The Asian Development Bank is working with People’s Republic of China in Gansu province to help small-scale agricultural producers boost output and incomes. The project is providing financial and technical support to upgrade farm infrastructure and to help farmers build links to new markets. It is also partnering with local banks to expand rural financial services support for small enterprises.
|Project Name||Gansu Featured Agriculture and Financial Services System Development Project|
|Country||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 production - Agro-industry, marketing, and trade
Finance / Inclusive finance
|Gender Equity and Mainstreaming||Effective gender mainstreaming|
|Description||ADB's country partnership strategy for PRC (2011 2015) identifies inclusive growth as one of the three pillars in the partnership which will be supported by boosting rural livelihoods and improving access to microfinance and small and medium enterprise finance. The partnership also recognizes private sector development, knowledge solutions, capacity development, and gender equity as major drivers of change to maximize development impacts in the PRC. The proposed project will promote inclusive growth in the project area through improving rural livelihood. Agricultural productivity will be enhanced through providing financial and technical support to private agricultural enterprises and farmer cooperatives for the construction of standard production and/or processing bases and strengthening of governance and management capacity. Further development of rural financial services will expand access to finance among rural residents and agricultural enterprises. The project has significant potential for innovation and knowledge generation in agricultural and rural finance, sustainable use of water resources, poverty targeting and reduction, and scientific evaluation of development interventions. Finally, the project will promote gender equity in access to finance and management of farmer cooperatives and agricultural enterprises.|
|Project Rationale and Linkage to Country/Regional Strategy||
Gansu Province, located in the northwest of the PRC, is the seventh largest province with a population of 25.6 million, of which 64% is rural population. In 2012, Gansu's total gross domestic product (GDP) was CNY565 billion, of which agriculture accounted for 13.8%. Gansu's GDP per capita of CNY22,037 (equivalent to about $3,500) is the second lowest in the PRC. As most of the low-income population live in the rural area, agricultural development is directly associated with rural livelihood improvement.
|Impact||Income of rural residents in Gansu Province increased (The upcoming 13th Five Year Plan of Gansu Province 2016-2020)|
|Description of Outcome||Participation of farmers in more productive, market-oriented agricultural activities enhanced|
|Progress Toward Outcome|
|Description of Project Outputs||
Farmer cooperatives and agricultural enterprises financed and strengthened
Rural financial service system developed and enhanced
Capacity for project implementation and management strengthened
Inclusive and environmentally-friendly featured agricultural production bases developed
|Status of Implementation Progress (Outputs, Activities, and Issues)||
Outputs 1 and 2:
Financial Intermediary Headquarter (FI-HQ), FI county branches, country project management offices (CPMOs) have made slow progress with preparation and approval of sub-loans following the first batch of sub-loans.
A total of CNY 33.29 million ($5.0 million) have been disbursed by FIs by end of 2017.
Slow implementation is caused by the following:
- lack of collateral by sub-loan borrower candidates (SBC)
- ineffective longlist mechanism between FI county branches and county PMO
- ineffective communication between staff of FI-HQ and FI county branches due to insufficient staff provision by FIs
ADB approved the template for environmental and social management system for rural financial service provider (RFSP) on 1 Sep 2017.
The EA conducted capacity building related activities for staff of branches of FIs, RFSPs including potential project RFSPs, and grassroots financial service units in project counties.
The EA conducted various capacity building training of relevant officers of PPMO, CPMO, FI-HQ and FI county branches.
The semi-annual progress report and safeguard monitoring report were received on time.
The audit reports of the project and 3 financial intermediaries were received on time.
Consulting services (counterpart financing) and procurements are ongoing.
|Geographical Location||Nation-wide, Gansu Sheng|
|Summary of Environmental and Social Aspects|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design|
|During Project Implementation|
|Consulting Services||Project implementation consultants will be hired using government counterpart funds following PRC public bidding procedure.|
|Procurement||Procurement will be undertaken in accordance with ADB's Procurement Guidelines (2015, as amended from time to time). For subprojects funded with sub-loans made by financial intermediaries and rural financial service providers, the procurement will be undertaken by the respective sub-borrowers in accordance with established private sector or commercial practices which are acceptable to ADB.|
|Responsible ADB Officer||Hinrichs, Jan F.|
|Responsible ADB Department||East Asia Department|
|Responsible ADB Division||Environment, Natural Resources & Agriculture Division, EARD|
Gansu Provincial Government
No. 136 Jinning Road
Lanzhou City, Gansu Province
People's Republic of China
|Concept Clearance||05 Aug 2013|
|Fact Finding||08 Dec 2014 to 16 Dec 2014|
|MRM||30 Jun 2015|
|Approval||12 Nov 2015|
|Last Review Mission||-|
|Last PDS Update||09 Mar 2018|
|Approval||Signing Date||Effectivity Date||Closing|
|12 Nov 2015||08 Dec 2015||29 Mar 2016||30 Jun 2021||-||-|
|Financing Plan||Loan Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||200.00||Cumulative Contract Awards|
|ADB||100.00||12 Nov 2015||0.87||0.00||5%|
|Cofinancing||0.00||12 Nov 2015||2.20||0.00||12%|
|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.
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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.
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Requests for information may also be directed to the InfoUnit.
ADB Loan to Help Scale Up Production, Financing For Gansu FarmersADB has approved a $100 million loan for a project to help farmers in 11 counties in southeastern Gansu province expand and diversify production and increase access to markets and finance.
No tenders for this project were found.
No contracts awarded for this project were found
|Title||Document Type||Document Date|
|Gansu Featured Agriculture and Financial Services System Development Project: Procurement Plan||Procurement Plans||Sep 2015|