48409-004: Climate-Friendly Agribusiness Value Chains Sector Project | Asian Development Bank

Lao People's Democratic Republic: Climate-Friendly Agribusiness Value Chains Sector Project

Sovereign (Public) Project | 48409-004 Status: Approved

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 Details

Project Officer
Ancha, Srinivasan Southeast Asia Department Request for information
Country
  • Lao People's Democratic Republic
Modality
  • Grant
Sector
  • Agriculture, natural resources and rural development
 
Project Name Climate-Friendly Agribusiness Value Chains Sector Project
Project Number 48409-004
Country Lao People's Democratic Republic
Project Status Approved
Project Type / Modality of Assistance Grant
Source of Funding / Amount
Grant 0585-LAO: Climate-Friendly Agribusiness Value Chains Sector Project
concessional ordinary capital resources lending / Asian Development Fund US$ 40.50 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
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 - 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.
Project Outcome
Description of Outcome Productive and resource-efficient agribusiness value chains developed in project areas.
Progress Toward Outcome
Implementation Progress
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
Safeguard Categories
Environment B
Involuntary Resettlement B
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
Responsible ADB Officer Ancha, Srinivasan
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Environment, Natural Resources & Agriculture Division, SERD
Executing Agencies
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
Timetable
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

Grant 0585-LAO

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
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%
Counterpart 5.87 Cumulative Disbursements
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.

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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.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

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Tenders

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

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.