47245-003: Market and Value Chain Infrastructure Development Project | Asian Development Bank

Bangladesh: Market and Value Chain Infrastructure Development Project

Sovereign (Public) Project | 47245-003 Status: Proposed

The proposed Market and Value Chain Infrastructure Development Project (MVCIDP) will establish a modern safe food value chain for high value perishable crops to service markets in Dhaka, Bangladesh. The value chain will link farmers to a handling and intermediary network, which in turn will link to end users that include food processors, retailers and exporters. There is a critical role for the private sector to invest in, manage and operate the value chain infrastructure and services. Private sector participation, including through public-private partnership, is key to future program sustainability. The rationale for public sector intervention is to address failure in the market to provide appropriate price premiums for safe food which thus deters private sector investment in the value chain.

Project Details

Project Officer
Jones, Randall E. South Asia Department Request for information
Country
  • Bangladesh
Sector
  • Agriculture, natural resources and rural development
 
Project Name Market and Value Chain Infrastructure Development Project
Project Number 47245-003
Country Bangladesh
Project Status Proposed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan: Market and Value Chain Infrastructure Development Project
concessional ordinary capital resources lending / Asian Development Fund US$ 70.00 million
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Private sector development
Sector / Subsector

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

Finance / Inclusive finance

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The proposed Market and Value Chain Infrastructure Development Project (MVCIDP) will establish a modern safe food value chain for high value perishable crops to service markets in Dhaka, Bangladesh. The value chain will link farmers to a handling and intermediary network, which in turn will link to end users that include food processors, retailers and exporters. There is a critical role for the private sector to invest in, manage and operate the value chain infrastructure and services. Private sector participation, including through public-private partnership, is key to future program sustainability. The rationale for public sector intervention is to address failure in the market to provide appropriate price premiums for safe food which thus deters private sector investment in the value chain.
Project Rationale and Linkage to Country/Regional Strategy Although Bangladesh has achieved food self-sufficiency there remain problems with food security and access to safe, diverse and nutritious diets. Bangladesh is also experiencing rapid urbanization and a growing middle class that demands a more diversified diet and safer and more nutritious foods. However, food safety is constrained by poor on-farm and post-harvest management practices, lack of food safety standards and testing procedures, and quality assurance along the value chain. Additional problems with the prevalent traditional marketing system include physical and quality losses from farm to consumer often exceeding 30%, and high price volatility from inability to store perishable products. To address these problems will require (i) investment in value chain infrastructure including collection and distribution centers, cold storages, refrigerated transport, and testing facilities; (ii) improve the capacity of actors in the value chain to produce, process, distribute and market safe food; and (iii) provide credit to facilitate adoption of new technologies and private infrastructure.
Impact Dependable food security for all the people of the country at all times is ensured
Outcome Consumers and producers benefits from improved production, handling and processing of safe high value crops to Dhaka markets is improved
Outputs

Farmer's capacity to produce and supply safe agricultural food is improved

Value chain participants utilize credit for agribusiness infrastructure investment in the project area

The value chain delivers safe food to consumers

Centralized agribusiness center in Dhaka constructed and operating

Geographical Location Dhaka
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services The Guidelines on the Use of Consultants, March 2013, will be followed. Advance contracting activities will be considered.
Procurement ADB's Procurement Guidelines will be followed
Responsible ADB Officer Jones, Randall E.
Responsible ADB Department South Asia Department
Responsible ADB Division Environment, Natural Resources & Agriculture Division, SARD
Executing Agencies
Ministry of Agriculture
714, West Nakhalpara
Dhaka-1215, Bangladesh
Timetable
Concept Clearance 15 Jul 2016
Fact Finding 15 Dec 2017 to 20 Dec 2017
MRM 31 May 2018
Approval -
Last Review Mission -
Last PDS Update 16 Aug 2017

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Evaluation Documents See also: Independent Evaluation

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Related Publications

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Tenders

No tenders for this project were found.

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.