According to ADB documents, the proposed project is a financial intermediation loan for a line of credit of up to $150 million from the ordinary capital resources of the Asian Development Bank (ADB) to the Government of Bangladesh. The fund will be relent to Bangladesh Bank, the central bank, for on-lending to participating financial institutions (PFIs). The PFIs will lend the funds to micro and small enterprises started or operated by targeted vulnerable groups—unemployed youth, returning migrant workers, and rural entrepreneurs—with a focus on women entrepreneurs. The transaction technical assistance (TA) totaling $900,000 will help strengthen the institutional capacity of Bangladesh Bank and PFIs and will support the project implementation. The project is included in ADB’s Bangladesh country operations business plan, 2021–2023.1
The project’s impact is rapid recovery from coronavirus disease (COVID-19) pandemic to restore employment, income, and economic activities.2 The project will have the following outcome: adverse economic effects of COVID-19 on migrants, youth, and rural entrepreneurs mitigated. The project’s outputs are (i) financial support to enterprises started or operated by migrants, rural enterprises, and youth from the formal banking sector increased; (ii) capacity of employment- supporting institutions strengthened; and (iii) action plan for promoting formal banking sector support for cottage, micro, and small enterprises (CMSEs) developed.
The project will help enhance the productivity and skills of the workforce, and create gainful employment opportunities, 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 of the country in all these areas take on much increased urgency and the impact of ADB support is magnified.
|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
Mr. M. Khurshed Alamm
Economic Relations Division (ERD), MOF
Sher-e-Bangla Nagar, Dhaka_1207
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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.