Nepal : Food Safety and Agriculture Commercialization Program
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 (FY2016/2017FY2018/2019), 15th five-year plan (FY2019/2020FY2023/2024), 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 Details
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Project Officer
Rana, Arun S.
South Asia Department
Request for information -
Country/Economy
Nepal -
Sector
- Agriculture, natural resources and rural development
Related Projects
| Project Name | Food Safety and Agriculture Commercialization Program | ||||||||
| Project Number | 48218-010 | ||||||||
| Country / Economy | Nepal |
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| Project Status | Closed | ||||||||
| Project Type / Modality of Assistance | Loan Technical Assistance |
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| Source of Funding / Amount |
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| Operational Priorities | OP1: Addressing remaining poverty and reducing inequalities OP2: Accelerating progress in gender equality OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability OP5: Promoting rural development and food security OP6: Strengthening governance and institutional capacity |
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| Sector / Subsector | Agriculture, natural resources and rural development / Agricultural policy, institutional and capacity development |
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| Gender | 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 (FY2016/2017FY2018/2019), 15th five-year plan (FY2019/2020FY2023/2024), 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 and competitiveness accelerated in the agriculture sector (Agriculture Development Strategy, 20152035) Agricultural trade balance improved (Agriculture Development Strategy, 20152035) |
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| Project Outcome | |
|---|---|
| Description of Outcome | Nepal's food safety compliance and uptake for agriculture commercialization improved |
| Progress Toward Outcome | Project became effective as of 18 December 2019 and the first tranche of $25 million was released upon satisfactory compliance with nine policy actions. The second tranche of $25 million will be released upon satisfactory compliance with the remaining 12 policy actions, of which 3 have been achieved, 5 are on-track to being complied with by the current closing date of 31 December 2021, while 4 are delayed. The envisaged program effect is to contribute to the improvement of Nepal's food safety and compliance and uptake for agricultural commercialization. The envisaged reform areas are: (i) Reform Area 1: Food safety and quality monitoring systems improved, (ii) Reform area 2: Agriculture commercialization promoted, and (iii) Reform Area 3: Institutional capacity strengthened. Capacity Building and Advisory Support Consultant (the Consultant) which comprises 2 international and eleven national consultants, has already been mobilized April 2020. Due to increasing number of COVID 19 cases, interaction with the stakeholders including field activities are difficult at the moment and some of the policy documents are still yet to be approved by the parliament. |
| Implementation Progress | |
| Description of Project Outputs | Food safety and quality monitoring systems improved Agriculture commercialization promoted Institutional capacity strengthened |
| Status of Implementation Progress (Outputs, Activities, and Issues) | Reform Area 1: Food safety and quality monitoring systems improved. Out of 7 policy actions, 1 complied with, 4 on-track, and 2 delayed. Reform Area 2: Agriculture commercialization promoted. Out of 3 policy actions, 1 complied with, and 2 delayed. Reform Area 3: Institutional capacity strengthened. Out of 2 policy actions, 1 complied with, and 1 on-track. |
| Geographical Location | Nation-wide, Kathmandu |
| Safeguard Categories | |
|---|---|
| Environment | C |
| Involuntary Resettlement | C |
| Indigenous Peoples | B |
| Summary of Environmental and Social Aspects | |
|---|---|
| Environmental Aspects | No adverse impacts reported. |
| Involuntary Resettlement | None. |
| Indigenous Peoples | IP targets met. |
| Stakeholder Communication, Participation, and Consultation | |
| During Project Design | Satisfactory stakeholder consultation and participation to identify key reforms. |
| During Project Implementation | Adequate stakeholder consultation during preparation of regulations, guidelines, standard operating procedures. |
| Business Opportunities | |
|---|---|
| Consulting Services | not applicable |
| Procurement | not applicable |
| Responsible ADB Officer | Rana, Arun S. |
| Responsible ADB Department | South Asia Department |
| Responsible ADB Division | Nepal Resident Mission (NRM) |
| Executing Agencies |
International Economic Cooperation Coordination Division, Ministry of Finance Ministry of Agriculture and Livestock Development |
| Timetable | |
|---|---|
| Concept Clearance | 09 Jul 2019 |
| Fact Finding | 08 Jul 2019 to 12 Jul 2019 |
| MRM | 15 Aug 2019 |
| Approval | 31 Oct 2019 |
| Last Review Mission | - |
| Last PDS Update | 16 Dec 2022 |
Loan 3847-NEP
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 31 Oct 2019 | 10 Dec 2019 | 18 Dec 2019 | 31 May 2021 | 31 Dec 2022 | 20 Jan 2023 |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 50.00 | Cumulative Contract Awards | |||
| ADB | 50.00 | 07 Apr 2023 | 50.00 | 0.00 | 100% |
| Counterpart | 0.00 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 07 Apr 2023 | 50.00 | 0.00 | 100% |
TA 9842-NEP
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 31 Oct 2019 | 28 Nov 2019 | 28 Nov 2019 | 30 Jun 2021 | 31 Dec 2022 | 30 Mar 2023 |
| Financing Plan/TA Utilization | Cumulative Disbursements | |||||||
|---|---|---|---|---|---|---|---|---|
| ADB | Cofinancing | Counterpart | Total | Date | Amount | |||
| Gov | Beneficiaries | Project Sponsor | Others | |||||
| 500,000.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 500,000.00 | 07 Apr 2023 | 499,943.94 |
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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| Title | Document Type | Document Date |
|---|---|---|
| Food Safety and Agriculture Commercialization Program (Second Tranche): Progress Report on Tranche Release | Progress Reports on Tranche Releases | Dec 2022 |
| Loan Agreement (Ordinary Operations [Concessional]) for Loan 3847-NEP: Food Safety and Agriculture Commercialization Program | Loan Agreement (Ordinary Resources) | Dec 2019 |
| Food Safety and Agriculture Commercialization Program: Technical Assistance Report | Technical Assistance Reports | Oct 2019 |
| Food Safety and Agriculture Commercialization Program: Report and Recommendation of the President | Reports and Recommendations of the President | Oct 2019 |
| Food Safety and Agriculture Commercialization Program: Initial Poverty and Social Analysis | Initial Poverty and Social Analysis | Jul 2019 |
| Food Safety and Agriculture Commercialization Program: Concept Paper | Concept Papers | Jul 2019 |
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.
None currently available.
Evaluation Documents See also: Independent Evaluation
None currently available.
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.
ADB Loan to Help Develop Agriculture, Improve Food Safety in Nepal
ADB has approved a $50 million policy-based loan to help support the Government of Nepal’s reforms to improve food safety measures, enhance agricultural trade standards, and promote agricultural commercialization in the country.
Tenders
| Tender Title | Type | Status | Posting Date | Deadline |
|---|---|---|---|---|
| Capacity Building and Advisory Support Consultant | Firm - Consulting | Closed |
Contracts Awarded
Procurement Plan
None currently available.