China, People's Republic of : Hubei Yichang Rural Green Development Project

Sovereign Project | 55128-001

The project proposes a transformational approach to modernizing the agriculture sector in Yichang Municipality of Hubei Province in a green and sustainable manner through (i) strengthened institutions, knowledge, and research; (ii) increased value addition and efficiency in agribusiness and food supply chains; (iii) reduced climate and environmental impacts of agricultural activities; and (iv) improved resilience of rural infrastructures.

Project Details

  • Project Officer
    Bano, Alfredo
    Sectors Group
    Request for information
  • Approval Date
    13 November 2023
  • Country/Economy
    China, People's Republic of
  • Sector
    • Agriculture, natural resources and rural development
Project Name Hubei Yichang Rural Green Development Project
Project Number 55128-001
Country / Economy China, People's Republic of
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 4374-PRC: Hubei Yichang Rural Green Development Project
Ordinary capital resources US$ 200.00 million
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
OP6: Strengthening governance and institutional capacity
Sector / Subsector

Agriculture, natural resources and rural development / Agricultural production - Agriculture research and application - Agro-industry, marketing, and trade - Rural flood protection - Rural solid waste management

Energy / Energy efficiency and conservation - Renewable energy generation - solar

Gender Gender equity theme
Description The project proposes a transformational approach to modernizing the agriculture sector in Yichang Municipality of Hubei Province in a green and sustainable manner through (i) strengthened institutions, knowledge, and research; (ii) increased value addition and efficiency in agribusiness and food supply chains; (iii) reduced climate and environmental impacts of agricultural activities; and (iv) improved resilience of rural infrastructures.
Project Rationale and Linkage to Country/Regional Strategy

A large portion of small-scale family farms lack the technical and financial capacity to invest in and improve their operations. Knowledge from agricultural institutions does not reach farmers, who fail to implement best practices and use modern and smart technologies. Further, there is limited interagency collaboration, with sometimes contradicting policies that change the incentives for farmers. All this causes underinvestment in family farms, with farms running as a secondary source of revenue at suboptimal efficiency. Agricultural practices in Yichang are inefficient and characterized by smallholder agricultural systems with low productivity, largely because of limited access to information and finance. Also, agricultural value chains are weak because of underdeveloped grading, processing, packing, storing, and marketing of products, as well as high post-harvest seasonal food losses, with about 5 million tons of fruit wasted every year in Hubei province because of limited access to cold storage facilities. Farmers also lack understanding of modern marketing and sales digital platforms, which limits their sales capacity to roadside stalls and traditional distributors.

Further, Yichang is in one of the most serious soil erosion regions in the PRC, which coupled with poor land management practices and seasonal high-intensity rainfall, causes soils to be easily erodible, particularly in high slope areas. The intensification of agriculture production systems driven by high volumes of inputs such as chemical fertilizers, synthetic pesticides, and irrigation water has generated large volumes of waste and excessive discharge of pollutants, which have contributed to soil and water contamination and environmental degradation. Large farming areas in Yichang still burn agricultural waste, contributing to damaging air pollution and GHG emissions. Further, Yichang is impacted by a range of climate hazards, including flooding and drought, particularly along tributaries of the Yangtze River. Agricultural productivity is at risk because of crop damage, heat stress, increased occurrence of pests, soil and water deterioration, and increased damages from extreme weather events and reduced water security.

Agricultural labor accounts for about 40% of total employment in the Yichang municipality, reaching up to 64% in Xingshan County. While women account for more than half of the workforce in the agriculture sector, a larger share of women's employment in agriculture is concentrated in low-skilled activities. Women's lower education levels, mobility constraints, and disproportionate burden of domestic and care work prevent them from obtaining better employment opportunities in the sector.

Impact

Rural green development in Yichang Municipality and the Yangtze River Economic Belt achieved

Project Outcome
Description of Outcome

Agriculture sector productivity and climate resilience increased

Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Institutional capacity in modern agricultural practices and innovative technologies enhanced

Smart green agricultural practices improved

Agricultural waste and water treatment systems and facilities installed

Climate-resilient rural infrastructure improved

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Yangtze River, Yichang
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects An initial environmental examination (IEE), including an environmental management plan (EMP), was prepared for each subproject following ADB's Safeguard Policy Statement. The IEEs were disclosed on ADB's website on 22 June 2023. Potential impacts during construction, including noise and dust emissions, construction waste and wastewater, and community and occupational health and safety risks, are temporary and can be mitigated through implementation of the EMPs. Potential impacts during operation include waste and wastewater, increased noise, odor, use of agricultural chemicals, and community and occupational health and safety risks. These impacts can also be mitigated to acceptable levels through implementation of the EMPs and adherence to national regulations. The IEEs will be updated during detailed design as needed and if unanticipated impacts are identified during project implementation. ADB conducted meaningful consultations and will continue during project implementation. Sufficient budget will be allocated for the implementation of the EMPs. A climate risk and adaptation assessment has been prepared for the project, and its findings will be incorporated into the project design.
Involuntary Resettlement The project will not involve any physical displacement. A total of five households with 23 persons will be affected permanently by land acquisition. For the Yichang Academy of Agricultural Science and Yidu subprojects, due diligence for past land acquisition and reserved state-owned land confirmed that no outstanding or legacy issues of land acquisition and resettlement exist. Two resettlement plans have been prepared for the Xingshan and Yiling subprojects in line with ADB's Safeguard Policy Statement and PRC laws and regulations. The resettlement plans include adequate measures for compensation and rehabilitation of affected people. Surveys and consultations were undertaken with affected persons during preparation of the plans, and they will be further consulted during updating and implementation of the plans. A resettlement grievance redress mechanism has been established and incorporated into the plans. A due diligence review of the existing voluntary land use arrangements has confirmed that such LURT agreements were conducted in a voluntary, transparent, and fair manner. Three frameworks for LURT have been prepared for voluntary land use arrangements for the Dangyang, Xingshan, and Zhijiang subprojects that will be finalized during project implementation. The frameworks include principles and procedures for LURT, including meaningful consultations, voluntary agreements, record keeping, and verification and monitoring.
Indigenous Peoples Scattered ethnic minorities account for 1.5% of the total population in Zhijiang City, 0.63% in Yiling District, 1.14% in Dangyang City, and 0.6% in Xingshan County. There are no concentrated ethnic minorities communities in these four locations. Ethnic minorities account for 3.49% of the total population in Yidu City. There is one Tujia ethnic minority township (Panjiawan) in Yidu City. Ethnic minorities in five project villages in Panjiawan Township account for 37.08% of the total population, of which almost all (99.6%) are Tujia people. No significant differences exist between Tujia and Han residents in terms of language and socioeconomic conditions. Due diligence concluded that the project is not expected to impact distinct and vulnerable communities of indigenous peoples or ethnic minorities.
Stakeholder Communication, Participation, and Consultation
During Project Design Communication with the PMO, representatives from each county and the design institute was fluent during the whole project preparation period, with continuous participation at various stages. Consultation with affected people and communities, as well as social surveys were undertaken as part of the preparation work.
During Project Implementation
Business Opportunities
Consulting Services A transaction technical assistance facility grant of $460,000 will hire 20 consultants for about 44 person-months to assist the executing agency in preparing the project suitable for ADB financing.
Procurement Use of sustainable and green procurement measures will be explored.
Responsible ADB Officer Bano, Alfredo
Responsible ADB Department Sectors Group
Responsible ADB Division Energy Sector Office (SG-ENE)
Executing Agencies
Hubei Provincial Finance Department
Yichang Municipal Government
Timetable
Concept Clearance 10 Nov 2022
Fact Finding 08 May 2023 to 12 May 2023
MRM 29 Jun 2023
Approval 13 Nov 2023
Last Review Mission -
Last PDS Update 13 Nov 2023

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.

Title Document Type Document Date
Hubei Yichang Rural Green Development Project: Yidu Subproject Draft Initial Environmental Examination Initial Environmental Examination Jun 2023
Hubei Yichang Rural Green Development Project: Zhijiang Subproject Draft Initial Environmental Examination Initial Environmental Examination Jun 2023
Hubei Yichang Rural Green Development Project: Xingshan Subproject Draft Initial Environmental Examination Initial Environmental Examination Jun 2023
Hubei Yichang Rural Green Development Project: Yichang Academy of Agricultural Science Subproject Draft Initial Environmental Examination Initial Environmental Examination Jun 2023
Hubei Yichang Rural Green Development Project: Yiling Subproject Draft Initial Environmental Examination Initial Environmental Examination Jun 2023
Hubei Yichang Rural Green Development Project: Dangyang Subproject Draft Initial Environmental Examination Initial Environmental Examination Jun 2023
Hubei Yichang Rural Green Development Project: Xingshan Subproject Draft Resettlement Plan Resettlement Plans Jun 2023
Hubei Yichang Rural Green Development Project: Zhijiang City Subproject Voluntary Land Use Right Transfer Framework and Due Diligence Report Safeguards Due Diligence Reports Jun 2023
Hubei Yichang Rural Green Development Project: Yidu City Subproject Resettlement Due Diligence Report Safeguards Due Diligence Reports Jun 2023
Hubei Yichang Rural Green Development Project: Yichang Academy of Agricultural Sciences Subproject Resettlement Due Diligence Report Safeguards Due Diligence Reports Jun 2023
Hubei Yichang Rural Green Development Project: Dangyang City Subproject Voluntary Land Use Right Transfer Framework and Due Diligence Report Safeguards Due Diligence Reports Jun 2023
Hubei Yichang Rural Green Development Project: Yiling Subproject Draft Resettlement Plan Resettlement Plans Jun 2023

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
Social and Resettlement Specialist Individual - Consulting Closed
Procurement and Project management Specialist Individual - Consulting Closed
Environmental Safeguard Specialist Individual - Consulting Closed

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

Title Document Type Document Date
Hubei Yichang Rural Green Development Project: Procurement Plan Procurement Plans Aug 2023