Market and Value Chain Infrastructure Development Project (ADB-47245-003)

Countries
  • Bangladesh
Where the impacts of the investment may be experienced.
Financial Institutions
  • Asian Development Bank (ADB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Bank Risk Rating
B
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Nov 30, 2018
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Government of Bangladesh
The holder of the loan, grant, or other investment.
Sectors
  • Agriculture and Forestry
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Loan Amount (USD)
$ 70.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 70.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ ADB website

Updated in EWS Jan 3, 2018

Disclosed by Bank Aug 16, 2017


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Project Description
The proposed Market and Value Chain Infrastructure Development Project (MVCIDP) will establish a modern safe food value chain for high value perishable crops to service markets in Dhaka, Bangladesh. The value chain will link farmers to a handling and intermediary network, which in turn will link to end users that include food processors, retailers and exporters. There is a critical role for the private sector to invest in, manage and operate the value chain infrastructure and services. Private sector participation, including through public-private partnership, is key to future program sustainability. The rationale for public sector intervention is to address failure in the market to provide appropriate price premiums for safe food which thus deters private sector investment in the value chain. Although Bangladesh has achieved food self-sufficiency there remain problems with food security and access to safe, diverse and nutritious diets. Bangladesh is also experiencing rapid urbanization and a growing middle class that demands a more diversified diet and safer and more nutritious foods. However, food safety is constrained by poor on-farm and post-harvest management practices, lack of food safety standards and testing procedures, and quality assurance along the value chain. Additional problems with the prevalent traditional marketing system include physical and quality losses from farm to consumer often exceeding 30%, and high price volatility from inability to store perishable products. To address these problems will require (i) investment in value chain infrastructure including collection and distribution centers, cold storages, refrigerated transport, and testing facilities; (ii) improve the capacity of actors in the value chain to produce, process, distribute and market safe food; and (iii) provide credit to facilitate adoption of new technologies and private infrastructure.
Investment Description
  • Asian Development Bank (ADB)
Contact Information
PROJECT CONTACTS Responsible ADB Office: Jones, Randall E. Responsible ADB Department: South Asia Department Responsible ADB Division: Environment, Natural Resources & Agriculture Division, SARD Executing Agencies Ministry of Agriculture 714, West Nakhalpara Dhaka-1215, Bangladesh ACCOUNTABILITY MECHANISM OF ADB The Accountability Mechanism is an independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an Asian Development Bank-financed project. If you submit a complaint to the Accountability Mechanism, they may investigate to assess whether the Asian Development Bank is following its own policies and procedures for preventing harm to people or the environment. You can learn more about the Accountability Mechanism and how to file a complaint at: http://www.adb.org/site/accountability-mechanism/main