential environmental impacts. An initial environmental examination was conducted on project activities, including assessment of 22 representative agribusiness models, and rehabilitation of representative MOAD district offices and research stations. The initial environmental examination indicated minor potential impacts during rehabilitation and construction of facilities. Positive impacts are expected from improved incomes resulting in less reliance on wild resources, and from support to implement community forestry, rangeland management, and climate adaptation action plans. An environmental assessment and review framework is available, and subprojects that may have significant negative impacts on protected areas of ecological or archaeological values are screened out during the subproject evaluation phase.

PMU is carefully reviwing environmental aspects while evaluating agribusiness proposals. Environmental management plan is prerequisite to submit business plans for agribusiness grant. However, till now there is not any environmental concern under the project. However, IEE has been prepared and approved by the government in all 10 project districts and clrealy spell the need of undertaking IEE for subprojects which have certain impacts to the environment.

Involuntary Resettlement The project is categorized C regarding involuntary resettlement. No negative resettlement or social impacts are expected. The project will not involve land acquisition.
Indigenous Peoples

The project is categorized B regarding impacts on indigenous people. During project preparation, extensive and meaningful consultation was undertaken with indigenous peoples in the project districts. The project has only positive benefits to indigenous people. A separate indigenous people plan has not been prepared because the indigenous peoples constitute about half of the project beneficiaries and the project has only positive impacts on them. As permitted by the Safeguards Policy Statement, the elements of an indigenous people plan have been integrated with the report and recommendation of the President.

Till date, 191 agribusinesses (25% women-led or mixed group) have been financed by the project. More than 10,000 persons have received project related training. Women's participation ranges between 35% - 48% (AEC training and DPC training). Majority of the beneficiaries are indigenious people from mountain districts.

Stakeholder Communication, Participation, and Consultation
During Project Design Wide consultations were carried out with different stakeholders during project design.
During Project Implementation

- Inception mission (23 - 28 Nov 2011)

- Project review mission (9 - 17 Aug 2012)

- Project review mission (15 - 21 May 2013)

- Project review mission (28 Nov - 9 Dec 2013)

- Project review mission (5 - 17 May 2014)

- Midterm review mission (25 Aug - 13 Sep 2015)

Business Opportunities

Consulting Services Recruitment of major consulting packages including Project Management and Support consultant completed.
Procurement Construction of 33 facilities in the districts have been completed and contruction of 7 facilities are underway. Shopping is being used for procurement of goods as per the procurement plan.

Responsible Staff

Responsible ADB Officer Arun Rana
Responsible ADB Department South Asia Department
Responsible ADB Division Nepal Resident Mission
Executing Agencies
Ministry of Agriculture and Cooperatives
Singh Durbar, Kathmandu
Nepal

Timetable

Concept Clearance 24 Sep 2010
Fact Finding 27 Sep 2010 to 08 Oct 2010
MRM 21 Jan 2011
Approval 25 Mar 2011
Last Review Mission -
Last PDS Update 29 Feb 2016

Grant 0248-NEP

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
25 Mar 2011 27 Jun 2011 26 Sep 2011 31 Oct 2017 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 30.23 Cumulative Contract Awards
ADB 20.00 25 Mar 2011 13.92 0.00 70%
Counterpart 10.23 Cumulative Disbursements
Cofinancing 0.00 25 Mar 2011 11.24 0.00 56%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - - - Satisfactory

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.

Evaluation Documents See also: Independent Evaluation

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Related Publications

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