Bangladesh : Market and Value Chain Infrastructure Development Project

Sovereign Project | 47245-005

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
    Ranawana, Sanath
    South Asia Department
    Request for information
  • Country/Economy
    Bangladesh
  • Modality
  • Sector
    • Agriculture, natural resources and rural development
Project Name
Market and Value Chain Infrastructure Development Project
Project Number
47245-005
Country / Economy
  • 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
Source Amount
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
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.

Contact

Responsible ADB Officer
Ranawana, Sanath
Responsible ADB Department
South Asia Department
Responsible ADB Division
Environment, Natural Resources & Agriculture Division, SARD
Executing Agencies
Ministry of Agriculture

Timetable

Concept Clearance
-
Fact Finding
-
MRM
-
Approval
28 Jul 2016
Last Review Mission
-
Last PDS Update
24 Sep 2018

Funding

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 31 Dec 2017
Financing Plan/TA Utilization
ADB Cofinancing Counterpart Total
Gov Beneficiaries Project Sponsor Others
225,000.00 0.00 0.00 0.00 0.00 0.00 225,000.00
Cumulative Disbursements
Date Amount
17 Jun 2022 221,268.49

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.


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

Title Document Type Document Date
Bangladesh: Market and Value Chain Infrastructure Development Project Validation of Technical Assistance Completion Reports Dec 2022

Related Publications

None currently available.


The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.

Tenders

No tenders for this project were found.

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.