fbpx 47335-001: PRC: Greenhouse Agricultural Development Project | Asian Development Bank

China, People's Republic of: PRC: Greenhouse Agricultural Development Project

Nonsovereign (Private) Project | 47335-001 Status: Approved

The project will support Le Gaga to establish and expand a series of modern greenhouse operation in Guangdong and Fujian Provinces, providing off-season vegetable supply mainly in the winter to the entire PRC and some neighboring countries. The operation will incorporate the best practices in agricultural production in terms of efficient water and energy use and pollution-free farming techniques.

Project Details

Project Officer
Hoshi, Hayato Private Sector Operations Department Request for information
Country
  • China, People's Republic of
Sector
  • Agriculture, natural resources and rural development
 
Project Name PRC: Greenhouse Agricultural Development Project
Project Number 47335-001
Borrower/Company Le Gaga Holdings Limited
Country China, People's Republic of
Location
Type or Modality of Assistance
3230 Loan Ordinary capital resources USD 80.00 million Committed
68 B-Loan Other USD 60.00 million Approved
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Partnerships
Private sector development
Sector / Subsector

Agriculture, natural resources and rural development / Agricultural production

Gender Equity and Mainstreaming Some gender elements
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Portfolio Management Division, PSOD
Responsible ADB Officer Hoshi, Hayato
Project Sponsor(s) Le Gaga Holdings Limited
Description The project will support Le Gaga to establish and expand a series of modern greenhouse operation in Guangdong and Fujian Provinces, providing off-season vegetable supply mainly in the winter to the entire PRC and some neighboring countries. The operation will incorporate the best practices in agricultural production in terms of efficient water and energy use and pollution-free farming techniques.
Objectives and Scope The development impact of the project is the increased availability of quality, fresh and nutritious food all year round, which helps increase the awareness about and satisfy the demand for high-quality and safe products in the PRC. The project is expected to serve as a catalyst for private sector development and participation, which is still limited to upstream productivity enhancement in the agricultural sector. The project's expected outcome is demonstrated viability and productivity gains in greenhouse farming. The project will contribute to the transformation to and growth of competitive and dynamic greenhouse farming that achieves higher productivity and integration of industry and markets, increases farm and nonfarm employment, and improves rural livelihoods of farmers. The project is designed to be a least-cost solution to financing agricultural development. ADB and Le Gaga aim to expand the operations under a portfolio approach to reduce transaction costs and diversify the risk of adverse natural conditions.
Status of Development Objectives Not yet due.
Status of Operation/Construction As of June 30, 2019, Le Gaga operated 16 farms with an aggregate area of 23,051 mu (1,537 hectares) in Fujian and Guangdong Provinces. It sells approximately 50 varieties of vegetables primarily to wholesalers and to institutional customers (agents of supermarket chains and online platforms).
Linkage to Country/Regional Strategy

ADB's PRC country partnership strategy, 2011-2015 identifies agriculture and natural resources as one of four priority sectors of ADB support for inclusive growth and environmentally sustainable development. Private sector development remains a key driver of change. The Twelfth Five-Year Plan (2011-2015) of the PRC shares this development agenda and places national priority on agriculture and rural development with specific emphasis on agricultural modernization and improvement of farmers' living standards.

ADB's operational plan for sustainable food security supports its intervention in agriculture and rural development, particularly the aim to boost primary production, strengthen links along food and agricultural value chains, ensure food security for the poor and vulnerable, and increase their participation in economic activities. The project fully meets the sector strategy by seeking to upgrade inclusive food and agricultural values chain, which enhance agricultural productivity, broaden the rural economy with expanded income channels, promote sector integration and efficiency, and improve food security for the urban and rural poor.

Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects Le Gaga established an environmental and social management system compliant with ADB SPS requirements prior to first disbursement. Initial environmental examination reports for new production bases and Environmental and social audit reports for existing production bases were prepared after identification of use of ADB's proceeds. Annual environmental and social monitoring reports have been submitted to ADB and confirmed compliance with local environmental regulations and ADB SPS.
Involuntary Resettlement Le Gaga's business activities dot not involve any permanent land acquisition since land is leased from the farmers or villagers on a willing lessee-willing lessor basis. The social compliance audit report also confirmed that existing production bases do entail any involuntary resettlement impact.
Indigenous Peoples The social compliance audit report also confirmed that Le Gaga's business activities and operations of existing production bases do not have any adverse impact to ethnic minorities.
Stakeholder Communication, Participation, and Consultation Le Gaga's ESMS includes arrangements for stakeholder consultations and disclosure during project preparation, construction, and operation, as well as hierarchical grievance redress mechanisms at corporate and production-base levels. An effective documentation system was established to capture the discussions during consultations to fully track and manage issues and concerns raised by stakeholders.
Timetable for assistance design, processing and implementation
Concept Clearance 02 Dec 2013
Credit Committee Meeting 20 Oct 2014
Approval 05 Dec 2014
Last PDS Update 21 Nov 2019

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.

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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
Greenhouse Agricultural Development Project: Huidong, Zhangpu, Huian, Huating, and Fuqing Environmental Compliance Audit Report Environment and Social Compliance Audit Reports Jun 2018
Greenhouse Agricultural Development Project: Huidong, Zhangpu, Huian, Huating, and Fuqing Social Compliance Audit Report Social Compliance Audit Report May 2018
Greenhouse Agricultural Development Project: Le Gaga Holdings Limited Annual Environmental and Social Performance Report (January-December 2016) Environmental and Social Monitoring Reports May 2018
Greenhouse Agricultural Development Project: Annual Environmental and Social Performance Report (January-December 2017) Environmental and Social Monitoring Reports May 2018
Greenhouse Agricultural Development Project: Annual Environmental and Social Performance Report Environmental and Social Monitoring Reports Feb 2016
Greenhouse Agricultural Development Project: Beigao Production Base - Initial Environmental Examination Initial Environmental Examination Oct 2015
Greenhouse Agricultural Development Project: Beigao Base - Social Compliance Audit Report Social Compliance Audit Report Oct 2015
Greenhouse Agricultural Development Project: Social Compliance Audit Report for Zhongshan-Xinlian Base Social Compliance Audit Report Jun 2015
Greenhouse Agricultural Development Project: Initial Environmental Examination for Zhongshan-Xinlian Production Base Initial Environmental Examination Jun 2015
Greenhouse Agricultural Development Project: Initial Environmental Examination for Dayang Production Base Initial Environmental Examination Apr 2015
Greenhouse Agricultural Development Project: Social Compliance Audit Report for Dayang Production Base Social Compliance Audit Report Mar 2015

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


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