Bangladesh: Emergency Assistance for Food Security Project

Sovereign Project | 42166-013

Summary

It contributed to the efforts of the Government for 5 million poor and vulnerable people to have better access to food. It reduced the poverty levels of low-income groups. The focus of the Project was to improve access of the poor to food, income and livelihood support. It assisted in relieving the immediate fiscal pressures because of a sharp rise in safety net expenditures. It also assisted in sustaining the external balance, aggravated by higher import costs for food grains.

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Project Name Emergency Assistance for Food Security Project
Project Number 42166-013
Country Bangladesh
Project Status Closed
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
Loan 2430-BAN: Emergency Assistance for Food Security Project
Asian Development Fund US$ 170.00 million
TA 7101-BAN: Strengthening the Government's Institutional Capacity for Improving Food Security
Technical Assistance Special Fund US$ 600,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change
Sector / Subsector Agriculture, natural resources and rural development - Agricultural policy, institutional and capacity development
Gender Equity and Mainstreaming
Description It contributed to the efforts of the Government for 5 million poor and vulnerable people to have better access to food. It reduced the poverty levels of low-income groups. The focus of the Project was to improve access of the poor to food, income and livelihood support. It assisted in relieving the immediate fiscal pressures because of a sharp rise in safety net expenditures. It also assisted in sustaining the external balance, aggravated by higher import costs for food grains.
Project Rationale and Linkage to Country/Regional Strategy

The surge in prices of food grains had eroded the purchasing power of the poor and vulnerable, placing them at great risk of hunger and malnutrition. Soaring food prices are undermining the gains in poverty reduction and have pushed large numbers of people back below the poverty line. An additional 8.5% of households that fell below the poverty line in 2008-this translates into an additional 2.5 million households or 12 million people. People below the poverty line experienced income erosion of 36.7% from January 2007 to March 2008 because of higher food prices. In light of these risks, the Government was needed to strengthen safety net programs immediately for the most vulnerable population to cope with the drastic rise in their food bills. The proposed support was an integral part of the overall commitment made by the Asian Development Bank (ADB) in May 2008 to provide urgent budgetary support to the hardest hit countries for safety nets to protect the poor and vulnerable in the face of rising food prices. Those most vulnerable to food price shocks needed to be protected from nutritional deprivation, erosion in their real purchasing power, and asset shedding. Failure to protect the poor from income erosion could seriously undermine recent gains in poverty reduction and the political and macroeconomic stability of the country.

The overall policy and institutional environment is sound. The Government had taken bold actions to reduce subsidies by substantially raising fertilizer and energy prices, with freed resources exclusively targeting the poor and vulnerable through strengthened safety net programs. The Government had a good record of managing public food distribution through well-targeted and well-managed programs, so there is a solid basis for supporting the envisaged safety net programs. The food for work program also supports the construction and maintenance of essential infrastructure-rural roads, river embankments, irrigation, and other public facilities. Only short-term solutions covered by the emergency loan. Medium- and longer-term measures to ensure food security through increased agriculture productivity will be covered under the regular country operational program in support of the national food policy and the plan of action for its implementation.

Impact The main impact of the Project will be to prevent poverty from rising. The Project will improve the food security of the poor and vulnerable people affected by repeated natural disasters and rising food prices.
Project Outcome
Description of Outcome Project will contribute to the efforts of the Government so that 5 million poor and vulnerable people have better access to food. The focus of the Project will be on improving access of the poor to food, income, and livelihood support. It will assist in relieving the immediate fiscal pressures caused by a sharp rise in the international markets. It will also assist in sustaining the external balance, aggravated by higher import costs for food grains.
Progress Toward Outcome Loan project completed with 100% achievement through import of food grain and compliance with the tranche releases.
Implementation Progress
Description of Project Outputs

The major outputs of the Project are the following:

1. Strengthened open market sales of food grains with wider coverage to ensure food security of targeted poor and vulnerable people

2. Enhanced food entitlements for the poor and vulnerable to survive short-term food deficits

3. Enhanced purchasing power of the poor and vulnerable through generating rural employment

4. More effective and efficient food security monitoring system

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

(i) Food grain of $164.5 million was imported to reach the grains to the poor and vulnerable people.

(ii) Government could reach the target utilizing other sources of funds, including Governments' own funds.

(iii) Poor people was engaged in Governments' different development Projects.

Output of the piggy-back TA: a computer-based food security and monitoring system has been piloted successfully. The pilot zones were all upzilas of Tangail district, Control Movement and storage Office of Chittagong Silo, regional controller of food of Chittagong, Office of the Directorate General of Food (DGF), and Ministry of Food and Disaster Management. IT Division of Department of Agricultural Extension (DAE) was also improved. Necessary training conducted to the staff of DGF and DAE. All the physical activities under the TA has been completed on 30 May 2011. Closing of TA account is underway. Technical Assistance Completion Report (TCR) has been drafted and will circulated after closing of the TA account.

Geographical Location Bangladesh
Safeguard Categories
Environment C
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects No negative impact envisaged.
Involuntary Resettlement No resettlement required.
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design This is an emergency response project and assessment and consultation schedule was drawn jointly with Government and other development partners to ensure participation of relevant stakeholders. The relevant Ministries in the Government were consulted on the basis of the consultation schedules. A participatory process was adopted to identify the needs and components of the Project during the joint ADB-JBIC-World Bank Mission. Simultaneously, ADB identified the areas to be supported under an ADB-financed loan jointly with the Government. Consultation with civil society was done and regular interaction continued with various agencies during the assessment. ADB support for strengthening safety nets for the poor and vulnerable was supported by the stakeholders. The outputs of the mission were: (i) formulation of a project design and components to be supported, (ii) formulation of a list of import items to be supported under the Project, and (iii) estimate of budget support. In addition, mechanisms to ensure benefits of poor and women through improved safety net programs and employment guarantee schemes were discussed, and identified. A TA was proposed to help implement medium and long term food security strategy and road map by the Government and suggest means to improve the distribution efficiency and coverage of the safety net programs in reaching the poor.
During Project Implementation

In view of the emergency nature of the Project to provide budgetary support to the Government, a full-fledged C& P plan was not prepared.

Resources have been provided for a TA to assess the existing safety net programs and recommend measures to improve the effectiveness of the existing programs reaching the poor, women and other vulnerable groups. The civil society including local government institutions will be involved in consultation while implementing the TA. NGOs are involved in delivery and monitoring of some safety net programs and will continue to remain engaged.

Business Opportunities
Consulting Services ADB recruited four consultants following individual consultant selection method. All the consultant completed their assignments and submitted reports were accepted by the Government and ADB, except the assignment of local agricultural expert. His performance was not satisfactory and report was not accepted.
Procurement Food grains were procured by the Government on an emergency basis following Government procedures. The tranche release conditions were met in time.
Responsible ADB Officer Shamsur Rahman
Responsible ADB Department South Asia Department
Responsible ADB Division Bangladesh Resident Mission
Executing Agencies
Ministry of FinanceAmalendu MukharjeeFinance Division, Ministry of Finance.
Timetable
Concept Clearance 17 Jun 2008
Fact Finding 27 May 2008 to 15 Jun 2008
MRM 26 Jun 2008
Approval 22 Jul 2008
Last Review Mission -
PDS Creation Date 08 Jul 2008
Last PDS Update 30 Jun 2011

Loan 2430-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
22 Jul 2008 04 Aug 2008 11 Aug 2008 31 Dec 2009 - 21 Jun 2010
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 170.06 Cumulative Contract Awards
ADB 170.00 22 Jul 2008 164.55 0.00 100%
Counterpart 0.06 Cumulative Disbursements
Cofinancing 0.00 22 Jul 2008 164.55 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory - - - - -

TA 7101-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
22 Jul 2008 11 Jan 2009 11 Jan 2009 30 Jun 2009 31 May 2011 -
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 22 Jul 2008 420,715.67
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory - - - - -

Safeguard Documents

See also: Safeguards

No documents found.

Evaluation Documents

See also: Independent Evaluation
Title Document Type Document Date
Bangladesh: Emergency Assistance for Food Security Project Validations of Project Completion Reports Nov 2014

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