Regional : New Hope COVID-19 Working Capital Support Project
ADB will provide New Hope Singapore Pte Ltd (NHS) with a midterm corporate loan of up to $20 million to fund NHS COVID-19 response operating expenses and working capital needs in South and Southeast Asia.
Project Details
-
Project Officer
Wong, Yee To
Private Sector Operations Department
Request for information -
Approval Date
8 December 2020 -
Country/Economy
Regional -
Sector
- Agriculture, natural resources and rural development
| Project Name | New Hope COVID-19 Working Capital Support Project | |||||
| Project Number | 54197-001 | |||||
| Borrower / Company | New Hope Singapore Private Limited |
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| Country / Economy | Regional Bangladesh Cambodia Indonesia Lao People's Democratic Republic Nepal Philippines Sri Lanka Viet Nam |
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| Location | Bangladesh - Nation-wide; Cambodia - Nation-wide; Indonesia - Nation-wide; Lao People's Democratic Republic - Nation-wide; Nepal - Nation-wide; Philippines - Nation-wide; Sri Lanka - Nation-wide; Viet Nam - Nation-wide | |||||
| Type or Modality of Assistance |
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| Operational Priorities | OP1: Addressing remaining poverty and reducing inequalities OP2: Accelerating progress in gender equality OP5: Promoting rural development and food security OP7: Fostering regional cooperation and integration |
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| Sector / Subsector | Agriculture, natural resources and rural development / Livestock |
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| Gender | Some gender elements | |||||
| Responsible ADB Department | Private Sector Operations Department | |||||
| Responsible ADB Division | Office of the Director General, PSOD | |||||
| Responsible ADB Officer | Wong, Yee To | |||||
| Project Sponsor(s) | ||||||
| Description | ADB will provide New Hope Singapore Pte Ltd (NHS) with a midterm corporate loan of up to $20 million to fund NHS COVID-19 response operating expenses and working capital needs in South and Southeast Asia. | |||||
| Objectives and Scope | The project will support NHS coronavirus disease (COVID-19) response operating expenses and increased working capital needs in South and Southeast Asia during the outbreak. The sustainable operations of NHS feed mills, livestock farms, and contract farmers will ensure the stable local supply of affordable animal proteins, which will contribute to food security in the eight developing member countries (DMCs) included in the project scope. The project will also help to preserve the livelihoods of workers and smallholder farmers and will promote South-South investment and trade. | |||||
| 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 aligned with Operational Plan for Private Sector Operations which promotes working with Tier-2 agribusiness companies such as NHL. The project is consistent with ADBs country partnership strategies of the eight DMCs which support: (i) improvement of productivity and commercialization of agriculture; (ii) rural infrastructure development and agriculture diversification; and (iii) inclusion of smallholder farmers in value chains. The project is consistent with Strategy 2030s Operational Plan for Priority 1 (Addressing Remaining Poverty and Reducing Inequalities) which aims to improve standards of living for poor and vulnerable people; Operational Plan for Priority 2 (Gender Equality and Womens Empowerment) to protect women workers and farmers during COVID-19; Operational Plan for Priority 5 (Promoting Rural Development and Food Security, 20192024), to promote food security and agricultural productivity to provide sufficient, safe, and affordable food; and Operational Plan for Priority 7 (Fostering Regional Cooperation and Integration) to promote (i) agriculture trade and foreign direct investment in low-income countries and (ii) PSOD investment in cross border operations in agriculture value chains. The project is part of ADBs Comprehensive Response to COVID-19 Pandemic which proposed $20 billion to address the needs of ADBs DMCs to respond to COVID-19 pandemic. ADBs Comprehensive Response to COVID-19 Pandemic includes $1.8 billion funding for non-sovereign facilities to enable ADB to scale up its support for private entities. The project will complement sovereign COVID-19 response projects in South and Southeast Asia to provide COVID-19 response for the poor and vulnerable households. |
| Safeguard Categories | |
|---|---|
| Environment | C |
| Involuntary Resettlement | C |
| Indigenous Peoples | C |
| Summary of Environmental and Social Aspects | |
|---|---|
| Environmental Aspects | In compliance with ADB's Safeguard Policy Statement (SPS, 2009), the project is classified as category C for environment. ADB has undertaken a corporate and site level compliance audit of NHL in 2019 through an external party for the ADB-approved capital expenditure loan. The environmental and social measures, institutional capacity and commitment of NHL to manage the project's social and environmental impacts are deemed adequate. As this COVID-19 response loan will support working capital and COVID-19 response operating expenses, the use of proceeds is anticipated to have minimal environmental and social impacts. No subprojects classified as category A or B for environment will be financed under this project. |
| Involuntary Resettlement | In compliance with ADB's Safeguard Policy Statement (SPS, 2009), the project is classified as category C involuntary resettlement. No subprojects classified as category A or B for involuntary resettlement will be financed under this project. |
| Indigenous Peoples | In compliance with ADB's Safeguard Policy Statement (SPS, 2009), the project is classified as category C Indigenous Peoples. No subprojects classified as category A or B for Indigenous Peoples will be financed under this project. |
| Stakeholder Communication, Participation, and Consultation | |
| Timetable for assistance design, processing and implementation | |
|---|---|
| Concept Clearance | 20 May 2020 |
| Credit Committee Meeting | 02 Dec 2020 |
| Approval | 08 Dec 2020 |
| Last PDS Update | 10 May 2021 |
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 |
|---|---|---|
| New Hope COVID-19 Working Capital Support Project: Initial Poverty and Social Analysis | Initial Poverty and Social Analysis | Jul 2021 |
| New Hope COVID-19 Working Capital Support Project: FAST Report | Faster Approach to Small Nonsovereign Transactions | Jan 2021 |
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.
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