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 Name | Microenterprise Development Project | ||||||||
| Project Number | 51269-001 | ||||||||
| Country | Bangladesh |
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| Project Status | Approved | ||||||||
| 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 | |
| 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.
The Public Communications Policy (PCP) 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.
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| Title | Document Type | Document Date |
|---|---|---|
| Microenterprise Development Project: Gender Action Plan | Gender Action Plans | Nov 2018 |
| Microenterprise Development Project: Report and Recommendation of the President | Reports and Recommendations of the President | Nov 2018 |
| Microenterprise Development Project: Technical Assistance Report | Technical Assistance Reports | Oct 2018 |
| Microenterprise Development Project: Project Administration Manual | Project/Program Administration Manual | Oct 2018 |
| Microenterprise Development Project: Initial Poverty and Social Analysis | Initial Poverty and Social Analysis | Apr 2018 |
| ক্ষুদ্র বযবসায় উন্নয়ন প্রকল্প : প্রকল্প তথ্যপত্র | Translated PDS | Sep 2017 |
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.
The Public Communications Policy (PCP) 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.
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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 |
|---|---|---|---|---|
| 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.