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
Bangladesh -
Sector
- Finance
| Project Name | Microenterprise Development Project | ||||||||||||
| Project Number | 51269-001 | ||||||||||||
| Country | 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 | The project became effective on 4 April 2019. |
| 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) | Gender-inclusive microenterprise finance operational guidelines for MFIs has been developed by the consultant.73 officers of 55 POs have been trained. Training was interrupted due to COVID-19. Rest of the PO's officers will be virtually trained by first half of October 2020A national consultant is onboard and work is ongoing. In the meantime, 38,260 microenterprise borrowers from 2 POs have been enrolled in mobile-based microenterprise finance application and 7,424 microenterprise borrowers from another PO will be enrolled by August 2020. Training has been scheduled for 450 PO's staff from 18 July to 13 August 2020. Then trained PO staff will train at least 10,000 microenterprise borrowers by October 2020, of whom at least 70% will be female.Medium-term institutional strengthening and financing strategy has been developed by the consultant. An enterprise support scheme plan for selected three microenterprise clusters has been developed by the consultant. Implementation of this support scheme plan is going on and likely to be completed before December 2020.Achieved. Up to September 2020 total microenterprise loan outstanding of PKSF to POs has increased to BDT 22.43 billion.Achieved. Up to September 2020, total microenterprise loan portfolio outstanding of PKSF's POs has increased to BDT 139.41 billion of which 74% are for the female borrowers.An international consultant and a national consultant are on board and work is going on. Three products will be uploaded to different e-commerce platforms by October 2020. |
| 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 | 30 Sep 2020 |
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 | - | - |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 62.50 | Cumulative Contract Awards | |||
| ADB | 50.00 | 26 Nov 2018 | 0.00 | 0.00 | 0% |
| Counterpart | 12.50 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 26 Nov 2018 | 50.08 | 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 | 26 Nov 2018 | 319,367.10 |
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
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Related Publications
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ADB Promoting Microenterprise Finance in Bangladesh with $50 Million Loan
ADB has approved a $50 million loan to promote microenterprise development in Bangladesh through a credit line to Palli Karma Sahayak Foundation (PKSF), a development finance organization, and its partner microfinance institutions.
Tenders
| Tender Title | Type | Status | Posting Date | Deadline |
|---|---|---|---|---|
| TA Coordinator | Individual - Consulting | Closed | 13 May 2021 | 01 Jun 2021 |
| Microenterprise Finance Specialist | Individual - Consulting | Closed | 30 Mar 2019 | 05 Apr 2019 |
| Technical Advisor for Microenterprise Development Project | Individual - Consulting | Closed | 30 Mar 2019 | 05 Apr 2019 |
| E-Commerce Specialist | Individual - Consulting | Closed | 30 Mar 2019 | 05 Apr 2019 |
| National Consultants (Firm) | Firm - Consulting | Closed | 19 Jan 2019 | 15 Feb 2019 |
Contracts Awarded
| Contract Title | Approval Number | Contract Date | Contractor | Contractor Address | Executing Agency | Contract Description | Total Contract Amount (US$) | 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 | Consulting Services | 139150.00 |
Procurement Plan
None currently available.