Project Name
Almaty-Bishkek Economic Corridor: Preparing the Modern Agriculture Wholesale Market Development Project
Project Number
51276-002
Country / Economy
  • Regional
  • Kazakhstan
  • Kyrgyz Republic
Project Status
Active
Project Type / Modality of Assistance
  • Technical Assistance
Source of Funding / Amount
TA 9677-REG: Almaty-Bishkek Economic Corridor: Preparing the Modern Agriculture Wholesale Market Development Project
Source Amount
Regional Cooperation and Integration Fund US$ 1.00 million
Technical Assistance Special Fund US$ 1.00 million
Strategic Agendas
  • Inclusive economic growth
Drivers of Change
  • Gender Equity and Mainstreaming
  • Governance and capacity development
  • Knowledge solutions
  • Partnerships
  • Private sector development
Sector / Subsector
  • Agriculture, natural resources and rural development / Agricultural policy, institutional and capacity development

Gender
Effective gender mainstreaming
Description
The proposed project will contribute to the diversification of exports and the connection to regional markets for the Republic of Kazakhstan and the Kyrgyz Republic. The project is part of the development of the Almaty-Bishkek Economic Corridor (ABEC). The project will support the modernization of wholesale markets (WSMs) to improve food safety, food security, and increase food trade within and outside the region. Modern WSM infrastructure will facilitate certification for exports, traceability systems, and most importantly, transparent market access and storage of fresh produce. As a result, market demand will allow for production growth and deliver incentives for quality, which will benefit small- and medium-sized producers in the region.
Project Rationale and Linkage to Country/Regional Strategy

In Kazakhstan and the Kyrgyz Republic, horticulture value chains are concentrated around Almaty, Bishkek, and their surrounding areas where most of the production, trading and consumption is concentrated. Wholesale trading is mainly occurring in Kazakhstan through the Altyn Orda market (42 hectares [ha] size) in Almaty province and Shareem market (3 ha) in Astana, as well as in the Kyrgyz Republic through Dordoi Food market with 14 ha and Alamedin market (15 ha), both in Bishkek. Most of the flow of horticulture products is channeled through these markets, which require significant modernization to comply with changing domestic regulations, the standards of the Eurasian Economic Union (EEU) and other major export destinations for fruits and vegetables that are produced in ABEC and the Fergana valley. Most commonly, fresh products are sold from the back of a truck to large and small retailers, to hotels and restaurants, and further to other WSMs of Astana or Shymkent. If the produce is not sold within a day, it is often spoiled and goes to waste. Producers or farmers often lack direct access to the WSM because of the segregated production structure with little cooperation and consolidation at the producer level.

Kazakhstan and the Kyrgyz Republic are both net food importers. Food security is compromised due to the i) high dependency on food imports during the first half of the year; ii) lack of incentives for producers to expand the season, quantity and quality of produce due to low margins; iii) increasing market power and vertical integration for horticulture products; and iv) adhoc and uncoordinated daily trading systems because of inadequate storage and cold-chain logistics facilities, which lead to high food waste and price fluctuations. Current WSM, storage, and logistics infrastructure limit the export potential for horticulture products and lead to inefficiencies in domestic food distribution with significant effects for food security and food safety. Reduced food waste and more efficient value chains have significant potential to reduce unnecessary use of natural resources and emittance of greenhouse gases.

Impact

Project Outcome

Description of Outcome
Progress Toward Outcome

Implementation Progress

Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location
Kazakhstan; Kyrgyz Republic

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
The TA will require three packages of consulting services: (i) Package 1 - International consulting firms to conduct the investment feasibility study (IFS) (output 1) using the fixed budget selection (FBS) selection method, and simplified technical proposals; (ii) Package 2 - an international consulting firm to conduct the commercial, technical and financial due diligence (output 2) using the FBS selection method and simplified technical proposals; and (ii) Package 3 - Individual consultants (international) to assist loan processing and implementation startup and coordination of outputs 1 and 2 (output 3). Package 1 will be lump-sum and performance-based contract, package 2 will be lump-sum, while package 3 will be time-based. ADB procurement and policy and regulations (2017 as amended from time to time) shall apply to the selection of consultants.

Contact

Responsible ADB Officer
Bui, Giap Minh
Responsible ADB Department
Sectors Group
Responsible ADB Division
Agriculture, Food, Nature, and Rural Development Sector Office (SG-AFNR)
Executing Agencies
Asian Development Bank

Timetable

Concept Clearance
-
Fact Finding
-
MRM
-
Approval
07 Dec 2018
Last Review Mission
-
Last PDS Update
11 Dec 2018

Funding

TA 9677-REG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
07 Dec 2018 - 07 Dec 2018 31 Dec 2020 30 Jun 2025 -
Financing Plan/TA Utilization
ADB Cofinancing Counterpart Total
Gov Beneficiaries Project Sponsor Others
2,000,000.00 0.00 0.00 0.00 0.00 0.00 2,000,000.00
Cumulative Disbursements
Date Amount
06 Sep 2023 1,411,928.70
 
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Source URL: https://www.adb.org/projects/51276-002/main