The proposed project supports the implementation of the government's Agriculture Development Strategy to 2025 (ADS) by boosting the competitiveness of rice value chains in Khammouane, Saravan, and Savannakhet provinces, and vegetable value chains in Vientiane Capital, Champasak, and Sekong provinces. The project will improve the climate resilience of agricultural infrastructure, and enhance crop productivity, diversification, and commercialization. It will help improve the capacity for storage, processing, quality, and safety testing, and promote the use of biofertilizers and organic farming. It will strengthen the capacity of farmers and agribusinesses for climate-smart agriculture (CSA), and create an enabling environment for climate-friendly agribusinesses to promote sustainability along the value chain.
|Project Name||Climate-Friendly Agribusiness Value Chains Sector Project|
|Country||Lao People's Democratic Republic
|Project Type / Modality of Assistance||Grant
|Source of Funding / Amount||
|Strategic Agendas||Environmentally sustainable growth
Inclusive economic growth
|Drivers of Change||Gender Equity and Mainstreaming
Governance and capacity development
Private sector development
|Sector / Subsector||
Agriculture, natural resources and rural development / Agricultural policy, institutional and capacity development - Agricultural production - Agro-industry, marketing, and trade - Irrigation - Rural market infrastructure
|Gender Equity and Mainstreaming||Effective gender mainstreaming|
|Description||The proposed project supports the implementation of the government's Agriculture Development Strategy to 2025 (ADS) by boosting the competitiveness of rice value chains in Khammouane, Saravan, and Savannakhet provinces, and vegetable value chains in Vientiane Capital, Champasak, and Sekong provinces. The project will improve the climate resilience of agricultural infrastructure, and enhance crop productivity, diversification, and commercialization. It will help improve the capacity for storage, processing, quality, and safety testing, and promote the use of biofertilizers and organic farming. It will strengthen the capacity of farmers and agribusinesses for climate-smart agriculture (CSA), and create an enabling environment for climate-friendly agribusinesses to promote sustainability along the value chain.|
|Project Rationale and Linkage to Country/Regional Strategy||
The Human Development Index report ranks the Lao PDR as 138th out of 188 countries. Macroeconomic and political stability enabled it to achieve moderate economic growth at 6.5% per annum during 1986 2016. However, the country also grappled with a persistent current account deficit, falling foreign currency reserves, and growing public debt. Although the contribution of agriculture to the national gross domestic product is declining (from 32.7% in 2010 to 19.8% in 2016), the economy still remains agrarian: about 65% of the working population is employed in the sector. Low sector growth led to low levels of rural household incomes. The poverty rate of those engaged in agriculture is nearly three times higher than for those working in other sectors.
The government aims to increase the agricultural growth rate to 3.4% per annum by 2020. The policy framework for the agriculture sector is set out in (i) the ADS to 2025 (footnote 1); (ii) the 8th Five-Year National Socio-Economic Development Plan (2016 2020); (iii) the Development Strategy of the Crop Sector 2025 and Vision 2030; and (iv) the National Strategy on Climate Change of Lao PDR.7 The ADS aims to (i) ensure food security; (ii) produce competitive commodities with a comparative advantage; (iii) develop a clean, safe and sustainable agriculture; and (iv) shift gradually to the modernization into a resilient and productive agricultural economy.
|Impact||Agricultural competitiveness improved.|
|Description of Outcome||Productive and resource-efficient agribusiness value chains developed in project areas.|
|Progress Toward Outcome|
|Description of Project Outputs||
Critical agribusiness value chain infrastructure improved and made climate resilient
Climate-smart agriculture and agribusiness promoted
Enabling environment for climate-friendly agribusiness enhanced.
|Status of Implementation Progress (Outputs, Activities, and Issues)|
|Geographical Location||Champasak, Khammouan, Salavan, Savannakhet, Sekong, Vientiane|
|Summary of Environmental and Social Aspects|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design|
|During Project Implementation|
|Responsible ADB Officer||Ancha, Srinivasan|
|Responsible ADB Department||Southeast Asia Department|
|Responsible ADB Division||Environment, Natural Resources & Agriculture Division, SERD|
Ministry of Agriculture and Forestry - Department of Technical Extension and Agricultural Processing
Ban don Tei, Xaythany District, Vientiane Capital Ministry of Agriculture and Forestry-Irrigation Dep
DIDMP, Irrigation Department
Ministry of Agriculture and Forestry
P.O.Box 5192, Chao Anou Road Ministry of Agriculture and and Forestry - Department of Planning and Finance
Lane Xang Avenue, Patuxay Square
PO Box No. 811
|Concept Clearance||12 May 2015|
|Fact Finding||16 Nov 2017 to 23 Nov 2017|
|MRM||13 Apr 2018|
|Approval||30 Jul 2018|
|Last Review Mission||-|
|Last PDS Update||30 Jul 2018|
|Approval||Signing Date||Effectivity Date||Closing|
|30 Jul 2018||-||-||31 Mar 2025||-||-|
|Financing Plan||Grant Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||46.37||Cumulative Contract Awards|
|ADB||40.50||30 Jul 2018||0.00||0.00||0%|
|Cofinancing||0.00||30 Jul 2018||0.00||0.00||0%|
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 Public Communications Policy (PCP) 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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|Title||Document Type||Document Date|
|Climate-Friendly Agribusiness Value Chains Sector Project: Gender Action Plan||Gender Action Plans||Jul 2018|
|Climate-Friendly Agribusiness Value Chains Sector Project: Project Administration Manual||Project/Program Administration Manual||Jul 2018|
|Climate-Friendly Agribusiness Value Chains Sector Project: Report and Recommendation of the President||Reports and Recommendations of the President||Jul 2018|
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|
|Climate-Friendly Agribusiness Value Chains Sector Project: Environmental Assessment and Review Framework||Environmental Assessment and Review Framework||Apr 2018|
|Climate-Friendly Agribusiness Value Chains Sector Project: Indigenous Peoples and Ethnic Minority Development Framework||Indigenous Peoples Planning Frameworks/Indigenous Peoples Development Frameworks||Apr 2018|
|Climate-Friendly Agribusiness Value Chains Sector Project: Land Acquisition and Resettlement Framework||Resettlement Frameworks||Apr 2018|
Evaluation Documents See also: Independent Evaluation
None currently available.
None currently available.
The Public Communications Policy (PCP) 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 Grant Promotes Sustainable, Climate-Smart Agribusiness in Lao PDRADB'a Board of Directors has approved a $40.5 million grant to help farmers and agribusinesses develop sustainable and climate-smart agriculture value chains in the Lao People’s Democratic Republic.
|Tender Title||Type||Status||Posting Date||Deadline|
|Project Implementation Consultants (PIC)||Firm - Consulting||Active||22 Jul 2018||20 Aug 2018|
|Financial Management Entity (FME)||Firm - Consulting||Active||22 Jul 2018||20 Aug 2018|
|48409-LAO: Climate-Friendly Agribusiness Value Chains Sector Project||Advance Notice||Active||29 Jun 2018|
No contracts awarded for this project were found
None currently available.