The project will support the development of 30 hectares of climate-controlled greenhouses equipped with drip irrigation systems in Yerevan to produce tomatoes and bell peppers. The products will be exported to Russia and the United Arab Emirates, leveraging Spayka's existing supply chain and client network.
|Project Name||High-Efficiency Horticulture and Integrated Supply Chain Project|
|Borrower/Company||Spayka Limited Liability Company
|Type or Modality of Assistance||
|Strategic Agendas||Environmentally sustainable growth
Inclusive economic growth
|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||Mokroussov, Sergey|
|Description||The project will support the development of 30 hectares of climate-controlled greenhouses equipped with drip irrigation systems in Yerevan to produce tomatoes and bell peppers. The products will be exported to Russia and the United Arab Emirates, leveraging Spayka's existing supply chain and client network.|
|Objectives and Scope||The project is consistent with key objectives of the Armenian Development Strategy 2025, namely (i) the development of a modern agriculture sector through _industrialization_ (including through the application of modern technologies like greenhouses), (ii) the promotion of export of agricultural products in support of an export oriented economy and the integration of the Armenian economy into regional cooperation formats and international economy in general, and (iii) the creation of quality and well-paid jobs as one of the main conditions to achieve poverty eradication and income redistribution.|
|Status of Operation/Construction||Operating|
|Linkage to Country/Regional Strategy||ADB's Armenia country partnership strategy 2014- 2018 is based on three development pillars: (i) high and sustainable economic growth, (ii) broadened access to economic opportunities, and (iii) strengthened social protection. The project supports pillars (i) and (ii). The project is also fully aligned with the four priorities of the ADB's Operational Plan for Agriculture and Natural Resources 2015 -2020: (i) increasing the productivity and reducing pre- and postharvest losses of food crops; (ii) improving market connectivity and value chain linkages; (iii) enhancing food safety, quality, and nutrition; and (iv) enhancing management and climate resilience of natural resources.|
|Summary of Environmental and Social Aspects|
|Environmental Aspects||The location of the proposed climate-controlled greenhouses is devoid of any dense vegetation, any structures or habitation therefore no significant site disturbance will occur. The potential environmental and social impacts of the project have been identified during due diligence and effective measures to avoid, minimize, mitigate, and compensate for the adverse impacts are being incorporated in the environmental and social management plan. Spayka's proposed greenhouses will be equipped with computer systems that will control and monitor greenhouse climate, water quality and energy consumption to create the most optimal growing conditions for the crops inside the greenhouses. The institutional capacity and commitment of Spayka to manage the project's social and environment impacts are deemed adequate.|
|Involuntary Resettlement||The proposed greenhouse project will be built on a 47.76 ha land donated by the Yerevan Municipal Government. In the 1990s, people were issued permits to cultivate the Shengavit community land. These permits were cancelled in 2008 when a law was passed changing the status of the communities to administrative districts. In 2012, the Yerevan Municipality acquired the land to be managed by the Armenian Crop Promoting Centre (a public-private partnership which became a private company in 2014) for the development of a greenhouse facility. The government compensated the remaining users of the community land. However, the greenhouse development project did not materialize as some conditions were not met. The land was left unused from 2012 until 2017. In early 2017, Spayka applied to the government for the allocation of a land plot to develop a greenhouse complex. In July 2017, Yerevan Municipality and Spayka signed a donation contract and a property certificate was issued to Spayka. No one is currently living-on or using the land informally and there are no outstanding complaints with regards to the land.|
|Indigenous Peoples||Yerevan is largely mono-ethnic municipality, with majority of population being Armenians (98.9%). The major ethnic minorities are Yazidis (0.3%) and Russians (0.5%) and the rest are other ethnic minorities. The greenhouse project is in the Yerevan municipality in Shengavit administrative district, inhabited mostly by Armenians with few ethnic minorities who are already mainstreamed to the society.|
|Stakeholder Communication, Participation, and Consultation||Spayka plans to conduct consultations with relevant stakeholders on the proposed greenhouse project. During the greenhouse construction phase, communications with stakeholders will be led by the Spayka Project Coordinator. During the operations phase, the local greenhouse Director will handle engagement with communities and other stakeholders. An informal grievance redress mechanism is being practiced, but Spayka will establish a formal grievance procedure.|
|Timetable for assistance design, processing and implementation|
|Concept Clearance||08 Aug 2017|
|Credit Committee Meeting||15 Dec 2017|
|Approval||07 Feb 2018|
|Last PDS Update||07 Oct 2020|
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.
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|Title||Document Type||Document Date|
|High-Efficiency Horticulture and Integrated Supply Chain Project: Initial Poverty and Social Analysis||Initial Poverty and Social Analysis||Feb 2019|
|High-Efficiency Horticulture and Integrated Supply Chain Project: Report and Recommendation of the President||Reports and Recommendations of the President||Jan 2018|
|High Efficiency Horticulture and Integrated Supply Chain Project: Gender Action Plan||Gender Action Plans||Jan 2018|
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.
|Title||Document Type||Document Date|
|High Efficiency Horticulture and Integrated Supply Chain Project: Initial Environmental Examination||Environmental Assessment and Measures||Feb 2018|
|High Efficiency Horticulture and Integrated Supply Chain Project: Social Compliance Audit Report and Corrective Action Plan||Environment and Social Compliance Audit Reports||Dec 2017|
Evaluation Documents See also: Independent Evaluation
None currently available.
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.
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