47245-005: Market and Value Chain Infrastructure Development Project | Asian Development Bank

Bangladesh: Market and Value Chain Infrastructure Development Project

Sovereign (Public) Project | 47245-005 Status: Closed

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 project 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
Modality
  • Technical Assistance
Sector
  • Agriculture, natural resources and rural development
 
Project Name Market and Value Chain Infrastructure Development Project
Project Number 47245-005
Country Bangladesh
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 9146-BAN: Market and Value Chain Infrastructure Development Project
Technical Assistance Special Fund US$ 225,000.00
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 project 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 Consumers and producers benefit from improved production, handling and processing of safe high value crops to Dhaka markets
Project Outcome
Description of Outcome Project concept for Market and Value Chain Infrastructure Development prepared
Progress Toward Outcome
Implementation Progress
Description of Project Outputs Due diligence reviews of components for ensuing project completed
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Dhaka
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 Consultants will be recruited by ADB in accordance with ADB's Guidelines on the Use of Consultants (2013, as amended from time to time) and using the individual selection method.
Procurement Procurement will be followed in accordance with ADB's Guidelines on Procurement.
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 -
Fact Finding -
MRM -
Approval 28 Jul 2016
Last Review Mission -
Last PDS Update 28 Aug 2017

TA 9146-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
28 Jul 2016 - 28 Jul 2016 30 Apr 2017 31 Dec 2017 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
225,000.00 0.00 0.00 0.00 0.00 0.00 225,000.00 28 Jul 2016 221,268.49

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Related Publications

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Tenders

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Procurement Plan

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