51269-001: Microenterprise Development Project | Asian Development Bank

Bangladesh: Microenterprise Development Project

Sovereign (Public) Project | 51269-001 Status: Approved

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

Project Officer
Ozaki, Mayumi South Asia Department Request for information
Country
  • Bangladesh
Sector
  • Finance
 
Project Name Microenterprise Development Project
Project Number 51269-001
Country Bangladesh
Project Status Approved
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
Loan 3744-BAN: Microenterprise Development Project
Ordinary capital resources US$ 50.00 million
TA 9652-BAN: Capacity Development for Microenterprise Development
Financial Sector Development Partnership Special Fund US$ 500,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector

Finance / Inclusive finance

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
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)
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
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 Ozaki, Mayumi
Responsible ADB Department South Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, SARD
Executing Agencies
Bank and Financial Institutions Division-MOF
[email protected]
Bangladesh Secretariat
Dhaka-1000 Bangladesh
Timetable
Concept Clearance -
Fact Finding 29 Apr 2018 to 03 May 2018
MRM 06 Sep 2018
Approval 26 Nov 2018
Last Review Mission -
Last PDS Update 26 Nov 2018

Loan 3744-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
26 Nov 2018 - - 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 0.00 0.00 0%

TA 9652-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
26 Nov 2018 - - 31 Dec 2020 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
500,000.00 0.00 0.00 0.00 0.00 0.00 500,000.00 26 Nov 2018 0.00

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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Tenders

Tender Title Type Status Posting Date Deadline
National Consultants (Firm) Firm - Consulting Active 19 Jan 2019 02 Feb 2019

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.