Nepal Highland Mountain Agribusiness and Livelihood Improvement Project (HIMALI) (TA 7298-NEP)

Project Description

Agriculture is a key sector in ADB’s 2006 CSPU, the PPA between the Government and ADB, and the Government’s Tenth Five-Year Plan and APP. The project is consistent with the poverty reduction and gender strategies of the Government and ADB. The highland population in target districts uses viable strategies, package of practices, and know-how for enhanced ecosystem services and rural livelihoods. The PPTA will support the Ministry of Agriculture and Cooperatives in preparing an investment project proposal, namely the High Mountain Agriculture and Livestock Improvement (HIMALI) project for consideration by the Government and the ADB. PPTA outputs includes: (i) an assessment of high mountain niche products and their value chain, including the development of climate-adaptive agribusiness and livelihood-related infrastructure; (ii) replicable natural resources management options for improved sustainable livelihoods, to be included in the investment project design via a participatory action research (PAR) and regional downscaled climate impact modeling, and (iii) development of project design and implementation plan. Three sample districts were selected for the study purpose and the Project will cover 10 mountain districts namely; Humla, Mugu, Jumla, Dolpa, Mustang, Manang, Rasuwa, Dolakha, Solukhumbu, and Sankhuwasabha

Assignment Description

Assessment of the status and potential for development of livestock products, sourced from yak, sheep and goats in the high mountain areas, and suggest and design an implementation strategy for development of products from yak, sheep and goat. • Assessment and developed a breed improvement program for yak, sheep and goat in the high mountain areas of Nepal, and designed a specific program for the development of Pashmina goats in Nepal • Assessment of the agro-horticultural resources and their potential for value addition to products, beverages and preserves found in the high mountain; design an implementation strategy for development and value addition of such products from the potential agro-horticultural; and assessment of the status of horticultural orchard management and address its deficiencies. • Assessing and identifying the potential herbal products that can be developed as enterprises in the high mountain areas; design an implementation plan for the development of identified herbs into processed, marketable products, suggest enterprise potentials in the sector that should be developed during project implementation and identifying specific opportunities for private sector investment and partnerships. • Assessment of the financial management capacities of DLS and DOA; Assess the adequacy of financial management arrangements and potential financial management risks including remedial measures; Design the mechanism for a district fund, flow of project, Design a micro-finance mechanism to drive enterprise development; Design the mechanisms for credit linkages; Design the loan disbursement, repayments and monitoring framework; Design internal and external auditing and financial management mechanism • review the current performance of livestock and agricultural production related projects, policy and institutional arrangements and performance for input delivery, extension services, finance, and output marketing, and farmer incentives for adopting intensified and diversified cropping; undertake data collection, and economic and financial analysis including risk analysis of specific value chains and feasibility studies carried out under the TA; Contribute to requirements for completion of value chain feasibility reports and the draft final report • Assessment of potential environmental impacts including cumulative and indirect impacts associated with the proposed project interventions; and prepare an initial environmental examination (IEE) report and a summary of IEE for the project in accordance with ADB’s Environmental Assessment Guidelines, and the Government’s environmental regulations; • Formulation of appropriate legal mechanisms and measures to facilitate development of contracts between producers, co-operatives and other agro-enterprises along the value chain, to ensure protection of rights and mechanisms for resolving disputes; • Assessment and defining the legal basis for public private partnerships and other arrangements related to proposed project investment in agribusiness infrastructure; Designed and prepared appropriate legal measures for the structure and operation of the Agribusiness Support Fund and its management committee in collaboration with the Financial Management consultant. • Prepared design, drawings and construction documents including cost estimates based on Labor-based, Environment-friendly, and Participatory (LEP) principles and approach, and in compliance with GON building codes and regulations; • Prepared procurement packages for all items to be procured in the investment project, according to ADB and GON procedures; and prepare procurement-related of the Project Administration Manual (PAM). • Conducted 3 stakeholders one day workshop in Jumla, Mustang, and Solukhumbu • Conducted central level stakeholders (inclusive of government, private sector representatives) consultation workshop in Kathmandu and presented the Interim Report • Conducted policy (inclusive of government, private sector representatives ) workshop and presented the Draft Final Report at Kathmandu