Microenterprise Development Project

Sovereign (Public) Project | 51269-001

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
    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
Project Status Active
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
TA 9652-BAN: Microenterprise Development Project (Supplementary)
Technical Assistance 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 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
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.

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: Audited Project Financial Statement (July 2019-June 2020) Audited Project Financial Statements Dec 2020
Loan Agreement (Ordinary Operations) for Loan 4031-BAN: Microenterprise Development Project - Additional Financing Loan Agreement (Ordinary Resources) Dec 2020
Project Agreement for Loan 4031-BAN: Microenterprise Development Project - Additional Financing Project/Program Agreements Dec 2020
Microenterprise Development Project - Additional Financing: Gender Action Plan Gender Action Plans Nov 2020
Microenterprise Development Project - Additional Financing: Report and Recommendation of the President Reports and Recommendations of the President Nov 2020
Microenterprise Development Project - Additional Financing: Project Administration Manual Project/Program Administration Manual Nov 2020
Microenterprise Development Project: Technical Assistance Consultant's Report Consultants' Reports Jan 2020
Microenterprise Development Project: Audited Project Financial Statements (For the year ended 30 June 2019) Audited Project Financial Statements Jan 2020
Loan Agreement (Ordinary Operations) for Loan 3744-BAN: Microenterprise Development Project Loan Agreement (Ordinary Resources) Feb 2019
Project Agreement for Loan 3744-BAN: Microenterprise Development Project Project/Program Agreements Feb 2019
Microenterprise Development Project: Report and Recommendation of the President Reports and Recommendations of the President Nov 2018
Microenterprise Development Project: Gender Action Plan Gender Action Plans 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.

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.