The project will strengthen the project design and cater for the SPG’s request, in addition to the PPTA, ADB will provide technical assistance support for inclusive business (IB) approach1
(para. 3) to select the project agribusiness companies (PACs) and cooperatives; and for value chain analysis (para. 4) to design project investment to strengthen the PACs and cooperatives
chains, and their supply chains; and promote mutually beneficial cooperation between the PACs and farmers.
This will be the first ADB project for the PRC to adopt value chain analysis to design a project and the first sovereign project to adopt the IB approach in the PRC. The project will help the Shanxi Poverty Alleviation and Development Office (SPADO) (i) define the IB criteria, which is a composite rating tool to assess potential PACs regarding their financial viability, social impact, and innovative features; and (ii) apply the IB criteria to select and engage the PACs that are financially viable and has the potential to make social impact through job creation, particularly for the poor and low-income population. The social impact assessment tool will include women empowerment criteria; and as part of the PPTA, the IB arrangements (i.e., cooperation mechanisms between the IB-qualifying PACs and their farmer suppliers such as contract farming, share-holding, or other modes of benefitsharing) will be examined and incorporated in relevant subproject investment plans. During project implementation, the performance of the IB-qualifying PACs will be evaluated; and the results will be used to enhance their poverty and social impact.
Inclusive economic opportunities in the rural areas of Shanxi Province increased
Poverty in the rural areas of Shanxi Province reduced
Income-generating opportunities from selected local specialty agricultural products increased
ACCOUNTABILITY MECHANISM OF ADB
The Accountability Mechanism is an independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an Asian Development Bank-financed project. If you submit a complaint to the Accountability Mechanism, they may investigate to assess whether the Asian Development Bank is following its own policies and procedures for preventing harm to people or the environment. You can learn more about the Accountability Mechanism and how to file a complaint at: http://www.adb.org/site/accountability-mechanism/main