fbpx 51041-002: Horticulture Value Chain Infrastructure Project | Asian Development Bank

Uzbekistan: Horticulture Value Chain Infrastructure Project

Sovereign (Public) Project | 51041-002 Status: Approved

The proposed project supports the Government of Uzbekistan's plan to establish horticulture clusters where production and post-harvest services can be consolidated to improve efficiency and economies of scale. It will finance the establishment of agro-logistic centers (ALCs) in two locations Andijan and Samarkand regions considering international best practices. The ALCs will provide all necessary facilities and services in one place: trading, storage, processing, food safety certification, customs clearance, transport, shipping, marketing advisory services, trade finance, and commercial banking. Significantly larger volumes of product with improved quality will be marketed as a result of better post-harvest logistics that will facilitate reduced post-harvest losses and increased domestic sales and exports. The ALCs will enhance value chain linkages with production, post-harvest processing, and handling following international quality and safety standards.

Project Details

Project Officer
Bui, Giap Minh Central and West Asia Department Request for information
Country
  • Uzbekistan
Modality
  • Loan
Sector
  • Agriculture, natural resources and rural development
 
Project Name Horticulture Value Chain Infrastructure Project
Project Number 51041-002
Country Uzbekistan
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3737-UZB: Horticulture Value Chain Infrastructure Project
concessional ordinary capital resources lending / Asian Development Fund US$ 197.00 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 / Agro-industry, marketing, and trade - Rural market infrastructure

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The proposed project supports the Government of Uzbekistan's plan to establish horticulture clusters where production and post-harvest services can be consolidated to improve efficiency and economies of scale. It will finance the establishment of agro-logistic centers (ALCs) in two locations Andijan and Samarkand regions considering international best practices. The ALCs will provide all necessary facilities and services in one place: trading, storage, processing, food safety certification, customs clearance, transport, shipping, marketing advisory services, trade finance, and commercial banking. Significantly larger volumes of product with improved quality will be marketed as a result of better post-harvest logistics that will facilitate reduced post-harvest losses and increased domestic sales and exports. The ALCs will enhance value chain linkages with production, post-harvest processing, and handling following international quality and safety standards. Increased export and domestic marketing of horticultural products will increase price transmission to small-scale producers and small and medium-sized agribusinesses. It will also diversify the country's agriculture from cotton to horticulture, which generates higher financial and economic returns and involves fewer social and environmental concerns.
Project Rationale and Linkage to Country/Regional Strategy The proposed project will complement and enhance the impact of projects financed by ADB and other development partners. It will finance the establishment of two ALCs in Andijan and Samarkand regions that will strengthen upstream and downstream value chain linkages and provide modern post-harvest infrastructure. The ALCs will provide all necessary facilities and services in one place: trading, storage, processing, food safety certification, customs clearance, transport, shipping, marketing advisory services, trade finance, and commercial banking. The ALCs will help address the current high levels of post-harvest losses and expand horticulture produce sales in domestic and export markets. In particular, it will introduce post-harvest processing, storage, and handling following international quality and safety standards. The ALCs will be the focal points of horticulture clusters to be established in Andijan and Samarkand and the neighboring regions in accordance with Resolution UP-5388 (footnote 4). In addition to increased sales volumes, the ALCs will smooth crop seasonality and enhance price transmission to and price stability for small-scale producers, and small and medium-sized agribusinesses. ALC locations will be Andijan and Samarkand, where agro-climatic conditions are favorable to multiple fruit and vegetable crops per year. Together, Andijan and Samarkand account for 25% of the total area in Uzbekistan under horticulture crops and for 30% of the total national production. They have large dehkan (small-scale farms) farmer populations, accounting for 22% of all dehkan farmers in Uzbekistan, who will benefit from increased market opportunities. Andijan and Samarkand have significant urban populations, are well-connected to other urban centers in Uzbekistan, and are strategically located for access to export markets through highway, railway, and airport connections.
Impact Contribution of horticulture sector to inclusive economic growth improved.
Project Outcome
Description of Outcome Marketing of horticultural products increased
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Holistic wholesale market facilities established

Capacity to manage market infrastructure through PPP enhanced

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Nation-wide
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Responsible ADB Officer Bui, Giap Minh
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Environment, Natural Resources & Agriculture Division, CWRD
Executing Agencies
Agency for Implementation of Projects in the Field of Agro-Industry and Food Security (UZAIFSA)
1A, Block "A", Lazbak Street,
Tashkent, 100000
Republic of Uzbekistan
Timetable
Concept Clearance 19 May 2017
Fact Finding 14 May 2018 to 22 May 2018
MRM 25 Sep 2018
Approval 15 Nov 2018
Last Review Mission -
Last PDS Update 15 Nov 2018

Loan 3737-UZB

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
15 Nov 2018 04 May 2019 - 30 Jun 2024 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 244.75 Cumulative Contract Awards
ADB 197.00 15 Nov 2018 0.00 0.00 0%
Counterpart 47.75 Cumulative Disbursements
Cofinancing 0.00 15 Nov 2018 0.00 0.00 0%

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Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

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Tenders

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Contracts Awarded

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Procurement Plan