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Fujian Farmland Sustainable Utilization and Demonstration Project

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Fujian Farmland Sustainable Utilization and Demonstration Project External Social Monitoring Report # 4 Semiannual Report March 2021 People’s Republic of China: Fujian Farmland Sustainable Utilization and Demonstration Project Prepared by Sichuan Fontal Strategic Consulting Co., Ltd. for the Fujian Provincial Government and the Asian Development Bank. NOTE (i) In this report, "$" refers to United States dollars. This external social monitoring report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. Loan No.: 3450-PRC Fujian Farmland Sustainable Utilization and Demonstration Project External Social Monitoring Report No. 4 Sichuan Fontal Strategic Consulting Co., Ltd. March 2021 ABBREVIATIONS ADB - Asian Development Bank AP - Affected Person FGD - Focus Group Discussion GAP - Gender Action Plan IA - Implementing Agency M&E - Monitoring and Evaluation NCB - National Competitive Bidding PMO - Project Management Office PPMO Provincial PMO RP - Resettlement Plan SDAP - Social Development Action Plan Units Currency unit = Yuan (RMB) RMB1.00 = US$0.15 1 hectare = 15 mu 1. Project Overview 1.1 Project Introduction 1 The Fujian Farmland Sustainable Utilization and Demonstration Project (hereinafter, the “Project”) formerly involved 13 counties (cities, districts) in 5 municipalities, namely Wuyishan City and Guangze County in Nanping Municipality, Datian, Youxi and Ninghua Counties in Sanming Municipality, Yongding and Xinluo Districts in Longyan Municipality, Pinghe and Hua’an Counties in Zhangzhou Municipality, and Jiaocheng District, Zherong County, Dongqiao District and Fu’an District in Ningde Municipality, with a total construction area of 269,000 mu, including the improvement of 204,000 mu of slope farmland, including tea garden, oil tea garden, grapefruit garden, etc., and the improvement of 65,000 mu of low farmland, involving paddy rice, vegetables, pasture, pearl barley, lotus seed, etc. The Project has a gross investment of 1.242 billion yuan (equivalent to $190 million), including an ADB loan of $100 million, and a construction period of 5 years, from May 2017 to May 2022. See more details of outputs and construction contents in the 1st external M&E report. 1.2 Scope of Construction and Changes 2 During the first and second rounds of M&E, some implementing agencies (IAs) had completed construction or quitted to implement relevant subprojects due to changes in construction conditions in the long preparation period. By the date of the second M&E report, 11 subprojects1 were dropped out from the Project, with a total amount of $23.3 million, which has been approved by ADB. 3 During the third round of M&E, the cancellation of some subproject components of two companies in Longyan Municipality and one company in Ninghua County (see Footnotes 2, 3 and 4) was approved by ADB. 4 By the date of this report, some implementation content has been adjusted. See Table 1-1 for the latest construction scope of the Project. Table 1-1 Construction Scope of the Project County / Remarks No. IA city / Scope of construction (Changes from last district report, if any) 5,000 mu paddy field in Wuyishan—water and ecological This contract is being Wuyishan Zhuzi Eco- Wuyishan revetment infrastructure improvement, and 5,000 mu applied for in order to 1 agriculture Co., Ltd. City paddy field—water, traffic and ecological revetment fully utilize the balance infrastructure improvement of the ADB loan. 30,000 mu low-yield tea garden and 20,000 mu low-yield The prior data is Datian County Golden oil tea garden improvement—farmland protection and erroneous. Datian 2 Phoenix Agricultural ecological conservation, and 18,000 mu low-yield paddy County Development Co., Ltd. field improvement—farmland protection and ecological conservation Ninghua County State- Improving 1,010 mu oil tea garden, mainly including oil Removal of some Ninghua 3 owned Eco-forest Farm tea garden improvement and infrastructure construction components was County Co., Ltd.2 approved. 1 The withdrew IAs include Yangzhong Town Xingkaicheng Urban Construction Co., Ltd. ($4.5 million), Youxi County Shenlang Edible Oil Co., Ltd. ($3.6 million), Ninghua County Ninghua High-tech Food Co., Ltd. ($1 million), Fujian Chunhui Tea Co., Ltd. ($1.2 million), Fujian Cuiyun Tea Co., Ltd. ($1.3 million), Ninghua County Jinxi Tea Co., Ltd. ($1.2 million), Ninghua County Houde Eco-agriculture Co., Ltd. ($1.3 million), Fujian Hongsheng Gardening Co., Ltd. ($3.6 million), Fujian Jianye Agriculture & Forestry Investment Co., Ltd. ($3.6 million) and NingdeQilongxiang Agriculture Co., Ltd. ($2 million), total $23.3 million. Guangze County Zhengyuan Eco-food Co., Ltd. have proposed new project components using existing $4 million. 2Ninghua County State-owned Eco-forest Farm Co., cancellation of the following components were approved by ADB: 7 contracts, including (FJ-NHLC-CW-01,Rehabilitation of 15,331 mu of slope land for the Oil-tea Plantations in Huatou Town, FJ-NHLC-CW-02, Rehabilitation of 9,201 mu of slope land for the Oil-tea Plantations in Shibi Town, FJ-NHLC-CW-03 Construction of Irrigation/drainage systems and access roads in the 15,331 mu oil-team plantations in Huatou Town, FJ-NHLC-CW-04 Construction of Irrigation/drainage systems and access roads in the 9,202 mu oil-tea plantations in Shibi Town, FJ-NHLC-CW-05 Land leveling 1 Improving 342 mu oil tea garden, mainly including Improving 5223 mu oil Longyan Longyu Yongding lowland and water infrastructure improvement, seedling tea garden and 608 mu 4 Ecological Industry District supply, and pest control equipment vegetable base / nursery Development Co., Ltd.3 to be cancelled 4,000 mu paddy field—water infrastructure improvement Financed by owned Longyan Green Land Xinluo and 2,000 mu paddy field protection, and 1,200 mu low- funds 5 Eco-agriculture District yield tea garden—terrace and water infrastructure Development Co., Ltd.4 improvement Improving 15,478.94 mu grapefruit garden, 5,966.2 mu There is a difference oil tea garden and 4,111.56 mu tea garden (including between the preliminary Fujian Xinghe 2,516.17 mu organic tea garden and 1,595.39 mu green design and feasibility Investment & Pinghe 6 tea garden), mainly including land leveling, farming study. Development Group County roads, agriculture protection, farmland irrigation, Co., Ltd. sustainable cultivation, etc., and organizational capacity building 4,460 mu oil tea field facility improvement, water facility No change Fujian Luyin Agriculture Jiaocheng 7 improvement, shelter forest and ecological conservation, Co., Ltd. District seedling supply, and pest control equipment 1) 500 mu eco-digital (smart) tea garden demonstration; The area of state-owned 2) 3,800 mu tea garden improvement—land leveling and land used is reduced to infrastructure construction; 3) tea garden pipe irrigation 1,100 mu. Fujian Farms and water-fertilizer integration technique extension; 4) Fu’an 8 Agribusiness Tea Co., construction and application of remote pest monitoring, District Ltd. diagnosis and early warning service platform of tea garden; 5) reconstruction and expansion of tea quality test station; 6) farm product and tea quality tracing system; 7) skill training Source: fieldwork / IAs 5 The remaining 8 IAs covered 55 villages in 26 townships in 8 counties (cities, districts) in two municipalities by the date of this report. These 55 villages have a resident population of 95,233, including 40,783 females and a poor population of 2,4085. Compared to previous M&E report, some of the beneficiary villages were changed. See Appendix 1 for the beneficiary area of the Project.6 1.3 Project Implementation Progress 6 By the date of this report, 4 out of the 8 IAs had been completed their respective subprojects, where all contracts had been completed for Fujian Luyin Agriculture Co., Ltd. (December 2019), Ninghua County State-owned Eco-forest Farm Co., Ltd. (October 2020), and Longyan Green Land Eco-agriculture Development Co., Ltd. (December 2020), and Longyan Longyu Ecological Industry and construction of irrigation/drainage systems and access roads in the 850 mu oil-tea plantations in Anle township, FJ-NHLC-GS-02 Supply of 1.294 million Oil-tea Saplings for 16,175mu Oil-tea Plantations and FJ- NHLC-GS-02 Supply of 0.826 million oil-tea Saplings for 15,331 mu Oil-tea plantations)totaling $9 million. 3 Longyan Longyu Ecological Industry Development Co., Ltd. cancellation of the following subproject components were approved by ADB: 6 contracts,( including 3,592 mu tea garden—slope land and water infrastructure improvement, seedling supply, 8,395 mu paddy field—lowland renovation, water infrastructure, farmland protection, 4,140 mu pasture—lowland leveling, soil monitoring, and farm product quality testing,) totaling $7.5 million. 4Longyan Green Land Eco-agriculture Development Co., Ltd. cancellation of the following subproject components were approved by ADB: 9 contracts, (including water infrastructure improvement including 2,690 mu pearl barley garden, 1,820 mu low-yield oil tea garden, 1,200 mu low-yield tea garden and 2,064 mu vegetable garden), lowland improvement, terrace improvement, farmland protection, farm product quality testing, oil tea seedling supply, and farmland ecological conservation (shelter forest)), totaling $6.5million. 5 There is no poor population, which is replaced by low-income population (covered by minimum living security). The data was as of the end of 2019. 6Removals of some components under remaining subprojects were approved during this period, therefore, the total beneficiaries changed comparing with previous M&E report. See appendix 1 for details. 2 Development Co., Ltd. had completed part of the subproject, and withdrawal and reimbursement by June 2020, and filed an application for cancelling the remaining components with the PPMO in November 2020, pending approval.
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