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Description |
The project will support the development of an inclusive and climate-resilient hazelnut value chain in Bhutan, which will involve about 15,000 smallholder farmers who will plant about 10 million trees on about 22,000 acres of previously fallow or degraded land. The project includes two components: (i) a $14.8 million expansion plan of Mountain Hazelnut Venture Private Limited (MH), and (ii) a $1.5 million TA to MH and value chain participants. The company''s expansion plan includes investment in: (i) seedling development, (ii) tree planting, (iii) extension services, and (iv) processing and logistics. The TA will provide training and pilot technologies to strengthen the inclusiveness and climate resilience of the hazelnut value chain in Bhutan. |
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Objectives and Scope |
(i) The project will help boost Bhutan''s agriculture GDP and exports.
(ii) The project will promote private sector agribusiness development, in line with Bhutan''s Eleventh Five Year Plans objectives.
(iii) The project will contribute to poverty reduction in Dzongkhags with poverty levels above the national average, in line with Bhutan''s Eleventh Five Year Plan's target.
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Linkage to Country/Regional Strategy |
The project is aligned with the Midterm Review of Strategy 2020, which emphasizes the need for ADB to support food security, agricultural productivity, and inclusive business such as agribusiness development that connects farmers to local and global food markets. The project is also consistent with the three strategic pillars of the Bhutan Country Partnership Strategy 20142018: inclusive economic growth, environmentally sustainable growth, and regional cooperation and integration.
The project is fully aligned with ADBs Operational Plan for Agriculture and Natural Resources (2015-2020), which recommends greater agribusiness investment by ADBs private sector operations department, and in particular direct equity investments in agribusiness companies which have long term financial viability prospects and have the potential for scalable impact. The project will also complement ADB's assistance to the Government of Bhutan for rural roads and water management.
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