Bangladesh: Irrigation Management Improvement Project - Additional Financing

Agriculture, natural resources and rural development / Irrigation

The impact and outcome of the overall project will remain unchanged. The impact will be sustainable high growth of agriculture in Bangladesh. The overall project will have the following outcome: increase productivity and sustainability of the MIP.

The outputs of the overall project will remain unchanged. These are: (i) performance-based irrigation management and agriculture support services established; (ii) irrigation system infrastructure rehabilitated and modernized; and (iii) project efficiently managed with effective institutional development. The additional financing will finance cost overruns experienced across outputs 1 and 2.

The primary sources of water in Bangladesh are local rainfall and transboundary inflows, derived mainly from the Brahmaputra, Ganges, and Meghna rivers. Bangladesh occupies only 8% of the total drainage area of these rivers but is located at their downstream end. The result is an abundant excess of surface water during the summer monsoon months and water shortfalls during the winter dry months. Despite being scarce, water is not well managed. Minimal attention is given to water use efficiency and equitable allocation. Many farmers rely on groundwater to supplement the limited and irregular surface water supplies. However, in many areas, the use of groundwater is significantly constrained by arsenic contamination and aquifer limitations. Consequently, the minimum flows required to meet total dry season demands are less than what is available from surface and groundwater.

Although agriculture's share of gross domestic product has declined, it is the primary economic sector in rural areas and provides more than 60% of rural employment. Irrigated agriculture productivity remains chronically low and is attributable to unreliable irrigation supply; inadequate agriculture extension services; and poor access to farm inputs, markets, and agricultural credit services. The lack of efficient and sustainable management, operations, and maintenance (MOM) continues to impact the productivity of large irrigation schemes. Other factors include inadequate government financing, lack of beneficiary empowerment and engagement in MOM, and limited capacity of public agencies resulting in weak service delivery.

Performance-based irrigation management and agriculture support services established

Irrigation system infrastructure rehabilitated and modernized

Project efficiently managed with effective institutional development

All procurement of goods, works, and consultants financed by the ADB loan and grant are carried out in accordance with the ADB's Procurement Guidelines (2015, as amended from time to time) and Guidelines on the Use of Consultants (2013, as amended from time to time). All civil works packages and consultancy packages have been awarded. Some contract amendments are under preparation and will be included in the ongoing civil works and consulting contracts.

ADB's Anticorruption Policy (1998, as amended to date) was explained to and discussed with the government and BWDB. The specific policy requirements and supplementary measures are described in the PAM.