Key Takeaways:
- The Asian Development Bank (ADB) and the Bangladesh government have signed a $106 million loan agreement to improve water resources management and agricultural productivity in rural Bangladesh.
- A $17.8 million grant from the Government of the Netherlands will also be administered by ADB, focusing on innovative pilot works and consulting services.
- The project aims to support climate impacts and food security by enhancing flood embankments, deepening channels, and providing efficient irrigation systems.
- The initiative is expected to benefit 380,000 households, particularly women and vulnerable persons, by increasing crop production and supporting fisheries and aquaculture.
- The project has attracted additional co-financing from the International Fund for Agricultural Development and the Government of the Netherlands, with the Bangladesh government providing counterpart funds.
The Asian Development Bank (ADB) and the Bangladesh government have entered into a $106 million loan agreement aimed at enhancing water resources management and boosting agricultural productivity in rural areas of Bangladesh.
Financial Contributions
In addition to the loan from ADB, a $17.8 million grant from the Government of the Netherlands has also been secured. ADB will administer this grant, which will be used to finance innovative pilot works and consulting services that focus on innovation in water management and agriculture.
Project Objectives
According to Edimon Ginting, ADB Country Director for Bangladesh, the project, known as the “Climate and Disaster Resilient Small-Scale Water Resources Management Project,” aims to mitigate the impacts of climate change and bolster food security. It plans to do so by raising and strengthening flood embankments, deepening channels for increased water retention, and providing efficient electric pump-pipe irrigation systems. The project will also offer training, develop capacity, and support climate-smart agriculture, agribusinesses, and fishery development.
Beneficiaries
The project is designed to increase crop production and expand fisheries and aquaculture to support the livelihoods of approximately 380,000 households, with a focus on women and vulnerable individuals. It aims to achieve higher cropping intensity, increased crop yields, improved produce quality, and greater crop diversification.
Scope and Scale
Building on the success of three prior ADB-financed projects in Bangladesh, this initiative will scale up investment and intensify support for climate and disaster resilience. It aims to manage water resources over more than 220,000 hectares in 42 districts, which are home to 77% of the rural poor in Bangladesh. The Local Government Engineering Department will implement the project and will establish new water management cooperative associations, modernize existing ones, and construct all-weather farm and village roads.
Co-Financing and Counterpart Funds
The project has attracted $42.98 million in loan co-financing from the International Fund for Agricultural Development and a $17.80 million grant from the Government of the Netherlands. The Government of Bangladesh will provide $58.22 million in counterpart funds.
Photo by MOHAMMAD GOLAM MOSTAFA on Unsplash
