The Asian Development Bank (ADB) will provide 0.8 million dollars for market infrastructure project, formerly Rural Business Development Project and Rural Economy Business Development Project, for updating strategy to guide a long-term programme for agricultural market infrastructure development in Punjab.
According to a project update report, prepare by Principal of Rural Development Economist CWAE of ADB Allan T. Kelly, the project will support development of an improved agro-marketing network, with infrastructure investment for efficient commodity supply chains, and associated regulatory and product quality improvement.
The proposed project will help improve horticulture and dairy commodity sector performance and growth, with increased agri-business and producers returns, and enhance private sector investment.
THE PROJECT OUTCOME WILL BE A PROJECT DESIGN, AGREED BY THE GOVERNMENT THAT INCLUDES:
-- Punjab provincial sector strategy to guide a long-term programme for agricultural market infrastructure development.
-- An investment project(s) for ADB financing that likely to include commodity market infrastructure, cold chain logistic centres, dairy development and agro-industrial parts.
-- Associated supporting regulatory and institutional reform.
-- A project preparation facility for subsequent projects.
ACCORDING TO PROJECT REPORT, PHASE-1 WILL FOCUS ON THE FOLLOWING:
-- An assessment of agricultural commodity marketing infrastructure and systems, encompassing existing market infrastructure, future growth and demand, and will include sector planning work.
-- The role of key private sector agents and companies and their value chain operating modalities, feasible options, including innovative approaches for private sector partnerships and financing of public private partnerships and investment prioritisation criterion.
-- The Phase-2 will involve preparation of an investment project (MFF) and will commence in three month after the receipt of technical assistance (TA) and would last about six months.
According to the ADB sources, meetings held with Federal and Punjab government agencies, industry and business associations (exporters, American Business Council member companies), industry boards and companies (LDDB, PDDC, PHDEB, PAMCO), representatives of farmer organisations indicated that reform of the regulatory structure for efficient agricultural markets, to facilitate the modernisation of the agro-marketing networks with private sector, or through public-private partnerships mechanisms is a priority of the government and private sector entities.
Discussions with the Competitiveness Support Fund and Infrastructure Project Development Fund indicated that developing public-private partnerships modalities with private sector equity participation is currently an issue.
Further meetings with the government staff implementing a number of programmes and projects indicated that improving farmer commodity returns is a priority, and that they are trying to strengthen the integration of small holders into these higher commercial return activities.
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