Regional : ECOM COVID-19 Smallholder Farmer Climate Resilience and Livelihood Support Project

Nonsovereign Project | 55106-001

Proposed loan of up to $60,000,000, in United States dollars, to ECOM Agroindustrial Corp. Limited (EACL) and to ECOM Agroindustrial Asia Pte. Limited (EAA) for the Ecom COVID-19 Smallholder Farmer Climate Resilience and Livelihood Support Project in Viet Nam, India, Indonesia, and Papua New Guinea (PNG). The report also describes proposed technical assistance (TA) for the Climate Resilient Farmer Group Development to Support COVID-19 Recovery for Smallholder Coffee Farmers.

Project Details

  • Project Officer
    Donges, Carine Sophie
    Private Sector Operations Department
    Request for information
  • Approval Date
    14 December 2021
  • Country/Economy
    Regional
  • Sector
    • Agriculture, natural resources and rural development

Related Projects

Project Name ECOM COVID-19 Smallholder Farmer Climate Resilience and Livelihood Support Project
Project Number 55106-001
Borrower / Company ECOM Agroindustrial Asia Pte. Ltd.
ECOM Agroindustrial Corp. Limited
Country / Economy Regional
India
Indonesia
Papua New Guinea
Viet Nam
Location India - Nation-wide; Indonesia - Nation-wide; Papua New Guinea - Nation-wide; Viet Nam - Nation-wide
Type or Modality of Assistance
4169 Loan Ordinary capital resources USD 60.00 million Approved
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
OP7: Fostering regional cooperation and integration
Sector / Subsector

Agriculture, natural resources and rural development / Agro-industry, marketing, and trade
Gender Effective gender mainstreaming
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Office of the Director General, PSOD
Responsible ADB Officer Donges, Carine Sophie
Project Sponsor(s)
Description Proposed loan of up to $60,000,000, in United States dollars, to ECOM Agroindustrial Corp. Limited (EACL) and to ECOM Agroindustrial Asia Pte. Limited (EAA) for the Ecom COVID-19 Smallholder Farmer Climate Resilience and Livelihood Support Project in Viet Nam, India, Indonesia, and Papua New Guinea (PNG). The report also describes proposed technical assistance (TA) for the Climate Resilient Farmer Group Development to Support COVID-19 Recovery for Smallholder Coffee Farmers.
Objectives and Scope The project will enable ECOMs continuous engagement with more than 15,265 smallholder farmers in the context of COVID-19. The project will finance coffee inventories procured from, and cash advances and extension services to, more than 15,265 farmers. By ensuring reliable offtake to farmers, the project will help preserve their livelihoods. Extension services provided under ECOMs sustainability programs focus on improving farmers adaptive capacity for climate change by introducing sustainable farming techniques, data solutions, financial literacy, and quality assurance methods, ultimately boosting farmers incomes while minimizing harmful environmental impacts. The accompanying TA will provide capacity building across Indonesia and PNG in climate-smart coffee farming best practices and financial literacy, further supporting farmers prompt recovery from the COVID-19 pandemic, with a specific focus on climate resiliency.
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 aligned with the Operational Plan for Private Sector Operations, 2019 to 2024, which calls for working with tier 1 agribusiness companies because of their potential to have widespread impact, including as partners in the Technical Assistance. The project supports ADB agriculture related strategies and action plans of subregional programs. The project is consistent with ADB's country partnership strategies for Viet Nam, India, Indonesia, and PNG.

The project is consistent with the Strategy 2030 operational plans for priority 1 (addressing remaining poverty and reducing inequalities); priority 2 (accelerating progress in gender equality); priority 3 (tackling climate change, building climate and disaster resilience and enhancing environmental sustainability); and priority 5 (promoting rural development and food security), which calls for the integration of farmers, agribusinesses, and consumers into efficient and sustainable value chains. It is consistent with priority 7 (fostering regional cooperation and integration) by supporting nonsovereign lending for cross-border operations for agriculture value chains. The project is part of ADB's Comprehensive Response to the COVID-19 Pandemic.

Safeguard Categories
Environment C
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects In compliance with ADBs Safeguard Policy Statement (2009), ADB has categorized the investment as category C for environment. This categorization is based on the understanding that ADB's loan proceeds will be used by EACL and EAA for working capital to procure coffee and cocoa in Viet Nam, India, Indonesia, and Papua New Guinea. As such, the use of proceeds is anticipated to have minimal environmental impacts.
Involuntary Resettlement In compliance with ADB's Safeguard Policy Statement (2009), ADB has categorized the investment as category C for involuntary resettlement.
Indigenous Peoples In compliance with ADB's Safeguard Policy Statement (2009), ADB has categorized the investment as category C for indigenous peoples.
Stakeholder Communication, Participation, and Consultation
Timetable for assistance design, processing and implementation
Concept Clearance -
Credit Committee Meeting -
Approval 14 Dec 2021
Last PDS Update 16 Sep 2022

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Evaluation Documents See also: Independent Evaluation

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Related Publications

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