The World Bank
Agriculture Modernization Project (P158372)
Page 61 of 70
ANNEX 3: Economic and Financial Analysis and Greenhouse Gas Accounting
COUNTRY: Uzbekistan
Agriculture Modernization Project
I.
Introduction
1.
Direct financial and economic gains will arise from: (i) shifting the farmland areas from production of less
profitable cotton and wheat to production of more profitable horticulture products; (ii) increasing productivity of the
existing horticulture production through adoption of
improved seeds and seedlings, GAP, and other climate-smart
technologies tailored to the needs of
specific agro-ecological zones; (iii) improving the quality of products and accessing
more markets through cooperation and productive partnerships, as well as investments in storage and processing; and
(iv) reducing marketing costs through better agro-logistics, phytosanitary measures, and market information.
2.
Indirect benefits, which are not included in this economic and financial analysis as they are difficult to quantify,
include: (i) increase in economic activity during and after construction of ALCs and other infrastructure financed by the
project; (ii) reduction of post-harvest losses and food waste at ALCs and through productive partnerships and farm
cooperatives; (iii) increase in exports of fruits and vegetables; (iv) efficiency gained in
horticulture value chains; (v) more
transparent price formation, due to the productive partnerships, ALCs, and market information system; (vi) social and
environmental benefits of including farmers into modern food value chains,
reduction of GHG emissions, and more
efficient use of
soil and water; and (vii) local economic development.
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