Regional : High-Value Horticulture Development Project

Nonsovereign Project | 50243-001

The project will scale-up and transfer a successful high-value horticulture business model built on (i) the introduction of climate-controlled greenhouse technology in tropical highlands in Asia, and (ii) the integration of its business downstream into distribution in domestic and export markets. The flower business of the company will be scaled up in Viet Nam and the PRC, and will be introduced in Indonesia. The business model will be replicated for vegetable production in Viet Nam.

Flickr photos from the 50243-001: High-Value Horticulture Development Project in Viet Nam album.

Project Details

  • Project Officer
    Wong, Yee To
    Private Sector Operations Department
    Request for information
  • Country/Economy
    Regional
  • Modality
  • Sector
    • Agriculture, natural resources and rural development
Project Name
High-Value Horticulture Development Project
Project Number
50243-001
Borrower / Company
  • Agripacific Holdings
  • Greenwings Japan K.K.
  • Kunming Hasfarm Flowers
Country / Economy
  • Regional
  • Indonesia
  • China, People's Republic of
  • Viet Nam
Location
China - Kunming; Indonesia - Nation-wide; Viet Nam - Da Lat
Type or Modality of Assistance
Approval Number Facility Fund Source Amount Status
3510 Loan Ordinary capital resources USD 15.00 million Committed
3511 Loan Ordinary capital resources USD 5.00 million Committed
Strategic Agendas
  • Environmentally sustainable growth
  • Inclusive economic growth
  • Regional integration
Drivers of Change
  • Private sector development
Sector / Subsector
  • Agriculture, natural resources and rural development / Agricultural production

Gender
Effective gender mainstreaming
Project Sponsor(s)
    Description
    The project will scale-up and transfer a successful high-value horticulture business model built on (i) the introduction of climate-controlled greenhouse technology in tropical highlands in Asia, and (ii) the integration of its business downstream into distribution in domestic and export markets. The flower business of the company will be scaled up in Viet Nam and the PRC, and will be introduced in Indonesia. The business model will be replicated for vegetable production in Viet Nam.
    Objectives and Scope
    The project will support a climate resilient and inclusive business model for high-value horticulture in Asia. It will support the transfer and adoption of high end technology such as climate-controlled greenhouses across several DMCs.
    Status of Development Objectives

    $5MM equivalent JPY has been disbursed in Dec 2018 to HHL. The loan was fully prepaid in Dec2022.

    $5MM equivalent CNY has been disbursed in Mar 2019 to Kunming Hasfarm Flowers, and then lent to Yunnan Hasfarm as an intercompany loan to develop local land and greenhouses.

    Status of Operation/Construction
    In March 2018, Agripacific Holdings Limited name was changed to Hasfarm Holdings Limited (HHL). Hasfarm holding fully prepaid the JPY loan in Dec 2022.
    Linkage to Country/Regional Strategy

    The project is aligned with the ADB' Midterm Review of Strategy 2020, which emphasizes the need to increase the productivity of agriculture (including through investments in agribusiness) and strengthen links with global value chains. The project is also consistent with the ADB' country partnership strategies for Viet Nam, the PRC, and Indonesia. As a regional project benefiting three DMCs and non-DMC regional members, the project is fully aligned with the ADB' Operational Plan for Regional Cooperation and Integration, which calls for 'improved growth and business competitiveness in regional markets through new opportunities in cross-border trade, investment, technology, finance, and labor mobility.

    The project is fully aligned with the ADB Operational Plan for Agriculture and Natural Resources, 2015 to 2020, which recommends greater private sector agribusiness investment by ADB, in particular by working with strong agribusiness sponsors adopting best practices. The project will complement the ADB sovereign assistance programs in the three targeted DMCs. In Viet Nam, ADB provided sovereign assistance to enhance the regulatory framework and infrastructure for horticulture in 16 provinces including Lam Dong. In the PRC, the Comprehensive Agricultural Development Project is supporting improved (i) irrigation and drainage infrastructure, (ii) agricultural support, and (iii) project management in five provinces including Yunnan. In Indonesia, ADB is preparing an investment to support the government to improve irrigation services in 74 districts to increase agricultural productivity and provide an incentive to diversify from low-value to high-value crops.

    Safeguard Categories

    Environment
    B
    Involuntary Resettlement
    B
    Indigenous Peoples
    B

    Summary of Environmental and Social Aspects

    Environmental Aspects
    The corporate audit noted that the flower farms visited in Viet Nam have prepared the necessary environmental documents and fully comply with applicable regulations from the Cultivation and Plant Protection Division under the Department of Agriculture and Rural Development of Lam Dong province. Potential risks and impacts of the project during construction are mostly site specific and short term, and can be effectively managed by good engineering construction and housekeeping practices implemented through a construction environmental management plan. During operation, wastewater treatment facilities and air emission treatment systems will be installed and the hazardous waste storage facilities will be upgraded in order to mitigate potential air, soil, and water pollution.
    Involuntary Resettlement
    In Viet Nam, Agrivina leases state-owned land to minimize involuntary resettlement impacts. In the PRC and Indonesia, the group companies will conduct the planned land procurement in accordance with the environmental and social management system to satisfy the requirements of the SPS. Investment transactions by the group companies that would entail significant involuntary resettlement impacts (category A) will be excluded from the ADB financing.
    Indigenous Peoples
    It is unlikely that the farm expansion will impact indigenous peoples in Viet Nam and the PRC, while the new farm in Indonesia is expected to be established in a location where there are possibly indigenous people communities. The environmental and social management system will include policies and procedures aligned with the SPS requirements on indigenous peoples. Investment activities that are categorized A for indigenous peoples will be excluded from the ADB financing.
    Stakeholder Communication, Participation, and Consultation

    Contact

    Responsible ADB Officer
    Wong, Yee To
    Responsible ADB Division
    Portfolio Management Division, PSOD
    Responsible ADB Department
    Private Sector Operations Department

    Timetable for assistance design, processing, and implementation

    Concept Clearance
    23 Aug 2016
    Credit Committee Meeting
    09 Dec 2016
    Approval
    16 Dec 2016
    Last PDS Update
    13 Nov 2023

    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 Access to Information Policy (AIP) 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.

    Title Document Type Document Date
    High-Value Horticulture Development Project: Extended Annual Review Report Extended Annual Review Reports Dec 2022
    High-Value Horticulture Development Project: Faster Approach to Small Nonsovereign Transactions (FAST) Report Faster Approach to Small Nonsovereign Transactions Dec 2016
    High-Value Horticulture Development Project: Initial Poverty and Social Analysis Initial Poverty and Social Analysis Dec 2016

    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.