fbpx 51276-002: Almaty-Bishkek Economic Corridor: Preparing the Modern Agriculture Wholesale Market Development Project | Asian Development Bank

Regional: Almaty-Bishkek Economic Corridor: Preparing the Modern Agriculture Wholesale Market Development Project

Sovereign (Public) Project | 51276-002 Status: Active

The proposed project will contribute to the diversification of exports and the connection to regional markets for the Republic of Kazakhstan and the Kyrgyz Republic. The project is part of the development of the Almaty-Bishkek Economic Corridor (ABEC). The project will support the modernization of wholesale markets (WSMs) to improve food safety, food security, and increase food trade within and outside the region. Modern WSM infrastructure will facilitate certification for exports, traceability systems, and most importantly, transparent market access and storage of fresh produce. As a result, market demand will allow for production growth and deliver incentives for quality, which will benefit small- and medium-sized producers in the region.

Project Details

Project Officer
Hans Woldring Central and West Asia Department Request for information
Country
  • Regional
Sector
  • Agriculture, natural resources and rural development
 
Project Name Almaty-Bishkek Economic Corridor: Preparing the Modern Agriculture Wholesale Market Development Project
Project Number 51276-002
Country Regional
Kazakhstan
Kyrgyz Republic
Project Status Active
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 9677-REG: Almaty-Bishkek Economic Corridor: Preparing the Modern Agriculture Wholesale Market Development Project
Technical Assistance Special Fund US$ 1.00 million
Regional Cooperation and Integration Fund US$ 1.00 million
Strategic Agendas 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 / Agricultural policy, institutional and capacity development

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The proposed project will contribute to the diversification of exports and the connection to regional markets for the Republic of Kazakhstan and the Kyrgyz Republic. The project is part of the development of the Almaty-Bishkek Economic Corridor (ABEC). The project will support the modernization of wholesale markets (WSMs) to improve food safety, food security, and increase food trade within and outside the region. Modern WSM infrastructure will facilitate certification for exports, traceability systems, and most importantly, transparent market access and storage of fresh produce. As a result, market demand will allow for production growth and deliver incentives for quality, which will benefit small- and medium-sized producers in the region.
Project Rationale and Linkage to Country/Regional Strategy

In Kazakhstan and the Kyrgyz Republic, horticulture value chains are concentrated around Almaty, Bishkek, and their surrounding areas where most of the production, trading and consumption is concentrated. Wholesale trading is mainly occurring in Kazakhstan through the Altyn Orda market (42 hectares [ha] size) in Almaty province and Shareem market (3 ha) in Astana, as well as in the Kyrgyz Republic through Dordoi Food market with 14 ha and Alamedin market (15 ha), both in Bishkek. Most of the flow of horticulture products is channeled through these markets, which require significant modernization to comply with changing domestic regulations, the standards of the Eurasian Economic Union (EEU) and other major export destinations for fruits and vegetables that are produced in ABEC and the Fergana valley. Most commonly, fresh products are sold from the back of a truck to large and small retailers, to hotels and restaurants, and further to other WSMs of Astana or Shymkent. If the produce is not sold within a day, it is often spoiled and goes to waste. Producers or farmers often lack direct access to the WSM because of the segregated production structure with little cooperation and consolidation at the producer level.

Kazakhstan and the Kyrgyz Republic are both net food importers. Food security is compromised due to the i) high dependency on food imports during the first half of the year; ii) lack of incentives for producers to expand the season, quantity and quality of produce due to low margins; iii) increasing market power and vertical integration for horticulture products; and iv) adhoc and uncoordinated daily trading systems because of inadequate storage and cold-chain logistics facilities, which lead to high food waste and price fluctuations. Current WSM, storage, and logistics infrastructure limit the export potential for horticulture products and lead to inefficiencies in domestic food distribution with significant effects for food security and food safety. Reduced food waste and more efficient value chains have significant potential to reduce unnecessary use of natural resources and emittance of greenhouse gases.

Impact
Project Outcome
Description of Outcome
Progress Toward Outcome
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Kazakhstan; Kyrgyz Republic
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services The TA will require three packages of consulting services: (i) Package 1 - International consulting firms to conduct the investment feasibility study (IFS) (output 1) using the fixed budget selection (FBS) selection method, and simplified technical proposals; (ii) Package 2 - an international consulting firm to conduct the commercial, technical and financial due diligence (output 2) using the FBS selection method and simplified technical proposals; and (ii) Package 3 - Individual consultants (international) to assist loan processing and implementation startup and coordination of outputs 1 and 2 (output 3). Package 1 will be lump-sum and performance-based contract, package 2 will be lump-sum, while package 3 will be time-based. ADB procurement and policy and regulations (2017 as amended from time to time) shall apply to the selection of consultants.
Responsible ADB Officer Hans Woldring
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Environment, Natural Resources & Agriculture Division, CWRD
Executing Agencies
Asian Development Bank
6 ADB Avenue,
Mandaluyong City 1550, Philippines
Ministry of Economy
106, Chui Prospect, Bishkek, Kyrgyz Republic
Ministry of National Economy
Orynbor str., 8, House of Ministries, entr.7,010000 Astana, Kazakhstan
Timetable
Concept Clearance -
Fact Finding -
MRM -
Approval 07 Dec 2018
Last Review Mission -
Last PDS Update 11 Dec 2018

TA 9677-REG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
07 Dec 2018 - 07 Dec 2018 31 Dec 2020 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
2,000,000.00 0.00 0.00 0.00 0.00 0.00 2,000,000.00 07 Dec 2018 49,771.65

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.

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.

Tenders

Tender Title Type Status Posting Date Deadline
Project Design and Startup Specialist Individual - Consulting Closed 22 Feb 2019 28 Feb 2019
Output 1: Investment Feasibility Study Firm - Consulting Closed 08 Feb 2019 11 Mar 2019

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.