fbpx 54413-001: Aller Aqua Aquafeed Production Project | Asian Development Bank

Myanmar: Aller Aqua Aquafeed Production Project

Nonsovereign (Private) Project | 54413-001 Status: Proposed

The project will support AAMF's $14.5 million investment plan for 2020 to 2021 by financing the development and construction of a 60,000 mt aquafeed mill. The aquafeed market in Myanmar is underserved by 100,000 mt per annum. Domestic competition (with only two major players) and current imports from Thailand and Viet Nam are unable to meet the demand for aquafeed. With the growth of the aquaculture industry this gap is expected to widen. Access to quality feed is a key driver of profitability of the aquaculture sector in Myanmar, but currently feed quality is poor despite high prices by international standards.

Project Details

Project Officer
Jeong, Juhyun Request for information
Country
  • Myanmar
Sector
  • Agriculture, natural resources and rural development
 
Project Name Aller Aqua Aquafeed Production Project
Project Number 54413-001
Borrower/Company Aller Aqua Myanmar Feed Co., Ltd.
Jyske Bank
Country Myanmar
Location Nation-wide
Type or Modality of Assistance
Loan Ordinary capital resources USD 6.00 million Proposed
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Private sector development
Sector / Subsector

Agriculture, natural resources and rural development / Agro-industry, marketing, and trade

Gender Equity and Mainstreaming Effective gender mainstreaming
Responsible ADB Department
Responsible ADB Division
Responsible ADB Officer Jeong, Juhyun
Project Sponsor(s)
Description The project will support AAMF's $14.5 million investment plan for 2020 to 2021 by financing the development and construction of a 60,000 mt aquafeed mill. The aquafeed market in Myanmar is underserved by 100,000 mt per annum. Domestic competition (with only two major players) and current imports from Thailand and Viet Nam are unable to meet the demand for aquafeed. With the growth of the aquaculture industry this gap is expected to widen. Access to quality feed is a key driver of profitability of the aquaculture sector in Myanmar, but currently feed quality is poor despite high prices by international standards.
Objectives and Scope

The project will support AAMF to build and operate a 60,000 metric ton (mt) per annum aquafeed factory in the vicinity of Yangon. The project will support high quality, affordable, and environmentally sustainable fish feed production, which will contribute to the development of

Myanmar's aquaculture sector. It will support the livelihoods of 150 factory and construction workers and at least 2,500 smallholder fish farmers. The project is fully aligned with the Government of Myanmar's goals to increase aquaculture production and productivity through

modernization of infrastructure and improved production and processing techniques.

Linkage to Country/Regional Strategy

The project is aligned with ADB's Strategy 2030, which calls for ADB to _scale up its financing for agribusiness_ and _promote gender equality in at least 75% of the number of ADB's committed operations by 2030._ The project is also aligned with the Operational Plan for Private Sector Operations 2019 2024, which calls for focusing on the agricultural inputs subsector and mobilizing funds for _climate resilient_

and _more environmentally sustainable_ subsectors._ The project is aligned with two strategic pillars of ADB's country partnership strategy, 2017 2021 for Myanmar: (i) improving access and connectivity and (ii) strengthening human capital. The country partnership strategy also calls for ADB to _seek to leverage international climate change and food security-related financing opportunities to promote sustainable land and water management to reduce land degradation, improve agricultural productivity, and conserve biodiversity._

The project is consistent with Strategy 2030's operational priority 1 (OP1) by improving the standards of living of fish farmers and workers; operational priority 2 by protecting women workers and fish farmers; operational priority 3 (OP3) by promoting environmentally sustainable feed and helping fish farmers adapt to climate change; operational priority 5 (OP5) which calls for (i) _modern, sustainable, and responsible corporate farming models;_ (ii) _integration of farmers, agribusinesses, and consumers into efficient and sustainable value chains;_ and (iii) the promotion of food security and an increase in agricultural productivity "to provide sufficient, safe, and affordable food to the poor"; and operational priority 7 (OP7) by promoting foreign direct investment and exports.

Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects

ADB has categorized the project in compliance with ADBs Safeguard Policy Statement (2009) (SPS) as category B for environment. An initial environmental and social examination (IESE) and an environmental and social management plan (ESMP) were prepared for the project.

The proposed aquafeed factory will be constructed on an unoccupied 1.6-hectare land plot in Zone B of the SEZ in Kyauktan township. The industrial zone is operating since 2016 with locators such as manufacturing plants and logistics companies. Infrastructure and services inside the SEZ include road networks, underground electricity grid and internet fiber, treated water supply grid, sewage system and wastewater treatment plant, and an underground drainage system. The SEZ has an existing environmental monitoring and management program and conducts regular air quality, groundwater quality, surface water quality and noise monitoring. Potential impacts during construction phase are expected to be temporary, site-specific, and can be mitigated through good construction site management. Potential impacts during operation include generation of non-hazardous and hazardous waste, domestic wastewater, noise and vibration, air emissions from the boiler operation, odor, and occupational health and safety risks. The factory's small boiler will use risk husk as fuel and will include pollution control equipment. Measures for mitigating potential environmental and social impacts during construction and operation, including a monitoring and reporting program, are included in the ESMP. The IESE and ESMP will be updated to include results of public consultations that cannot be conducted at this time due to COVID-19 restrictions on movement and group gatherings. ADB will require AAMF to annually report on its environmental and social performance and compliance with the measures in the ESMP and requirements of SEZ and ADB.

Involuntary Resettlement ADB has categorized the project in compliance with ADB's Safeguard Policy Statement (2009) (SPS) as category C for involuntary resettlement.
Indigenous Peoples ADB has categorized the project in compliance with ADB's Safeguard Policy Statement (2009) (SPS) as category C for Indigenous Peoples.
Stakeholder Communication, Participation, and Consultation The borrower will undertake consultation with identified stakeholders in proximity to the SEZ for the project's Initial Environmental and Social Examination report once the government's COVID-19 restrictions on group gatherings are reduced.
Timetable for assistance design, processing and implementation
Concept Clearance 11 Nov 2020
Credit Committee Meeting 18 Dec 2020
Approval 11 Jan 2021
Last PDS Update 22 Jan 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.

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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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Related Publications

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