The project will support the construction of a manufacturing plant and the purchase of machinery and equipment to produce potato chips, potato flakes, and pasta. The manufacturing facilities will be located in Habiganj Industrial Park, 120 kilometers from Dhaka, where the starch and liquid glucose plant is also located. The project will promote inclusive and sustainable agricultural value chains with higher local value addition of farm produce.
|Project Name||Second PRAN Agribusiness Project|
|Borrower/Company||Sylvan Agriculture Limited
|Type or Modality of Assistance||
|Strategic Agendas||Inclusive economic growth
|Drivers of Change||Private sector development
|Sector / Subsector||
Agriculture, natural resources and rural development / Agro-industry, marketing, and trade
|Gender Equity and Mainstreaming||Effective gender mainstreaming|
|Responsible ADB Department||Private Sector Operations Department|
|Responsible ADB Division||Office of the Director General, PSOD|
|Responsible ADB Officer||Dora, Tushna|
|Description||The project will support the construction of a manufacturing plant and the purchase of machinery and equipment to produce potato chips, potato flakes, and pasta. The manufacturing facilities will be located in Habiganj Industrial Park, 120 kilometers from Dhaka, where the starch and liquid glucose plant is also located. The project will promote inclusive and sustainable agricultural value chains with higher local value addition of farm produce.|
|Objectives and Scope||Sylvan Agriculture Limited (SAL) will procure potatoes under contract farming arrangements, providing assistance and a guaranteed source of income to 2,000 smallholder farmers. The project will promote inclusive business given the high poverty reduction impact at farming and factory levels. ADB will promote effective gender mainstreaming through a gender action plan. ADB will offer long-term US dollar funding, which is not readily available in Bangladesh, and will promote higher environmental and social standards through its safeguard policy requirements. The project is fully aligned with the Government of Bangladesh's goals to enhance agricultural productivity, increase local value addition, and create jobs.|
|Linkage to Country/Regional Strategy||
Strategy 2030 identified promoting rural development and food security by supporting agriculture (improving value chain linkages; and increasing agricultural productivity, food security, and food safety) as one of the key operational priorities linking ADBs operations to inclusive growth. It also stated that ADB will increase its support to inclusive business models. The proposed project is consistent with this strategy as it (i) supports the development of agricultural value chains connecting agricultural production to food processing; and (ii) increases productivity by introducing new higher-yielding crop varieties, which lead to increased incomes for farmers.
The country partnership strategy, 2016 -2020 for Bangladesh identified improving rural livelihoods by increasing the productivity of agriculture as among the priority investment areas for projects since agriculture provides nearly half of all employment and supports more than 70% of the population. It also stated that ADB will continue to provide financial assistance to private sector projects with sound fundamentals and strong development impact.
The project is also aligned with ADB's Operational Plan for Agriculture and Natural Resources as it supports agribusiness investment and value chain development where key functional activities of the food value chain include production, processing, distribution, and consumption. The plan states that investments in agriculture and natural resources are essential to promoting inclusive growth, reducing poverty, and promoting environmental stability.
|Summary of Environmental and Social Aspects|
ADB has categorized the investment in compliance with ADB's Safeguard Policy Statement (2009) for environment (category B).
ADB has undertaken due diligence and reviewed the potential environmental and social impacts of the project and the measures to avoid, minimize, mitigate, and compensate for the adverse impacts in the safeguard reports and plans. The environmental and social measures and the institutional capacity and commitment of SAL to manage the project's social and environmental impacts are deemed adequate. Key environment safeguard issues during construction include solid and liquid waste disposal, noise and vibration, and occupational health and safety. During operation, relevant areas of concern include air emissions, wastewater discharge, solid waste disposal, workers' health and safety, food quality assurance, and resource efficiency and conservation. An external expert prepared an initial environmental examination, which includes an environmental and social management and monitoring plan. The external expert conducted an environmental and social compliance audit, with a corresponding corrective action plan, for the potato chips component. SAL has established a grievance redress mechanism to handle project-related grievances. SAL's institutional capacity and commitment to manage the project's social and environmental impacts are deemed adequate.
|Involuntary Resettlement||ADB has categorized the investment in compliance with ADB's Safeguard Policy Statement (2009) for involuntary resettlement (category C).|
|Indigenous Peoples||ADB has categorized the investment in compliance with ADB's Safeguard Policy Statement (2009) for indigenous peoples (category C).|
|Stakeholder Communication, Participation, and Consultation|
|Timetable for assistance design, processing and implementation|
|Concept Clearance||26 Apr 2017|
|Credit Committee Meeting||02 Nov 2018|
|Approval||12 Dec 2018|
|Last PDS Update||14 Jul 2020|
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.
|Title||Document Type||Document Date|
|Second PRAN Agribusiness Project: Initial Poverty and Social Analysis||Initial Poverty and Social Analysis||Dec 2018|
|Second PRAN Agribusiness Project: Report and Recommendation of the President||Reports and Recommendations of the President||Nov 2018|
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.
|Title||Document Type||Document Date|
|Second PRAN Agribusiness Project: Initial Environmental Examination Report||Environmental Assessment and Measures||Dec 2018|
Evaluation Documents See also: Independent Evaluation
None currently available.
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.
ADB Signs Second Loan with PRAN for Inclusive Agribusiness in BangladeshADB today signed a $14.2 million loan to support the expansion plans of SAL, a PRAN-RFL Group company, to enhance inclusiveness in the agribusiness sector by lifting the incomes and skills of farmers—particularly women.