Bangladesh: Third Capital Market Development Program

Sovereign Project | 45253-002 Status: Approved

Summary

The specific objective of the proposed Capital Market Development Program III (CMDP III) is the enhanced capacity and size of the capital market that is grounded on a strong legal and regulatory framework. The CMDP III is scheduled to be approved by the Board soon after disbursal of the second and final tranche of the ongoing $300 million CMDP II.

Latest Project Documents

Consulting Notices

See also: CMS
Title Deadline
Consulting Firm 15 Feb 2016

Procurement Notices

See also: Operational Procurement

No notices are currently available for this project.

Procurement Documents

None currently available.


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Project Name Third Capital Market Development Program
Project Number 45253-002
Country Bangladesh
Project Status Approved
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
Loan 3318-BAN: Third Capital Market Development Program
Ordinary capital resources US$ 150.00 million
Loan 3319-BAN: Third Capital Market Development Program
Asian Development Fund US$ 100.00 million
TA 8994-BAN: Supporting Third Capital Market Development
Technical Assistance Special Fund US$ 400,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector

Finance - Money and capital markets

Gender Equity and Mainstreaming No gender elements
Description The specific objective of the proposed Capital Market Development Program III (CMDP III) is the enhanced capacity and size of the capital market that is grounded on a strong legal and regulatory framework. The CMDP III is scheduled to be approved by the Board soon after disbursal of the second and final tranche of the ongoing $300 million CMDP II.
Project Rationale and Linkage to Country/Regional Strategy

ADB's financial sector strategy for Bangladesh, which is included in the country partnership strategy and the new country operations business plan, is based on the Sixth Five-Year Plan, lessons from ADB's previous financial sector interventions, and coordination with other development partners. In line with the Sixth Five-Year Plan and ADB's Strategy 2020 priorities, capital market development and bond market development focusing on the provision of long-term infrastructure is one of ADB's focus areas in its Bangladesh public sector operations. Strategy 2020 includes support for capital market development as one of ADB's core operational priorities because it can facilitate private sector development and infrastructure development, which rely on the availability of long-term local currency funds for viable financial structures. The proposed program is fully aligned with the government's Sixth Five-Year Plan, ADB's Strategy 2020, and ADB's country partnership strategy with Bangladesh.

A policy-based loan is proposed and justified in this case since it is targeted at a sector in which the government is firmly committed to reform, but in which significant economic, financial, and social costs are associated with the reform program and are likely to hinder its smooth and timely implementation without the additional support and inducement provided by a policy-based loan.

Impact A well -functioning financial system that supports basic capital and investment needs, as well as Bangladesh''s longer term economic objectives.
Project Outcome
Description of Outcome Enhanced capacity and size of the capital market in a strong legal and regulatory framework
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Strengthened market stability

Enhanced market facilitation

Enhanced supply measures

Enhanced demand measures

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location
Safeguard Categories
Environment C
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The captial market reforms under the program are likely to have no adverse environmental impacts. Therefore, the program's environment category is assigned as C.
Involuntary Resettlement The program has no involuntary resettlement impacts, the program's involuntary resettlement category is assigned as C.
Indigenous Peoples The program's indigenous peoples category is also assigned as C.
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services ADB will recruit a consulting firm to provide 17 person-months of international and 8 person-months of national consulting services. The consulting firm will provide its technical expertise in the field and back office support. Consultants will be recruited, using the quality- and cost-based selection method with a standard quality cost ratio of 90:10 because of the highly specialized expertise needed. All consultants will be recruited in line with ADB's Guidelines on the Use of Consultants (2013, as amended from time to time). All the disbursements under the TA will be made in accordance with ADB's Technical Assistance Disbursement Handbook (2010, as amended from time to time).
Procurement not applicable
Responsible ADB Officer Syed Shah
Responsible ADB Department South Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, SARD
Executing Agencies
Bank and Financial Institutions Division-MOF
ARIJIT@FINANCE.GOV.BD
Bangladesh Secretariat
Dhaka-1000 Bangladesh
Timetable
Concept Clearance 25 Nov 2013
Fact Finding 08 Feb 2015 to 12 Feb 2015
MRM 03 Jul 2015
Approval 20 Nov 2015
Last Review Mission -
Last PDS Update 16 Sep 2015

Loan 3318-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
20 Nov 2015 22 Nov 2015 11 Dec 2015 30 Jun 2018 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 150.00 Cumulative Contract Awards
ADB 150.00 20 Nov 2015 80.00 0.00 53%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 20 Nov 2015 80.00 0.00 53%

Loan 3319-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
20 Nov 2015 22 Nov 2015 11 Dec 2015 30 Jun 2018 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 100.00 Cumulative Contract Awards
ADB 100.00 20 Nov 2015 0.00 0.00 0%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 20 Nov 2015 0.00 0.00 0%

TA 8994-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
20 Nov 2015 - - 31 Dec 2017 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
400,000.00 0.00 0.00 0.00 0.00 0.00 400,000.00 20 Nov 2015 0.00

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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