Bangladesh: Agribusiness Development

Sovereign Project | 33224-013 Status: Closed

Summary

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Project Name Agribusiness Development
Project Number 33224-013
Country Bangladesh
Project Status Closed
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
Loan 2190-BAN: Agribusiness Development
Asian Development Fund US$ 42.50 million
TA 4674-BAN: Strengthening Project Management on Agribusiness Development (piggy-backed to Loan 33224-01)
Technical Assistance Special Fund US$ 600,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Knowledge solutions
Private sector development
Sector / Subsector

Agriculture, natural resources and rural development - Agro-industry, marketing, and trade

Gender Equity and Mainstreaming Effective gender mainstreaming
Description
Project Rationale and Linkage to Country/Regional Strategy
Impact

Project Outcome

Description of Outcome
Progress Toward Outcome

Tk2,729.89 million credit disbursed to 33,432 small scale agribusiness entreprenuers, of which 36% are women.

On an average, employment of about 5.51 persons per entreprise generated.

Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)

Small scale entreprenuers under the Project established their enterprises (more than targetted) with project support and services, which are in operation during project's physical completion.

Employment of about 5.51 person per enterprose generated.

Complied with.

36% are women

Ongoing

One survey conducted.

Completed.

Total 8 associations supported. 18 Value chain links established, and are in operation.

Not yet due.

Subborrowers are earning good profit, as reported and observed during ADB project review missions

Around $32.0 million disbursed

A revolving credit fund has been established. The wholesale banks and NGOs will continue disbursing credit after physical completion of the Project. The project physically completed on 31 December 2011.

Ongoing

Planned trainings under the project for NGOs and wholesale banks completed and other capacity devlopement initiatives/ training by the partner NGOs themselves are ongoing. The capacities of partner NGOs and wholesale banks are being strengthened on a continuous basis.

Being complied.

Policy environment started to improve towards more private sector participation in agribusiness promotion, value addition and commercial agriculture, and hopefully will continue to further improve in future.

Actions initiated to establish revolving funds with NGOs and PFIs that will be monitored by Bangladesh Bank

MOU signed with 8 associations and under process with another 7 associations

Recently 8 associations formed. First body formed by selection procedure.

Total 20 workshops held

Total 4 fairs held

MOU signed with 3 service provider associations and training provided to 60 paraprofessionals in three batches.

Being complied.

One survey completed.

Not yet due

Not yet due

Women participates in the workshops.

Ministry of Agriculture and Department of Agricultural Marketing are familiar by this time.

Geographical Location Country-wide

Safeguard Categories

Environment FI
Involuntary Resettlement
Indigenous Peoples

Summary of Environmental and Social Aspects

Environmental Aspects

The Project involved many small-scale investments ($500-$5,000 equivalent) around

the country. As such, any single activity under the Project is unlikely to have anything other than

a minor localized environmental impact. Environmental and social impacts were considered through incorporating into work

planning and monitoring of the Project. Through training, NGO staff were awared about potential

negative impacts. and the means to avoid or mitigate such impacts.

Involuntary Resettlement

The Project involved 34,432 small-scale entreprenuers with arround $34 million equivalent credit across the country. No involuntary isplacement of local populations required. Public sector entities was not involed in acquiring any land under the Project.

Nevertheless, the project design has incorporated safeguards to minimize potential negative effects.

Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design Extensive consultations and dialogues with stakeholders were conducted by the PPTA Consultant during the course of PPTA implementation. Workshops, participatory meetings, focus group discussions, as well as donor coordination meetings were held between March to August 2004. (Please see Group Consulted for details.)
During Project Implementation

The Project support was demand-driven with all the agribusiness investment decisions made by small-scale agribusiness entrepreneurs. The enterprises sponsored by the Project, as private sector ventures, will continue to operate on a self-sustaining and self-financing basis as long as they are profitable and value adding. The Project discouraged special subsidies or preferential treatment. The Project implementation unit closely monitored the performance of the agribusiness enterprises. The measures taken so that at least 90% of agribusiness ventures supported by the Project will be in operation during the project completion review. It is expected that by 2020 the number of new agribusinesses ventures will be double.

The Project used well-established, financially sound and well-governed banks to channel funds through reputable and experienced NGOs to small-scale agribusiness entrepreneurs, who are presently unable to access finance for their ventures. The successful growth of agribusiness lending through experienced NGOs demonstrated to policymakers that the key to expanding rural financial services is engaging capable institutions with the financial and managerial strengths to respond to the growing demands of the market.

Business Opportunities

Consulting Services The project required support from 652 person-months of consulting services including 93 person-months of international consulting services, and 559 person-months of domestic consulting services. Consulting services were to include expertise in agribusiness promotion, agribusiness finance, agribusiness policy, marketing management, training, project management information systems, project accounting, environmental impact screening and mitigation, social impact screening and mitigation, legal, and the support of women entrepreneurs. Recruitment of consultantswill was commenced following ADB's Guidelines on the Use of Consultants and other arrangements for recruitment of domestic consultants acceptable to ADB. The EA finally failed to recuruit a consuling firm and then requested to recruit required key consultants. The consultants recruited under the piggy-backed TA (4674-BAN: Strengthening Project Management on Agribusiness Development) assisted PIU in project implementatation. Besides, ADB recruited 6 key domestic consultants under the loan project for smooth project implementation.
Procurement Goods and related services being procured following ADB's Guidelines for Procurement (the Guidelines). The procurement of equipment and machinery by small-scale entrepreneurs are being followed in accordance with para. 3.08 of the Guidelines (Purchase of Equipment for the Use of Small Private Subborrowers). A few vehicles and a small amount of office equipment for PIU were procured, though no large purchases are required. PIU purchased these items using methods specified in Public Procurement Regulation 2003 that are acceptable to ADB.

Responsible Staff

Responsible ADB Officer Md. Shahidul Alam
Responsible ADB Department South Asia Department
Responsible ADB Division Bangladesh Resident Mission
Executing Agencies
Ministry of Agriculture
Md. Mahmud Hossain
mhossain_dae@hotmail.com
Shech Bhaban, Manik Mia Avenue, Sher-e-Bangla Nagar, Dhaka

Timetable

Concept Clearance 04 Apr 2005
Fact Finding 05 Apr 2005 to 30 Apr 2005
MRM 19 Aug 2005
Approval -
Last Review Mission -
PDS Creation Date 24 Feb 2006
Last PDS Update 25 Mar 2013

Loan 2190-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
27 Oct 2005 22 Jun 2006 17 Nov 2006 30 Jun 2011 30 Jun 2012 28 Nov 2012
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 59.80 Cumulative Contract Awards
ADB 42.50 27 Oct 2005 39.06 0.00 100%
Counterpart 17.30 Cumulative Disbursements
Cofinancing 0.00 27 Oct 2005 39.06 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory - - - -

TA 4674-BAN

Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
600,000.00 0.00 0.00 0.00 0.00 0.00 600,000.00 - 0.00
Title Document Type Document Date
Agribusiness Development: Project Completion Report Project/Program Completion Reports Sep 2014
Agribusiness Development Project Project/Program Administration Manual Dec 2006
Project Agreement for Agribusiness Development Project between ADB Project/Program Agreement Oct 2005
Loan Agreement for Agribusiness Development Project between People's Republic of Bangladesh and ADB Loan Agreement (Special Operations) Oct 2005
Agribusiness Development Project Reports and Recommendations of the President Oct 2005

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


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