fbpx 50393-002: Gansu Internet-Plus Agriculture Development Project | Asian Development Bank

China, People's Republic of: Gansu Internet-Plus Agriculture Development Project

Sovereign (Public) Project | 50393-002 Status: Active

The project outcome will be income-generating opportunities from agricultural production and marketing increased. The project has three outputs: (i) comprehensive information service and management platform developed; (ii) agricultural production, processing, storage, and marketing modernized; and (iii) Capacity of Gansu Supply and Marketing Cooperatives Union improved.

Comprehensive information service and management platform developed. This output will develop data centers with information platforms to process data generated from project facilities established under output 2 for increased production and processing efficiency and for e-commerce marketing purposes. This will include (i) constructing data and training centers, (ii) procuring ICT equipment and technical advisory services, and (iii) training farmers and enterprise staff to build capacity in ICT application in the agriculture production and processing segment.

Project Details

Project Officer
Shen, Xin East Asia Department Request for information
Country
  • China, People's Republic of
Modality
  • Loan
Sector
  • Agriculture, natural resources and rural development
 
Project Name Gansu Internet-Plus Agriculture Development Project
Project Number 50393-002
Country China, People's Republic of
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3820-PRC: Gansu Internet-Plus Agriculture Development Project
Ordinary capital resources US$ 130.77 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Knowledge solutions
Sector / Subsector

Agriculture, natural resources and rural development / Agricultural production - Agro-industry, marketing, and trade - Rural market infrastructure

Information and communication technology / ICT industries and ICT-enabled services - ICT infrastructure

Gender Equity and Mainstreaming Effective gender mainstreaming
Description

The project outcome will be income-generating opportunities from agricultural production and marketing increased. The project has three outputs: (i) comprehensive information service and management platform developed; (ii) agricultural production, processing, storage, and marketing modernized; and (iii) Capacity of Gansu Supply and Marketing Cooperatives Union improved.

Comprehensive information service and management platform developed. This output will develop data centers with information platforms to process data generated from project facilities established under output 2 for increased production and processing efficiency and for e-commerce marketing purposes. This will include (i) constructing data and training centers, (ii) procuring ICT equipment and technical advisory services, and (iii) training farmers and enterprise staff to build capacity in ICT application in the agriculture production and processing segment.

Agricultural production, processing, storage, and marketing modernized. This output will (i) establish demonstration agricultural production enterprises for high-value crop production including summer vegetables, potatoes, fruits, and licorice; and forage crop production, in particular mulberry plants; (ii) equip the demonstration enterprises with internet-of-things (IOT) applications for product quality and safety monitoring and increased production efficiency, and coordination with other segments of the agriculture sector; (iii) construct warehouses, cold storage facilities, and market facilities to increase value addition; and (iv) finance ICT and transport equipment to promote an integrated and automated information exchange network for enhanced coordination and quality assurance at distribution, storage, processing, and marketing facilities.

Capacity of Gansu Supply and Marketing Cooperatives Union improved. This output will (i) provide project-related training, including on IOT, to GSSMCU, project implementation unit (PIU), and other related government agency staff in implementing the project; (ii) support study tours, in particular with respect to precision agriculture, modern internet-based marketing, quality control, and traceability; and (iii) promote participation in capacity building and knowledge sharing events. The output will improve the capacity of GSSMCU staff to implement projects and to work within an internet-based working environment.

Project Rationale and Linkage to Country/Regional Strategy

Agricultural production and rural livelihoods have lagged behind industrial production and urban livelihoods in the PRC. As a result, income inequality and poverty persist in rural areas of lesser-developed regions of the PRC. Increasing productivity and value addition through modernization and enhanced market linkages has considerable poverty reduction potential in the PRC, where agriculture labor still accounts for more than 25% of total employment. Against this backdrop, the Government of the PRC formulated the rural vitalization strategy for 2018 2022 to promote poverty reduction, rural development, and green and inclusive growth. The rural vitalization strategy focuses on modernizing agriculture with the application of information and communication technology (ICT), which is intended to increase agricultural productivity, reduce food safety risks, and cut pollution from fertilizers and pesticides. The Asian Development Bank (ADB) and the government have agreed to adopt a framework approach to strategically program ADB's lending support for rural vitalization development initiatives.

The project design contains innovative agriculture internet-plus features, which aims to achieve global public goods, such as enhanced food safety and reduced environmental pollution. ICT-supported value chain services for traceability and food safety will provide an opportunity for farmers to access high-value e-commerce markets through the network of relevant business entities (e.g., traders, logistics services, wholesalers, and retailers).

Improving rural livelihoods, and particularly eradicating extreme poverty by 2020, is a key priority under the PRC's Thirteenth Five-Year Plan on National Economic and Social Development, 2016 2020. The PRC has initiated internet-plus policies with the objective of integrating the agriculture sector into the wider economy through the use of ICT solutions to link rural economic development approaches to service delivery in rural areas. The government is committed to eradicating poverty and closing the income gap that exists between urban and rural populations. E-commerce and internet-based support services are accelerating growth in rural areas, which is contributing to structural reforms towards increased quality and market orientation of the agricultural supply chain.

Impact

Inclusive economic opportunities in rural areas of Gansu province increased

Poverty in rural areas of Gansu province reduced

Project Outcome
Description of Outcome Income-generating opportunities from agricultural production and marketing increased
Progress Toward Outcome On track to meet target outcome.
Implementation Progress
Description of Project Outputs

Comprehensive information service and management platform developed

Agricultural production, processing, storage, and marketing modernized

Capacity of Gansu Supply and Marketing Cooperatives Union improved

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

The loan took effectiveness on 26 February 2020.

The national project procurement and management consultant has been recruited to help PMO on the project implementation at start-up stage.

Procurement plan was updated in August 2020. Procurement activities has been initiated with civil works contract under subproject 3 signed in August 2020.

Geographical Location Nation-wide
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects

The project is classified as category B for environment. An initial environmental examination (IEE) report, including an environmental management plan (EMP)were prepared, which follows ADB's Safeguard Policy Statement. The IEE and EMP were based on the approved domestic feasibility study and environmental assessment reports, site visits, and stakeholder consultations. Consultations included affected people and local government agencies, and the outcomes have been integrated in the project design. The draft IEE was disclosed on ADB's website. The GPG, through the project management office, will be responsible for implementation and compliance with the EMP, including inspection, monitoring, reporting, and initiating corrective actions or measures. The implementing agencies have no prior experience of ADB safeguard procedures, and loan implementation consultants and a capacity building program are included in the project design.

The project is expected to contribute to environmental improvement, including (i) conserved water resources through improved farming efficiency, soil moisture monitoring, and crop selection; and (ii) reduced pollution of soil and water through efficient use of agricultural chemicals. Construction risks include short-term impacts such as noise and dust. Operational risks include the unsustainable use of water resources and increased use of fertilizers and pesticides. Water balance assessments have confirmed that the project water use is within the capacity of sources. Mitigation measures are described in the EMP.

Involuntary Resettlement The project is classified as category C for involuntary resettlement
Indigenous Peoples The project is classified as category C for indigenous peoples
Stakeholder Communication, Participation, and Consultation
During Project Design Main stakeholders are the different agencies of GPG, GSSMCU, the participating counties/cities, the participating enterprises, beneficiary farm households, and participants in the project implementation. Stakeholder communication is also part of the GAP, LURT, and SDAP.
During Project Implementation Continued dialogue with all stakeholders will be conducted during project implementation.
Business Opportunities
Consulting Services

All procurement of the ADB-financed works, goods and non-consulting services, and consulting services will be undertaken in accordance with Procurement Policy (2017, as amended from time to time) and Procurement Regulations for ADB Borrowers (2017, as amended from time to time).

Before the start of any procurement, ADB and the government will review the public procurement laws and regulations of the national and provincial governments to ensure that all procurement transactions undertaken are consistent with ADB's Procurement Policy (2017, as amended from time to time) and Procurement Regulations for ADB Borrowers (2017, as amended from time to time).

Advance contracting will apply to the urgent procurement of civil works and goods, and recruitment of consulting services. All advance contracting and retroactive financing will be undertaken in conformity with ADB Procurement Policy (2017, as amended from time to time) and Procurement Regulations for ADB Borrowers (2017, as amended from time to time).

Retroactive financing will apply to the urgent procurement of civil works and goods. Retroactive financing will be subject to a maximum amount equivalent to 20% of the loan amount for eligible expenditures incurred prior to loan effectiveness, but not earlier than 12 months before the loan agreement is signed.

Procurement

All procurement of the ADB-financed works, goods and non-consulting services, and consulting services will be undertaken in accordance with Procurement Policy (2017, as amended from time to time) and Procurement Regulations for ADB Borrowers (2017, as amended from time to time).

Before the start of any procurement, ADB and the government will review the public procurement laws and regulations of the national and provincial governments to ensure that all procurement transactions undertaken are consistent with ADB's Procurement Policy (2017, as amended from time to time) and Procurement Regulations for ADB Borrowers (2017, as amended from time to time).

Advance contracting will apply to the urgent procurement of civil works and goods, and recruitment of consulting services. All advance contracting and retroactive financing will be undertaken in conformity with ADB Procurement Policy (2017, as amended from time to time) and Procurement Regulations for ADB Borrowers (2017, as amended from time to time).

Retroactive financing will apply to the urgent procurement of civil works and goods. Retroactive financing will be subject to a maximum amount equivalent to 20% of the loan amount for eligible expenditures incurred prior to loan effectiveness, but not earlier than 12 months before the loan agreement is signed.

Responsible ADB Officer Shen, Xin
Responsible ADB Department East Asia Department
Responsible ADB Division PRC Resident Mission
Executing Agencies
Gansu Provincial Finance Department
No. 696 Donggang West Rd, Chengguan
District, Lanzhou, Gansu
The People's Republic of China 730000
Gansu Provincial Government
No. 136 Jinning Road
Lanzhou City, Gansu Province
People's Republic of China
Timetable
Concept Clearance 17 Apr 2017
Fact Finding 26 Feb 2019 to 04 Mar 2019
MRM 23 Apr 2019
Approval 24 Sep 2019
Last Review Mission -
Last PDS Update 08 Sep 2020

Loan 3820-PRC

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
24 Sep 2019 29 Nov 2019 26 Feb 2020 31 Mar 2026 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 181.17 Cumulative Contract Awards
ADB 130.77 24 Sep 2019 4.17 0.00 3%
Counterpart 50.40 Cumulative Disbursements
Cofinancing 0.00 24 Sep 2019 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.

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.

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 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.

Tenders

Tender Title Type Status Posting Date Deadline
National Project Procurement and Management Consultant at start-up period Individual - Consulting Closed 01 Nov 2019 10 Nov 2019
50393-002-PRC: Gansu Internet-Plus Agriculture Development Project [XQ-CW-01] Invitation for Bids Closed 24 Oct 2019 25 Dec 2019

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
CW PACKAGE, OCB NATIONAL ADV.,CONSTRUCTION OF WORK SHOPS FOR CULTIVATED SUBSTRATE SYNTHESIS, HARMLESS TREATMENT CENTER AND IOT CONTROL CENTER Loan 3820 07 Sep 2020 LINZE COUNTY WUHUA INDUSTRIAL CO.,LTD GANSU PROVINCE CHINA,PEOPLE'SREP.OF Gansu Provincial Government CONSTRUCTION 3,989,171.32 3,989,171.32

Procurement Plan