China, People's Republic of: Henan Sustainable Livestock Farming and Product Safety Demonstration Project
The Asian Development Bank is working with People’s Republic of China to upgrade the quality and safety of livestock production and processing facilities in Henan Province. The project is financing testing laboratories and waste treatment facilities for livestock businesses, and training on food safety and sustainable livestock production for provincial, municipal and country governments.
East Asia Department
Request for information
China, People's Republic of
- Agriculture, natural resources and rural development
|Project Name||Henan Sustainable Livestock Farming and Product Safety Demonstration Project|
|Country / Economy||China, People's Republic of
|Project Type / Modality of Assistance||Loan
|Source of Funding / Amount||
|Strategic Agendas||Environmentally sustainable growth
Inclusive economic growth
|Drivers of Change||Gender Equity and Mainstreaming
Governance and capacity development
Private sector development
|Sector / Subsector||
Agriculture, natural resources and rural development / Agricultural policy, institutional and capacity development - Agro-industry, marketing, and trade - Livestock
|Gender Equity and Mainstreaming||Effective gender mainstreaming|
|Description||The project aims at demonstrating sustainable livestock value chains that deliver quality food in 11 project counties in Henan Province. The project will help (i) the Henan Provincial Government (HPG) improve livestock product safety monitoring and inspection system; and (ii) 11 medium and large private livestock production and/or processing enterprises, project participating enterprises (PPEs),_improve food safety control, and implement environmentally-sustainable livestock production and processing._Henan is the province suitable for the demonstration given its strategic importance in food security and agriculture in the PRC.|
|Project Rationale and Linkage to Country/Regional Strategy||
Henan covers a large part of the fertile North China Plain, with a population of 104.89 million, of which 62.34 million live in the rural area. Poverty rate in the rural area is 13.1%. Agriculture has traditionally been a pillar of Henan's economy. The sector contributed 12.7% of the provincial gross domestic product and provided employment for 41.8% of the total labor force. Henan is also known as the breadbasket of the PRC for its contribution to the PRC's food security with the nation's highest wheat output and second highest corn output. Henan also registered the largest value of livestock production in the PRC in 2010 and 2011. The livestock sector represents 40% of the provincial agricultural sector's output.
The PRC's significant economic growth, fueled by industrialization and urbanization, changed the endowment of resources available for the agriculture sector. Major changes include a long-term loss of arable land, reduction of active rural labor force, and decline of water resources. Given those changes, the PRC government has strived for the agriculture sector modernization, which promotes higher and standardized agriculture production with sustainable resources use. As part of the transformation, the livestock sector has been going through a structural change from the traditional household farming system to industrial farming system characterized by large-holding and integrated supply chains.
The PRC's livestock sector transformation is not only driven by the changes on supply side, but also a change on demand side. As the economy grew and household income increased, Chinese people take significantly larger amounts of animal protein-based products, particularly meat, than three decades ago. From 1978 to 2012, the per capita meat consumption has increased from 18 kg to 36 kg in urban areas and from 6 kg to 21 kg in rural areas. Including consumption outside homes, the average meat consumption of urban residents exceeded 40 kg._Meat consumption is the PRC is expected to grow for coming decades.
The development of the livestock sector is strongly linked to increases in farmers' incomes and rural poverty alleviation. In 2012, the production value of livestock sector accounted for 33.8% of the production value of agricultural sector of Henan. There were 54 counties where the value of livestock production accounted for over 40% of the total value of agricultural production and 15 where it exceeded 50%. In 2013, the total rural population of Henan was 60.7 million and rural labor force was 52.12 million, a substantial part of which were engaged in livestock production. The livestock sector not only provides employment for a large number of households, but also provides links to related activities and has a strong capacity to absorb the rural labor force as livestock production entails a wide scope of supply chain.
The ongoing sector transformation can potentially contribute to two critical issues facing the PRC: food safety and nonpoint source pollution. The vertically integrated livestock farming system allows producers to have better control over product quality and facilitates waste and wastewater collection by producers. Compared to the traditional household farming system, it will also substantially reduce monitoring and inspection cost for food safety and environmental protection regulators.
Food safety incidents in the PRC over the past decade_have resulted in widespread national and global attention and have prompted the government to strengthen food safety regulations for local governments and producers._However, despite the positive steps taken by the government, challenges remain to achieving food safety, particularly safety of livestock products, in the PRC. Regulating livestock product safety requires comprehensive information throughout the production chain, which calls for need of traceability. Key issues include limited monitoring and testing capacity and inadequate law enforcement, and inadequate quality control on the producer side. The HPG aims to tackle the livestock product safety by enhancing regulators' capacity to monitor and inspection at the same time promoting producers' quality control by holding them accountable for product quality.
The waste produced by the livestock farms and enterprises contains high concentration of pollutants and is often discharged without proper treatment, which results in serious nonpoint source pollution affecting land and water resources and livelihoods. Livestock waste also results in significant greenhouse gas (GHG) emissions. The government has promoted conversion of livestock waste for renewable energy, particularly for medium- and large-scale livestock farms and enterprises. However, there are still many medium- and large-scale livestock farms and enterprises that do not have proper waste treatment. Livestock enterprises' 'profit before safety_ attitude and the government's weak environmental law enforcement make it difficult to address this negative environment impact.
The project aims to help HPG and PPEs demonstrate food safety improvement and environmentally sustainable medium- and large-sized livestock production.
The project is consistent with the PRC's Twelfth Five-Year Plan (20112015), which pursues the long-term goal of building a harmonious and moderately prosperous society through livelihood improvement, and regionally balanced and environmentally sustainable growth. It is also consistent with the third plenum of the 18th Communist Party of China Central Committee, which determines the direction of Thirteenth Five-Year Plan, affirmed the government's renewed commitment to food safety system improvement and sustainable environmental and natural resources management._The project is also in line with ADB's country partnership strategy, 20112015 for the PRC_in supporting the government's overarching strategic goal by focusing on inclusive and environmentally sustainable growth. Project loan is proposed as financing modality of the project.
Agricultural industrialization and large-scale operation upgraded,
Capacity in ensuring agro-product quality and safety enhanced,
Conservation of agricultural resources and ecosystems strengthened
|Description of Outcome||
Model livestock production and processing with improved environmental sustainability and product safety demonstrated
|Progress Toward Outcome||The loan became effective on 7 July 2016. Loan inception mission was fielded on 10-14 October 2016. Handover mission took place in Feb 2017 and was delegated to PRCM in March 2017. ADB approved minor change in project scope of adding three new subprojects (15 contracts) for utilization of $26 million loan savings on 23 April 2021. Due to the heavy rainstorm flood disaster happened in Henan province from 20 to 29 July 2021 and_the outbreak of coronavirus disease delta variant, 11 months of extension of the loan closing date from 30 September 2021 to 31 August 2022 was approved.|
|Description of Project Outputs||
1. Livestock product safety monitoring and inspection facilities upgraded
2. Environmentally sustainable livestock production facilities established
3. Capacity and project management strengthened
|Status of Implementation Progress (Outputs, Activities, and Issues)||
The project was closed on 31 August 2022 and now is under final liquidation._The loan account is expected to be financially closed by end of 2022.
By 21 September 2022, total contract awards reaches $55 million and accumulative disbursement reaches $48.9 million. All procurement and construction activities have been completed. Capacity building have been conducted as planned and ADB has approved two overseas study and four domestic training seminar. Monitoring on social safeguards and environment have been conducted regularly._
The overall outputs and impacts of the project will be evaluated during the project completion review.
|Geographical Location||Nation-wide, Henan Sheng|
|Summary of Environmental and Social Aspects|
|Environmental Aspects||The project is classified as category B for environment. Safeguard documents, including initial environmental examination, has been prepared following ADB's Safeguard Policy Statement (2009).|
|Involuntary Resettlement||The project is classified as category B for involuntary resettlement. Safeguard documents, including resettlement plan, has been prepared following ADB's Safeguard Policy Statement (2009).|
|Indigenous Peoples||The project is classified as category c for indigenous peoples. Safeguard documents has been prepared following ADB's Safeguard Policy Statement (2009).|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design|
|During Project Implementation|
|Consulting Services||For implementation of ADB-financed Henan Value Chain Products and Safety Demonstration Project, the project management office (PMO) will be assisted by the commissioning of a project implementation consultant (PIC) team, which comprises nine national consultants for 56 person-months (pm), during the project implementation period.|
All procurement of goods and works will be undertaken in accordance with ADB's Procurement Guidelines (2013, as amended from time to time). Contracts for goods estimated to cost $3.0 million and above and contracts for works estimated to cost $40.0 million and above shall be procured using international competitive bidding (ICB) procedures. Contracts for works and goods estimated to cost less than the above ICB value but equal to $100,000 and above will be procured through national competitive bidding (NCB) procedures. NCB will be conducted in accordance with the PRC Tendering and Bidding Law (1999), subject to modifications agreed with ADB._Contracts for goods and works estimated to cost less than the above NCB values will be procured using shopping procedures. The relevant sections of ADB's Anticorruption Policy (1998, as amended from time to time)_will be included in all procurement documents and contracts.
Procurement under international competitive bidding (ICB) procedures shall use the latest ADB standard bidding documents which can be downloaded from ADB's website. Documents for all procurement under ICB will be subject to the prior review of ADB.
For procurement under National Competitive Bidding (NCB) the following provisions will apply i) the advertisement may be limited to the national press, an official gazette or an open access website; ii) bidding shall follows the standard bidding documents issued by Ministry of Finance (MOF) and approved by ADB; ii) bidding documents may be only in the Chinese language, and CNY may be used for the purpose of bidding and payment. Procurement under NCB will be subject to the provisions of the NCB annex of the procurement plan. Additionally, before the start of any procurement ADB and the Government will review the public procurement laws of the central and provincial governments to ensure consistency with ADB's Procurement Guidelines.
For ICB, all invitations for bids, bidding documents, bid evaluation reports, and draft negotiated contracts need ADB's prior review and approval. For NCB, invitations for bids, bidding documents, bid evaluation reports, and draft negotiated contracts for the first NCB for civil works and the first NCB for goods need ADB's prior review and approval. For subsequent NCB packages, invitations for bids, bidding documents, bid evaluation reports, and signed contracts provided they are consistent with previously approved documents will not require ADB's prior review. However, such documents will be subject to post-review and must be submitted to ADB's as soon as they are completed and issued, but no later than one month after their issuance
Project implementation consultants_(PIC), which will be financed by the HPG, will be recruited to assist the PMO in managing the project implementation.
|Responsible ADB Officer||Xia, Heng|
|Responsible ADB Department||East Asia Department|
|Responsible ADB Division||PRC Resident Mission|
Henan Provincial Government (HPG)
|Concept Clearance||08 Apr 2013|
|Fact Finding||07 Jul 2014 to 18 Jul 2014|
|MRM||22 Aug 2014|
|Approval||29 Sep 2015|
|Last Review Mission||-|
|Last PDS Update||23 Sep 2022|
|Approval||Signing Date||Effectivity Date||Closing|
|29 Sep 2015||29 Jan 2016||07 Jul 2016||30 Sep 2021||31 Aug 2022||-|
|Financing Plan||Loan Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||72.84||Cumulative Contract Awards|
|ADB||69.00||24 Oct 2022||53.64||0.00||78%|
|Cofinancing||0.00||24 Oct 2022||48.87||0.00||71%|
|Status of Covenants|
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.
The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
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.
None currently available.
The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.
Requests for information may also be directed to the InfoUnit.
ADB Supports Food Safety, Environmental Upgrades in HenanADB is providing a $69 million loan to raise food safety standards and improve livestock waste treatement facilities in Henan Province—one of the most important food producing regions in the country.
|Contract Title||Approval Number||Contract Date||Contractor | Address||Executing Agency||Total Contract Amount (US$)||Contract Amount Financed by ADB (US$)|
|SEWAGE TREATMENT EQUIPMENT FOR HENAN MUYUAN MEAT MYM-GS-1||Loan 3296||09 Jul 2021||BEIJING HUAXIA DAYU TECHNOLOGY CO. LTD. | #6-21 #6 NO. 28 DONGBEIWANGCUN HAIDIAN BEIJING CHINA PEOPLE'SREP.OF||Henan Provincial Government (HPG)||1,251,429.23||1,251,429.23|
|FULLY AUTOMATIC STEREO STORAGE EQUIPMENT FOR HENAN MUYUAN MEAT CO. LTD. MYM-GS-3||Loan 3296||09 Jul 2021||NORTH INSTITUTE (BEIJING) TECHNOLOGY DEVELOPMENT CO. LTD. | 8-302 #1 JIAOCHANGKOUJIE XICHENGQU BEIJING CHINA PEOPLE'SREP.OF||Henan Provincial Government (HPG)||2,076,751.53||2,076,751.53|
|BREEDING AND ENVIRONMENTAL SUPPORTING EQUIPMENT FOR SHEQI MUYUAN, SQMY-GS-6||Loan 3296||30 Jun 2021||HEBEI CHENGZHU MACHINERY GROUP CO., LTD. | HAI'AN ROAD, HAIXING COUNTY HEBEI PROVINCE CHINA, PEOPLE'S REP. OF||Henan Provincial Government (HPG)||1,874,325.85||1,862,725.58|
|CIVIL WORKS FOR PIG FARM FOR SHEQI MUYUAN SQMY-CW-1||Loan 3296||30 Jun 2021||NEIXIANG BAICHUAN CONSTRUCTION GROUP CO., LTD | NEIXIANG COUNTY, NANYANG CITY HENAN PROVINCE CHINA, PEOPLE'S REP. OF||Henan Provincial Government (HPG)||7,599,257.84||3,040,594.52|
|BREEDING EQUIPMENT FOR YONGXIN YX-GS-2||Loan 3296||24 Jun 2021||SHAANXI KING FLYING TRAFFIC INDUSTRY CO., LTD | #281, CHANGYINGDONGLU, XINCHENGQU XI'AN CITY, SHAANXI PROVINCE CHINA, PEOPLE'S REP. OF||Henan Provincial Government (HPG)||1,212,703.52||1,199,021.48|
|CIVIL WORKS FOR PIG FARM FOR YONGXIN YX-CW-1||Loan 3296||24 Jun 2021||HENAN DEXIN CONSTRUCTION ENGINEERING CO., LTD | LINZHOU CITY, HENAN PROVINCE CHINA, PEOPLE'S REP. OF||Henan Provincial Government (HPG)||5,353,433.01||3,175,820.52|
|FEED PROCESSING PLANT FOR SANGAO SG-CW-2||Loan 3296||27 Oct 2020||HENAN NEW GREAT WALL CONSTRUCTION CO., LTD. | GUSHI COUNTY, HENAN PROVINCE CHINA,PEOPLE'SREP.OF||Henan Provincial Government (HPG)||2,114,637.16||1,594,836.62|
|SLAUGHTER HOUSE REFRIGERATION EQUIPMENT FOR FENGHUA, FH-GS-2.2||Loan 3296||08 Sep 2020||ZHENGZHOU TONGXIN REFRIGERATION EQUIPMENT CO. | NO. 92, 23F, #1 SUOLING ROAD, JINSHUI DISTRICT, ZHENGZHOU, HENAN CHINA,PEOPLE'SREP.OF||Henan Provincial Government (HPG)||2,159,157.72||2,159,157.72|
|CIVIL WORKS FOR PIG FATTENING FARM FOR HENAN DADI ANIMAL HUSBANDRY CO., LTD. DD-CW-1||Loan 3296||03 Jul 2020||ZHENGZHOU SECOND CONSTRUCTION ENGINEERING | ZHENGZHOU CITY, HENAN PROVINCE CHINA,PEOPLE'SREP.OF||Henan Provincial Government (HPG)||6,135,406.98||2,622,026.04|
|OVERSEAS TRAINING ON ANIMAL PRODUCTS QUALITY SAFETY SYSTEM IN AUSTRALIA||Loan 3296||11 Mar 2020||HENAN SHITONG OVERSEAS TRAVEL CO., LTD. | ZHENGZHOU CITY, HENAN PROVINCE CHINA,PEOPLE'SREP.OF||Henan Provincial Government (HPG)||166,946.82||162,290.32|
|CIVIL WORKS FOR CATTLE FATTENING FARM AND OUTFITTED FACILITIES FOR HENAN HENGTIANRAN PASTURE FARMING CO., LTD., HTR-CW-1||Loan 3296||18 Oct 2019||XUCHANG XINTAI CONSTRUCTION ENGINEERING CO., | XUCHANG CITY, HENAN PROVINCE CHINA,PEOPLE'SREP.OF||Henan Provincial Government (HPG)||9,856,261.12||3,875,692.73|
|LABORATORY EQUIPMENT FOR HENAN ANIMAL HUSBANDRY BUREAU, AHB-GS-1.4||Loan 3296||09 Sep 2019||CHINA NATIONAL SCIENTIFIC INSTRUMENTS AND | NO.19, TAIYANGGONG MIDDLE ROAD, CHAOYANG BEIJING CHINA,PEOPLE'SREP.OF||Henan Provincial Government (HPG)||1,653,829.24||1,653,829.24|
|SLAUGHTER HOUSE SLAUGHTERING EQUIPMENT FOR HENAN FENGHUA BREEDING SHARE CO., LTD. FH-GS-2.1||Loan 3296||09 Sep 2019||QINGDAO JIANHUA FOOD MACHINERY MANUFACTURING | WEST BEIXIN ZHUANG, YINGHAI OFFICE, JIAOZHOU, QINGDAO, SHANDONG CHINA,PEOPLE'SREP.OF||Henan Provincial Government (HPG)||1,491,748.99||1,491,748.99|
|PROCUREMENT FOR LABORATORY EQUIPMENT FOR HAHB AHB-GS-1.1||Loan 3296||07 Aug 2019||LEADER ORIENTAL TECHNOLOGY (BEIJING) LTD. | ROOM 417, UNIT 3, BUILDING 2, DISTRICT5 NORTH STREET JIAYUAN, CHANGPING, BEIJING CHINA,PEOPLE'SREP.O||Henan Provincial Government (HPG)||1,567,042.68||1,501,601.89|
|CHICKEN BREEDING FARM AND ORGANIC FERTILIZER FOR SANGAO SG-CW-1||Loan 3296||22 Oct 2018||HENAN NEW GREAT WALL CONSTRUCTION CO., LTD. | GUSHI COUNTY, HENAN PROVINCE CHINA,PEOPLE'SREP.OF||Henan Provincial Government (HPG)||3,333,039.00||2,503,826.00|
|CHICKEN FATTENING FACILITY FOR SANGAO SG-GS-2||Loan 3296||22 Oct 2018||GUANGZHOU HUANAN ANIMAL HUSBANDRY EQUIPMENT | NO. 789, GUANGCONGJIULU, ZHONGLUOTANZHEN BAIYUN DISTRICT, GUANGZHOU, GUANGDONG CHINA,PEOPLE'SREP.OF||Henan Provincial Government (HPG)||2,711,964.00||2,711,964.00|
|ORGANIC FERTILIZER PROCESSING EQUIPMENT FOR FARMS 24 AND 25 FOR MUYUAN MY-GS-3||Loan 3296||28 Dec 2017||HENAN TONGDA HEAVY INDUSTRY SCIENCE AND | HENAN PROVINCE CHINA,PEOPLE'SREP.OF||Henan Provincial Government (HPG)||1,652,767.00||1,652,767.00|
|PIG FATTENING EQUIPMENT FOR FARMS 24 AND 25 FOR MUYUAN MY-GS-2||Loan 3296||28 Dec 2017||XINXIANG CITY MORDEN PIG FARMING EQUIPMENT | XINXIANG, HENAN PROVINCE CHINA,PEOPLE'SREP.OF||Henan Provincial Government (HPG)||2,501,674.00||2,501,674.00|
|CIVIL WORKS FOR 50,000 HEADS OF PIG BREEDING FOR MUYUAN MY-CW-2||Loan 3296||30 Nov 2017||HENAN ZHIXIN CONSTRUCTION ENGINEERING CO., | HENAN PROVINCE CHINA,PEOPLE'SREP.OF||Henan Provincial Government (HPG)||3,520,378.00||1,342,741.00|
|CIVIL WORKS FOR 10,000 HEAD OF PIG BREEDING FOR MUYUAN MY-CW-1||Loan 3296||30 Nov 2017||NEIXIANG COUNTY FIRST CONSTRUCTION | NEIXIANG COUNTY, HENAN PROVINCE CHINA,PEOPLE'SREP.OF||Henan Provincial Government (HPG)||5,985,288.00||2,282,906.00|
|Title||Document Type||Document Date|
|Henan Sustainable Livestock Farming and Product Safety Demonstration Project: Procurement Plan||Procurement Plans||May 2021|