China, People's Republic of : Gansu Featured Agriculture and Financial Services System Development Project

Sovereign Project | 47046-002

ADB's country partnership strategy for PRC (20112015) 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.

Project Details

  • Project Officer
    Kobayashi, Yoshiaki
    East Asia Department
    Request for information
  • Country/Economy
    China, People's Republic of
  • Modality
  • Sector
    • Agriculture, natural resources and rural development
Project Name Gansu Featured Agriculture and Financial Services System Development Project
Project Number 47046-002
Country / Economy China, People's Republic of
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3312-PRC: Gansu Featured Agriculture and Financial Services System Development Project
Ordinary capital resources US$ 100.00 million
Strategic Agendas Environmentally sustainable growth
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 production - Agro-industry, marketing, and trade

Finance / Inclusive finance

Gender Effective gender mainstreaming
Description ADB's country partnership strategy for PRC (20112015) 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.



Although Gansu provincial government aims to modernize the agricultural sector to improve the sector's productivity and value addition, it has been facing several constraints and challenges. The natural conditions are formidable and the land resources are limited. The annual average precipitation in Gansu is 302 mm with highly uneven spatial and temporal distribution. Natural disasters, especially drought, occur frequently, particularly in central and eastern Gansu. The arable land per capita is only 2.65 mu (or 0.18 ha) province wide. In the past decade, local people practiced featured agriculture, which is a term used to describe farming of crops and livestock that are specialized and compatible to local climatic and soil conditions. For instance, production of potato, plateau vegetables, Chinese medicinal herbs, fruit trees, and herbivorous livestock, as well as dryland farming, have been developed in central and eastern Gansu. However, there are plenty of opportunities for featured agriculture system to achieve higher agricultural productivity, resource utilization efficiency, and farmer income. On-farm infrastructure and facilities need to be built or upgraded, new varieties and breeds of crops can be introduced, and best farming practices and water conservation technology may be promoted. These call for a significant increase in the investment in the sector.



Agricultural enterprises and farmer cooperatives can develop and extend agricultural value chains to link smallholder farmers to the market. It is recognized that they could complement the government and play a crucial role in helping individual farmers to achieve better livelihood. Agricultural enterprises and farmer cooperatives remain underdeveloped in Gansu due to lack of capacity to organize and serve farmers. Improvements can be made in governance, information access and dissemination, provision of extension services, branding and marketing, among others.



Another major constraint to the agricultural sector is the underdevelopment of rural financial services system in Gansu. Because of the government's strong commitment and policy support, the rural financial sector has experienced improvements in recent years. New players like village and township banks (VTB) and microcredit companies (MCC) are joining the rural financial market; deposits and loans outstanding to agriculture and rural households have been growing; and basic financial services have reached unserved villages. Nevertheless, these achievements are to a large extent results of intensive government interventions and direct support. Overall, the rural financial services system of Gansu remains unfledged and its sustainability is unclear. The emerging rural lending institutions, including VTBs and MCCs grow slowly mainly due to difficulty of accessing capital or deposits, and the financial products and services available in the rural area are quite limited in variety and quantity. Skilled personnel in financial operation and management are largely insufficient; and the uncertainty associated with agricultural production results in a gap between financing demand and supply.



The State Council issued the Opinions on Further Support for the Economic and Social Development of Gansu in 2010, and approved the 12th Five-year Plan for Grand Development of the Western Region in 2012. Both national policy documents state the importance of developing featured industries, improving livelihood, and conserving resources for the region. The Gansu Province 12th Five-year Plan for Agricultural Development released in 2011 sets modern agriculture as the primary goal of the sector and proposes a path towards localization, specialization, standardization, and market-orientation. Identifying the financial sector as a key driver for 'economic prosperity , the Gansu Provincial Government (GPG) issued the Opinions of the Gansu Provincial Government on Further Promoting Financial Sector Development in December 2008 to broaden the financial sector in five priority areas, including improved financial services for agriculture, rural areas and farmers and reduced constraints on access to finance by small and medium enterprises.



In line with these guiding documents, the Gansu Provincial Agricultural and Animal Husbandry Department (GPAAHD) proposed the project, to address the main constraints to agricultural modernization in 12 counties of six cities/prefectures in central and eastern Gansu. The proposed project will support the construction of standard featured agricultural production and/or processing bases, provide technical and financial assistance to the small and medium agricultural enterprises, as well as farmer cooperatives, and further develop the rural financial services system through a market-oriented approach.

Impact

Income of rural residents in Gansu Province increased (The upcoming 13th Five Year Plan of Gansu Province 2016-2020)

Project Outcome
Description of Outcome

More productive, market-oriented agricultural activities in 11 project counties enhanced.

Progress Toward Outcome The EA conducted a training of responsible officers in PPMO, CPMO, FI HQ and FI county branches on the use of project information system.
Implementation Progress
Description of Project Outputs

Inclusive and environment friendly featured agricultural production bases developed

Farmer cooperatives and agricultural enterprises financed and strengthened

Rural financial service system developed and enhanced

Capacity for project implementation and management strengthened

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

Based on EA's project completion report

Based on EA's project completion report

Based on EA's project completion report

Based on EA's project completion report

Based on EA's project completion report

Based on EA's project completion report

11 PPMO staff and 117 CPMO staff trained

(Based on EA's project completion report )

(i) 6 FIs with ESMS implementing mechanism and 644 staff trained; and (ii) 4 RFSPs with ESMS implementing mechanism and 30 staff trained

(Based on EA's project completion report )

286 featured agricultural production bases developed

(Based on EA's project completion report)

286 production base applying at least one water saving and/or climate-smart farming practice

(Based on EA's project completion report)

95.86% of FI loans to individual farmer households are signed by women

(Based on EA's project completion report)

58.19% of beneficiaries of the production bases are from poor households

(Based on EA's project completion report)

38,962 farmers trained

(Based on EA's project completion report)

203 persons trained

(Based on EA's project completion report)

7,808 technicians trained

(Based on EA's project completion report)

Geographical Location Nation-wide, Gansu Sheng
Safeguard Categories
Environment FI
Involuntary Resettlement FI-C
Indigenous Peoples FI
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 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 Kobayashi, Yoshiaki
Responsible ADB Department East Asia Department
Responsible ADB Division Environment, Natural Resources & Agriculture Division, EARD
Executing Agencies
Gansu Provincial Government
Timetable
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 23 Sep 2022

Loan 3312-PRC

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
12 Nov 2015 08 Dec 2015 29 Mar 2016 30 Jun 2021 - 06 Dec 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 18 Aug 2023 0.00 0.00 0%
Counterpart 100.00 Cumulative Disbursements
Cofinancing 0.00 18 Aug 2023 0.00 0.00 0%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory - Satisfactory - Satisfactory

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.

Title Document Type Document Date
Gansu Featured Agriculture and Financial Services System Development Project: Completion Report Project/Program Completion Reports Nov 2022
Gansu Featured Agriculture and Financial Services System Development Project: Audited Project Financial Statements (January 2020-June 2021) Audited Project Financial Statements Dec 2021
Gansu Featured Agriculture and Financial Services System Development Project: Audited Project Financial Statements (January-December 2019) Audited Project Financial Statements Jun 2020
Gansu Featured Agriculture and Financial Services System Development Project: Audited Project Financial Statements (January-December 2018) Audited Project Financial Statements Jun 2019
Amendment to Project Agreement for Loan 3312-PRC: Gansu Featured Agriculture and Financial Services System Development Project Project/Program Agreements Apr 2019
Amendment to the Loan Agreement for Loan 3312-PRC: Gansu Featured Agriculture and Financial Services System Project Loan Agreement (Ordinary Resources) Apr 2019
Gansu Featured Agriculture and Financial Services System Development Project: Audited Project Financial Statements (January-December 2017) Audited Project Financial Statements Jun 2018
Gansu Featured Agriculture and Financial Services System Development Project: Audited Project Financial Statements (January-December 2016) Audited Project Financial Statements Jun 2017
Loan Agreement for Loan 3312-PRC: Gansu Featured Agriculture and Financial Services System Project Loan Agreement (Ordinary Resources) Dec 2015
Project Agreement for Loan 3312-PRC: Gansu Featured Agriculture and Financial Services System Project Project/Program Agreements Dec 2015
Gansu Featured Agriculture and Financial Services System Development Project: Report and Recommendation of the President Reports and Recommendations of the President Oct 2015
Gansu Featured Agriculture and Financial Services System Development Project: Social and Gender Action Plan Gender Action Plans Oct 2015
Gansu Featured Agriculture and Financial Services System Development Project: Project Administration Manual Project/Program Administration Manual Oct 2015
Gansu Featured Agriculture and Financial Services System Development Project: Procurement Plan Procurement Plans Sep 2015
Gansu Featured Agriculture and Financial Services System Development Project Initial Poverty and Social Analysis Aug 2013
甘肃特色农业和金融服务体系发展项目 : 项目数据表 Translated PDS Aug 2013

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.

Title Document Type Document Date
Gansu Featured Agriculture and Financial Services System Development Project: Environmental and Social Monitoring Report (January–June 2021) Environmental and Social Monitoring Reports Aug 2021
Gansu Featured Agriculture and Financial Services System Development Project: Environmental and Social Monitoring Report (July-December 2020) Environmental and Social Monitoring Reports Feb 2021
Gansu Featured Agriculture and Financial Services System Development Project: Environmental and Social Monitoring Report (January-June 2020) Environmental and Social Monitoring Reports Aug 2020
Gansu Featured Agriculture and Financial Services System Development Project: Safeguards Monitoring Report (July-December 2018) Environmental and Social Monitoring Reports Feb 2020
Gansu Featured Agriculture and Financial Services System Development Project: Safeguards Monitoring Report (January-June 2019) Environmental and Social Monitoring Reports Feb 2020
Gansu Featured Agriculture and Financial Services System Development Project: Safeguards Monitoring Report (July-December 2019) Environmental and Social Monitoring Reports Feb 2020
Gansu Featured Agriculture and Financial Services System Development Project: Safeguards Monitoring Report (January-June 2018) Environmental and Social Monitoring Reports Sep 2018
Gansu Featured Agriculture and Financial Services System Development Project: Safeguards Monitoring Report (July-December 2017) Environmental and Social Monitoring Reports Feb 2018
Gansu Featured Agriculture and Financial Services System Development Project: Semiannual Safeguards Monitoring Report (January-June 2017) Environmental and Social Monitoring Reports Aug 2017
Gansu Featured Agriculture and Financial Services System Development Project: Environmental and Social Management System Monitoring Report (July-December 2016) Environmental and Social Monitoring Reports Feb 2017
Gansu Featured Agriculture and Financial Services System Development Project: Environmental and Social Management System Monitoring Report (January-June 2016) Environmental and Social Monitoring Reports Jul 2016
Gansu Featured Agriculture and Financial Services System Development Project: Ethnic Minority Development Plan Indigenous Peoples Plans/Indigenous Peoples Development Plans Jun 2015
Gansu Featured Agriculture and Financial Services System Development Project: Environmental and Social Management System Arrangement Environment and Social Management System Arrangements May 2015

Evaluation Documents See also: Independent Evaluation

Title Document Type Document Date
People’s Republic of China: Gansu Featured Agriculture and Financial Services System Development Project Validations of Project Completion Reports Oct 2023

Related Publications

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.

Tenders

No tenders for this project were found.

Contracts Awarded

Contract Title Approval Number Contract Date Contractor | Address Executing Agency Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
Market Development & Project Management Activities (Various Expenses) Loan 3312 21 Jul 2021 Various | Various Gansu Provincial Government 1,149,742.62 1,149,742.62
Market Development & Project Management Activities (Various Expenses) Loan 3312 21 Jul 2021 Various | Various Gansu Provincial Government 1,264,315.09 1,264,315.09
MARKET DEVELOPMENT & PROJECT MANAGEMENT ACTIVITIES (VARIOUS EXPENSES) Loan 3312 04 Nov 2019 VARIOUS (YUZHONG, KONGTONG, JINGCHUAN,LINGTAI | LANZHOU GANSU CHINA,PEOPLE'SREP.OF Gansu Provincial Government 1,000,000.00 1,000,000.00

Procurement Plan

Title Document Type Document Date
Gansu Featured Agriculture and Financial Services System Development Project: Procurement Plan Procurement Plans Sep 2015