China, People's Republic of : Integrated and Sustainable Livestock Value Chain Project
The project includes the construction of: (i) a hog farm in Huanghua, Hebei Province, (ii) a hog farm in Xiangzhou, Guangxi Province , and (iii) a meat processing facility in Pinggu District of Beijing .
Private Sector Operations Department
Request for information
6 December 2019
China, People's Republic of
- Agriculture, natural resources and rural development
|Project Name||Integrated and Sustainable Livestock Value Chain Project|
|Borrower / Company||New Hope Liuhe Co., Ltd.
|Country / Economy||China, People's Republic of
|Type or Modality of Assistance||
|Operational Priorities||OP1: Addressing remaining poverty and reducing inequalities
OP2: Accelerating progress in gender equality
OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
OP5: Promoting rural development and food security
|Strategic Agendas||Environmentally sustainable growth
Inclusive economic growth
|Drivers of Change||Partnerships
Private sector development
|Sector / Subsector||
Agriculture, natural resources and rural development / Livestock
|Gender Equity and Mainstreaming||Effective gender mainstreaming|
|Responsible ADB Department||Private Sector Operations Department|
|Responsible ADB Division||Office of the Director General, PSOD|
|Responsible ADB Officer||Wang, Xiaole|
|Description||The project includes the construction of: (i) a hog farm in Huanghua, Hebei Province, (ii) a hog farm in Xiangzhou, Guangxi Province , and (iii) a meat processing facility in Pinggu District of Beijing .|
|Objectives and Scope||ADB provides a long-term loan to support NHLs integrated food and agribusiness value chain in the PRC, including animal feeds, livestock farming, slaughtering, meat processing and distribution. The project will (i) improve the resource efficiency of hog farming in the PRC by increasing the number of hogs per sow, improving the feed conversion ratio, and reducing water usage; (ii) promote an inclusive business model through an increase in the income of farm workers and contract farmers; and (iii) mitigate climate change by adopting waste management systems such as the biogas digester facility.|
|Linkage to Country/Regional Strategy||
The project is aligned with Strategy 2030 which calls for ADB to scale up its financing for agribusiness and to promote gender equality in at least 75% of the number of ADBs committed operations by 2030 . The project is also consistent with ADBs PRC country partnership strategy (2016 to 2020) which supports (i) promoting rural development and food security by improving market connectivity and agricultural value chain linkages, (ii) increasing agricultural productivity, (iii) enhancing food safety, and (iv) promoting innovative technology.
The project is consistent with Strategy 2030 Operational Plan for Priority 5 (Promoting Rural Development and Food Security, 2019 to 2024) which calls for: (i) modern, sustainable, and responsible corporate farming models; (ii) the integration of farmers, agribusinesses, and consumers into efficient and sustainable value chains ; (iii) the reduction in agriculture's contribution to GHG emissions through improved farming and livestock practices; and (iv) food safety and traceability systems development .
|Summary of Environmental and Social Aspects|
|Environmental Aspects||Environmental impact assessments (EIAs) were prepared for the two hog farms and an Initial Environmental Examination (IEE) was prepared for the meat processing plant. ADB has undertaken a corporate and site level compliance audit at due diligence stage as all subprojects were under construction, all subprojects have completed construction as of October 2021. During operation phase there would be generation of manure and animal carcasses, wastewater, odor and noise nuisance, as well as waste including veterinary waste. Effective measures manage identified impacts have been incorporated in the environmental and social management plans. New Hope has developed a formal environmental and social management system at corporate level. An environmental and social monitoring report has been submitted to ADB reporting on its compliance and environmental performance, New Hope will continue to submit monitoring report on an annual basis.|
|Involuntary Resettlement||The project is classified as C for involuntary resettlement in compliance with ADB's Safeguard Policy Statement (2009). Establishment and operation of the 3 subprojects in different provinces of PRC will not lead to involuntary resettlement impact. New Hope adopts an ESMS which embodies the policies and principles of land acquisition and involuntary resettlement compliant with the applicable national and local laws and regulations and ADB SPS (2009).|
|Indigenous Peoples||The project is classified as C for Indigenous Peoples (IPs). The construction and operation of the 3 subprojects will not lead to any adverse impact on IPs. New Hope's ESMS embodies the policies and principles of indigenous peoples compliant with the applicable national and local laws and regulations and ADB Safeguard Policy Statement (2009).|
|Stakeholder Communication, Participation, and Consultation||Consultation was carried out during the EIA and IEE preparation. Additional consultation has been conducted during the audit with local villagers. A formal Grievance Redress Mechanism (GRM) has been established and adopted to ensure that grievances are communicated and addressed appropriately, if any.|
|Timetable for assistance design, processing and implementation|
|Concept Clearance||03 Oct 2019|
|Credit Committee Meeting||31 Oct 2019|
|Approval||06 Dec 2019|
|Last PDS Update||09 Nov 2021|
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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
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ADB Disburses Loan to Promote Biosecurity in Livestock Farming in PRCADB has disbursed a loan of $40 million (in Chinese yuan equivalent) to New Hope Liuhe Co., Ltd. (NHL) to promote biosecurity and help develop a more integrated, inclusive, and sustainable livestock.