fbpx 50005-001: Research on Innovative Mechanism for Open Agricultural Investment | Asian Development Bank

China, People's Republic of: Research on Innovative Mechanism for Open Agricultural Investment

Sovereign (Public) Project | 50005-001 Status: Closed

To understand the potential benefits and challenges of agriculture open investment and innovative partnerships, this policy and advisory technical assistance (TA) will review opportunities to increase investment in the agriculture sector through innovative partnerships in the People's Republic of China (PRC) and propose sound policy recommendations on how to improve agricultural investment and growth through innovative investment and partnership mechanism. The TA will also prepare a roadmap to guide and describe the steps to be taken to prepare for and implement open investment and promote innovative partnerships in the agriculture sector, as well as identify potential initiatives suitable for investment projects. Aside from the Ministry of Agriculture, the targeted policy audiences of the TA may include the planning and sector regulation agencies such as the National Development and Reform Commission and the Ministry of Commerce.

Project Details

Project Officer
Robertson, Suzanne Kay East Asia Department Request for information
Country
  • China, People's Republic of
Modality
  • Technical Assistance
Sector
  • Agriculture, natural resources and rural development
 
Project Name Research on Innovative Mechanism for Open Agricultural Investment
Project Number 50005-001
Country China, People's Republic of
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 9195-PRC: Research on Innovative Mechanism for Open Agricultural Investment
Technical Assistance Special Fund US$ 400,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Knowledge solutions
Sector / Subsector

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

Gender Equity and Mainstreaming No gender elements
Description To understand the potential benefits and challenges of agriculture open investment and innovative partnerships, this policy and advisory technical assistance (TA) will review opportunities to increase investment in the agriculture sector through innovative partnerships in the People's Republic of China (PRC) and propose sound policy recommendations on how to improve agricultural investment and growth through innovative investment and partnership mechanism. The TA will also prepare a roadmap to guide and describe the steps to be taken to prepare for and implement open investment and promote innovative partnerships in the agriculture sector, as well as identify potential initiatives suitable for investment projects. Aside from the Ministry of Agriculture, the targeted policy audiences of the TA may include the planning and sector regulation agencies such as the National Development and Reform Commission and the Ministry of Commerce.
Project Rationale and Linkage to Country/Regional Strategy

The agriculture sector has made significant contributions to overall economic development and has been the principal driver to alleviating rural poverty in the PRC. Once a key sector for the rural economy, it now lags far behind industrial production; and the disparity in rural urban livelihoods is ever widening. The decline of the sector can be attributed to insufficient and poor agricultural infrastructure, climate-related disasters, overutilization of natural resources, pollution and degradation of ecosystems, low levels for and adoption of technological development, and inadequate finance and marketing mechanisms. The agriculture sector needs reform. Modernizing the agriculture sector to strengthen agricultural productivity and market connectivity to generate employment, increase incomes, and reduce inequality between rural and urban areas is a key action for the 13th Five-Year Plan (2016 2020) of the PRC.

With increasing demand for investment and limited government resources and expertise to meet the demand from the agriculture sector, new approaches are required to stimulate growth and modernize the sector. The National Agriculture and Rural Economic Development Plan (2015 2020) states the importance of opening-up the agriculture sector as the key approach to agricultural modernization. Developing modern agriculture requires enhanced introduction of investment, involvement of private enterprises and leading state enterprises with both capital and intellectual resources, optimization of foreign investment, and adoption and adaptation of advanced technology and equipment.

Innovative partnerships that bring together business, government, and civil society actors are increasingly being promoted as a mechanism to improve productivity and stimulate growth in agriculture and food sectors. One such example is public private partnership (PPP), a mechanism for improving the delivery of public goods and services by partnering with private sector while retaining an active role for the government to ensure that national socioeconomic objectives can be achieved. PPPs can promote agriculture development through potential leveraging of finances, risk sharing, providing innovation and market access, and contributing to food security and inclusion.

PPP initiatives are common in sectors such as infrastructure, health, and education; while application to the agriculture sector remains relatively new. Emergence of PPPs in agriculture has been driven by the failure in the delivery of public goods, such as food security, infrastructure, environmental protection, and viability of rural areas. The PPP framework has been used to design a set of market incentives to encourage private-sector participation in activities that would otherwise be considered marginal for commercial value and/or high-risk. In such situations, combining the resources and complementary capacities of both public and private partners under a well-defined legal and regulatory framework, governments can obtain economic and social benefits from public investments that would have not been achieved alone because of limited technical expertise and management skills and lack of resources.

There is a need for the agriculture sector to explore new partnerships, including opportunities for PPPs, and how they can best be utilized to meet the need to stimulate the growth of and investment in the sector. Opening up investment and promoting innovative partnerships in agriculture would potentially help modernize the agriculture sector and deliver multiple benefits that can contribute towards sustainable agricultural development that is inclusive of smallholder farmers. The four common agriculture project types include: (i) partnerships that aim to develop agriculture value chains; (ii) partnerships for joint agricultural research, innovation, and technology transfer; (iii) partnerships for building and upgrading market infrastructure; and (iv) partnerships for the de

Impact

Investment in the agriculture sector increased

(National Agriculture and Rural Economic Development Plan 2015 2020)

Project Outcome
Description of Outcome Mechanism and policy framework to improve open investment in the agriculture sector strengthened
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Agriculture sector diagnostic analysis conducted

Recommendations for the design and implementation of an open investment mechanism created

Policy recommendations for open investment and partnerships in agriculture formulated

Awareness about and capacity to implement open investment and partnerships in the agriculture sector enhanced

Status of Implementation Progress (Outputs, Activities, and Issues)

TA consultants have produced the draft final report which includes: (i) background study on the status quo and prospects of agricultural investment and financing; (ii) the status quo of public-private partnership (PPP) model in the field of agriculture; (iii) problem diagnosis on the issues and causes of agricultural PPP implementation in the PRC; (iv) framework design of the roadmap for the future development of agriculture PPP in the PRC; and (v) policy discussion on the recommendations on policies of promotion of agricultural PPP in the PRC.

The final review workshop was held and TA consultants presented the findings from their studies as presented in the draft final report. Workshop participants and reviewers endorsed the content and findings.

The key tasks for the final phase include: (i) preparation of the report based on workshop feedback; (ii) preparation of the publication based on the final report; (iii) preparation of policy recommendation paper for promoting the PRC's agricultural PPP; and (iv) holding a seminar to present the results of the TA.

Geographical Location Nation-wide
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 The proposed TA will engage a team of consultants consisting of one international consultant (3 person-months) and five national consultants (24 person-months) with expertise in agricultural economics, policy, agribusiness and value chains, investment and finance, and institutional and planning. The consultants will be engaged in accordance with ADB's Guidelines on the Use of Consultants (2013, as amended from time to time), using the quality- and cost-based selection method with a quality-cost ratio of 80:20 by inviting biodata technical proposal.
Responsible ADB Officer Robertson, Suzanne Kay
Responsible ADB Department East Asia Department
Responsible ADB Division Environment, Natural Resources & Agriculture Division, EARD
Executing Agencies
Ministry of Agriculture and Rural Affairs
11 Nong Zhan Guan
Nan Li, Beijing
People's Republic of China
Timetable
Concept Clearance 24 Aug 2016
Fact Finding 10 Mar 2016 to 10 Mar 2016
MRM -
Approval 05 Oct 2016
Last Review Mission -
Last PDS Update 20 Sep 2018

TA 9195-PRC

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
05 Oct 2016 26 Oct 2016 26 Oct 2016 28 Feb 2018 30 Oct 2018 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
400,000.00 0.00 0.00 0.00 0.00 0.00 400,000.00 05 Oct 2016 328,025.94

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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Safeguard Documents See also: Safeguards

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None currently available.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


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Tenders

No tenders for this project were found.

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
Policy and Advisory Technical Assistance 9195 12 Jan 2017 Naree International Limited (Hong Kong, China) in Association with Naree Consulting Limited (China, People's Republic of) Unit N, 5/F, 4 Cho Yuen Street, Yau Tong Kowloon, Hong Kong, China Ministry of Agriculture 279,828.00

Procurement Plan

None currently available.