fbpx 50243-001: High-Value Horticulture Development Project | Asian Development Bank

Regional: High-Value Horticulture Development Project

Nonsovereign (Private) Project | 50243-001 Status: Active

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.

Project Details

Project Officer
Lemoine, Martin Private Sector Operations Department Request for information
Country
  • Regional
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 Regional
Indonesia
China, People's Republic of
Viet Nam
Location China - Kunming; Indonesia - Nation-wide; Viet Nam - Da Lat
Type or Modality of Assistance
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 Equity and Mainstreaming Effective gender mainstreaming
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Portfolio Management Division, PSOD
Responsible ADB Officer Lemoine, Martin
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 Operation/Construction In March 2018, Agripacific Holdings Limited name was changed to Hasfarm Holdings Limited (HHL).
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
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 05 Apr 2019

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Evaluation Documents See also: Independent Evaluation

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Related Publications

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