Afghanistan: Agriculture Market Infrastructure Project (formerly Commercial Agriculture Development Project)

Sovereign Project | 39370-022 Status: Active

Summary

ADB is helping Afghanistan improve facilities and standards in the livestock and horticulture industries. The project will put up two slaughterhouses in Kabul and three in the provinces; small-scale packing, sorting, grading, drying, and cold storage facilities; and product certification laboratories. It will strengthen product standards and marketing, and sanitary and phytosanitary regulations.

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 Agriculture Market Infrastructure Project (formerly Commercial Agriculture Development Project)
Project Number 39370-022
Country Afghanistan
Project Status Active
Project Type / Modality of Assistance Grant
Source of Funding / Amount
Grant 0126-AFG: Agriculture Market Infrastructure Project (formerly Commercial Agriculture Development Project)
Asian Development Fund US$ 30.00 million
Grant 0437-AFG: Agriculture Market Infrastructure Project - Additional Financing
Afghanistan Infrastructure Trust Fund US$ 11.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Private sector development
Sector / Subsector

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

Gender Equity and Mainstreaming Effective gender mainstreaming
Description

The proposed Agriculture Market Infrastructure Project (the Project) will deliver the following key outputs: (i) improved agricultural marketing infrastructure and (ii) improved product

standards and certification systems.

The Project will invest in the following livestock processing and horticultural market facilities: (i) two slaughterhouses in Kabul and three in the provinces; (ii) small-scale packing, sorting, grading, drying, and cold storage facilities in horticultural production areas; and (iii) laboratories for product certification.

Technical support will be provided in the areas of market infrastructure design, product standards, laboratory systems and certification, and produce marketing.

Ministry of Agriculture, Irrigation, and Livestock (MAIL) capacity will be strengthened in sanitary and phytosanitary policy and regulations, product standards, and agricultural aspects of

accession to the World Trade Organization.

Project Rationale and Linkage to Country/Regional Strategy

Agriculture is a key economic driver in Afghanistan. It accounts for 50% of the gross domestic product and is the major source of employment and income for most Afghans. Livestock and horticulture are the dominant commercial agricultural areas. While Afghanistan has a comparative advantage in these commodities, current sector performance is poor.

During the long period of conflict and recent droughts, production fell dramatically. Productivity and quality standards declined, and high postharvest losses of 30%-40% occurred because of lost market infrastructure, damage to irrigation systems, and limited access to technical and market services. Lower production and product quality has reduced export and domestic returns.

The destruction of livestock slaughterhouses has meant that animal slaughter is undertaken under unhygienic conditions, with resultant poor quality standards and product losses. There are serious risks to public health and adverse environmental impacts from untreated waste.

Investments since 2001 have allowed horticultural production to increase, and livestock numbers have risen. While these gains are considerable under the circumstances, the potential for growth in these industries will be lost without investment in basic market facilities and reform of the institutional regulatory environment. Such investments need to be undertaken relatively quickly.

Impact Agricultural growth increased

Project Outcome

Description of Outcome More efficient horticulture and livestock agribusiness industries
Progress Toward Outcome Slaughterhouses: there have been delays in the works due to various factors. An extension of the contract has been requested, and ADB provide extension of time upto end of March 2017. Based on the revised implementation schedule, completion of construction of slaughterhouses and installation of machinery is expected to be completed by 30 March 2017. Parallel to the construction activities, O&M manuals and waste management plans are being prepared, and a modality for Public-Private-Partnership is being developed. Farm Level Collection Centers (FLCC): Construction work of all 19 sites have been completed but unfurtunalty two sites (Chardara and Sorkhrod) were damaged during last fight of Kunduz and mortor bumb attack in Sorkhrod district, both of them are now completed with additional funds provided for the completion. Product Standard Development: MAIL has requested excluding the sub-component for upgrading three quality control testing laboratories from the Project. Following further assessments as advised by CWER, MAIL informed that: (i) accreditation of the laboratories will take three years, which is beyond the intended closure of the project; and (ii) other organizations have undertaken establishment of analytical and control testing laboratories which also covers the type of services originally planned for the quality control laboratories. Thus, it was no longer necessary to fund upgrading of the MAIL laboratories, and through minor change memo this activity of the project being dropped.
Implementation Progress
Description of Project Outputs

1.1 Slaughterhouses constructed and operational

1.2 Farm-level collection and marketing facilities set up and operational

2. Effective project management and capacity support

1. Improved marketing infrastructure

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

Achievement of the target will be made when the S.Hs construction is completed and fully operational. The target date for this output is March 2017.

Target feasiblle, some works being done, individual consultant hired to do the remaining work and have the contract ready when the construction completed.

Achievement of the target of waste reduction will be made when the S.Hs construction is completed. The target date for this output is 2017. During evaluation the capacity of waste water treatment plant increased from 40m3 to 150m3 in order to meet demand of slaughterhosue. Also fund is allocated for pre-fessibility study and design of bio-gas plant.

MAIL requested excluding the sub-component for upgrading three quality control testing laboratories from the Project. Following further assessments as advised by CWER, MAIL informed that: (i) accreditation of the laboratories will take three years, which is beyond the intended closure of the project; and (ii) other organizations have undertaken establishment of analytical and control testing laboratories which also covers the type of services originally planned for the quality control laboratories. Thus, it is no longer necessary to fund upgrading of the MAIL laboratories.

A total of 113 cooperatives are surveyed and 19 of them (including women cooperatives) selected for intervention.

Under one package the below provinces are identified to carry out the procurement process:

1. Kabul, Paktia and Nangarhar

2. Kunduz and Mazar

3. Hirat and Kandahar

The package was advertised on 28 Aug 2013.

PMO has been established and is already functioning.

Quarterly and Annual progress reports have been submitted regularly.

Submission of project EMP delayed due to unavailability of the National Environmental Expert. Work resumed completing the report and the first draft was submitted to ADB in May 2013. The EMR and EMP have been sent for Oct 2014 to ADB and were accepted for disclosure.

The Project Monitoring Plan was submitted to ADB in May 2013, and has been kept updated.

Consultant contract was signed on 21 Dec 2011.

S.Hs Contract was signed on 24 Sep 2011.

FLCC contract was signed on 29 October 2014.

"Selection criteria have been adopted and a full package of designs was submitted to ADB in May 2013.

The Invitation for bids was advertised on 28 Aug 2013. The BER is being reviewed, PRS finalized with ADB no objection granted. The contract being awarded with good rate or progress.

Once the facilities are constructed the step toward training will be taken. Training manual and methodology have been developed, training will be conducted after handover of FLCC to the cooperatives.

Project has provided technical support to ANSA and MAIL on the development and adoption of the standards, up to now 4 standards for the sensitive products (Almond, Pomegranate, shelled pistachio, unshelled) have been developed and apporved by ANSA as national standards, four other standards ( fresh and dried apricot, Hallal and meat cuts standards) are under review by ANSA and will be approved and accepted as national standard within within 2015.

Target is feasible; Project has developed SPS policy which is under review for further improvement.

Works are ongoing. The five slaughterhouses are in various stages of construction: (i) Reshkor, 74.16%; (ii) Shakar Dara, 50%; (iii) Herat, 29.6%; (iv) Kunduz, 21%; and (v) Mazar-i-Sharif,25.55%. Progress has been slow due to delays in commencement of construction work due to changes in the slaughterhouse sites over the land ownership dispute, and delayed release of construction equipment from the customs, security threats in few sites and contractor financial problem due to prolonged implementation.

Geographical Location Regional locations were identified across the seven agro-ecological zones that are represented by the major regional centers (Herat, Jalalabad, Kabul, Kandahar, Kunduz, Gardez and Mazar)

Safeguard Categories

Environment B
Involuntary Resettlement C
Indigenous Peoples C

Summary of Environmental and Social Aspects

Environmental Aspects An IEE conducted during project preparation confirmed that the Project will have positive environmental impacts. The Project is classified as category B, and a summary of the IEE is provided in Supplementary Appendix A. For the slaughterhouses constructed under the Project, wastewater management systems will be established as an integral aspect of their design and operation, with waste products to meet national and international standards, in line with ADB policy. Such regulations have yet to be established in Afghanistan.
Involuntary Resettlement No land acquisition or resettlement will be necessary for the planned physical infrastructure under the Project, as slaughterhouses and small buildings will be constructed on government land.
Indigenous Peoples No vulnerable groups were identified under the indigenous people definition of ADB's indigenous people's policy. The Project is classified as category C.
Stakeholder Communication, Participation, and Consultation
During Project Design Extensive consultations were undertaken during the preparation of the Project with all key stakeholders. The PPTA team undertook extensive consultations, workshops, and meetings at all regional centers involving the public and private sector and individuals working in the sector, community groups, NGOs, and producers, and conducted a detailed assessment when preparing the project.
During Project Implementation During project implementation, project working groups and representatives of associations and private enterprises are provided opportunities to raise concerns, propose and prioritize project activities, and comment on measures required to enhance the business environment. These groups need to include women and men, as well as representatives from different stakeholder groups and wealth categories.

Business Opportunities

Consulting Services

The Project will provide 116 person-months of international consulting services and 204 person-months of national consulting services.

The Project will engage contract employees to manage and implement the Project. This will cover all PMO professional and support staff. In addition, the Project will provide strategic business process and capacity development for the counterpart department of MAIL to facilitate implementation, etc. For these capacity development inputs, MAIL will engage consultants under individual contracts. For training, a number of small contracts will be undertaken under shopping and NCB. All recruitment of consultants and contract staff will be done on a competitive basis and in a fair and transparent manner in accordance with procedures acceptable to ADB.

Procurement All procurement will be carried out in accordance with ADB's Guidelines on Procurement (2007, as amended from time to time). ADB will finance civil works, vehicles, materials and equipment, and training.

Responsible Staff

Responsible ADB Officer Ayubi, Mohammad Hanif
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Afghanistan Resident Mission
Executing Agencies
Ministry of Finance
Mr. Omar Zakhilwal
[email protected]
Pashtoonistan Watt, Kabul, Afghanistan

Timetable

Concept Clearance 30 Jul 2008
Fact Finding 15 Jun 2008 to 06 Jul 2008
MRM 07 Aug 2008
Approval 21 Nov 2008
Last Review Mission -
PDS Creation Date 30 Jan 2009
Last PDS Update 29 Sep 2016

Grant 0126-AFG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
21 Nov 2008 01 Feb 2009 29 Apr 2009 30 Jun 2014 31 Dec 2017 -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 31.00 Cumulative Contract Awards
ADB 30.00 21 Nov 2008 29.30 0.00 98%
Counterpart 1.00 Cumulative Disbursements
Cofinancing 0.00 21 Nov 2008 23.83 0.00 79%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory Satisfactory Satisfactory Satisfactory Satisfactory

Grant 0437-AFG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
25 Sep 2015 29 Nov 2015 14 Jan 2016 31 Dec 2017 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 11.00 Cumulative Contract Awards
ADB 0.00 25 Sep 2015 0.00 10.53 96%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 11.00 25 Sep 2015 0.00 1.11 10%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory Satisfactory Satisfactory Satisfactory Satisfactory
Title Document Type Document Date
Agricultural Market Infrastructure Project: Additional Financing Grant Change in Scope, Amount, and Implementation Arrangements Sep 2015
Agriculture Market Infrastructure Project Procurement Plans Aug 2013
Grant Agreement for Agriculture Market Infrastructure Project between Islamic Republic of Afghanistan and Asian Development Bank dated 1 February 2009 Grant Agreement Nov 2008
Agriculture Market Infrastructure Project Design and Monitoring Frameworks Oct 2008
Agriculture Market Infrastructure Project Reports and Recommendations of the President Oct 2008

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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