Bangladesh: Microenterprise Development Project
The project aims to promote microenterprise development for inclusive economic growth and poverty reduction. It will support improving microenterprise access to finance through the Palli Karma Sahayak Foundation (PKSF), an apex development finance and capacity building organization; and its partner organizations (POs), which are selected microfinance institutions (MFIs). The overall project comprises (i) a financial intermediary loan of $50 million for a credit line to the PKSF and (ii) a TA grant of $500,000 for building capacity for microenterprise development.
Project Details
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Project Officer
Al Hasan, Mohammad Rashed
South Asia Department
Request for information -
Country/Economy
Bangladesh -
Sector
- Finance
Related Projects
| Project Name | Microenterprise Development Project | ||||||||||||||||
| Project Number | 51269-001 | ||||||||||||||||
| Country / Economy | Bangladesh |
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| Project Status | Active | ||||||||||||||||
| Project Type / Modality of Assistance | Loan Technical Assistance |
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| Source of Funding / Amount |
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| Strategic Agendas | Inclusive economic growth |
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| Drivers of Change | Gender Equity and Mainstreaming Governance and capacity development Knowledge solutions Partnerships Private sector development |
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| Sector / Subsector | Finance / Inclusive finance |
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| Gender Equity and Mainstreaming | Gender equity | ||||||||||||||||
| Description | The project aims to promote microenterprise development for inclusive economic growth and poverty reduction. It will support improving microenterprise access to finance through the Palli Karma Sahayak Foundation (PKSF), an apex development finance and capacity building organization; and its partner organizations (POs), which are selected microfinance institutions (MFIs). The overall project comprises (i) a financial intermediary loan of $50 million for a credit line to the PKSF and (ii) a TA grant of $500,000 for building capacity for microenterprise development. | ||||||||||||||||
| Project Rationale and Linkage to Country/Regional Strategy | In Bangladesh''s rural economy, traditionally agriculture is a dominant sector. However, in recent years, the rural nonfarm sector is increasingly playing an important role in the rural economic growth.Most of such rural nonfarm activities operate as microenterprises. In 2013, there were 7 million nonfarm microenterprises employing 14 million people. Given the scale of employment, the rural nonfarm sector can play a significant role in Bangladesh's overall economic growth and poverty reduction. | ||||||||||||||||
| Impact | Growth of microenterprises expanded to provide forward linkages to agriculture and generate job opportunities (National Sustainable Development Strategy, 2010-2021)a | ||||||||||||||||
| Project Outcome | |
|---|---|
| Description of Outcome | Microenterprises' access to MFI financing increased. |
| Progress Toward Outcome | Ongoing Implementation. As of September 2021, Microenterprise borrowers of PKSF's POs has increased to 1.90 million, of whom 22,175 are affected by COVID-19 and 78% are women. |
| Implementation Progress | |
| Description of Project Outputs | Funding to MFIs for microenterprise loans expanded. MFIs' capacity in microenterprise lending enhanced. MFIs' microenterprise development support extended. |
| Status of Implementation Progress (Outputs, Activities, and Issues) | 1. Implementation ongoing. 1.a. As of September 2021, total Microenterprise loan outstanding of PKSF to POs has increased to Tk 28.83 billion, of which Tk 4.24 billion is for COVID-19 affected microentrepreneurs. 1.b. As of June 2021, total Microenterprise loan portfolio outstanding of PKSF's POs has increased to Tk 165 billion, of which 74% are for the female borrowers. 1.c. As of now, most of the agreed recommendations of the medium-term institutional strengthening and financing strategy have been implemented by PKSF. 2.a. Gender-inclusive microenterprise finance operational guidelines for MFIs are being implemented. 2.b. As of September 2021, a total of 77 officers of the 77 POs have been trained on microenterprise lending operations. The remaining PO's officers will be trained gradually. 2.c. As of September 2021, 31,063 microenterprise borrowers out of 55,289 of 3 POs have been enrolled in mobile based microenterprise finance application who are able to make transaction using either their own or family member's MFS account. After recruitment of the consultant, the remaining 3 POs will be selected. Besides 450 staffs of 3 POs have been trained on Mobile Financial Service System Implementation by the consultant (Mr. M. A. Dewan). The trained PO staffs have trained 11,146 microenterprise borrowers on using Mobile Financial Service System, of whom at least 70% are female. 3.a. An enterprise support scheme plan for selected four microenterprise clusters has been developed by the consultant (Mr. M.K. Bashar). Implementation of this support scheme plan for the four enterprise clusters is ongoing which will be continued. The remaining enterprise clusters will be selected after recruitment of the relevant consultant. 3.b. Quality of three products have been improved and uploaded to different e-commerce platforms. The remaining three products will be branded and uploaded to e-commerce platforms with the support of relevant consultant. |
| Geographical Location | Nation-wide |
| Safeguard Categories | |
|---|---|
| Environment | FI-C |
| Involuntary Resettlement | FI-C |
| Indigenous Peoples | FI-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 | |
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| Consulting Services | Recruitment of consultants shall be governed by the principles and procedures laid down in ADB's Procurement Regulations for ADB Borrowers (2017, as amended from time to time). |
| Procurement | Procurement by subborrowers, if any, will be in accordance with the established private sector or commercial practices acceptable to ADB, as required in Procurement Regulations for ADB Borrowers (2017, as amended from time to time). |
| Responsible ADB Officer | Al Hasan, Mohammad Rashed |
| Responsible ADB Department | South Asia Department |
| Responsible ADB Division | Bangladesh Resident Mission |
| Executing Agencies |
Financial Institutions Division-MOF Mr. Arijit Chowdhury [email protected] Bangladesh Secretariat, Abdul Gani Rd Dhaka-1000 Bangladesh |
| Timetable | |
|---|---|
| Concept Clearance | 25 Apr 2018 |
| Fact Finding | 29 Apr 2018 to 03 May 2018 |
| MRM | 06 Sep 2018 |
| Approval | 26 Nov 2018 |
| Last Review Mission | - |
| Last PDS Update | 17 Nov 2021 |
Loan 3744-BAN
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 26 Nov 2018 | 06 Feb 2019 | 04 Apr 2019 | 31 Mar 2021 | - | 23 May 2021 |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 62.50 | Cumulative Contract Awards | |||
| ADB | 50.00 | 17 Jun 2022 | 50.08 | 0.00 | 100% |
| Counterpart | 12.50 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 17 Jun 2022 | 50.08 | 0.00 | 100% |
Loan 4031-BAN
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 07 Dec 2020 | 21 Dec 2020 | 14 Feb 2021 | 30 Jun 2023 | - | - |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 62.50 | Cumulative Contract Awards | |||
| ADB | 50.00 | 17 Jun 2022 | 50.00 | 0.00 | 100% |
| Counterpart | 12.50 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 17 Jun 2022 | 50.00 | 0.00 | 100% |
TA 9652-BAN
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 26 Nov 2018 | 12 May 2019 | 12 May 2019 | 31 Dec 2020 | 31 Dec 2022 | - |
| Financing Plan/TA Utilization | Cumulative Disbursements | |||||||
|---|---|---|---|---|---|---|---|---|
| ADB | Cofinancing | Counterpart | Total | Date | Amount | |||
| Gov | Beneficiaries | Project Sponsor | Others | |||||
| 1,000,000.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 1,000,000.00 | 17 Jun 2022 | 349,687.80 |
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.
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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
None currently available.
Related Publications
None currently available.
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ADB Promoting Microenterprise Finance in Bangladesh with $50 Million Loan
ADB has approved a $50 million loan to promote microenterprise development in Bangladesh through a credit line to Palli Karma Sahayak Foundation (PKSF), a development finance organization, and its partner microfinance institutions.
Tenders
| Tender Title | Type | Status | Posting Date | Deadline |
|---|---|---|---|---|
| Social Development and Gender Specialist | Individual - Consulting | Closed | 08 Feb 2022 | 14 Feb 2022 |
| Market Development Specialist | Individual - Consulting | Closed | 09 Dec 2021 | 15 Dec 2021 |
| Financial Management Specialist | Individual - Consulting | Closed | 18 Nov 2021 | 24 Nov 2021 |
| Microenterprise Development Specialist | Individual - Consulting | Closed | 18 Nov 2021 | 24 Nov 2021 |
| Mobile Microfinance Specialist | Individual - Consulting | Closed | 11 Nov 2021 | 17 Nov 2021 |
| Cluster Development Specialist | Individual - Consulting | Closed | 01 Nov 2021 | 07 Nov 2021 |
| Product Quality and Technology Development Specialist | Individual - Consulting | Closed | 29 Oct 2021 | 04 Nov 2021 |
| Brand Development Specialist | Individual - Consulting | Closed | 11 Oct 2021 | 18 Oct 2021 |
| TA Coordinator | Individual - Consulting | Closed | 03 Sep 2021 | 09 Sep 2021 |
| Microenterprise Finance Specialist | Individual - Consulting | Closed | 30 Mar 2019 | 05 Apr 2019 |
| Technical Advisor for Microenterprise Development Project | Individual - Consulting | Closed | 30 Mar 2019 | 05 Apr 2019 |
| E-Commerce Specialist | Individual - Consulting | Closed | 30 Mar 2019 | 05 Apr 2019 |
| National Consultants (Firm) | Firm - Consulting | Closed | 19 Jan 2019 | 15 Feb 2019 |
Contracts Awarded
| Contract Title | Approval Number | Contract Date | Contractor | Address | Executing Agency | Total Contract Amount (US$) | Contract Amount Financed by ADB (US$) |
|---|---|---|---|---|---|---|
| Capacity Development | Technical Assistance 9652 | 21 Jun 2019 | MAXWELL STAMP LIMITED (BANGLADESH) in association with Recursion Technologies Ltd. (BANGLADESH) | House No. 333, Road No. 113 Gulshan, Dhaka 1212 Bangladesh | Bank and Financial Institutions Division-MOF | 139,150.00 | — |
Procurement Plan
None currently available.