China, People's Republic of: Ningxia Irrigated Agriculture and Water Conservation Demonstration Project

Sovereign Project | 44035-014 Status: Active

Summary

ADB is helping the People’s Republic of China boost farmers’ income in central Ningxia Hui Autonomous Region by adopting high-value and high-quality horticultural crops. The project will help establish vineyards and Chinese date orchards, increase grape processing capacity, and improve irrigation systems. It will demonstrate water conservation measures and promote sustainable farming practices.

Latest Project Documents

Consulting Notices See also: CMS

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Procurement Notices See also: Operational Procurement

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Procurement Documents


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Project Name Ningxia Irrigated Agriculture and Water Conservation Demonstration Project
Project Number 44035-014
Country China, People's Republic of
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2973-PRC: Ningxia Irrigated Agriculture and Water Conservation Demonstration Project
Ordinary capital resources US$ 70.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change
Sector / Subsector

Agriculture, natural resources and rural development - Agricultural policy, institutional and capacity development - Irrigation - Land-based natural resources management - Water-based natural resources management

Gender Equity and Mainstreaming Effective gender mainstreaming
Description
Project Rationale and Linkage to Country/Regional Strategy
Impact

Project Outcome

Description of Outcome
Progress Toward Outcome

The project has been implemented satisfactorily. As of 30 June 2015, the overall project

progress is about 44%.

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

The implementation progress is about 57.4%. Irrigation works for vineyards rehabilitation for Yuquanying farm, Huangyangtan farm, Yuquanying grape nursery, Hongsipu district and Tongxin county have been completed by using government fund. Lianhu Part farm and Qukou farm have completed construction in 2014. Nuanquan farm may cancel the construction. No progress for Yanchi county.

Ongoing

Ongoing

Progress is 14.3%. Huangyangtan farm, Nuanquan fam, Yuquanying farm, Lianhu part fam and Yuquanying grape nursery may cancel their respective portio of vineyards establishment. Qukou farm has completed 180ha of vineyard establishment.

Total progress is 19.8%.Huangyangtan farm has no progress. Rehabilitation of 2,000 mu

(established in 2007) in Yuquanying farm is being implemented. Lianhu part farm completed 156.5ha in 2014.

90% has been completed. Plantation for 333.3 ha completed in 2014. Planned access roads

were completed in 2014 using government funds. Fertilizer is to be

purchased in October 2015.

Progress is 71.4%. Tongxin county completed by using government fund and there is no progress for Yanchi county.

Ongoing

Being monitored.

(1) Nuanquan Farm (5,000 tons): Main structures were completed

and put into use in 2014. Associated facilities are to be completed in

2015.

(2) Yuquanying Farm (10,000 tons): Main structures are being

constructed and expected to be completed in July 2015. Contracts (about $8.1 million) are in bidding and expected to be awarded in July

2015. The processing plants (including cooling and electricity

systems) will be completed by September 2015.

NARC and local forestry bureau conduct training for grape growers

and vineyard managers regularly, including water saving irrigation

fertilizer application, and pesticide management.

Being implemented.

Being implemented.

The business plan and marketing strategy had been in place three

years ago, but need to be updated and improved to respond to

market changes.

To be monitored.

To be monitored.

Geographical Location

Safeguard Categories

Environment B
Involuntary Resettlement C
Indigenous Peoples B

Summary of Environmental and Social Aspects

Environmental Aspects The project is expected to achieve environmental benefits, specifically better water use efficiency in the project area; and soil stabilization and reduced erosion resulting from establishment of shelterbelts. No major adverse impacts were identified. Construction and rehabilitation works are small and relatively simple. Operating risks include expanded use of agricultural chemicals, elevated chemicals in soils, and increased risk of workers' exposure of chemicals. Most project sites are located on modified lands used for agriculture and have been cleared of natural habitats. No ecologically sensitive sites are present in the project area. Wastewater from grape processing facilities will be treated and reused for crop irrigation, and will not be discharged into channels leading to natural waterways. Shelterbelts established by the project will utilize a mix of native and long-established tree and shrub species. Training programs will include topics on safe application of agricultural chemicals and methods to reduce application rates. Implementation of the EMP and the environmental monitoring program is expected to prevent or minimize potential impacts.
Involuntary Resettlement No involuntary loss of land, housing, or access to income-generating assets is necessary for the project. Most of the activities are going to be implemented on state farms with clear government land ownership. In the participating villages, construction activities will be limited to small-scale infrastructure linked to improved irrigation, such as water retention ponds, irrigation pipes, and farm access roads. These will be constructed on village land that is not being used for agricultural or other income-generating activities, and ownership of the infrastructure will remain with the villages. Participation and contribution of land to the planting schemes will be on a voluntary basis; this will be formalized through the production or participation agreements and monitored by the PIOs.
Indigenous Peoples The requirements of ADB's Safeguard Policy Statement for safeguarding indigenous peoples will apply to the project as (i) the Hui people have both distinctiveness and vulnerability as described by ADB's Safeguard Policy Statement; and (ii) the project will impact on their farming practices and may consequently alter their socioeconomic status, including expenditure patterns, though principally in a positive way. Among the project beneficiaries are 570 households, with almost 3,000 people of the Hui ethnic minority, concentrated in two participating villages. Poverty and vulnerability rates are higher for Hui households than for Han households. In terms of poverty incidence, more Hui households (32%) are considered low income compared with Han households (16%). The higher poverty is in part due to former relocation as part of a government program, but also to lack of access to improved farming techniques. As potential project beneficiaries, concerns of ethnic minorities are addressed as part of the project design; and the executing and implementing agencies prepared an ethnic minority development plan to ensure that participating minorities will receive social and economic benefits that are culturally appropriate and gender responsive. The plan will be finalized once the production or participation agreements with farmers are finalized.
Stakeholder Communication, Participation, and Consultation
During Project Design The project preparation technical assistance team conducted interviews with rural household as the primary beneficiaries, including key informant interviews and female focus group discussions; and interviews with other primary stakeholders, such as the project management office (PMO) and local governments. The project will support capacity development for public consultation and participatory planning targeting the PMO and local communities in the project area.
During Project Implementation Consultation and particiapation are integral features of the project through the formation and/or strengthening of farmer professional associations (FPAs), village committees, and local women federation (LWF). They are included in the project design to make project implementation more efficient through the involvement of the primary beneficiaries, who are also key providers of input to the project. They also form part of the social action plan. To facilitate interaction among stakeholder groups and improve project planning and implementation, the design of the participation strategy stresses gender equality; and includes three elements: (i) Information sharing stakeholders will not be able to provide meaningful participation if they are not fully informed about the objectives and intended outcomes of the project; (ii) consultation will be held with primary stakeholders to let them participate in the design, formation, and/or strengthening of the FPAs; and (iii) public meetings and stakeholder panels will provide forums for collaboration in decision making.

Business Opportunities

Consulting Services Consulting services to be financed under the ADB loan will be selected in accordance with ADB's Guidelines on the Use of Consultants by the Asian Development Bank and its Borrowers (2010, as amended from time to time). Four international consultants will be engaged for a total of 18.25 person-months in the fields of viticulture, winemaking and winery management, quality management, and wine marketing. Eight national consultants will also be engaged for a total of 54.25 person-months to provide consultancy services in the fields of project management, wine marketing, wine making, drip irrigation, viticulture, Chinese dates growing, and institutional and quality management. The implementing agencies will be responsible for the selection of the consultants, with concurrence of NHARG and the PMO for contract negotiations and contract administration. The consultants will be engaged using the individual selection method. The consulting packages are included in the procurement plan in section C below, while the list of expertise to be engaged is provided in table below. The consultants' detailed terms of reference are under preparation, in consultation with the executing and implementing agencies, while the summary of the tasks to be performed by each expert is presented in section C below. The relevant sections of ADB's Anticorruption Policy (1998, as amended to date) will be included in all documents and contracts relating to the engagement of consultants.
Procurement

All procurement to be financed under the ADB loan will be carried out following ADB's Procurement Guidelines (2010, as amended from time to time). Contracts for civil works valued at over $10 million and contracts for goods and related services valued at over $1 million will be procured through international competitive bidding (ICB) procedures. Contracts for civil works valued at $10 million or less but over $200,000, and contracts for goods and related services valued $1 million or less but over $100,000 will be procured through national competitive bidding (NCB) procedures. NCB will be undertaken following the PRC Tendering and Bidding Law (1999), subject to modifications agreed with ADB. Contract packages for civil works valued at $200,000 or less and contract packages for goods valued at $100,000 or less will be awarded through shopping procedure. Most work on the development of the vineyards and orchards involves the hiring of labor through community participation procedures. ADB's guideline for community participation in procurement that have been approved for the Ningxia Integrated Ecosystem and Agricultural Development Project will be adopted for the project. Procurement will be centralized; and a procurement agency that is familiar with ADB's procurement procedures will be engaged by NHARG to undertake procurement of works, goods, and services under the project on behalf of the implementing agencies.

A procurement capacity assessment of the executing and implementing agencies has been undertaken. Based on the assessment, the mission recommends that prior ADB review be applied for all ICB contracts, consulting services, the first NCB contract for works, and the first NCB contract for goods; and post review for all other contracts. The training of project staff on procurement, as well as in all other aspects of implementation needs to be pursued to enable them to gain better understanding of the contract packaging under the project, the method of procurement to be used for each package, and the requirements to be met and procedures to be followed for the different types of procurement methods.

Before the start of any procurement, ADB and the government will review the public procurement laws of the central and state governments to ensure consistency with ADB's Procurement Guidelines (2010, as amended from time to time).

A procurement plan indicating the thresholds and review procedures; contract packages for goods, works, and consulting services; and NCB procedures are provided in section B below. The relevant sections of ADB's Anticorruption Policy (1998, as amended to date) will be included in all documents and contracts relating to procurement.

Responsible Staff

Responsible ADB Officer Zhiming Niu
Responsible ADB Department East Asia Department
Responsible ADB Division PRC Resident Mission
Executing Agencies
Ningxia Hui Autonomous Region Government
416 Jiefang Xijie, Yuchuan, Ningxia

Timetable

Concept Clearance 22 Oct 2010
Fact Finding 15 May 2012 to 24 May 2012
MRM 17 Sep 2012
Approval -
Last Review Mission -
Last PDS Update 31 Mar 2016

Loan 2973-PRC

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
14 Dec 2012 07 May 2013 27 Jun 2013 31 Dec 2018 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 106.40 Cumulative Contract Awards
ADB 70.00 14 Dec 2012 16.53 0.00 24%
Counterpart 36.40 Cumulative Disbursements
Cofinancing 0.00 14 Dec 2012 15.38 0.00 22%

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

None currently available.

Related Publications

None currently available.


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