Bangladesh: Second Crop Diversification Project

Sovereign Project | 40534-013 Status: Active


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Procurement Documents

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Project Name Second Crop Diversification Project
Project Number 40534-013
Country Bangladesh
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2649-BAN: Second Crop Diversification Project
Asian Development Fund US$ 40.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Private sector development
Sector / Subsector

Agriculture, natural resources and rural development - Agricultural policy, institutional and capacity development - Agricultural production

Finance - Inclusive finance

Gender Equity and Mainstreaming Gender equity
Project Rationale and Linkage to Country/Regional Strategy

Project Outcome

Description of Outcome
Progress Toward Outcome The partners NGO (BRAC) was engaged to form, validate groups and to extend credit support for the interested group farmers. Targeted farmer's group formation on-going through validation and new selection. DAE in close collaboration with BRAC (NGO) is arranging technical training for the selected farmers on high value crops production and value addition, and making them eligible for credit support. As of 31 December 2015, total 12,000 farmers groups formed (5,620 male group) enrolling total 258,737 members (112,894 male). Credit availed by 195,496 members (77,392 male) amounting Tk 4,683.8 million (Tk 1,655.5 million to male). BRAC has deployed qualified field staff for group mobilization, awareness raising, helping to arrange technical training and extending credit support. DAE field staffs in collaboration with the NGO (BRAC) are organizing field demonstration trials in the potential farmers' field for the selected small farmers groups to show potential production technologies. PMU is organizing capacity development training for field staff to better serve the farmers organized under small farmers group. Community facilitators have been recruited and deployed in the field.
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)

Field activities are ongoing. Implementation consultants are fielded. The NGO (BRAC) engaged and qualified field staff deployed. Agreement between BRAC and wholesale banks (EBL Ltd. and BASIC Bank Ltd) signed. Bangladesh Bank as EA of Credit component is monitoring. Credit fund advanced to BRAC to extend credit support to the beneficiaries. Project is proceeding towards increased HVC production. As of 31 December 2015, about 67,243 ha of land converted for HVC production.

Farmers' training is ongoing. As of 31 December 2015, total 203,674 small farmers trained. Credit disbursed to 195,496 farmers amounting Tk 4,683.8 million.

Total 14,800 demonstration trials organized in the farmer's field to disseminate HVCs modern production technologies.

Total 1371 farmers field days organized at demonstration sites.

Actions regarding adaptation to the negative effects of climate change targeted through at least five replicable pilot projects established in the drought-prone areas of the northwest, and five in the southwest areas vulnerable to cyclones and salinity are underway.

Awareness building on quality products, possibility of premium price and advantages of contract farming among project farmers are underway.

Total 104 sites selected for establishing OFSSI. 25 sites have been completed and 75 OFSSI constructions are on-going.

Capacity development training imparted to 13,693 DAE, MFI and TOT.

Field level staffs are being trained to improve support services to the farmers and staffs are getting more interested to promote HVCs in the project areas.

As of 31 December 2015, TOT training provided to 894 implementing staff.

Credit provided to 195,496 with total Tk4,683.8 million. Need assessment, seasonal planning for HVCs cultivations are being undertaken on a continuous basis.

Award of contract for upgrading nine HDTCs approved by ADB. Works in all HDTCs completed.

Expert consultants are working to develop standards and certification systems suitable for the farmers.

Technical training on HVCs production provided to 93,209 of women farmers.

180 staff provided wtih TOT training on gender.

1,469 gender awareness and value addition training on HVCs

So far, construction of 25 OFSSIs completed, 8 OFSSIs are functional and operated by FMA.

So far, 10,675 farmers trained in Climate change adaptability of which more than 50% are women.

Wives and husbands cosign loan agreements are in practice.

Approximately, 65% women manage the credit.

Geographical Location Selected upazilas in the southwest and northwest of Bangladesh.

Safeguard Categories

Environment B
Involuntary Resettlement C
Indigenous Peoples B

Summary of Environmental and Social Aspects

Environmental Aspects Likely to have adverse environmental impact that are less adverse than those of Category A projects
Involuntary Resettlement Has no involuntary resettlement impacts. No further action is required.
Indigenous Peoples Likely to have limited impacts on Indigenous Peoples that are being addressed during project implementation
Stakeholder Communication, Participation, and Consultation
During Project Design During the PPTA regular contact and consultation was maintained with the Government, particularly, the Ministry of Agriculture (MOA), DAE, Department of Agricultural Marketing (DAM), Planning Commission, Bangladesh Bank, and the Local Government Engineering Department (LGED). Stakeholder participation and consultation has been undertaken through (i) meetings with a wide range of NGOs and banks; (ii) current international donors active on the agricultural sector, particularly the Danish International Development Agency (DANIDA), International Fund for Agricultural Development (IFAD), the United States Agency for International Development (USAID), and the World Bank; (iii) workshops held in Dhaka and Jessore, and a private agribusiness sector marketing workshop in Dhaka; (iv) extensive field trips to the proposed project areas and focus group meetings held with farmers, farmers groups, and women. The major findings from consultations were (i) the Project must be demand and market driven with improved capacity building of farmer capacity in value addition; (ii) value chain integration is critical and must be led by involving private sector agribusiness, not the Government; (iii) farmer community group activity in value addition and marketing is the key to improving farmers? incomes; (iv) access to affordable rural credit is critical; (v) active involvement of women in commercial agriculture is essential to make the optimum use of human resources.
During Project Implementation Regular stakeholder participation and consultations are arranged during implementation. The PMU is organizing and conducting regular workshops with DAE officials, MFIs, and service providers to review progress, identify problems, and discuss remedial action. Participatory and focus group sessions will be held regularly with farmer communities and women's groups to assess their needs and discuss project progress and activities.

Business Opportunities

Consulting Services All consultants to be recruited according to ADB's guidelines on the use of consultants
Procurement The procurement will be done as per Government's public procurement rules, 2008 and ADB's procurement guidelines.

Responsible Staff

Responsible ADB Officer Md. Shahidul Alam
Responsible ADB Department South Asia Department
Responsible ADB Division Bangladesh Resident Mission
Executing Agencies
Bangladesh Bank
Mr. S. M. Moniruzzaman
Bangladesh Bank Component
Department of Agricultural Extension
Mr. Md. Saydur Rahman Salim
Khamarbari, Farmgate, Dhaka


Concept Clearance 08 Mar 2007
Fact Finding 08 Nov 2009 to 22 Nov 2009
MRM 03 Mar 2010
Approval -
Last Review Mission -
PDS Creation Date 05 May 2010
Last PDS Update 18 Feb 2016

Loan 2649-BAN

Approval Signing Date Effectivity Date Closing
Original Revised Actual
30 Jun 2010 13 Oct 2010 10 Jan 2011 31 Dec 2016 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 45.81 Cumulative Contract Awards
ADB 40.00 30 Jun 2010 38.14 0.00 93%
Counterpart 5.81 Cumulative Disbursements
Cofinancing 0.00 30 Jun 2010 40.81 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory - - Satisfactory - Satisfactory
Title Document Type Document Date
Second Crop Diversification Project: Procurement Plan Procurement Plans Jul 2015
Project Agreement for Second Crop Diversification Project between Asian Development Bank and Bangladesh Bank Project/Program Agreement Oct 2010
Loan Agreement for Second Crop Diversification Project between People's Republic of Bangladesh and Asian Development Bank dated 13 October 2010 Loan Agreement (Special Operations) Oct 2010
Second Crop Diversification Project Reports and Recommendations of the President Jun 2010
Second Crop Diversification Project Summary Poverty Reduction and Social Strategies Jun 2010
Second Crop Diversification Project Design and Monitoring Frameworks Jun 2010
Second Crop Diversification Project Gender Action Plans Jun 2010
Second Crop Diversification Project Project/Program Administration Manual Jun 2010
Second Crop Diversification Project Design and Monitoring Frameworks May 2010

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.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

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