49376-002: Climate-Resilient Dairy Value Chain Development Project | Asian Development Bank

Tajikistan: Climate-Resilient Dairy Value Chain Development Project

Sovereign (Public) Project | 49376-002 Status: Proposed

A public-private partnership framework will be used to provide goods and services to household and commercial farms in contract faming arrangement. The framework provides opportunities to link household dairy farmers directly to processors and to urban markets through development of efficient dairy value chains. The framework also ensures steady supply of milk production throughout the year. This is important for dairy industry development in Tajikistan as most processors have excess capacity due mainly to lack of steady supply of milk year long, particularly in autumn and winter months. Three regions are considered suitable for dairy industry: (i) Khatlon is the major milk producing region, (ii) Sughd region has high competition for steady supply of milk, and (iii) Region of Republican Subordination has large processing capacity and large market share.



Project Details

Project Officer
Shrestha, Samjhana Central and West Asia Department Request for information
Country
  • Tajikistan
Modality
  • Grant
Sector
  • Agriculture, natural resources and rural development
 
Project Name Climate-Resilient Dairy Value Chain Development Project
Project Number 49376-002
Country Tajikistan
Project Status Proposed
Project Type / Modality of Assistance Grant
Source of Funding / Amount
Grant: Climate Resilient Dairy Value Chain Development Project
concessional ordinary capital resources lending / Asian Development Fund US$ 20.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector

Agriculture, natural resources and rural development / Agricultural policy, institutional and capacity development - Agro-industry, marketing, and trade

Gender Equity and Mainstreaming Effective gender mainstreaming
Description

A public-private partnership framework will be used to provide goods and services to household and commercial farms in contract faming arrangement. The framework provides opportunities to link household dairy farmers directly to processors and to urban markets through development of efficient dairy value chains. The framework also ensures steady supply of milk production throughout the year. This is important for dairy industry development in Tajikistan as most processors have excess capacity due mainly to lack of steady supply of milk year long, particularly in autumn and winter months. Three regions are considered suitable for dairy industry: (i) Khatlon is the major milk producing region, (ii) Sughd region has high competition for steady supply of milk, and (iii) Region of Republican Subordination has large processing capacity and large market share.



Project Rationale and Linkage to Country/Regional Strategy Tajikistan has the highest levels of food insecurity and is one of the most affected by climate change among the central Asian countries. These challenges have commanded priority attention in the National Development Strategy 2016 -2030 and the Medium-term Development Strategy 2016 -2020. The provision of integrated support for food security and climate change is a priority objective of the ADB's country partnership strategy (CPS), 2016 -2020. The proposed investment project is included in ADB's country operations business plan, 2016 -2018.
Impact Food security improvement, environmental protection and entrepreneurship development
Outcome Inclusive private-sector-led dairy value chains developed
Outputs

1. Enabling environment and institutional capacity for dairy development strengthened

2. Productivity in dairy value chains increased

Geographical Location Nation-wide, Republican Subordination, Viloyati Khatlon, Viloyati Sughd
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects

Each subproject will be classified category B or C. Subprojects with potential environmental impacts are refurbishing existing buildings under output 1 and constructing modern dairy sheds under output 2. ADB prepared an environmental assessment and review framework, which includes screening criteria to exclude any subproject and sub-loan that could fall in ADB's prohibited investment activities list or environment category A. PIG will be responsible for meeting ADB safeguard requirements and will (i) screen and categorize all subprojects under both outputs, (ii) ensure safeguard documents are prepared in compliance with ADB safeguard requirements, (iii) monitor subproject implementation and the financial institutions' environmental and social management system (ESMS) performance, and (iv) submit semiannual safeguard monitoring reports to ADB. The environmental assessment and review framework specifies responsibilities, requirements, and implementation procedures for PIG.

The financial institutions will confirm that safeguard requirements and documents are in place, and make sure that necessary safeguard covenants are included in sub-loan agreements with sub-borrowers. The financial institutions will establish and implement an ESMS that complies with ADB requirements and national laws and is commensurate with the financial institutions' responsibilities, before receiving the first disbursement. The financial institutions will submit quarterly ESMS implementation monitoring reports to PIG. To ensure financial institutions' compliance with safeguard requirements, ADB has prepared an ESMS arrangement.

Involuntary Resettlement Each subproject will be classified category B or C. Activities with potential land acquisition and involuntary resettlement impacts are mainly refurbishing existing buildings under output 1 and constructing modern dairy sheds under output 2. As locations for modern dairy sheds will be decided during project implementation, ADB prepared a land acquisition and resettlement framework (LARF). If land acquisition and involuntary resettlement impacts are identified during project implementation, the executing agency will follow all requirements stipulated in the LARF and prepare and implement the LARF before conducting land acquisition and involuntary resettlement. All subprojects under the financial institutions will be screened by PIG. Any subproject with land acquisition and involuntary resettlement impacts will be excluded using LARF social safeguards screening checklist.
Indigenous Peoples Due diligence during project preparation has shown that there are no ethnic minority or indigenous peoples in the project area, as defined for operational purposes by ADB's Safeguards Policy Statement.
Stakeholder Communication, Participation, and Consultation
During Project Design

The project will develop dairy hubs as a business model that will integrate all stakeholders into a formal value chain to improve productivity, efficiency, and incomes and dairy value chains in specific hubs; a typical hub will have six stakeholders. The project will strengthen regulations, government institutions, and the capacity of dairy value chain stakeholders to improve productivity, efficiency, profitability, and food safety of the dairy value chain.

At the end of the preparatory phase, ADB, PIG, and the financial institutions will undertake a tripartite review to assess the readiness of the stakeholders to start the development phase. PIG will set up a project performance management system to monitor and report on the progress of project implementation. The blockchain digital ledger is a fast-emerging technology considered secure and efficient used to manage and account for tasks from a large number of stakeholders in a specified activity such as the dairy value chain hubs in this project.

The project will deliver significant economic and financial benefits to stakeholders in the dairy value chain hubs, especially to the household farmers mostly poor women who will be the largest number of beneficiaries.

During Project Implementation
Business Opportunities
Consulting Services A total of 432 person-months full-time and 279 person-months part-time will be contracted on an individual basis for PIG. International consultants in PIC, totaling 81 person-months, will be contracted through quality- and cost based selection with a quality-cost ratio of 90:10.
Procurement

All procurement of goods and works will be undertaken in accordance with ADB's Procurement Guidelines (2015, as amended from time to time). Procurement of consulting services and nongovernment organizations (to be contracted or sub-contracted as consultants under the PIC package) will be undertaken in accordance with ADB's Guidelines on the Use of Consultants (2013, as amended from time to time).

Procurement of goods and works financed from sub-loans utilizing ADB's funds will be undertaken by sub-borrowers based on commercial practices. PFIs will monitor sub-loan utilization based on their prevailing policies and procedures. PFIs' loan monitoring procedures are sufficient to ensure that utilization of ADB funds will be for the purpose(s) agreed with the PFIs. PIG staff will ensure that proposals for financing meet the project eligibility criteria on an ongoing basis and that goods and works procured meet the technical specifications defined in sub-borrowers' business plans.

Procurement of goods, works, and services related to capacity building and project management will be in accordance with the procurement plan (Section C). National competitive bidding will be used for the refurbishment of buildings belonging to public sector dairy sector institutions to be supported under the project and offices to be provided by MOA for project management. Vehicles, office equipment, and technical materials (such as field equipment, live animals, embryos, semen) for capacity building and project management will be procured according to shopping procedures.

Responsible ADB Officer Shrestha, Samjhana
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Environment, Natural Resources & Agriculture Division, CWRD
Executing Agencies
Ministry of Agriculture
Mr. Shahobiddin Jamolov, Chief Specialist of Department International Relationship of MoA
[email protected]
44 Hudaki Street,Dushanbe Tajikistan
Timetable
Concept Clearance 09 Dec 2016
Fact Finding 24 Aug 2017 to 30 Aug 2017
MRM 13 Oct 2017
Approval -
Last Review Mission -
Last PDS Update 28 Sep 2018

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.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

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.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

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.

Tenders

No tenders for this project were found.

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.