UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION

Improving agro-industrial practice and capacity for poverty

Project title:
alleviation in Quannan, China

Project number: 180235

Area/Location/Countries: Quannan, Jiangxi Province, PR China, Asia and Pacific

RBM code: HC1 Creating Shared Prosperity

Thematic area code: HC11 Agri-business and Rural development

Starting date: 01.05.2019 – 31.12.2020

Duration: 20 months

Government Coordinating agency &

Ministry of Commerce of China (MOFCOM)
Executing agency/cooperating agency:

Counterparts: Quannan County Government

Project inputs:

- UNIDO inputs: USD 1 million (including 13% programme support cost)

Brief description:
One of the priority policies of the Government of China is to find innovative methods and take targeted
measures to reduce and eradicate poverty. A series of industry development plans and policies tailored to
local features have been issued to provide opportunities of economic growth to impoverished areas, which
includes the Guiding Opinions on Strengthening Poverty Alleviation Work in the Agricultural Industry and
Poverty Alleviation Plan in the Forestry Sector (2013-2020), the Poverty Alleviation Through Development
Plan of the Agricultural Industry (2011-2020), Measures for Increasing the Income of Industries with Local
Features and Development Plan for Economic Forests (2013-2020), and the Regional Layout of Agricultural
Products with Local Features (2013-2020).
China’s Ministry of Commerce (MOFCOM) is working to achieve the stated objective to eradicate poverty in
China by 2020. It is actively mobilizing and involving the UN Agencies in China to carry out in-depth studies,
as well as design and implement projects targeting poverty alleviation, and provided support to local poverty
alleviation effort. UNIDO joined the initial assessment mission of the UN Country Team in China and the UN
Resident Coordinator Office to Quannan County, Jiangxi Province in 2014. Subsequently led by FAO, UNIDO
and UNESCO established a small group to develop a joint proposal for Quannan and the document
“Improving Livelihood and Welfare for Left-Behind Children, Women and the Elderly in Rural Areas of Jiangxi
Province” was drafted in 2016.
In the context of China’s 2020 poverty eradication deadline and upon the request from MOFCOM,
assessment was undertaken in the second half of 2018 to identify the local baseline of development and entry
point and area of intervention for UNIDO to approach, so as to support the endeavours of the central and local
government to alleviate poverty as stated in its Poverty Reduction Programme and as part of its “rural
revitalization” initiative. Through technical assistance to strengthen the capacity, productivity and quality for
value addition, local farmers (especially impoverished women and children), farmers’ cooperatives, relevant
governmental institutions and agencies, and lead agricultural enterprises functioning as poverty reduction
facilitators, should benefit, through which the project eventually shall contribute to alleviating poverty in
Quannan County.
Moreover, being consistent with China’s national priority of poverty reduction, ultimately the project should as
well address the United Nations Sustainable Development Goals (SDGs), specifically SDG1 (End poverty in
all its forms everywhere), SDG9 (Build resilient infrastructure, promote sustainable industrialization and foster
innovation) and SDG17 (Partnership for the goals).
 Table of Contents
A. CONTEXT ........................................................................................................................ 1
A1. Project Purpose ........................................................................................................ 1
A2. Baseline Scenario..................................................................................................... 1
A3. Main Target Groups ................................................................................................. 5
A4. Stakeholders ............................................................................................................. 5
A5. Synergy ...................................................................................................................... 5
B. UNIDO APPROACH ....................................................................................................... 6
B1. Rationale .................................................................................................................... 6
B2. Comparative Advantage .......................................................................................... 6
B3. Inception Phase ........................................................................................................ 9
B4. Sustainability Strategy ............................................................................................. 9
B5. Gender Mainstreaming Strategy .......................................................................... 10
B6. Environmental and Social Assessment............................................................... 11
C. THE PROJECT.............................................................................................................. 13
C1. Project Logical Framework ................................................................................... 13
C2. Timeline of the Activities ........................................................................................ 18
C3. Risks & Mitigation Measures ................................................................................ 20
C4. Institutional Arrangements and Coordination Mechanism ............................... 21
D. BUDGET ITEMS ........................................................................................................... 21
D1. Counterparts Inputs ................................................................................................ 21
D2. UNIDO Inputs .......................................................................................................... 21
E. BUDGET......................................................................................................................... 22
F. MONITORING, REPORTING AND EVALUATION................................................. 22
G. PRIOR OBLIGATIONS AND PREREQUISITES..................................................... 23
H. LEGAL CONTEXT ........................................................................................................ 23
A. CONTEXT

A1. Project Purpose

The project is designed to enhance UNIDO’s support to the Government of China to alleviate poverty
as stated in its Poverty Reduction Programme and as part of its “rural revitalization” initiative.
Through technical assistance to strengthen the capacity, productivity and quality for value addition,
thus benefiting impoverished farmer population and families (including left-home women and
children), local farmers’ cooperatives, relevant governmental institutions and lead agricultural
enterprises functioning as poverty reduction facilitators, the project finally shall contribute to the plan
of poverty alleviation in Quannan County, Jiangxi Province.

A2. Baseline Scenario

Facts on the Quannan County
Quannan is a county located in the far southwest of Jiangxi province under administration of Ganzhou
City (of prefecture level), with a total area of 1,535 square kilometers (including 150,000 mu of arable
1
land and 1.93 million mu of woodland ), consisting of 9 towns and 86 villages. The annual
temperature average 18.6 degrees, with abundant rainfall and daylight paired with big day-to-night
temperature changes.
Quannan has rich natural resources. Its forestry coverage amounts 82.5%, and stands among the top
ten vegetable production counties in Jiangxi, being as “National Key Vegetable Production County”
and National Demonstration Zone for Standardized Production of High-Land Vegetable”. The flower
and fruit industry is also booming in recent years. Orchid and plum flower for decoration purpose
grows well in this mountainous county, and fruits production as citrus has taken a good reputation,
named as Gannan Citrus (citrus from the southern part of Ganzhou Prefecture). Quannan is also
famous for producing dragon fruit and kiwi.
The county is inhabited by the population of 210,000 including available labor force 119,000 in 2014,
among which 85,000 is rural labor force. The minimum wage in Quannan County is CNY 1,470
(equivalent to USD 215) per month and the salary of unskilled worker could be ranging from CNY
2,100 to 2,200 (equivalent to USD 307 to 321). In Quannan there are 5 provincial-level impoverished
villages, registered with 6,056 impoverished residents in August 2018.
The agricultural development and governance in Quannan County
Agriculture is one of the pillar industries in the county. At the moment, efforts in the county are
focused on the value chain development of high-land vegetables (with specific zones to be
established for cold chain and logistics, technology and innovations, processing and sales etc.),
2
under-forest economy (mushrooms, herbs, pasture etc.), flowers and fragrance by-products and
meat (integrated service of breeding, meat supply, feed processing and meat product processing etc.).
In the four key value chains poverty creation opportunities are provided by adopting the modality
“agro-leading enterprises plus cooperatives plus impoverished families”, which enables the source of
income of the involved farmers theorized as rent extracted from land transfer, remuneration by
employment, profit sharing as stakeholder, and benefits upon trusteeship or participating in production.
83% of the impoverished families are included into the poverty reduction value chains such as
vegetable, mushroom for medical usage (Lingzhi), tea-oil tree, orange, grape, aquaculture etc. and
being connected to the integration of agro-industrial services from planting, processing, storage and
transportation to entering the market.

1
According to Applicable methods of the legal measuring units of People’s Republic of China release in 1959, 1 mu is equivalent to approximately 667
square meters.
2
Defined as a specific manifestation of agro-forestry being a compound operating mode taking full advantage of land resources under forest (for
instance mushrooms, herbs, grains, oil crops, vegetables, flowers, pasture etc.) to develop planting and breeding industries and materialize share of
agriculture, mutual supplement with advantages, forestry and animal husbandry resources and coordinated development. See J. Chen, H. Zhang and Q.
Wu: Study on the Development of Under-forest Economy in Guangdong Mountain Areas. Asian Agricultural Research 2015, 7(4): 45-50.

1
 Unit Total Unit Total
Area Area
Crop output output Crop output output
(mu) (mu)
(kg/mu) (Ton) (kg/mu) (Ton)
Rice 331,942 3,878 127,428 Vegetables 218,868 20,852 434,374
Corn 15,484 2,790 4,304 Watermelon 21,432 60,672 52,540
Soybean 10,152 1,971 1,934 Muskmelon 96 15,208 730
Mung bean 256 426 22 Strawberry 50 1,360 34
Silkworm pea 9,690 1,079 1,090 Edible fungi 0 0 464
Potatoes Chinese
(calculated 12,026 4,641 5,108 medicinal 982 0 0
into grain) materials
Peanut 43,206 2,361 8,588 Navel orange 48,420 4,306 20,054
Rapeseed 4,470 522 414 Sugar cane 80 8,000 320
Cotton 60 400 12 Tea 1,322 389 72
3
Table 1: Annual output of crop in Quannan County and towns, 2017

The Bureau of Agriculture and Grain of Quannan reported that the service to be extended for
provision include: 1) 36 varieties of grain and oil are confirmed to be promoted, among which includes
30 varieties of rice, 4 of peanut and 2 of cole; 2) The main technology to be promoted for rice
production is confirmed: simple cultivation techniques and green ecological planting technology; 3)
Promotion of the “Three Control” fertilization technique of rice; 4) There are 45 households who plant
rice more than 50 mu and the total rice planting area are 3,475 mu; and 5) Promotion of the
construction of farmland complying with higher standard.
Currently there are 88 agricultural extension officers and/or quarantine inspectors at the Bureau,
including 71 males and 17 females. In the inspection and testing station for quality and safety of
agricultural products there are:

• 4 sets of pesticide residue rapid tester with the main testing function of rapid determination of
pesticide residues in fruit and vegetables;
• 1 set of gas chromatograph, with the main testing function of quantitative determination of
pesticide residue in fruit and vegetables;
• 1 set of liquid chromatography, with the main testing function of quantitative determination of
veterinary drug residue in pork and beef, and aquaculture drug residue in freshwater products;
• 1 set of atomic absorption spectrometer, with the main testing function of determination of heavy
metals in fruit and vegetables;
• 1 set of atomic fluorescence spectrometer, with the main testing function of determination of
heavy metals in fruit and vegetables;
• 1 set of ELISA instrument, with the main testing function of rapid determination of pig urine
Clenbuterol.
The tables below show the existing farmer cooperatives, as well as agriculture and poverty alleviation
projects in Quannan:

3 Source of data: Bureau of Agriculture and Grain, Quannan

2
 % / # of Main
% / # of No. of
left- e- challenges
poor % / # of average Production Processing
Cooperative No. of behind Planted Target commerce faced and
families female employees Products quantities / activities
name members families areas markets activities specific
as members (males / year (explain)
as (Y/N) needed
members female)
members support
Sanyou rice 50 tons
farmer sweet super
400 tons storage and
specialized potato Gujiaying market,
54 30% 100% 30% 38/16 no Y capital
cooperative of Village restaurant,
taro 150 tons turnover
fragrant canteen
Nanjing corn 100 tons
black
150 tons no
peanut
sweet potato
sweet
2,250 tons chips / dried super
Specialized potato storage and
Huangbu sweet potato market,
Cooperative 51 17% 20% 47% 65/36 Y capital
village purple sweet restaurant,
of Tiezhiliang purple turnover
potato chips canteen
sweet 1000 tons
/ dried purple
potato
sweet potato
rice 360 tons rice
4
Table 2: Active farmer cooperatives in Quannan
Project name Location Total area of Products Processing No. of Nature of families Total areas Products Markets / sales for
invested farmed by the activities done by families involvement (working / farmed by the farmed by the their products
farms investor the investor involved farming / investing) families families
Local market and
Shigu Grape Family Shaodou
annual income
Farm of Quannan Village, 100 mu grape no 24 Farming grape
reached RMB 1.2
County Jinlong Town
million
Local market and
Qingxiang Vegetable Shuikou
annual income
Planting Family Farm Village, Jinlong 103mu vegetable no 18 Farming vegetable
reached RMB 1.5
of Quannan County Town
million
5
Table 3: Modality of the existing Modern Agriculture and Poverty Alleviation projects

4
Source of data: Bureau of Agriculture and Grain, Quannan
5
Source of data: Bureau of Commerce, Quannan

3
With the strong support of Ministry of Commerce (MOFCOM) and the provincial and municipal
commercial authorities, the development of e-commerce is also enjoying a prospering future.
Quannan County is recognized among the 2015 national comprehensive demonstration county of “E-
commerce entering rural area”. The Quannan innovation and entrepreneurship e-commerce
incubation park was established with the function of with the functions of incubation, introduction,
guidance, training and aggregation. By means of government procurement, professional training
institutions were introduced to carry out e-commerce trainings for different groups in Quannan: 1) to
governmental management officials and junior officials in Quannan to cultivate their thinking on e-
commerce and facilitate their contribution to the e-commerce development in Quannan; 2) to
enterprise management, mainly targeting at small and medium-sized innovative enterprises, to
improve the management level of the responsible person, and to solve the problems of chaotic and
irregular management the SMEs; 3) to beginners those who have the intention to start or have just
started the e-commerce business, starting from zero base in individual programme on, for instance
opening on website and promotion etc.; 4) vocational training for farmers, especially for poor
households, on skills and technique, to encourage poor households to start innovation and promote
employment through the e-commerce industrial chain. The e-commerce knowledge transfer and
trainings to all groups provided are all free of charge.
So far, in total 65 sessions county-wide e-commerce trainings have been conducted, receiving 2,671
trainees, including 410 from poor households. In addition to the training, on the one hand, services
such as free consultation on e-commerce knowledge are offered; on the other hand, the guidance is
strengthened for those who are interested and willing to establish the information bridge with the e-
commerce enterprises through strengthening the entrepreneurship and employees in the e-commerce
industry.
Women empowerment baseline in Quannan
The accelerated process of urbanization and scaling-up of agricultural production attracts the more
migration of rural labors migrated into cities, with decreasing rural population left at home taking care
of the land, farms and houses. According to the estimation by the Ministry of Civil Affairs, in 2016
about 47 million women were left home by their husband, son and/or daughter who are seeking job
opportunities in the urban area. Employment of those women who now taking over the responsibility
of raising household and caring their left-home children and the elderly became critical, while their job-
seeking ability and capacity for employment is depending on their literacy.
Rural labor force at different literacy level influences the difference of employment pattern and the
social labor transferring direction. Statistics and research show that women in rural China receive less
education compared with men: 45.3% of the women in rural areas don’t have any diploma while that
of men is only 12.4%. 13.4% of women completed junior high school, which is 18.5 percent points
lower than that of men. The ratio of women who completed high school is 2.2% and for men it is
13.9%. The difference of men and women who completed their primary school education is with
slighter gap of 2.6% less women than men. It indicates that even the first nine years are obligatory
and supported by the national finance, at least after the primary school (5-6 years of duration), the
equal opportunity of education start to divert between girls and boys at the very early age of their life
(approximately at the age of 12), which might be the main reason for the much higher rate of illiteracy
of women than man in the rural, especially in the in remote mountainous areas.
The development of farmer’s cooperatives is explicitly supported by the Ministry of Agriculture and
other line ministries, specifically for agro-business projects that are more suitable and encouraged to
be undertaken by eligible professional farmers’ cooperatives acting as implementing agencies, for
instance establishing technically standardized vegetable farms, livestock producing stations for scaled
animal husbandry, demonstration aquaculture farms, as well as integrated agriculture development
projects at the national level.
Meanwhile, the promotion of the development of farmers’ cooperatives could facilitate the circulation
of information regarding market access through public service and modern e-commerce platform with

4
 great potential. The context of the huge amount of left-home population on the one hand indeed
allows farmers’ cooperatives to obtain more growing space when less labor force is left in the rural
area, and improves market access of agro-products. On the other hand nevertheless, such
circumstances raise women, children and the elderly to face more challenges including having to
shoulder heavy manual work at farm, to possess less access to modernized market link of their farm
production, and to come over poor education and health conditions in the rural area etc. More efforts
should be made to accommodate the actual needs on vocational skills to make a stable and
sustainable living from farm management and appropriate social protection to provide applicable
women and youth education.

A3. Main Target Groups

- Individual farmers, farmer households/families, especially impoverished farmer populations
including women and children;
- Farmers’ Cooperatives and association of Farmers’ Cooperatives;
- Civil servants and technical staff in the county-level government in Quannan, including Bureau of
Commerce, and Bureau of Agriculture and Grain, Bureau of Market Regulation etc.;
- Lead agricultural enterprises, SMEs and e-commerce enterprises along the food value chain in
Quannan.

A4. Stakeholders
- Ministry of Commerce, China
- Quannan County Government
- Main Target Groups

A5. Synergy
The project shows a validated reference to the produced report “Improving Livelihood and Welfare for
Left-Behind Children, Women and the Elderly in Rural Areas of Jiangxi Province” as the outcome of
the UN initial assessment mission to Quannan in 2014, and is also in line with the joint program
targets in the document including:
1. Enhanced capacities and mechanisms for participation, coordination, monitoring and evaluation
for effective policy implementation in agro-related industries and social sectors.
• Focus Area 1: More effective policy implementation in social development sectors;
• Focus Area 2: Policy implementation is promoted in the area of social protection.
2. Value chain establishment and improvement through successful convergence of the agriculture
and industry
• Focus Area 1: Agricultural and industrial sectors are more inclusive and sustainable;
• Focus Area 2: Farmers’ cooperatives organizational building and management are
strengthened;
• Focus Area 3: Marketing and agro-business link is established and fortified.
So as to contribute to the Joint Program Outcomes:
• Capacity the government, agro-industry, farmers’ cooperatives are improved;
• Better market linkage through improved e-commerce and farm-table business channels
based on advanced IT technology and distant communications.
• Natural resources are more rationally used with Environmental concerns are reduced through
safer food production and environment-friendly management of livestock production as well
as development of ecological agriculture.
Moreover, the project shall also synergize with other endeavors UNIDO is making under the
coordination of MOFCOM to alleviate poverty, promote employment and income, and strengthen
social impact in China. A closely linked example could be the UNIDO project “Improving industrial

5
 capacity for poverty reduction in Chengbu, China” currently being implemented through the UNIDO
Regional Office in Beijing, with the aim to reducing poverty in Chengbu through increasing the
utilization of agro-based raw materials and improving the industrial capacity for producing goods with
higher value added. Experience, knowledge transfer and cooperation modalities etc. could be shared
between the two projects with the strong support and management of MOFCOM to the engagement
of UN Agencies in the framework of national poverty eradication campaign that also involves other
poverty-stricken local spots.

B. UNIDO APPROACH

B1. Rationale
This project conforms to UNIDO’s mandate under the China-UNIDO Country Programme 2016-2020.
Given China’s remarkable trends and the country’s priorities as expressed by the 13th Five Year Plan,
UNIDO and other UN entities agreed with the Chinese Government on three thematic pillars or
“UNDAF Outcomes” for the UNDAF 2016-2020: poverty reduction and equitable development;
improved and sustainable environment; and enhanced global engagement. Against this background,
UNIDO gives particular priority to three of the country’s most urgent development needs, namely
promoting green industry development, ensuring food safety and strengthening international
cooperation. The China-UNIDO Country Programme (CP) 2016-2020 is designed around those three
components.
In the specific case of Quannan, with the financial and policy support secured, the county is
endeavoring and experiencing agro-industrial transformation and upgrading towards facility agriculture
and smart agriculture, integrating also the agro-processing, distribution, innovation, service industry
and agro-tourism. However, challenges are yet to be addressed when considering: 1) the low
processed level of agro-products and the limited value addition to the agro-chains; 2) the growing
difficulty of the farmers to increase their income due to lack of education and technical expertise; 3)
the small scale of agro-production and the to-be-improved diversity of agro-products; 4) the agro-
infrastructure to be further developed to act resilient to natural disasters; 5) the low efficiency of the
agro-production; 6) the few technical experts; 7) the agro-value chain to be better developed and
organized; and 8) the aged storage conditions.
This project aims to improve the agro-industrial capacity as means for poverty reduction, promoting
employment and income of impoverished rural population, and stimulating the development and
creation of industries that provide safe and ecological goods and services. Such objectives conform to
UNIDO’s mandate under the China Country Programme as narrated above, and are also in line with
one of the areas of cooperation highlighted in the new China-UNIDO Strategic Cooperation
Framework 2018-2021 – “rural poverty eradication through productive activities and e-commerce”.

B2. Comparative Advantage

UNIDO has broad experience in assisting Member States to alleviate poverty. Projects working in
agro-value chain from past and present implemented in different countries demonstrate strong
capacity to create entrepreneurship, employment and income for rural impoverished population as
producers and workers in the related industries. The proven expertise makes UNIDO a suitable
partner to provide technical assistance to Quannan through strengthening the capacity, productivity
and quality of the local farmers’ cooperatives, relevant governmental institutions and lead agricultural
enterprises functioning as poverty reduction facilitators, in a value chain approach.
The professional expertise in implementing projects related to poverty reduction would allow UNIDO
to utilize the experience from other projects in the similar areas. For instance, regarding poverty
reduction, between 2005 and 2010 UNIDO implemented the project Multi-Skills Training and
Community Service Facilities for Sustainable Livelihoods and Poverty Alleviation in Uganda, which
aimed at eradicating poverty in rural farming communities. The project provided participating

6
individuals and communities with technical and entrepreneurial skills as well as community service
facilities that would ensure the sustainability of improvements achieved in rural communities.
Later, in 2013 UNIDO implemented a pilot Resource Efficient and Cleaner Production (RECP)
Programme in Myanmar, which targeted the food processing, textile and tourism sectors in Yangon
and Mandalay regions. The project introduced clean technology to goods and services industries in
Myanmar.
Exemplarily, UNIDO, together with other organizations (including the United States Agency for
International Development), launched the second phase of UNIDO’s youth employment project in
January 2017, which aims at creating more than 6,000 jobs for young people in Tunisia over the
following five years. This initiative will provide young men and women in Tunisia’s most vulnerable
areas with the skills required to be entrepreneurs and offer business coaching services to help them
start their businesses and be competitive on the job market.
In the area of food safety UNIDO implemented the project Food Safety Supervision Capacity Building
for China with the former China Food and Drug Administration (CFDA) from 2015 to 2018, having
achieved the objective of supporting the Food Supervising Authority of China in its plan to strengthen
its capacity through a series of pilot interventions taken, so as to serve the overall purpose of
contributing to the improvement of food safety in China. UNIDO contributed its unique experiences,
know-how, expertise and staff relating to food safety, international communication and project
management to this project.
Systematically observed, developing, promoting and disseminating best practices in food safety for
the benefit of food and agri-food businesses as well as consumers is an essential element of the
UNIDO’s mandate to accelerate and promote inclusive and sustainable industrial development (ISID),
which in turn is a key contributor to Sustainable Development Goal 9 (SDG9) “building resilient
infrastructure, promoting inclusive and sustainable industrialization and fostering innovation”.
UNIDO’s food safety approach is designed to help execute the Organization’s mandate and structure
its interventions such that it can leverage its capacity building initiatives as well as its advisory and
convening power to support sustainable and resilient food and agri-food businesses. Therefore, it is a
lever which ensures that the organization’s food safety-related capacity development initiatives are
effective and contribute fully, in a cohesive and holistic manner, to achieving inclusive and sustainable
industrial development.
The approach is centered around three key pillars:
1) enabling sustainable businesses through effective food safety capacity building;
2) enabling a favorable food safety environment through integrating food safety into the wider
context of regulatory frameworks, national quality and food safety policies as well as
infrastructure development;
3) fostering food safety advocacy and partnerships through enabling the engagement of the
private sector in local, regional and global partnerships and advancing multi-stakeholder food
safety dialogue and interventions.
Specifically Pillar One: Enable sustainable businesses through effective food safety capacity
building, lying at the heart of UNIDO’s food safety approach, requires access to local, regional and
global markets through compliance with internationally recognized food safety standards as well as
market-driven safety and quality schemes for the food and agri-food sector. Practical interventions
include, amongst other aspects, the introduction and promotion of a set of food safety certification
schemes with relevant capacity-building programs. Tailored interventions will be designed and applied
to adapt to the needs of less developed food and agri-food businesses to gain buyers’ trust and
market access, as well as to expand the ability of these small and medium businesses in conquering
new markets and sustain their production models.

7
Interventions also include competency development and personnel qualification schemes for
operators and staff involved along the food value chain to follow and apply food safety-specific
trainings and educational programs. In addition, emphasis is made to sustain food safety
competencies and resources through building capacities of relevant institutions, from the public and
the private sector.
Pillar 1 is formed by the expected outputs of the following two building blocks:
Building block 1.1 - Tailored and Scalable Food Safety schemes adopted by value chain
operators:

• Support less-developed food and agri-food businesses gain market access and buyers trust,
by implementing relevant schemes such as UNIDO’s Sustainable Supplier Development
Program (SSDP), through public and private partnerships.
• Assist small and medium food businesses to comply with recognized food safety schemes
relevant to their market needs.
• Design and implement supply chain-driven safety and quality assurance schemes, covering
all supply chain actors e.g., growers, collectors, packers, processors, distributors, traders etc.
And: Building block 1.2 - Enhanced and Sustained Local Food Safety Competencies along
value chains:
• Enhance food safety educational and/or training programs and curriculums to secure the
availability of qualified workforce along the food/agri-food supply chain, including the
development of personnel certification schemes in partnership with relevant academic
networks, organizations and institutions.
• Build sustainable food safety competency through the development of human capital (i.e.
advisors, assessors, auditors, mentors, practitioners etc.) and institutional structures (i.e.
training centers, educational institutions, consultancy services/firms, etc.).
• Establish and upgrade centers of excellence in food safety, directly serving food and agri-food
businesses e.g., packaging service centers, food technology centers, food safety certification
centers, e-learning platforms, R&D and training centers, etc.
For e-commerce in 2016 UNIDO launched the project to promote the development and cooperation
of Small and Medium Sized Enterprises (SMEs) in China and other BRICS countries through e-
commerce development. The project was developed in cooperation with the International Trade
Center (ITC), United Nations Conference on Trade and Development (UNCTAD) and World Trade
Organization (WTO); and the private sector also engages in the project, including Alibaba and Epec.
The objective of the project is to strengthen the cooperation of SMEs between China and other BRICS
countries through development of e-commerce.
UNIDO’s Professional staff also assures the expertise and experience could be well tailored and
accommodated in the context and requirements of Quannan. Over years, UNIDO’s Programme
Development and Technical Cooperation (PTC) has demonstrated its capability to assist countries
with capacities to be improved in developing and implementing policies, plans and strategies to
promote industrial competitiveness, which is achieved by helping producers access agribusiness
value chains, upgrading sectors at macro- (sector policies, including through industrial parks, and
actions to improve the business climate, etc.), meso- (support institutions) and micro- (enterprise)
levels with industrial upgrading and modernization programmes, building up clusters and business
linkages. Further, UNIDO’s training institute builds the capacity of professionals from Member States,
and establishes pool of experienced industrial development professionals and consultants who can be
deployed to countries needing assistance.
Within UNIDO, the Department of Agri-business is the main driver of the Organization’s mandate of
promoting sustainable and inclusive business opportunities through agri-business and agri-value
chain development. To achieve this goal, technical cooperation activities focus on adding value to

8
 agricultural commodities all along the value chain. Through its technical assistance, the Department
links resources and markets in the agribusiness value chains and strengthens forward and backward
industrial linkages in order to advance the economic transformation of countries, improve employment
and income opportunities, and reinforce sustainable livelihoods. Overall, the Department has a strong
track record in agri-business development and in working directly with businesses and agri-industry
along the entire food processing value chain.

B3. Inception Phase

Prior to and during the formulation of the project document, assessment mission and mapping
exercises have been conducted to identify the local economic and social development baseline,
especially regarding agricultural value chain, farmers’ cooperative, existing poverty alleviation projects
with certain scale of investment, and e-commerce. With mobilizing the statistics and feedback of the
local authorization including the responsible bureau of commerce, agriculture and market regulation
respectively, the result of the field visit and questionnaire has been summarized into A2. Baseline
scenario and well accommodated in course of the design of the logical framework of the project
document.
Meanwhile, the self-evaluation through the mapping questionnaire also reveals the challenges to be
addressed for the agro-sector: 1) the capacity of agro-technological innovation is to be improved; 2)
single industrial structure and no famous brands; 3) low level of deep processed agricultural products.
Most of them are simply dried or primary processed – low added value to products; 4) it is more
difficult for farmers to keep increasing their income. The low level of education and professional
technology of the migrant workers leads to their low wage income. The high cost of agricultural
production cost, as well as natural and market risk result in the income instability of the farmers.
Proposed interventions as understood from the perspective of local regulators were also asked to be
given, which should include: a. to focus on quality and safety of agro-products, and promote the
development of brand agriculture; b. to prioritize ecological environment, and promote the
development of ecological agriculture; c. to focus on standardized park construction, and promote the
development of facility agriculture; and d. to focus on integrated development of the primary,
secondary, and tertiary industries, and promote the development of leisure agriculture. Besides, it is
reported that there is no university / technical college in Quannan that provides education and training
on agriculture in general or related topics, which could add uncertainty and difficulty if local expertise
of poverty reduction through agri-business is wished to be mobilized.
The project logical framework is envisaged to ensure UNIDO’s technical assistance of poverty
reduction targeting among various groups of value chain actors and beneficiaries, including farmers’
cooperatives, governmental institutions and private sector. During the 3-month inception phase
starting at the beginning of the project implementation, further identification of the baseline and targets
of the deliverables/indicators, concrete work plan, detailed budgeting for certain activities, data
collection and analysis related to the gender dimension, and other project implementation related
issues will be elaborated and finalized. The project shall complement and supplement the existing
poverty reduction support and efforts Quannan has been embracing at the central and local level,
starting with more elaborated investigation and evaluation of needs and requirements of the
beneficiaries and stakeholders, upon the result of which the follow-up project activities should show
coherence, compatibility and adaptivity to the joint purpose and delivery of the Government of China
on its poverty reduction campaign as well as relevant UN Sustainable Development Goals in the area.

B4. Sustainability Strategy

Sustainability is a key element of the project formulation and implementation. It will be addressed
along the whole process towards reaching the project outcomes and outputs through being
embedded in the work plan of capacity building and knowledge transfer to rural human resources,
institutional improvement and sustainable supply chain development. The target of poverty alleviation
shall be achieved in the way that after the project cycle and the completion of the national plan, the

9
 rural livelihood and social and economic capacity could be maintained and tracked in all its
dimensions with due definition, acceptance and recognition.
This calls for project implementation with nationally appropriate social protection systems and
measures to ensure that all men and women, in particular the poor and the vulnerable, have equal
rights to economic resources, as well as access to basic services, ownership and control over various
forms of property, inheritance, natural resources, appropriate new technology and financial services,
including microfinance. Dialogue and partnership between the public and private sector is supported
by the project implementation through capacity building and knowledge transfer to local civil servants
and private sector to allow good faith to strengthen their collaboration with regard to poverty reduction
investment and efforts at large scale as well as with SMEs in Quannan towards to the predominant
national policy agenda on the subject and its materialization, which shall reflect and contribute to
upgrading the poverty reduction policy objectives, design and implementation to better adapt to the
local needs and practices that are in line with the national poverty alleviation engagement but more
grounded in the project impact. That means, the public-private dialogue and partnership resulted from
the project implementation and impact shall in parallel also serve as reference to improve the policy
making for poverty reduction in Quannan and other impoverished areas of China, and therefore
significant mobilization of resources to sustain the project impact and support programmes and
policies to end poverty in Quannan and linked to other areas in the country shall be included on the
post-project agenda to allow long-term social and economic growth to enter the higher category of
development phases.

B5. Gender Mainstreaming Strategy

To improve women employment and livelihoods in the rural area requires strengthening the vocational
training for professional skills and technologies, as well as critical rural entrepreneurship and job
creation, in basic to provide training to local women with skills so as to lead them to catch the job
opportunities released by local business and contribute to local development. Part of the intensive
work on the field, such as cultivation of flowers, herbs, edible fungus, and orchard management, could
become suitable for women, therewith agro-business booming in mountainous areas for processing
and production could better accommodate left-home women, in particularly women above fifty years
old, who have become already the majority of rural women left home.
Report on global employment published by International Labor Organization supports to build and
improve the network of information, as well as to secure the its availability to facilitate the women’s job
access to labor market in the rural area. Efforts could be underlined in establishing profiles of rural
labor resources and providing women with internet access to useful information such as job-finding
agents, employment policy, vacancy announcements and vocational training.
Such trainings oriented to female farmers should serve to improve the capacity building of
professional cooperatives in the rural area as well. Support to rural women entrepreneurship and
promotion of farmers’ cooperative would remarkably facilitate the growth of women employment
against the labor migration to cities, while cash crop or agricultural production of local specialties
would bridge the gap of income, improve the wellbeing and livelihood of farmers through maintaining
favorable utilization of agricultural resources the in rural area.
UNIDO recognizes that gender equality and the empowerment of women has a significant positive
impact on sustained economic growth and sustainable industrial development, which are key drivers
of poverty alleviation and social progress. It is believed that through addressing the issue of poverty
reduction, both genders, especially left-home females, could be more eligible to access affordable and
acceptable food supply in compliance with the necessary food safety and quality standards, higher
productivity with higher income, more secured equal opportunity of women education and
employment, therewith contributing to the inclusive women empowerment.
The expected project impact highlights the importance of ending poverty in all forms to both men and
women, and shall support the creation of sound policy frameworks and acceleration of investment in

10
 poverty eradication actions at the national and local level, based on gender-sensitive development
strategies and in particular benefiting the poor and the vulnerable group of women left behind. Women
are expected to have better capacity and skill development for poverty eradication through the
planned project activities.
The project will benefit and support farmers’ cooperative, governmental institutions and private
enterprises, in which both male and female staff will improve their skills and knowledge of modern
technologies and industrial information. All necessary efforts will be made by the project to enroll
women in its planned training system establishment, capacity building activities, both at managerial
and technical levels, and to encourage them to participate in all relevant project and decision-making
activities.
In practical terms, the project will plan for specific interventions to promote gender mainstreaming and
women empowerment within the framework of the project. This will include, but is not limited to, the
following:
• Incorporate gender mainstreaming principles as integral part of any trainings, guidelines and
manuals to be developed under the project; the capacity building would also integrate
knowledge transfer on gender mainstreaming and/or gender data collection with proper
approach to be identified;
• Ensure that the project objectives are non-discriminatory, equally benefiting women and men,
and aiming at reducing poverty in China;
• Ensure the content of activities and methods used are appropriate and meet the needs of
both men and women;
• Budgeting would be appropriately considered and allocated for improving labor participation
and delivery of females through promoting productivity and quality for income growth, as well
as capacity building to female officials and officers in the Quannan county government.
Further baseline statistics and targets to be reached to respect the above approach will be collected
during the inception phase of the project. UNIDO will closely coordinate with the local counterparts to
ensure that the gender related policies and guidelines of both sides are taken into consideration and
6
implemented.

B6. Environmental and Social Assessment

The challenge faced by left-home population has been extended to children. Ministry of Civil Affairs
estimates by the end of 2018 there are 6.97 million of left-behind children whose parents work away
from home in cities and leave them living with relatives, often their grandparents. Malnutrition for
school age children is one of the major concerns when they are put in front of inadequate diets and
insufficient intake of nutrient rich foods (vegetables, dairy and meat products) in rural schools. Other
UN programmes having been implemented in China in addition reveals urban children’s energy
source from crops is 55% to 65% lower than the acceptable range, from protein remains 13% to 15%
lower. Standing linked with food availability, access, affordability, utilization and consumption, nutrition
requirements and vulnerability, the target of food security, nutrition and food safety lies at the core and
as primary foundation of public health and social economic development.
The outcomes to be reached in the project find grounded in two inter-connected dimensions: the agro-
industrial and economic dimension supporting the improvement of capacity, productivity and quality of
the agricultural and food production and processing value chain in Quannan, and the social
development dimension to strengthen the contribution to the targeted social impact including poverty
reduction, employment and income growth, ecological development and women empowerment

6
Project staff will be sensitized to gender, through for instance completing basic online course; I Know Gender Course on
UN Women’s eLearning Campus https://trainingcentre.unwomen.org).

11
through food regulation and inclusive and sustainable food and agro-industrial development. UNIDO,
MOFCOM and local counterparts will work together to make necessary assessments to the
environmental and social pre-condition and targeted impact of the project, in the context and course of
the national and local efforts of poverty reduction by 2020. The result of the assessments shall be well
embodied and reflected in the inception phase of the project and duly reviewed in the process of the
project management, monitoring and evaluation.

12
C. THE PROJECT
C1. Project Logical Framework
Outcome, outputs and
activities
Outcome:
The capacity, productivity and
quality of the agricultural and
food production and
processing sector in Quannan
are improved to contribute to
the national poverty alleviation
strategies and policies.
Objectively verifiable KPIs/indicators
• Number of new businesses established along
the value chain
• Amount of additional sales supported by the
project
• Amount of additional income of the project
beneficiaries created
• Number of new jobs created by poverty
reduction deliveries
• Number of additional jobs for youth created by
poverty reduction deliveries
• Number of additional jobs for women created by
poverty reduction deliveries
• Number of poverty reduction policy
implementers trained
• Number of enterprises effected by national
policy of poverty reduction supported by the
project
Baseline and target: Will be decided during the
inception period
13
Sources of verification
(Project Monitoring Assumptions
Mechanism)
• Project annual work The local governmental counterparts,
plans and bi-quarterly technical partners, and participating farmers’
reports cooperatives and enterprises recognize and
well accept and incorporate UNIDO’s
• Public survey, reports,
methodology and approach of poverty
notifications,
alleviation, and remain committed to the
publications etc.
project objectives, outputs and activities.
• Public media report,
Being tailored into the context and
press release, and other
requirements of Quannan, the project
available statistical data
delivery is supported by the national policy
• Monitoring and framework, local agro-industrial
evaluation reports development, and social impact targets to be
reached.

Outcome, outputs and
activities
Output 1. Technical
assistance delivered for
farmers’ cooperatives to
strengthen the capacity,
productivity and quality for
value addition
Sources of verification
Objectively verifiable KPIs/indicators (Project Monitoring Assumptions
Mechanism)
• Number of assessment and development plans • Assessment reports on The selected and participating farmers’
developed for sustainable poverty reduction the needs and cooperatives is committed to the
requirements of farmers’ assessments and investigation, and
• Number of products and/or value chains
cooperatives cooperate to deliver validated results that
assessed
can be used start further project
• Assessment reports of
• Number of capacity building manuals and interventions along the value chain.
value chains
curricula prepared
The knowledge transfer for education and
• Development plans for
• Number of capacity building packages capacity building of the participating farmers’
sustainable poverty
distributed cooperatives is well comprehended and
reduction
accepted. Females and left-behind families
• Number of toolkits on start-ups and development
• Capacity building are well mobilized in the course of the
of farmers’ cooperative distributed
manuals, curricula and project delivery.
• Number of farmers’ cooperatives adopting best packages The collection and promotion of the existing
practices/new technologies successful stories is supported and found
• Documentation of toolkits
• Number of end-users / beneficiaries trained and referential to the stakeholders and South-
• Documentation of South Cooperation partners.
percentage of females involved
successful stories
• Number of successful stories
• Documentation of
prepared/distributed
promotional/ awareness
• Number of promotional/ awareness raising raising/presentation
activities implemented materials
• Number of actions to present the successful • Project annual work
stories conducted plans and bi-quarterly
reports
Baseline and target: Will be decided during the
inception period
14
 Sources of verification
Outcome, outputs and
Objectively verifiable KPIs/indicators (Project Monitoring Assumptions
activities
Mechanism)

Activity 1.1 Needs and requirements assessment for the existing farmers’ cooperatives, for instance relating to productivity and quality, post-harvest processing,
storage and transportation, capital turnover and improvement of access to the retail market and catering service;

Activity 1.2 Providing education and capacity building on improving productivity and quality for income growth of the farmers with considering the labor participation
and delivery of females and left-behind families;

Activity 1.3 Exploring and analyzing successful modalities of the local ecological agro-production and out-reaching commercial activities through e-commence, and
promoting to other stakeholders in the project as well as to strengthening the South-South Cooperation.

Output 2. The service
delivery at the relevant
governmental institutions
strengthened
• Number of training manuals and curricula • Capacity building The relevant governmental institutions work
prepared manuals, curricula and together with UNIDO and are committed to
packages the activities designed and implemented by
• Number of capacity building packages
the project to strengthen their capacity of
distributed • Documentation and
service delivery.
reports of conducted
• Number of trainers / facilitators trained and
product and value chain The management knowledge transfer, value
percentage of females involved
assessment, chain development and value addition
• Number of end-users / beneficiaries trained and development and actions, food safety and quality capacity
percentage of females involved capacity building building, and branding and marketing
activities improvement exercises can be well
• Number of products and/or value chains
comprehended and accepted by the
assessed and developed • Report and statistics on
Quannan governmental institutes with the
productivity and quality
• Number of value chain development plans expected impacts observed. Practices
improvement
developed for sustainability oriented to benefit females and left-behind
• Documentation on families are well taken into consideration and
• Number of services offered by service provider
branding and marketing conducted in the course of the project
for value chain development and value addition delivery.
improvement exercises
• Percentage of increase in resource productivity

15
 Sources of verification
Outcome, outputs and
Objectively verifiable KPIs/indicators (Project Monitoring Assumptions
activities
Mechanism)
and utilization • Master plan/
management plan of the
• Number of food safety and quality capacity
leisure agriculture
building manuals and curricula prepared
• Project annual work
• Number of branding and marketing service
plans and bi-quarterly
providers/institutions established
reports
• Number of master plan/management plan
prepared for the leisure agriculture
Baseline and target: Will be decided during the
inception period

Activity 2.1 Capacity building on the management of farmers’ cooperatives, investment and promotion, oriented to local staff of the Quannan County Government,
with the proper emphasis on providing training to female officials and officers;

Activity 2.2 Materializing value chain development and value addition activities in line with the targeted extension services including cultivation promotion of the
confirmed agro-products, technology development and agro-technological innovation, deep processing of post-harvest agro-products and improvement of productivity
and quality of agricultural production with better compliance to relevant national standards and advanced practices;

Activity 2.3 Capacity building on food safety and quality management and supervision for the sectors of meat, fisheries and aquaculture, fruit and vegetables etc. with
the assistance to introduce necessary equipment and facilities;

Activity 2.4 Conducting branding and marketing improvement exercises with the aim of strengthening the sustainable and inclusive food industry at the local with
effective policy advisory; facilitating to the development of the leisure agriculture in Quannan.

Output 3. The current • Number of crop • Provided crop Within the framework of the existing large scale of poverty alleviation
poverty alleviation manuals/technical manuals/technical interventions, the lead agricultural enterprises and investors of the targeted
interventions through the guidelines and guidelines and value chains are committed to improve their technical linkage to individual

16
 Sources of verification
Outcome, outputs and
Objectively verifiable KPIs/indicators (Project Monitoring Assumptions
activities
Mechanism)
private sector in Quannan know-how provided related farmers and families, and well comprehend and accept the technical know-
expanded and up-scaled documentation how as transferred by UNIDO.
• Number of
enterprises adopting • Provided technical Counterparts well comprehend and accept the technical guidance and
the transferred guidelines of integrated services from UNIDO on the upscaling of cold chain base,
knowledge and upscaling of cold logistics and distribution center.
practices chain base, logistics
and distribution
• Number of technical
center
guidelines of
upscaling of cold • Project annual work
chain base, logistics plans and bi-
and distribution quarterly reports
center

• Number of base and

center adopting the
technical advice and
advanced
technologies
Baseline and target: Will
be decided during the
inception period

Activity 3.1 Providing crop manuals/technical guidelines and know-how to the lead agricultural enterprises and investors of the targeted value chains to improve the
technical linkage to individual farmers and families;

Activity 3.2 Providing technical advice for the counterparts on the upscaling of cold chain base, logistics and distribution center with technical guidance and integrated

17
 Sources of verification
Outcome, outputs and
Objectively verifiable KPIs/indicators (Project Monitoring Assumptions
activities
Mechanism)
services.

C2. Timeline of the Activities

Months
Activities
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Output 1: Technical assistance delivered for farmers’ cooperatives to strengthen the capacity, productivity and quality for value addition

Activity 1.1 Needs and requirements assessment for the existing farmers’ cooperatives, for
instance relating to productivity and quality, post-harvest processing, storage and
transportation, capital turnover and improvement of access to the retail market and catering
service;

Activity 1.2 Providing education and capacity building on improving productivity and quality
for income growth of the farmers with considering the labor participation and delivery of
females and left-behind families;

Activity 1.3 Exploring and analyzing successful modalities of the local ecological agro-
production and out-reaching commercial activities through e-commence, and promoting to
other stakeholders in the project as well as to strengthening the South-South Cooperation.

Output 2: The service delivery at the relevant governmental institutions strengthened

Activity 2.1 Capacity building on the management of farmers’ cooperatives, investment and
promotion, oriented to local staff of the Quannan County Government, with the proper

18
 Months
Activities
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

emphasis on providing training to female officials and officers;

Activity 2.2 Materializing value chain development and value addition activities in line with the
targeted extension services including cultivation promotion of the confirmed agro-products,
technology development and agro-technological innovation, deep processing of post-harvest
agro-products and improvement of productivity and quality of agricultural production with
better compliance to relevant national standards and advanced practices;

Activity 2.3 Capacity building on food safety and quality management and supervision for the
sectors of meat, fisheries and aquaculture, fruit and vegetables etc. with the assistance to
introduce necessary equipment and facilities;

Activity 2.4 Conducting branding and marketing improvement exercises with the aim of
strengthening the sustainable and inclusive food industry at the local with effective policy
advisory; facilitating to the development of the leisure agriculture in Quannan.

Output 3: The current poverty alleviation interventions through the private sector in Quannan expanded and up-scaled

Activity 3.1 Providing crop manuals/technical guidelines and know-how to the lead
agricultural enterprises and investors of the targeted value chains to improve the technical
linkage to individual farmers and families;

Activity 3.2 Providing technical advice for the counterparts on the upscaling of cold chain
base, logistics and distribution center with technical guidance and integrated services.

19
C3. Risks & Mitigation Measures
Risks in this project could mainly derive from delays in the project implementation, implying that the
project will not contribute to China 2020 poverty eradication deadline. Efforts at UNIDO HQs,
MOFCOM and Quannan local level involve diversified technical backgrounds and different languages,
which might lead to unexpected delay and misunderstanding during the project implementation. To
mitigate risks, UNIDO will act as a channel for timely information exchange and communication
facilitation, and periodically conduct evaluations of the project to target the factors that may undermine
project implementation, thereby promptly eliminating the risks.
Other potential risks and countermeasures are described in the table below. A Risk management
table is regularly updated by reviewing the external and internal environment that may affect the
project implementation. The risk management plan is an integral part of UNIDO’s Enterprise Resource
Planning Software (SAP).
The risks will be monitored regularly by UNIDO, MOFCOM and local counterparts who will view and
address all the risks at the regular task force meetings.

Table 4: Risks and countermeasures

Countermeasures / management
Risk Description
response
Depending on the absorption capacity
of the counterpart institution(s) and Close follow up from the UNIDO
recipients, this might lead to delays of HQs team and close coordination
Absorption capacity
the planned timeline of the activities with the local counterpart and
of counterpart and
and specifically to the activities recipients to address any
recipient
including the introduction of new difficulties or delays when
technical approaches and innovative introducing new approaches.
knowledge.
Documents first drafted or available in
English would need to be translated
National counterparts take the
into Chinese for the national and local
Language and responsibility of handling the
teams to review and validate – this
communication translation matters and this should
might cause delays in the
help in avoiding delays.
implementation due to the need for
regular translation.
Ensure clear and detailed action
Internal coordination
There might be several national and plan in place and available for all,
and communication
local institutions involved; this might and secure the support of
between involved
lead to coordination and MOFCOM and local counterparts in
national and local
communication issues and delays. securing efficient coordination
agencies
among involved institutions.
Several technical deliveries in the
Availability and outputs require the involvement of a Ensure the identification of national
commitment of number of national officials and experts as early as possible, with
national officials and experts in the subject areas. This the support of MOFCOM and local
experts might impact the progress to achieve counterparts to avoid delays.
the expected results.

20
 C4. Institutional Arrangements and Coordination Mechanism
The Department of Agri-Business of UNIDO will implement the project in cooperation and consultation
with the UNIDO Regional Office in Beijing and the Regional Division of Asia and the Pacific,
Department of Programme, Partnerships and Field Integration at the UNIDO Headquarters. UNIDO
will closely work with MOFCOM and the local counterparts on the inception and implementation of the
project.
MOFCOM and local counterparts is as well crucial in ensuring the smooth implementation of the
project and acting as the coordinating body between all national partners involved. UNIDO will follow
the existing coordination mechanisms in place and will work to enhance and improve such
mechanisms with MOFCOM. A joint task force will be established with the objective of planning and
reviewing the cooperation/partnership and will be composed of the representatives of MOFCOM,
UNIDO and local counterparts. The joint task force will be co-chaired by MOFCOM and UNIDO, and
meet on the year-base at the Programme Steering Committee (PSC) meetings where project reports
and action plans for the next steps will be in advance prepared and submitted for endorsement. The
PSC shall consist of Representative from Department of International Cooperation of MOFCOM,
UNIDO project team and URO Beijing, Bureau of Commerce, Agriculture and Market Regulation of
Quannan etc. Moreover, a Project Management Office shall be established to include Head of the
Project Management Office, and Project Implementing Officer.

D. BUDGET ITEMS

D1. Counterparts Inputs

The local counterparts will provide in-kind contribution, including necessary staff, staff time, offices,
equipment etc. MOFCOM and the Permanent Mission of China to UNIDO are responsible for policy
guidance and mobilizing project funds.

D2. UNIDO Inputs

UNIDO will provide technical assistance against the best international expertise and contribute to the
selection of national expertise to the project implementation through the approach of value chain
development, social impact enlargement, capacity building and knowledge transfer, in the forms
including field investigation, training, group discussion, meeting convening, consultation and so on, for
which subcontracting with qualified national and international institutes and individuals could be
considered.
In addition, the Quannan county counterpart requests to purchase a business vehicle for the project
use. With the condition that the Donor provides no objection to the conduct and the budget of
purchasing the item, the procurement of the vehicle will be supported by the project funds, subject to
the project budget capacity and in accordance with UNIDO procurement policy and guidelines, and
with UNIDO financial rules and regulations. No further obligation including but not limited to employing
driver, vehicle maintenance, insurance and other possible costs incurred since the purchase of
vehicle will be supported by the project.
During the project cycle, the vehicle belongs to UNIDO property and shall be subject to UNIDO
property management rules and regulations. After the project completion, UNIDO, the Quannan
County Government and MOFCOM shall discuss and agree on the terms of ownership clarification.
The foreseen procurements will be conducted in principle through international open competition, and
changes in specific circumstances might be introduced during the inception phase, in the case of
which an inception report will be submitted to the Donor to seek their due endorsement before starting
the project implementation.

21
E. BUDGET
The below table provides the detailed budget breakdown in US Dollar, as UNIDO input and funded by
from China’s voluntary contribution administered by MOFCOM.

Description Year 1 Year 2 Total

Outcome: The capacity, productivity and quality of the agricultural and food production and
processing sector in Quannan are improved to contribute to the national poverty alleviation
strategies and policies.
Output 1: Technical assistance delivered for farmers’ cooperatives to strengthen the capacity,
productivity and quality for value addition
15 Project travel 20,000 20,000 40,000
21 Subcontract 25,000 35,000 60,000
30 In-service training, conferences, workshops 25,000 25,000 50,000
45 Equipment 130,000 60,000 190,000
51 Miscellaneous 10,000 10,000 20,000
Sub-Total Output 1 210,000 150,000 360,000
Output 2: The service delivery at the relevant governmental institutions strengthened
11 International experts 25,000 0 25,000
15 Project travel 10,000 10,000 20,000
21 Subcontract 15,000 20,000 35,000
30 In-service training, conferences, workshops 20,000 20,000 40,000
45 Equipment 40,000 30,000 70,000
51 Miscellaneous 5,000 5,000 10,000
Sub-Total Output 2 115,000 85,000 200,000
Output 3: The current poverty alleviation interventions through the private sector in Quannan
expanded and up-scaled
15 Project travel 15,000 10,000 25,000
21 Subcontract 35,000 40,000 75,000
30 In-service training, conferences, workshops 20,000 20,000 40,000
51 Miscellaneous 5,000 5,000 10,000
Sub-Total Output 3 75,000 75,000 150,000
Programme coordination and monitoring
11 International experts 32,000 32,000 64,000
15 Project travel 10,500 10,500 21,000
16 Staff travel 15,000 15,000 30,000
17 National experts & admin staff 24,000 26,000 50,000
51 Miscellaneous 4,978 4,978 9,956
Sub-Total Coordination 86,478 88,478 174,956
TOTAL 486,478 398,478 884,956
Programme Support Cost (13%) 63,242 51,802 115,044
GRAND TOTAL 549,720 450,280 1,000,000

F. MONITORING, REPORTING AND EVALUATION

The project will be subject to the standard UNIDO monitoring and evaluation procedures. The UNIDO
project manager will monitor the project activities on a continuous basis in order to ensure that activities
occur as planned and remedial steps are taken as necessary, including in the area to promote the
performance of the gender-related indicators and monitor behavioral changes towards greater gender
equality. The status of implementation shall be reviewed with a view to ensuring the quality and timely
delivery of both inputs and outputs, in keeping with the project objectives and within the budget allotted.

22
 The monitoring activities at the project level and the preparation of project progress reports every six
months will allow the assessment of project results against project outcomes, outputs and objectives as a
means of continually improving project performance and productivity in the track of results-based
management.
As a key management tool for the continuous improvement of technical cooperation, the participatory
approach of self-evaluations will be adopted and led by the project manager in close consultation with the
project counterparts, in the form of producing annual self-evaluation report comprising a) information on
funding and expenditures; b) self-evaluation of project performance; and c) identification of major
problems and recommendations for improvement. In order to do this, continuous field monitoring on the
implementation progress versus the detailed project logical framework and work plan shall be carried out
to make self-evaluations eligible to serve as an input to the regular review meetings (PSC meetings)
attended by UNIDO, the beneficiary government and the donor, in the occasion of which, agenda shall
also be set up to review and make possible decisions on women empowerment based on the data and
information collected, and make sure that the recruitment of project personnel and representation in
project committees will be gender balanced.
Reporting type and frequency: annual work plan; progress report every six months, annual self-evaluation
report, as well as final report after the completion of the project, and annual Project Steering Committee
meeting

G. PRIOR OBLIGATIONS AND PREREQUISITES

There are no specific prior obligations and pre-requisites for the implementation of this programme.

H. LEGAL CONTEXT
The Government of the People’s Republic of China agrees to apply to the present project, mutatis
mutandis, the provisions of the Standard Basic Assistance Agreement between the United Nations
Development Programme and the Government, signed on 29 June 1979 and entered into force on 24
June 1985.

23