Bangladesh: Supporting Post-COVID-19 Small-Scale Employment Creation Project

Sovereign Project | 54336-001

With the onset of the COVID-19 pandemic, government's efforts took on increased urgency and many short-term measures were put in place to provide immediate support for social protection and job protection. While most of the social protection measures were through direct cash or in-kind transfer and expansion of welfare programs, the support for industry and job protection will mostly be carried out through credit lines and liquidity support through financial sector. The total amount of credit lines, refinance programs, and credit protection schemes announced, has reached Tk1 trillion. But the retrenchment of the financial sector and capacity constraints present a challenge to deliver the funds timely and efficiently especially to reach certain highly vulnerable sectors.

Project Details

  • Project Officer
    Zhang, Dongdong
    South Asia Department
    Request for information
  • Approval Date
    17 November 2021
  • Country
    Bangladesh
  • Sector
    • Finance
Project Name Supporting Post-COVID-19 Small-Scale Employment Creation Project
Project Number 54336-001
Country Bangladesh
Project Status Approved
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
Loan 4142-BAN: Supporting Post-COVID-19 Small-Scale Employment Creation Project
Concessional ordinary capital resources lending US$ 150.00 million
TA 6829-BAN: Capacity Development for Post-COVID-19 Small-Scale Employment Creation
Technical Assistance Special Fund US$ 900,000.00
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Partnerships
Private sector development
Sector / Subsector

Finance / Banking systems and nonbank financial institutions - Inclusive finance

Public sector management / Public administration

Gender Equity and Mainstreaming Effective gender mainstreaming
Description With the onset of the COVID-19 pandemic, government's efforts took on increased urgency and many short-term measures were put in place to provide immediate support for social protection and job protection. While most of the social protection measures were through direct cash or in-kind transfer and expansion of welfare programs, the support for industry and job protection will mostly be carried out through credit lines and liquidity support through financial sector. The total amount of credit lines, refinance programs, and credit protection schemes announced, has reached Tk1 trillion. But the retrenchment of the financial sector and capacity constraints present a challenge to deliver the funds timely and efficiently especially to reach certain highly vulnerable sectors.
Project Rationale and Linkage to Country/Regional Strategy The project will help enhance the productivity and skills of the workforce, and create gainful employment opportunity, all of which are priority areas in ADB's country partnership strategy, 2016-2020 for Bangladesh, and is included in the country operations business plan, 2020-2022. The project is well aligned with the operational priorities of ADB's Strategy 2030. The project will help alleviate poverty by creating employment opportunities and supporting entrepreneurship (Operational Priority 1). The project will help strengthen governance and the institutional capacity of several key institutions crucial for employment creation (Operational Priority 6), and support gender equality by incorporating gender elements by providing inclusive financing and gender sensitive capacity building activities (Operational Priority 2). Moreover, in line with ADB's Strategy 2030, the project will help promote private sector development. Given the severe challenge of COVID-19, the needs by the country in all these areas take on much increased urgency and the impact of ADB support is magnified.
Impact Rapid recovery for COVID-19 to restore employment, income and economic activities (Eighth Five Year Plan, July 2020-June 2025)
Project Outcome
Description of Outcome Adverse economic effects of COVID-19 on migrants, youth, and rural entrepreneurs mitigated
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Financial support to enterprises started or operated by migrants, rural enterprises, and youth from the formal banking sector increased

Capacity of employment-supporting financial institutions strengthened

Action plan for promoting formal banking sector support for cottage, micro, and small enterprises developed

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 Consulting services to be financed by the proposed attached TA will follow ADB Procurement Policy (2017, as amended from time to time) and Procurement Regulations for ADB Borrowers (2017, as amended from time to time). The recommended project procurement risk is low (Appendix 2).
Procurement Procurement to be financed by the proposed attached TA will follow ADB Procurement Policy (2017, as amended from time to time) and Procurement Regulations for ADB Borrowers (2017, as amended from time to time).
Responsible ADB Officer Zhang, Dongdong
Responsible ADB Department South Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, SARD
Executing Agencies
Ministry of Finance
Economic Relations Division (ERD), MOF
Sher-e-Bangla Nagar, Dhaka_1207
Bangladesh
Timetable
Concept Clearance 06 Jul 2021
Fact Finding 13 Jul 2021 to 29 Jul 2021
MRM 17 Sep 2021
Approval 17 Nov 2021
Last Review Mission -
Last PDS Update 17 Nov 2021

Loan 4142-BAN

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 150.00 Cumulative Contract Awards
ADB 150.00 - 0.00 0.00 %
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 - 0.00 0.00 %

TA 6829-BAN

Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
900,000.00 0.00 0.00 0.00 0.00 0.00 900,000.00 - 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

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Related Publications

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The Access to Information Policy (AIP) 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.

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Tenders

No tenders for this project were found.


Contracts Awarded

No contracts awarded for this project were found


Procurement Plan

None currently available.