The Asian Development Bank is helping Uzbekistan enhance its horticulture sector value chain to generate sustainable employment and incomes. The project provides loan financing to eligible farmers and businesses for establishing intensive orchards, greenhouses, storage facilities, and processing/packaging equipment. The loan proceeds, which are being on-lent through participating financial institutions, aim to address the lack of long-term funding sources in the banking system.
|Project Name||Horticulture Value Chain Development Project|
|Project Type / Modality of Assistance||Loan
|Source of Funding / Amount||
|Strategic Agendas||Environmentally sustainable growth
Inclusive economic growth
|Drivers of Change||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 - Land-based natural resources management
Finance - Small and medium enterprise finance and leasing
|Gender Equity and Mainstreaming||Effective gender mainstreaming|
|Description||The project will provide a loan to the Republic of Uzbekistan to channel through qualified participating financial institutions (PFI's) who will on-lend to horticulture-related farmers and businesses for fixed asset investments such as intensive orchards, cold storages, processing and packaging equipment. The project will address the critical constraint lack of long term resources in the Uzbekistan banking system. Since horticulture sector has high value produces, the project will contribute significantly to creating sustainable enterprises, increasing employment, and improving household income. Key lessons learnt from previous and ongoing projects financed by ADB and development partners are taken into account in the project design: (i) there needs be a dedicated project management office, other than the Ministry of Finance, to monitor the PFIs' lending activities and safeguards compliance; and (ii) terms and conditions of PFIs' subloans must be business- and demand-based without any government interventions.|
|Project Rationale and Linkage to Country/Regional Strategy||
Agricultural gross domestic product (GDP) grew at an annual average rate of 9.8% over the period 2010 2013. In spite of its decline during the past 10 years as a reflection of the strong growth in other sectors, agriculture still plays an important role in employment creation and as major source of cash income and wellbeing. During the period 2005 2015, the horticulture sector has witnessed dramatic change and increased importance to the economy. Production areas have increased significantly (vegetable by 41%, melons (and watermelons) by 53%; fruits and berries by 28%). The government aims to enhance the horticulture value chain to increase export of horticulture produces from 0.6 million tons in 2015 to 2.2 million by 2020. It is estimated that this effort will require a budget of approximately $500 million to finance farmers and enterprises to improve and/or set up intensive orchards, cold storages, processing and packaging equipment.
|Impact||Improved contribution of horticulture sector to inclusive economic growth and rural employment.|
|Description of Outcome||Production and marketing of horticultural products increased|
|Progress Toward Outcome|
|Description of Project Outputs||Finance to the horticulture sector increased|
|Status of Implementation Progress (Outputs, Activities, and Issues)|
|Summary of Environmental and Social Aspects|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design|
|During Project Implementation|
Three (3) consulting services packages worth $600,000 for the following: (i) technical advisory services for PFIs; (ii) capacity development for project beneficiaries, including gender development; and (iii) Uzagroexport capacity development.
One (1) package for project financial audit worth $150,000
|Procurement||Shopping (goods) in five (5) contracts worth $91,000 for the following: (i) motor vehicles for PMO's project monitoring; (ii) computers and printers for PMO; (iii) air-conditioners; (iv) office furniture; (v) accounting software|
|Responsible ADB Officer||Bui, Giap Minh|
|Responsible ADB Department||Central and West Asia Department|
|Responsible ADB Division||Environment, Natural Resources & Agriculture Division, CWRD|
Rural Restructuring Agency
39B, Kary Niyaziy Street
|Concept Clearance||26 Sep 2016|
|Fact Finding||19 Aug 2016 to 30 Aug 2016|
|MRM||07 Oct 2016|
|Approval||25 Nov 2016|
|Last Review Mission||-|
|Last PDS Update||12 Sep 2017|
|Approval||Signing Date||Effectivity Date||Closing|
|25 Nov 2016||03 Mar 2017||28 Apr 2017||30 Jun 2022||-||-|
|Financing Plan||Loan Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||215.00||Cumulative Contract Awards|
|ADB||154.00||25 Nov 2016||0.04||0.00||1%|
|Cofinancing||0.00||25 Nov 2016||0.26||0.00||9%|
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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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|
|Horticulture Value Chain Development: Environment and Social Management System Arrangements||Environment and Social Management System Arrangements||Sep 2016|
Evaluation Documents See also: Independent Evaluation
None currently available.
None currently available.
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ADB $154 Million Loan to Boost Horticulture Sector in UzbekistanADB today approved a $154 million loan to enhance horticulture value chain development in all 12 regions in Uzbekistan and the autonomous region of Republic of Karakalpakstan.