China - Mid-Yangtze Agriculture Development Project

 Mid-Yangtze Agricultural Development Report No: ; Type: Report/Evaluation Memorandum ; Country: China; Region: East Asia And Pacific; Sector: Perennial Crops; Major Sector: Agriculture; ProjectID: P003541 The credit for the China Mid-Yangtze Agriculture Development project (Credit 2172-CHA) for US$64 million equivalent was approved in FY91. After a one-year delay, the fully-disbursed credit closed on December 31, 1996. The Implementation Completion Report (ICR) was prepared by the East Asia Regional Office. Both the aide memoire of the ICR mission and the borrower’s contribution are annexed to the ICR. The project sought to increase fruit production in low-income areas of Sichuan and Hubei Provinces and Chongqing Municipality by establishing new orchards and rehabilitating old ones; strengthen research and extension support to fruit farmers, and provide them with healthy, disease-free stock; streamline fruit marketing and provide price incentives for graded, high quality fruit; and develop a replicable model for other fruit production areas. By achieving these objectives the project would raise the incomes of the landless and underemployed farmers, thereby contributing to poverty reduction. Despite a delayed start, due to circumstances beyond the control of the project’s managers, the project met or exceeded its objectives. The project supported establishment of almost 12,000 ha of new fruit orchards and rehabilitated almost 2,500 ha of existing orchards, as planned. Most significantly, new technologies for virus-free fruit stock production were established, new varieties were successfully introduced, and profitable new management systems were established for fruit production and marketing. Large numbers of farmers outside the project area also now use virus-free stock as a result of the project. Employment was provided to 130,000 workers during project implementation and so far the income of some 300,000 farm families has been raised significantly. Provision of water supplies, electrification, and improved road access in support of fruit production have brought many additional benefits to the highland villages targeted by the project. The project’s revised economic rate of return is estimated at 40 percent, higher than the appraisal estimate of 34 percent. OED agrees with the ICR’s performance ratings. Outcome is rated as highly satisfactory, institutional development as substantial, sustainability as likely, and Bank performance as satisfactory. The project’s key lessons are that governments at all levels—central, provincial, and local—must cooperate closely to ensure successful implementation; farmer participation in project implementation from an early stage raises the level of project ownership among the project’s clients, and contributes to successful adoption of new technologies; the technical and scientific base for crop improvements must be developed from the best of domestic and international experience by technical staff familiar with both the relevant science and farmers’ circumstances; and technical assistance for marketing must be provided early, not left until new products are already in the pipeline. The ICR is satisfactory. No audit is planned. ......................