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Nepal: Food Safety and Agriculture Commercialization Program

Sovereign (Public) Project | 48218-010 Status: Proposed

The program is aligned with ADB's Strategy 2030, specifically the operational priorities on promoting rural development and food security and strengthening governance and institutional capacity. Moreover, the government's 14th periodic plan (FY2016/2017 FY2018/2019), 15th five-year plan (FY2019/2020 FY2023/2024), and Envisioning Nepal 2030 have highlighted the modernization and commercialization of agriculture sector as a national development priority in the country's aspiration to attain middle-income status by 2030. The ADB-assisted Agriculture Development Strategy (ADS), 2015 -2035 provides the government''s 20-year strategic direction for the agriculture sector in Nepal, with a vision for a self-reliant, sustainable, competitive, and inclusive agriculture sector.

 
Project Name Food Safety and Agriculture Commercialization Program
Project Number 48218-010
Country Nepal
Project Status Proposed
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
Loan: Food Safety and Agriculture Commercialization Program
concessional ordinary capital resources lending / Asian Development Fund US$ 50.00 million
TA: Food Safety and Agriculture Commercialization Program
Technical Assistance Special Fund US$ 500,000.00
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Private sector development
Sector / Subsector

Agriculture, natural resources and rural development / Agricultural policy, institutional and capacity development

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The program is aligned with ADB's Strategy 2030, specifically the operational priorities on promoting rural development and food security and strengthening governance and institutional capacity. Moreover, the government's 14th periodic plan (FY2016/2017 FY2018/2019), 15th five-year plan (FY2019/2020 FY2023/2024), and Envisioning Nepal 2030 have highlighted the modernization and commercialization of agriculture sector as a national development priority in the country's aspiration to attain middle-income status by 2030. The ADB-assisted Agriculture Development Strategy (ADS), 2015 -2035 provides the government''s 20-year strategic direction for the agriculture sector in Nepal, with a vision for a self-reliant, sustainable, competitive, and inclusive agriculture sector. The program aligns well with the four ADS outcomes: (i) improved governance, with measures such as improving the credibility of policy commitment; (ii) higher productivity, with activities for improving quality and availability of key inputs and extension services; (iii) profitable commercialization, with measures such as improving value-chain linkages; and (iv) increased competitiveness through increase in agricultural exports, and food safety and security, among others.
Project Rationale and Linkage to Country/Regional Strategy Weak food quality testing and monitoring system is affecting trade and public health. Despite its membership of the World Trade Organization, Nepal has not been able to adopt all international standards on sanitary and phytosanitary measures due to the lack of adequate resources. India is a major trade partner but the plant quarantine laboratories at check-posts bordering India do not satisfy the prerequisites for mutual recognition agreement with India, which impedes exports. Exporters face significant delays because they are subject to multiple tests on both sides of the border. On similar lines, the three central veterinary laboratories, and food safety laboratories under the Ministry of Agriculture and Livestock Development (MOALD) lack sufficient resources and international accreditation. The program will support the government in completing pre-requisites for international certification in select testing units among these laboratories. Among policy and regulatory interventions, a new Pesticide Management Bill will replace the old Pesticide Management Act 1991 to further expand the definition of pesticides and regulate their production, sale, storage, and transportation, and effective surveillance for discouraging the overuse of harmful chemicals by farmers.
Impact Profitable commercialization accelerated in the agriculture sector (Agriculture Development Strategy, 2015-2035)
Outcome Nepal''s competitiveness in commercial agriculture improved
Outputs

Agriculture commercialization promoted

Food safety and quality monitoring systems improved

Institutional capacity strengthened

Geographical Location Nation-wide, Kathmandu
Safeguard Categories
Environment C
Involuntary Resettlement C
Indigenous Peoples B
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 not applicable
Procurement not applicable
Responsible ADB Officer Navendu Karan
Responsible ADB Department South Asia Department
Responsible ADB Division Environment, Natural Resources & Agriculture Division, SARD
Executing Agencies
International Economic Cooperation Coordination Division, Ministry of Finance
Singha Durbar
Ministry of Finance
The Government of Nepal
Singha Durbar
Kathmandu, Nepal
Timetable
Concept Clearance 09 Jul 2019
Fact Finding 08 Jul 2019 to 12 Jul 2019
MRM 15 Aug 2019
Approval -
Last Review Mission -
Last PDS Update 15 Jul 2019

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