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ADB and Bangladesh Conclude Negotiations for SME and Chittagong Port Projects
Dhaka, Bangladesh, Monday 22 November 2004

The Asian Development Bank (ADB) and the Government of Bangladesh today successfully concluded loan negotiations for the Small and Medium Enterprises Sector Development Program (SMESDP) and the Chittagong Port Trade Facilitation Project (CPTFP) .

Md. Shaheedul Haque, Joint Secretary for the Economic Relations Division of the Ministry of Finance, led the two Government teams during the negotiations held in Dhaka. ADB was represented by Renato Limjoco, Lead Financial Sector Specialist, for SMESDP, and Prianka N. Seneviratne, Senior Project Specialist, for CPTFP.

SMESDP will support Government efforts to foster the development of SMEs and enable the sector to attain its full potential for contributing to sustainable economic growth and poverty reduction.

It will help strengthen the policy environment for SMEs, and improve access by SMEs to credit and related support services. The Program will provide targeted training programs for women entrepreneurs and SMEs in the rural areas, as well as retraining for displaced workers to enable them to be re-employed after the Multi-Fiber Agreement phase-out. It will also contribute to the Small Enterprise Fund set by the Bangladesh Bank to provide credit to small enterprises in the "missing middle" between micro- and medium-sized enterprises.

The CPTFP will help increase port capacity to reduce shipping and port charges, and enable the Chittagong Port Authority meet imminent international port security and environmental standards. In the long term, the Project will foster economic growth by facilitating increased international trade.

Both the Projects are planned to be submitted for consideration by ADB's Board of Directors in December 2004.

ADB is dedicated to reducing poverty in the Asia and Pacific region through pro-poor sustainable economic growth, social development, and good governance. Established in 1966, it is owned by 63 members - 45 from the region. In 2003, it approved loans and technical assistance amounting to US$6.1 billion and US$177 million, respectively.

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