40 years cooperation IFAD and Bangladesh

IFAD and the government of Bangladesh
40 years of cooperation
1978-2017

Acknowledgments:
The principal author of this publication is Anna Manikowska Di Giovanni with
contributions from staff from the Local Government Engineering Department,
the Ministry of Agriculture of Bangladesh, the Ministry of Finance, Project
Management Units of IFAD-funded projects in Bangladesh and Benoît Thierry,
IFAD’s Country Programme Manager for Bangladesh.
Front cover photograph: ©IFAD/GMB Akash
© Economic Relations Division (ERD), Ministry of Finance
Government of the People’s Republic of Bangladesh
November 2017

Table of contents
Message from the Additional Secretary of the Economic Relations
Division of the Ministry of Finance 2
Message from IFAD’s Director of Asia and the Pacific Division 4
Investing in rural people | A shared priority 7
Rural poverty in Bangladesh 8
IFAD in Bangladesh | A history of cooperation 10
The Government and IFAD’s strategy in Bangladesh 12
Innovation for the poor 29
Policy for the poor 44
Partnerships for the poor 49
IFAD-funded projects in Bangladesh 55
Project financing 84
Beneficiaries 86
Contact information 88

2 3
Message from the Additional
Secretary of the Economic
Relations Division of the Ministry
of Finance
Bangladesh has made tremendous progress in alleviating poverty
over the past decade. In our Strategy Document Vision 2021, we
have pledged to transform Bangladesh into a middle-income country
by 2021, eliminate food deficiency and attain self-sufficiency in
food production. Through our concerted efforts, and the invaluable
contribution of many development partners, we are well underway to
achieving these goals. Together, we have helped poor communities
better manage natural resources, designed policies that allow poor
farmers and fishermen to access and use these resources, increased
the reach of microcredit institutions in rural areas and piloted climate
change adaptation measures to protect poor people’s assets and
livelihoods from floods and extreme weather events.
The International Fund for Agricultural Development (IFAD) has an
approach and focus that greatly complements our own, and its
contribution to the Government of Bangladesh’s achievements in
reducing poverty and hunger cannot be understated. In the past
40 years, IFAD and Government of Bangladesh have invested close to
US$1.0 billion in loans and grants for 31 rural development projects.
In this year 2017, the people of Bangladesh and IFAD proudly
celebrate 40 years of partnership and cooperation in support of the
poor. On behalf of the Government of Bangladesh, Prime Minister
Sheikh Hasina and of the rural communities, we look forward to many
more years of cooperation.
Sultana Afroz
Additional Secretary
Economic Relations Division (ERD), Ministry of Finance

4 5
Message from IFAD’s Director of
Asia and the Pacific Division
Bangladesh and IFAD enjoy a truly special relationship. Not only
is Bangladesh IFAD’s third largest investment portfolio – with
25 completed projects, six ongoing ones and two more in the works
– but it is also the institution’s first partner country. To commemorate
the 40th anniversary of our partnership we take this opportunity to
reflect upon and take stock of our joint achievements.
IFAD is the only international development institution established
exclusively to help reduce poverty and food insecurity in rural areas
of developing countries. Our goal is to empower poor rural men and
women, help them increase their incomes and improve their food
security. Overcoming rural poverty is possible, but it requires long-
term solutions, such as putting in place appropriate policies at a
national and international level, increasing investment in small-scale
family farms, and strengthening the capacity of poor rural people and
their organizations. IFAD works together with governments, small
farmers’ organizations and other development partners to transform
rural economies by creating opportunities to improve the living
conditions of poor rural people.
Bangladesh has made impressive progress in tackling the targets
of the Millennium Development Goals and it is one of the few
countries to have achieved many of them, particularly in education,
health and poverty reduction. At its current growth rate and with the
accompanying socio-economical improvements, the country is well
set to reaching its Vision 2021 goal of becoming a middle-income
country by the year 2021. With an agricultural growth rate of 2.8 per
cent in 2016, Bangladesh has achieved rice self-sufficiency and is
diversifying its production.
IFAD has worked alongside the Government of Bangladesh to
improve rural infrastructure, facilitate poor people’s access to
natural resources, increase household incomes through on and off-
farm activities, provide access to financial and technical services,
and strengthen poor people’s organizations. IFAD’s portfolio is
characterized by innovative approaches and policies, many of which
have been adopted at a large scale.
IFAD’s strategy and focus has evolved over time, as it followed
the communities’ and the Government’s changing needs and
priorities. In its strategy 2012-2018, IFAD focuses on climate-smart
rural infrastructure, agricultural technology, natural resources
management, market access and microfinance – areas where it holds
a comparative advantage – while promoting a value chain approach.
We look forward to continuing our fruitful cooperation with the
Government of Bangladesh to improve the lives of the country’s poor
rural people.
Hoonae Kim
Director
Asia and the Pacific Division
International Fund for Agricultural Development

6 7
Investing in rural people
A shared prioritY
The International Fund for Agricultural Development (IFAD), a
specialized agency of the United Nations based in Rome, was
established as an international financial institution in 1977 following
the 1974 World Food Conference. It is a unique partnership of
168 members from the Organization of the Petroleum Exporting
Countries (OPEC), other developing countries and the Organisation for
Economic Co-operation and Development (OECD).
IFAD’s goal is to enable poor rural people in developing countries
to improve their food security and nutrition, raise their incomes
and strengthen their resilience. Working with poor rural people,
organizations, governments, donors, non-governmental institutions
and many other partners, IFAD focuses on country-specific solutions,
which can involve increasing poor rural people’s access to financial
services, markets, technology, land and other natural resources.
Through low-interest loans and grants, IFAD works to develop and
finance programmes and projects that enable poor rural people to
overcome poverty by themselves.
IFAD tackles poverty not only as a lender but also as an advocate
for poor rural people. Its multilateral base provides a natural global
platform on agriculture to discuss important policy issues that
influence the lives of poor rural people, as well as to draw attention
to the centrality of rural development in meeting the Sustainable
Development Goals.
Since starting operations in 1978, IFAD has invested about
US$18.5 billion in grants and low-interest loans, empowering
some 464 million people to break out of poverty, thereby helping to
strengthen vibrant rural communities.
©IFAD/GMBAkash

8 9
Rural poverty in Bangladesh
Located in South Asia in the Bay of Bengal, Bangladesh shares
borders with India and Myanmar. Most of its territory is covered by the
Bengal delta, the largest delta on the planet. With 700 rivers and more
than 8,000 km of waterways, Bangladesh is home to highly biodiverse
ecosystems such as its delta, evergreen forests, the largest mangrove
forest on Earth, a variety of islands and a coral reef.
Bangladesh has made remarkable progress in the past 40 years.
It has increased its real per capita income by 130 per cent and
cut poverty by more than half since 1971. Thanks to its continued
investments in health and education, Bangladesh, a country of more
than 160 million, met many targets of the Millennium Development
Goals in education, health and in reducing the poverty gap ratio and
has made great progress in the areas of reducing poverty, fighting
child undernutrition, primary school enrolment, infant and maternal
mortality, and immunization.
Building on these social and economic achievements, Bangladesh is
making great strides to become a middle-income country by 2021.
According to World Bank forecasts, the country’s gross domestic
product (GDP) is expected to grow by about 6.8 per cent in the next
two years, consolidating the past decade’s gains in poverty reduction.
Between 2000 and 2010, national poverty declined from 48.9 to
31.5 per cent of the population, effectively lifting some 16 million
people out of poverty.
Despite its exceptional growth and the gains recorded in social
sectors, Bangladesh remains a poor country with a 2015 GDP per
capita of about US$1,212 and a notably poorer rural sector.
Agriculture covers about three quarters of the country’s scarce
land and supports most of the rural population’s livelihoods – or
approximately 66 per cent of the country’s total population.
As it moves forward toward achieving middle-income status, the
country faces considerable challenges. Agricultural development and
rural economic growth are paramount for achieving further social and
economic gains and reducing poverty. This will require policies and
investments conducive to lasting transformational changes in rural
areas – including through technological innovation in agriculture and
through a swifter and more efficient response to natural disasters
that severely affect the infrastructure and agriculture sectors. The
country also needs to step up adaptation and mitigation measures
to combat the devastating impact of climate change on the its fragile
ecosystems.

10 11
IFAD in Bangladesh
A history of cooperation
Bangladesh is IFAD’s first recipient country and its biggest portfolio
to date, with 31 loans and numerous grants. IFAD’s first loan to
Bangladesh was approved in 1978 to increase agricultural production,
generate employment and improve farmers’ living conditions by
creating and improving existing irrigation infrastructure.
Since then, IFAD has invested a total of US$717.2 million in 31 rural
development programmes in Bangladesh, for a total of US$1.9 billion.
Approximately 10.7 million households directly benefitted from IFAD-
funded operations.
Two more projects are under design and scheduled to start in
2018. The new Promoting Resilience of Vulnerable through Access
to Infrastructure Project, Improved Skills and Information (2018-
2024) will have a total cost of US$87.0 million and an IFAD loan of
US$64.5 million. It is expected to reach 200,000 rural households. The
Smallholder Agricultural Competitiveness Project (2018-2023), with a
total cost of US$88.5 million and an IFAD loan of US$64.5 million, is
projected to reach 250,000 rural households.
Throughout the years, IFAD has continued to fund programmes aimed
to improve the livelihoods and incomes of poor rural Bangladeshi.
Together with the Government and other development partners, IFAD
invested in irrigation and flood control, rural infrastructure, agricultural
practices and inputs, livestock production, access to financial and
technical services, and strengthening of grassroots organizations.
Of the 31 projects funded to date, 15 were solely dedicated to
agriculture. Areas of intervention include agricultural production
and technology, water management, climate-smart agriculture,
post-harvesting and marketing. Microenterprise development and
microfinance have also been at the forefront of IFAD’s approach,
enabling poor rural people to access financial resources and develop
successful local enterprises. By investing in infrastructure, IFAD has
taken a lead role in providing local employment to over 100,000
people, by creating and transferring cash for large construction
projects to locally-owned labor contracting societies. Women make up
79 per cent of the societies’ members, and the projects have totalled
employment for more than 10 million persons per day.
In almost 40 years of rural development efforts, IFAD has piloted
numerous innovations and learned a multitude of lessons, adapting
its focus and strategy to keep with the pace of changing challenges
and priorities. The lesson that stands out – and that informs IFAD’s
investment strategy over the short, medium and long term – is that
poor people are best placed to escape from poverty and hunger
when a combination of small-scale infrastructure, access to adapted
technology, microfinance and training is made available to them within
the framework of a value chain approach.
Bangladesh is known for its high vulnerability to natural hazards and
climate change. Cyclones and floods continue to affect millions of
its people, with devastating effects for rural communities, whose
livelihoods and income depend on the land. Climate change is
expected to strengthen the frequency of natural hazards, pushing
more people into poverty. Despite impressive economic and social
gains over the last 40 years, some 47.8 million people – approximately
31.5 per cent of population (2010) – remain poor or extremely poor.
Combining climate-smart rural infrastructure, agricultural technology,
natural resources management, market access and microfinance
with a value chain approach, IFAD’s Country Strategic Opportunities
Programme (COSOP) 2012-2018 for Bangladesh focuses on
addressing climate risks while strengthening rural communities’
resilience to shocks. Working in partnership with the Government,
agricultural research institutes and donor agencies such as the World
Bank, the Asian Development Bank, the United Nations and bilateral
agencies, IFAD looks to increase the impact of its operations, spark
innovations and build a body of knowledge and technology that can
be shared across the region and beyond.
40 YEARS OF COOPERATION
31 APPROVED PROJECTS
2 NEW PROJECTS
UNDER DESIGN
3RD LARGEST IFAD
FINANCING IN ASIA
FAST-GROWING PORTFOLIO
10.7 MILLION HOUSEHOLDS
TOTAL IFAD INVESTMENT OF
US$717.2 MILLION
AT A GLANCE

12 13
the government and IFAD’S
Strategy in Bangladesh
Bangladesh has made significant strides in reducing poverty in recent
years. The incidence of poverty was reduced from approximately 80 in
the 1970s per cent to 31.5 per cent by 2010. By 2015, the incidence of
poverty dipped further to 24.8 per cent. According to the Government’s
Household Income and Expenditure Survey (HIES), there has been
greater successes in reducing urban poverty than rural poverty.
The constitution of Bangladesh provides clear directives towards
formulating people-centric development strategies and goals. It calls
for a balanced and equitable growth and for lifting poor section of
the society toward prosperity. In line with its national aspirations,
Bangladesh is currently expanding its social protection strategies,
which could impact poverty reduction both directly and indirectly.
The Government’s Seventh Five Year Plan (7th Plan) sets a target of
reducing poverty to 18.6 per cent between 2016 and 2020, and of
lowering extreme poverty from 12.9 to 8.9 per cent. The primary focus
is job creation by means of growth and structural change. The plan
further emphasizes food productivity and food security, agricultural
diversification, addressing labour productivity in farming, labour
intensive manufacturing and export diversification, export of worker
service and earning increased remittances, expansion of microcredit
support for the poor, penetration of information and communication
technology, effective disaster risk reduction and improvement in social
protection.
The Government of Bangladesh’s Southern Master Plan provides
a road map for an integrated agricultural development in the
coastal districts of Bangladesh. The Plan encompasses sustainable
development for food security, poverty reduction and livelihood
development for the poor, and covers three hydrological regions –
south central, southwest and southeast, spanning over 14 districts.
Furthermore, the Government is in the process of finalizing the
Bangladesh Delta Plan 2100, structuring donor coordination and
national investments in the delta area.
In support of the Government’s strategy for reducing rural poverty,
IFAD has developed a Country Strategic Opportunities Programmes
(COSOP) that focuses on three main areas of intervention:
ƒ Adaptation to climate change.
ƒ Improved value chains and greater market access.
ƒ Social empowerment.
IFAD’s in-country operating model consists of two main components:
the participatory development of COSOPs and high-quality inclusive
rural development investment programmes that are country-driven
and respond to contextual realities and the needs and aspirations of
the project’s partners, stakeholders and beneficiaries.
The COSOP is the cornerstone of IFAD’s operations. It analyzes
the country context and priorities, identifies opportunities for IFAD
financing and facilitates management for results. COSOPs are also
intended to support strategic country planning in agriculture and rural
development, while bringing together complementary processes
such as research, policy dialogue, community empowerment and
partnerships.
The COSOP features a highly consultative process. It is characterized
by wide national multi-stakeholder consultations and it calls on
the knowledge and expertise of national, regional and international
experts, farmers and their organizations, private sector operators,
and multilateral and bilateral donors. The COSOP is aligned with the
country’s sectorial policies, including the poverty reduction strategy
and planning framework, and takes into account the needs and views
of the rural communities it is designed to serve.
Finally, COSOPs incorporate findings and lessons learned from IFAD’s
previous operations, particularly from evaluation studies and impact
assessments, to integrate these into future operational directions.
Three COSOPs have guided IFAD’s interventions in Bangladesh since
1978. Prior to the first COSOP, developed in 1999, IFAD relied on
project design missions and general identification missions to define
its country strategy.

14 15
1978-1987: alleviating poverty through
agricultural production
IFAD’s strategy in Bangladesh during the first ten years after starting
its investment operations (1978 to 1987) was aimed to alleviate
poverty in rural areas by increasing food production, incomes
and standard of living of poor rural people. Following a special
programming mission organized in 1981, IFAD narrowed its focus in
subsequent projects on two extremely poor rural people: marginal and
small farmers, and the landless. IFAD’s strategy featured four types of
interventions:
ƒ Investments in rural infrastructure, including irrigation channels to
protect agricultural land from floods.
ƒ Access to inputs, technology and training.
ƒ Extend credit services to poor farmers and fisherfolks.
ƒ Strengthening rural organizations and cooperatives.
ƒ Addressing the issue of landlessness in Bangladesh.
Eight projects were designed between 1978 and 1987 based on these
strategic objectives.
IFAD-FINANCED PROJECTS 1970-1980
©IFAD/GMBAkash

16 17
IFAD-FINANCED PROJECTS 1980-1990 1988-1999: ON AND OFF-FARM INCOME
GENERATION
In its second decade of work in Bangladesh, IFAD further refined its
strategy in a General Identification Report issued in 1987. With a
renewed commitment to improving food security and increasing the
incomes of small and marginal farmers, and landless people, IFAD
focused on:
ƒ Developing on-farm activities such as crop diversification,
intensification and livestock rearing.
ƒ Creating employment for landless people through, among others,
access to credit and microenterprise development.
ƒ Building and strengthening grassroots institutions to sustain
development efforts.
IFAD also financed rural infrastructure such as rural roads, cyclone
shelters, landing areas and basic village infrastructure, given their high
impact on the living conditions and the supply of basic services for the
rural poor.
Eleven projects were designed between 1988 and 1999 following
these strategic objectives.
©IFAD/GMBAkash

18 19
IFAD-FINANCED PROJECTS 1990-2000 COSOP I: 1999-2005
The first country strategic opportunities paper (COSOP) was approved
in 1999 and outlined IFAD’s strategy for Bangladesh for six years. The
COSOP defined three priority areas of intervention where IFAD had a
comparative advantage in the country:
ƒ Promoting and strengthening grassroots organizations.
ƒ Improving access of the poor to financial and other services
through appropriate institutional mechanisms.
ƒ Increasing the access of the very poor to services and resources.
Within the agricultural sector, the COSOP focused on livestock
and fisheries, as it chose to work with commodities that employ a
large workforce in a relatively short time, require little or no land, are
labour-intensive, require little investment in training, are sufficiently
highly priced to provide meaningful income to people in the face of
increasing landlessness and are relatively less risky.
The results of the interventions designed under COSOP I were largely
positive:
ƒ Food production increased, especially for poorer farmers who had
adopted more intensive cropping practices and poultry farming.
ƒ Microfinance provided important benefits in terms of increased
income, improved food security and quality of life, and reduced
vulnerability.
ƒ Women improved their economic power and social status thanks
to microfinance, improved knowledge of agricultural technology,
and access to businesses and markets.
ƒ Better access to water bodies improved household income and
general livelihood.
Some weaknesses emerged however, such as a difficulty in reaching
the poorest households and the uncertain sustainability of the
projects. These issues were identified and later addressed in COSOP
2006-2011.
COSOP I guided the design of four IFAD-funded projects.

20 21
IFAD-FINANCED PROJECTS 2000-2010 COSOP II: 2006-2011
COSOP II built on the experience and lessons from past IFAD
strategies and operations, further adapting and improving its
approach within the range of its limited resources.
IFAD’s strategy 2006-2011 therefore centred on scaling up successful
innovative approaches to poverty reduction with the scope of:
ƒ Increasing availability of agricultural technologies for small
farmers.
ƒ Increasing access to markets and financial services for small rural
entrepreneurs.
ƒ Ensuring that innovations in pro-poor infrastructure benefit the
extreme poor.
ƒ Increasing access to common property resources for the rural
poor.
ƒ Increasing access to economic opportunities for women.
Furthermore, IFAD focused on improving its ability to reach extremely
poor households as well as on ensuring the sustainability of its
investments.
Five projects, of which three are ongoing, were designed based on the
strategic objectives of COSOP II.
©IFAD/GMBAkash

22 23
IFAD-FINANCED PROJECTS 2010-2020 COSOP III: 2012-2018
In Bangladesh, IFAD’s expertise in climate-smart rural infrastructure,
agricultural technology, natural resources management, market
access and microfinance have proved instrumental in reducing
poverty and empowering poor rural people. The highest impact,
however, has been observed when several of these factors were
combined with a value chain approach. Given the country’s high
vulnerability to climate change and natural disasters, COSOP III has
chosen to focus on the adaptation of rural livelihoods to climate
change and the scaling up of successful approaches.
COSOP III has three main objectives:
ƒ Enable poor people in vulnerable areas to better adapt their
livelihoods to climate change.
ƒ Help small producers and entrepreneurs benefit from improved
value chains and greater market access.
ƒ Economically and socially empower marginalized groups,
including poor rural women.
Under COSOP III, IFAD works to scale up successful experiences
in partnership with the Government and other donors, and support
agricultural research to innovate and transfer technology to
smallholders. Knowledge management plays a key role in generating
and spreading innovations, and ensuring linkages between research
and its applicability in the projects. IFAD also continues to play a key
role in shaping public policies in areas of strategic importance to the
poor such as access to natural resources.
In six years, from 2011 to 2016, 9,752,759 individuals have benefited from eight projects’ services.
Source: IFAD.
Individuals receiving project’ services

24 25
IFAD’s interventions are closely aligned with the Government’s deep
commitment to reducing extreme poverty. The Government’s priority
stated in the Seventh Five-Year Plan 2015-2020 as well as in its
Vision 2021 is to reduce rural poverty through assuring investments
in education, agriculture, employment creation and other livelihoods,
infrastructure, expanded financial services and resilience to floods
and climate change. Special emphasis is given on the poor, marginal
and small farmers, women and youth. Bangladesh is committed to
addressing differential needs of women and ending gender-based
discrimination in its national Constitution.
In addition, the Climate Change Strategy and Action Plan of
Bangladesh (BCCSAP) calls for early actions to build national
resilience, especially that of poor and climate vulnerable populations,
safeguard infrastructure against extreme weather events, build
financial capacity to adapt, improve early warning systems and their
reach, and coordinate with other development sectors for increased
resilience. The BCCSAP also highlights the need for multi-purpose
shelters for areas vulnerable to floods, in particular in char lands.
IFAD’s operations designed under COSOP III capture all these aspects
in their delivery strategy for community resilience.
©IFAD/GMBAkash
In six years, 968 km of flood-proof union roads, village roads and Upazila roads have been constructed or
upgraded by five projects, exceeding the COSOP 2018 target of 800 km. Source: IFAD.
flood-proof road constructed (in kilometers)
164
188
173
60
254
129
164
352
525
585
839
968
0
100
200
300
400
500
600
700
800
900
1000
0
50
100
150
200
250
300
2011-‐12 2012-‐13 2013-‐14 2014-‐15 2015-‐16 2016-‐17
Per
year Cumulative
Number of women participating in off-farm, on-farm or vocational
training
Women were trained in areas such as infrastructure, natural resource and community management,
income-generating activities, crop production and technologies. Source: IFAD.
Number of market infrastructures constructed
In six years, 197 market infrastructures have been constructed by four projects. The target set at 200
markets by the COSOP for 2018 is about to be met. Source: IFAD.

26 27
EwpowerING marginalized groups and supporting smallholder farmers and
microenterprises
investing in sustainable agriculture and natural resource management
The Government of Bangladesh has made significant strides to
achieve Millennium Development Goals (MDGs) and expressed
its firm commitment to invest for and achieve the United Nations
Sustainable Development Goals (SDGs). IFAD’s investments in the
country contribute towards the attainment of a number of SDGs: SDG
1 on poverty, SDG 2 on food security, SDG 5 on gender equity and
advancement of women, SDG 8 on full and productive employment,
SDG 9 on building resilient infrastructure, SDG 13 on enhanced
climate action and 17 on partnerships..
Three ongoing projects follow the strategic directions of COSOP III
and two more are being designed.
building adaptation capacity to climate change
strengthening partnerships and means of project implementation
©IFAD/GMBAkash
IFAD’s investments in Bangladesh contribute towards achieving the Sustainable Development Goals in
many ways.

28 29
©IFAD/GMBAkash
Innovation for the poor
IFAD’s portfolio of projects in Bangladesh is not only its third largest
– it is also one of the most innovative. Innovation has been key to
IFAD’s investments in Bangladesh since the very beginning and the
idea of finding creative solutions – coupled with efforts to scale up
successful ones and disseminate what has worked and what has
not – has been instrumental in ensuring that the institution’s limited
resources were being used in the most efficient way.
Almost every project in the country, particularly in the last two
decades, have some form of innovative feature. Some develop
innovative approaches to long-standing problems, others innovate
through policy dialogue, others still introduce new technology that
dramatically improve poor people’s livelihoods.
IFAD, its development partners and the Government of Bangladesh
have long recognized that the business-as-usual approaches simply
cannot solve the immense challenges brought about by inclusive
rural development – a process that involves a deep transformation of
the way people in poor rural communities live and foresee their lives.
Through small-scale pilots, developed by intersecting international
expertise with local creative genius, IFAD was able to fund and test
several highly successful innovations, most of which have been or are
being replicated and adopted at a larger scale.

30 31
Living conditions on the chars are harsh. The land is
completely inaccessible and can only be reached by boat
and foot. The people living there are exposed to nature
and the land gets flooded on a regular basis. There is
no safe drinking water, no health service or sanitation,
no agricultural inputs, no education, no legal or social
structures.
- D. K. Chowdhury, technical advisor on land settlement for the Char Development
and Settlement Project IV.
“
Ensuring transparency and fairness in land
registration
„ Char Development and Settlement Project IV 2010-2017
In the central part of the coastal zone of Bangladesh, the flow of the
rivers Ganges, Brahmaputra and Meghna constantly change the
landscape, eroding about 32 km2
of land and forming 52 km2
of new
land. Many people lose their parcels and are forced move to the newly
emerged lands (locally called chars).
The goal of the project was to develop improved and more secure
livelihoods for poor people living on newly accreted coastal islands
known locally as chars. It adopted an integrated approach to coastal
zone management for an effective use of water resources, protection
against tidal and storm surges as well as improved drainage. It
financed climate resilient infrastructure for communication, markets,
cyclone shelters, provision of potable water and hygienic sanitation.
Finally, it provided poor people living in flood-prone coastal zones with
legal land titles.
LAND TENURE AND WATER GOVERNANCE
©MIDPRCII
Building on previous phases of the project and their successful
approach to solving land tenure issues, the project conducted
extensive plot-to-plot survey to identify pieces of land and their
current occupiers, led the administrative process for the official
registration of the land titles, organized public hearings to confirm the
landless households, and registered the title in both the wife’s and the
husband’s name in the electronic land record management system.
These innovative features are unique to the project and have led to a
faster and more accurate land settlement process.
Official land titles give rural women and men social recognition. As
land is the most critical resource in the char area, the possession of
land strengthens their owners’ position in the community and enables
them to make medium- and long-term investments. They can build
better houses, grow vegetables and rear livestock. They can create
their own employment, invest in new technologies, increase their
incomes and sustain their livelihoods. In addition, by writing the wife’s
name first in the legal document, the project ensured that the wife
is legally entitled to 50 per cent of the total land. This simple step
strengthens her position in the family, gives her uninterrupted access
to the land and a legal position in many decision-making processes,
and protects her in cases of conflict with her husband.
©IFAD/GMBAkash

32 33
The most significant achievement of the project is that it has
organized the poor people of the area and turned them into
a good workforce. Without this, they could not be provided
with the benefits of the project in a systematic way.
- Sheikh Muhammad Mohsin, Project Director of Sunamganj Community-Based
Resource Management Project.
“
Expanding community-based fisheries
management for sustainability
„ Sunamganj Community-Based Resource Management
Project 2001-2012
The goal of the project was to improve access of fisher communities
to essential services and water bodies, build basic rural infrastructure
and diversify livelihood options in the floodplains of Sunamganj, a
remote district characterized by regular destructive flooding.
Building on the successful experience in the Oxbow Lakes,
management of the region’s permanent water bodies was transferred
from the Ministry of Lands to the authority of the Local Government
Engineering Department for leasing to local fishers’ groups under
the community-based fisheries management approach. The project
worked with each group to mobilize members and strengthen their
organizational capacities.
In addition to organizing more than 235 groups, the project conducted
the re-excavation of water bodies and canals to create a better
environment for the protection and production of native species.
Several fish sanctuaries, where fishing is prohibited for three-year
periods, were created to ensure that the resources are sustainably
exploited.
©IFAD/GMBAkash
Results of this innovative approach were felt widely: the community-
based management of the water bodies led to an increase in fish
production – by 60kg/hectare in two years – and in biodiversity, in
most of the managed water bodies, through the re-appearance of
endangered species of fish. The average income for fisher households
increased by 89 per cent in the project area and community members
reported an improved diet through the increased consumption of
fish – which has led to a decrease in child malnutrition by 9 per cent
in the project area. Women’s active involvement in constructing nets
and gear, sorting the catch and assisting in post-harvest processing,
preservation and marketing also had an impact on their decision-
making power and status, and formalized the importance of their role
in the fisheries’ sector.
The Haor Infrastructure and Livelihood Improvement Project
is underway to scale up the project’s successful approaches in
Sunamganj and four other districts.
©IFAD/GMBAkash

34 35
Pioneering the transfer of water bodies to
common property resources management
„ Oxbow Lakes Small-Scale Fishermen Project 1990-1997
The project’s goal was to increase the fishermen’s catch by improving
the lakes’ productivity and by empowering the poorest fishermen
to fully participate in aquaculture development. However, several
problems were identified that impeded the project to achieve its
objectives:
ƒ The public lakes and ponds were in a derelict condition and in
constant deficit.
ƒ Landless fishermen could not access leases of lakes and ponds.
ƒ The standard one-year leases were too short and did not create an
incentive for sustainable management of lakes and ponds.
To address these issues, IFAD negotiated a 50-year lease on public
lakes and ponds with the Ministry of Land for the benefit of poor,
landless fishermen, organized in lake management groups. In
addition, the project worked with groups of 50 to 250 fishermen to
structure their organization and establish a common property regime
to ensure equity of training, responsibility, and share of benefits within
the groups. An impact evaluation, conducted seven years after project
completion, showed improved productivity of the lakes and ponds,
higher levels of stocking and income, improved infrastructure and
continued maintenance. Impact on the communities was also visible:
the conditions of most houses improved and some households
purchased livestock while others took a lease on land. Finally, the
most successful lake management groups became bankable in the
commercial bank system.
©IFAD/GMBAkash
Building systematic linkages among the
different actors of a value chain in the
Charland Regions
„ Market Infrastructure Development Project in Charland
Regions 2005-2012
The goal of the project was to:
ƒ Improve market facilities and the terms of access for men and
women to rural markets.
ƒ Increase wage employment for poor women.
ƒ Increase production and sale of goods for the market.
ƒ Move primary producers up the value chain.
A specific component of the project was dedicated to identifying
and linking small-scale producers to lucrative market opportunities
and adopting a systematic approach to develop sustainable value
chains in the project area, one of the most remote and poor areas
of Bangladesh. Through an initial identification of the agricultural
products with the highest commercial potential, the project
brought together all actors along one specific value chain: Market
Management Committees, traders, suppliers, service providers,
producers and relevant government officials. The objectives of these
meetings were to:
ƒ Build relationships among farmers, input suppliers, service
providers, traders and buyers.
ƒ Improve the capacity of farmers to seek services from other value
chain stakeholders.
ƒ Create interest of input suppliers and buyers and traders to expand
their business activities.
Encouraged by the positive results of the approach, successful
interventions were scaled up throughout the area within the first two
years of project implementation, increasing the outreach from 20,000
to 72,000 farmers.
MICROENTERPRISE DEVELOPMENT
©IFAD/AnwarHossain

36 37
Expanding small value chain development
nation-wide
„ Finance for Enterprise Development and Employment
Creation 2007-2013
The goal of the project was to develop the microfinance sector to
support microenterprises, help small businesses improve and expand
production through training and initiatives promoting market chain
development.
Building on value chain development piloted at a small scale within
the Microfinance for Marginal and Small Farmers Project, this project
extended the number of pilots to 44 small value chain development
sub-projects. The sub-projects were designed to improve access to
markets and build the capacity of small businesses. They focused on
technical services – introducing better technologies, improving farm
management practices, training workers, and providing commercial
support services like vaccinations and animal health.
As a result, value chain development has been mainstreamed in all
IFAD-funded operations, after an impact evaluation of the Bangladesh
portfolio recognized that IFAD’s interventions had the most impact
when combined with a value chain approach.
©IFAD/GMBAkash
Sponsoring agricultural and non-
agricultural value-chain development and
related support services
„ Promoting Agricultural Commercialization and
Enterprises 2015-2020
The goal of the project is to enhance the livelihoods of rural women
and men by improving profitable business opportunities for
microentrepreneurs and creating wage employment for moderately
and extremely poor people. The project provides financial services
for the expansion of farm and non-farm microenterprises, transfers
proven technologies from home and abroad to potential subsectors
to enhance productivity, and intervenes in the value chain of different
potential farm and non-farm subsectors.
Building on and expanding the value-chain approach initially developed
through the Finance for Enterprise Development and Employment
Creation Project, this project takes the innovation of developing
agricultural value chains even further by expanding it nation-wide
and piloting value-chain development in non-agricultural sectors. It
includes stakeholders other than rural producers by developing a rural
service market (such as livestock vaccinations) and improving policy,
regulatory and physical value-chain environments. The value chain
interventions are made in the business clusters of different potential
farm and non-farm sub-sectors that include cow rearing, beef
fattening, buffalo rearing, goat rearing, poultry, crab culture, prawn
culture, embroidery and dress making, imitation gold jewelry, micro
shoe industry, shawl production, honey processing, etc. The farmers,
entrepreneurs and other actors of the value chain receive technical,
technological and marketing support. The project also provides
training, technical assistance, support for piloting new financial
products and services, and demonstrations of new technologies.
©IFAD/GMBAkash

38 39
AGRICULTURAL TECHNOLOGIES
Transfer of proven technologies from home
and abroad to potential subsectors to
enhance productivity
„ Promoting Agricultural Commercialization and
Enterprises 2015-2020
The goal of the project is to enhance the livelihoods of rural women
and men by improving profitable business opportunities for
microentrepreneurs and creating wage employment for moderately
and extremely poor people. The project provides financial services
for the expansion of farm and non-farm microenterprises, transfers
proven technologies from home and abroad to potential subsectors
to enhance productivity, and intervenes in the value chain of different
potential farm and non-farm subsectors.
The project identifies technological constraints in different economic
subsectors that have growth potential and attempts to transfer proven
technologies from within the country and from other countries to
those subsectors to enhance their productivity. With the support of
the project, crab hatchery technology has been transferred to the
southern coastal Satkhira district from Vietnam. The first ever crab
hatchery of Bangladesh has been established with support from the
project and is now contributing to expanding the export-oriented crab
culture subsector.
The project supports the establishment of market linkages for small
farmers. In addition to providing technologies to produce a high
yielding variety of mung bean, the project has linked farmers to the
export market through a private sector company. This initiative is
contributing significantly to increase the income of famers. The
project also provides financial services together with training,
technical assistance, piloting of new financial products and services,
and demonstrations of new technologies.
©IFAD/GMBAkash
AGRICULTURAL TECHNOLOGIES
Innovating through agricultural
technologies
„ Microfinance for Marginal and Small Farmers Project
2004-2010
The project’s goal was to improve the livelihoods of 210,000 poor
marginal and small farming households by:
ƒ Establishing viable microfinance institutions.
ƒ Increasing agricultural production.
ƒ Creating market linkages.
To increase agricultural production, the project promoted several
innovative agricultural technologies:
ƒ Urea Super Granules proved to be successful to provide more rice
at lower costs (yield increased by 10% and input costs decreased
by 19%).
ƒ The pheromone trap – which replaced spraying of insect
pests for vegetables such as cucumbers, gourds, melons and
aubergines, has become widely used in the project area. In the
case of aubergines, it reduced by 76 per cent the amount spent
on insecticides while boosting yields by 8 per cent, resulting in an
increase in net income by 45 per cent.
ƒ Leaf colour charts were introduced as an easy to use and
inexpensive way of monitoring the relative greenness of a rice leaf
as an indicator of the plant’s nitrogen status, contributing to better
and timelier use of fertilizers.
ƒ Finally, the alternate wetting and drying (or porous pipe) was
presented as an innovative irrigation technology. It reduces the
amount of irrigation water needed during one season by 25 to
45 per cent, decreasing irrigation costs by 6.8 per cent.
The project was particularly successful in reaching out to women. It
increased the income of rural women and their families and enhanced
their self-reliance, by providing them with innovative technology,
credit and technical skills to set up poultry and other livestock-based
farms or other small businesses. As their economic role within the
household gained more importance, so did their role in decision-
making processes, empowering them both within and outside the
household. Over a period of 7 years, the project reached more than
170,000 borrowers of which 95 per cent were women.
©IFAD/GMBAkash

40 41
MICROFINANCE
Piloting seasonal loans for agriculture
2004-2010
One of the main challenges that the project set out to address in
the area of microfinance was that credit from non-governmental
organizations in Bangladesh was generally limited to landless people,
as farmers often faced difficulties in making the traditional weekly
loan repayments because of the seasonal nature of their harvests.
To extend the reach of microcredit in the agricultural sector, the
project piloted four lending products. The most successful one was
a seasonal loan for agriculture. Seasonal loans supply most of the
up-front costs of crop production and are repayable after four to
six months in a single installment. Their popularity with farmers was
such that they constituted over half of the total loans by project end.
Farmers with access to seasonal loans reported significant increases
in yields of rice and wheat, with the net income from wheat 101 per
cent greater than that forecast at appraisal. Following the success
of this pilot, seasonal loans have been mainstreamed into the
activities of Palli Karma-Sahayak Foundation (PKSF) and its partner
organizations.
©IFAD/GMBAkash
©IFAD/GMBAkash
MICROFINANCE
Combining financial with non financial
technical services
„ Microfinance and Technical Support Project 2003-2010
The goal of the project was to improve livelihoods and food security
of the moderately and extremely poor people and to empower women
by:
ƒ Adopting of sustainable income generating activities.
ƒ Extending technical services.
ƒ Introducing improved livestock technologies.
The innovative aspect of the project lies in its implementation strategy
which promoted partnerships between government and non-
government organizations and capitalized on each other’s strengths.
It has developed an effective and reliable system, which allowed credit
funds to flow from the Government of Bangladesh to Palli Karma-
Sahayak Foundation (PKSF), from PKSF to partner organizations
and from partner organizations to the targeted poor and vice versa.
Another innovative aspect of the project was the supportive role it
played in facilitating functional linkages between all the major actors
in the livestock sector, namely government line agency (DLS), non-
governmental organizations and the private sector such as poultry
feed suppliers or day-old chick suppliers, at the grassroots level.
©IFAD/GMBAkash

42 43
MICROINSURANCE
Piloting livestock insurance
2004-2010
The livestock sector is the largest employment sector of small and
marginal farmers in Bangladesh. However, veterinary services are
scarce and not often delivered on time in remote rural areas, leading
to an increased risk of illness or death of the animals. To promote the
sector’s growth, the project implemented a pilot scheme for livestock
insurance. The insurance covers animals bought with project loans for
beef fattening in case of the animal’s death for the total loan amount
and an additional compensation for the cost of caring for the animal.
In parallel, microfinance partner organizations provided vaccinations
and deworming kits along with free veterinary advice. Before joining
the scheme, all cattle owners were provided with training in beef
fattening as well as regular check-ups.
Of the total 12,058 animals covered as of 2001, only 58 (or 0.48 per
cent) died. By providing veterinary services alongside insurance, and
by training all members in how to care for their animals, microfinance
institutions reduce the risk of loss for owners, which allows them to
keep the cost of premiums low.
©IFAD/GMBAkash
CLIMATE RESILIENCE
Cyclone shelters to protect people and
livestock, their most valuable assets
„ Special Assistance Project for Cyclone Affected Rural
Households 1991-1999
The goal of the project was to replenishing livestock and repair
infrastructure that had been lost to the April 1991 cyclone and
increase the communities’ resilience to natural disasters.
The design of the project was based on the lessons learned in the
aftermath of the cyclone:
ƒ Early warning systems were essential and needed to be designed
to reach the poorest communities.
ƒ Disaster preparedness needed to be improved.
ƒ Coastal embankments could not economically be built to sustain
the strength of cyclones; shelters were required instead.
ƒ Shelters needed to accommodate people and livestock, since
people were reluctant to leave the animals – their most valuable
asset – behind.
The shelters consisted of a terraced earthen mound with tree
plantations to prevent erosion, and provided additional protection as
well as income to the community. Inside, two levels contained a deep
tubewell and a compound to accommodate livestock.
To ensure the community’s sense of ownership of the shelter, legal
ownership and responsibility for the maintenance were transferred to
the community, together with guaranteed and unrestricted rights of
access.
Thanks to these innovative features the shelter design created under
the project has inspired donors and architects alike for many years.
Today’s shelters double up as schools or mosques, and while many
are built on stills, the artificial hill design is still favoured by architects
for its versatility and for the possibility to incorporate a room in the
basement for animals.
©AmirJina/UNISDR

44 45
Policy for the poor
IFAD-funded operations are only one part of country’s much larger
effort to reduce poverty, through a combination of international
assistance, a national poverty reduction strategy and pro-poor
policies. By supporting the Government in designing policies that
focus on poor rural people, IFAD strives to ensure the sustainability of
its investments as well as long-term benefits for the poor.
Rural extension services
Over the past 40 years, IFAD has worked with the Ministry of
Agriculture to enhance agricultural extension and research
performance by improving the governance of the National Agricultural
Research System and granting greater authority and autonomy to
the Bangladesh Agricultural Research Council (BARC). Agricultural
extension has been further improved by decentralizing planning and
funding responsibilities to subdistricts as well as by giving farming
communities a greater role in planning, implementing and monitoring
extension programmes.
Microfinance services for the poor
Together with other donors, IFAD encourages improvements in the
regulatory environment for microfinance institutions to facilitate
provision of sustainable services to rural people. This work builds
on previous policy efforts which have contributed to creating a
more supportive regulatory framework for rural finance, encouraged
prudent financial practices while fostering growth and innovation in
the microfinance sector.
Access to natural resources
IFAD contributed to the draft National Fisheries Policy and in
reforming regulations for the allocation of government-owned land,
to enable poor fisherfolks’ long term access to public fishing water
bodies at an affordable cost. It also promoted access of the landless
to private land and government-owned resources, by helping create
legislation to allow community management of these resources.
Rural markets
Since 2006, IFAD supports the reform process of regulations
concerning the ownership and leasing of public markets, and
advocates for changes to allow more market space for private and
community initiatives. IFAD and its partners are also helping design
policies that enable producers and small traders to play a greater role
in managing formal and informal markets.
Women’s property rights
IFAD supports the advancement of the right of women to own
property and land, particularly in the cases of women-headed
households, a highly vulnerable group.
Locally-owned rural infrastructure
IFAD and its partners support policies to increase participation by
local government institutions in providing and maintaining rural
infrastructure.

46 47
Markets and value chain management
IFAD and its partners promote policies that enable producers and
small traders to play a greater role in managing formal and informal
markets.
Empowerment of marginalized groups
IFAD, with a local partner institution, contributes to developing pilot
regulations that enable disadvantaged groups to be included in
decision-making bodies at various levels.
POVERTY
REDUCTION
RURAL EXTENSION
SERVICES
MICROFINANCE SERVICES FOR
THE POOR
ACCESS
TO NATURAL
RESOURCES
RURAL MARKETS
WOMEN’S
PROPERTY RIGHTS
LOCALLY-OWNED
RURAL INFRASTRUCTURE
MARKETS AND VALUE CHAIN
MANAGEMENT
EMPOWERMENT OF MARGINALIZED
GROUPS
©IFAD/GMBAkash
Eight major pro-poor policies contribute to poverty reduction in Bangladesh.

48 49
©IFAD/GMBAkash
Partnerships for the poor
IFAD works most effectively to support the rural poor by partnering
with institutions whose strengths complement its own comparative
advantages. As it designs its interventions, IFAD consults with
government agencies, development partners, non-governmental
organizations and grassroots organizations, to better harmonize
in-country development interventions and create long-lasting
partnerships.
Partnerships take many forms, including policy dialogue, harmonized
implementation, cofinancing, technical assistance, research and
innovation, and implementation support. Many development partners
have also been actively engaged in the development of the COSOPs.
Over the years, IFAD has relied on many international partners to
cofinance its operations and bring their expertise to support one
or more projects. The Government of Bangladesh and several
non-governmental organizations also provide financing, technical
assistance and implementation support, and project beneficiaries
contribute in-kind through their time and skilled work.

50 51
International donors
IFAD’s long-time development partners and cofinanciers in
Bangladesh include the Asian Development Bank (ADB), the
Canadian International Development Agency (CIDA), the Danish
International Development Agency (DANIDA), Deutsche Gesellschaft
für Internationale Zusammenarbeit (GIZ), the European Union, the
Ford Foundation, the German Credit Institution for Reconstruction
(KfW), the Netherlands, the Norwegian Agency for International
Development (NORAD), the Overseas Economic Cooperation Fund
of Japan (OECFJ), the Spanish Trust Fund, the Strategic Climate
Fund, the Swedish International Development Agency (SIDA), the
United Kingdom’s Department for International Development (DFID),
the United States Agency for International Development (USAID), the
United Nations Office for Project Services (UNOPS), the World Bank
and the World Food Programme (WFP).
In its current portfolio, IFAD maintains strategic partnerships with
individual donors in specific sectors:
ƒ In agricultural production and value chains development,
the World Bank and USAID cofinance Phase II of the National
Agricultural Technology programme (NATP II).
ƒ In microenterprise development, microfinance and access to
technology, IFAD has partnered with the Palli Karma-Sahayak
Foundation (PKSF) to cofinance and execute the Promoting
Agricultural Commercialization and Enterprises Project
(PACE). The Palli Karma-Sahayak Foundation has a network of
250 microfinance institutions who also contribute to the project.
ƒ To address climate change, IFAD works alongside the German
Credit Institution for Reconstruction, the Asian Development
Bank and the Strategic Climate Fund to build climate-resilient
infrastructure through the Coastal Climate Resilient Infrastructure
Project (CCRIP), while the Spanish Fund cofinances the Haor
Infrastructure and Livelihood Improvement Project.
ƒ On the issue of land rights, IFAD works with the Netherlands in the
Char Development and Settlement Project (CDSP) IV. This project
has strong links with other operations in the same area funded by
Denmark.
ƒ In the water sector, IFAD and the Asian Development Bank
cofinance the Participatory Small-scale Water Resources Sector
Project.
©IFAD/GMBAkash
Government of Bangladesh
IFAD operations in Bangladesh have also relied on the expertise and
implementation capacity of skilled and committed national staff,
while at the same time investing in strengthening the institutions
they represent. Long-term partnerships with government institutions
have facilitated mutual learning and sharing of experience between
projects, thus also informing IFAD’s evolving strategic priorities in the
country. Key agencies involved in the implementation of IFAD projects
include:
Ministry of Local Government, Rural Development and
Cooperatives
The Ministry of Local Government, Rural Development and
Cooperative is IFAD’s most prolific implementation partner, taking
responsibility for the execution of one third of IFAD’s portfolio – or
11 projects – in Bangladesh.
ƒ Through its National Committee for Multi-Sectoral Rural
Development (NCMRD), the Ministry of Local Government, Rural
Development and Cooperative has implemented two IFAD-funded
projects: the Southwest Rural Development Project (1981) and the
Northwest Rural Development Project (1982).
ƒ The Local Government Engineering Department (LGED) has been
an implementing partner in eight rural development projects, of
which three are ongoing: the Netrakona Integrated Agricultural
Production and Water Management Project (1993), the Small-
Scale Water Resources Development Sector Project (1995),
the Third Rural Infrastructure Development Project (1997), the
Aquaculture Development Project (1998), the Market Infrastructure
Development Project in Charland Regions (2005), the Participatory
Small-scale Water Resources Sector Project (2009), the Haor
Infrastructure and Livelihood Improvement Project (2011) and the
Coastal Climate-Resilient Infrastructure Project (2013).
ƒ One project was implemented through the Ministry’s Rural
Development and Cooperatives Division (RDCD): the Sunamganj
Community-Based Resource Management Project (2001).
©IFAD/GMBAkash

52 53
Ministry of Agriculture (MoA)
The Ministry of Agriculture has partnered with IFAD to implement
eight projects:
ƒ Through the Bangladesh Agricultural Development Corporation, the
Ministry of Agriculture implemented the IFAD-funded Fertilizer Sector
Programme (1979).
ƒ The Ministry’s Bangladesh Agricultural Research Council was responsible
for the National Agricultural Technology Project (2007).
ƒ The Department for Agricultural Extension (DAE) implemented six
IFAD-funded operations: the Marginal and Small Farm Systems
Crop Intensification Project (1986), the Netrakona Integrated
Agricultural Production and Water Management Project (1993), the
Agricultural Diversification and Intensification Project (1997), the
Smallholder Agricultural Improvement Project (1999), the National
Agricultural Technology Project (2007) and its Phase II (2015).
Ministry of Water Resources (MWR)
The Bangladesh Water Development Board (BWDB) of the Ministry
of Water Resources has been IFAD’s first implementing partner in
Bangladesh. It has supported the execution of four projects: the Pabna
Irrigation and Rural Development Project (1978), the Small-Scale
Flood Control, Drainage and Irrigation Project (1983), the Netrakona
Integrated Agricultural Production and Water Management Project
(1993) and the Char Development and Settlement Project IV (2010).
Ministry of Fisheries and Livestock
The Ministry of Fisheries and Livestock implemented five IFAD-funded
projects through its Department of Fisheries and the Department of
Livestock Services.
ƒ The Department of Fisheries was IFAD’s implementing partner in
three projects: the Oxbow Lakes Small-Scale Fishermen Project
(1988), the Aquaculture Development Project (1998) and the
National Agricultural Technology Project (2007).
ƒ The Department of Livestock Services implemented two IFAD-
funded operations: the Smallholder Livestock Development Project
(1991) and the National Agricultural Technology Project (2007).
Ministry of Finance
The Financial Institution Division of the Ministry of Finance
implemented four IFAD-funded projects through the Palli Karma-
Sahayak Foundation (PKSF): the Microfinance and Technical Support
Project (2003), the Microfinance for Marginal and Small Farmers
Project (2004), the Finance for Enterprise Development and
Employment Creation Project (2007) and the ongoing Promoting
Agricultural Commercialization and Enterprises Project (2014).
©IFAD/GMBAkash
National banks
Other government agencies involved in implementing IFAD-funded
projects include national banks such as:
ƒ The Bangladesh Krishi Bank and the Bangladesh Bank, who
implemented the Small Farmer Agricultural Credit Project (1980).
ƒ The Grameen Bank, executor of the Grameen Bank Project (1984)
and its follow-up, Phase III (1989).
Cabinet of the President’s Secretariat
Finally, the Cabinet of the President’s Secretariat coordinated and
executed the Special Assistance Project for Cyclone Affected Rural
Households (1991).
In addition to working with the Government on individual projects,
IFAD is an active partner in government/donor harmonization
processes. The Fund has contributed to the Government’s second
poverty reduction strategy paper and has supported the Country
Investment Plan (CIP) – the Government’s framework for investments
in agriculture and food security. IFAD regularly participates in the
Bangladesh Development Forum and is a member of the local
consultative groups – the country’s principal coordination body – on
agriculture and water.
Research institutes
IFAD provides small research grants to international agricultural
research agencies such as the International Rice Research Institute
and World Fish Center, which in partnership with national research
institutes like the Bangladesh Rice Research Institute, the Bangladesh
Agricultural Research Institute and the Bangladesh Fisheries Research
Institute are generating technologies adapted to climate change
for use in IFAD-funded projects and beyond. Lastly, IFAD developed
a long-standing partnership with the Bangladesh University of
Engineering and Technology (BUET).

54 55
IFAD-Funded projects in
baglandesh
©IFAD/GMBAkash

56 57
Total cost: US$85.0 million
Approved IFAD loan: US$30.0 million
Cofinancing: Asian Development Bank (US$38.0 million)
Executing agency: Bangladesh Water Development Board
Duration: 1978-1991
Directly benefiting: 167,000 households
Project type: irrigation
Strategic objective
Increase food production through improved irrigation, drainage and
flood control.
Pabna Irrigation and Rural Development Project
Executing agency: Bangladesh Agricultural Development Corporation
Duration: 1979-1984
Directly benefiting: 1,300,000 households
Project type: programme loan
Strategic objective
Provide access to fertilizer nation-wide, create storage facilities, and
provide credit and training to small farmers.
Fertilizer Sector Programme
©IFAD/GMBAkash
COMPLETED PROJECTS

58 59
Executing agencies: Bangladesh Krishi Bank and Bangladesh Bank
Duration: 1980-1984
Project type: credit and financial services
Strategic objective
Increase food production by providing credit for hand tubewells, fish
ponds, and promote intensive use of deep tubewells.
Small Farmer Agricultural Credit Project
Executing agency: Ministry of Local Government, Rural Development
and Cooperatives
Duration: 1981-1989
Project type: rural development
Strategic objectives
ƒ Increase production by strengthening cooperative institutions,
providing credit for small-scale irrigation and for income-
generating activities for the landless people.
ƒ Invest in rural infrastructure and roads.
Southwest Rural Development Project
Cofinancing: Asian Development Bank (US$34.7 million)
Executing agency: Ministry of Local Government, Rural Development
and Cooperatives
Duration: 1982-1990
ƒ Increase production by improving small farmers’ access to small-
scale irrigation and productive input.
ƒ Strengthen the cooperatives’ system.
North West Rural Development Project
©IFAD/GMBAkash

60 61
Duration: 1983-1992
Strategic objective
Increase production through the creation of polders, by building
embankments and water-regulating structures to eliminate flooding.
Small Scale Flood Control, Drainage and Irrigation Project
©IFAD/GMBAkash
Executing agency: Grameen Bank
Duration: 1984-1988
Strategic objective
Support the Grameen Bank to increase its reach and volume, and
extend its services to poor rural people.
Grameen Bank Project
©IFAD/GMBAkash

62 63
Executing agency: Ministry of Agriculture
Cofinancing: Gesellschaft fur Technische Zusammenarbeit
(US$5.8 million)
Duration: 1986-1994
ƒ Increase the productivity of cropping systems and optimize the
use of water.
ƒ Increase labour productivity by making maximum use of available
resources and introducing additional income-generating activities.
Marginal and Small Farm Systems Development Crop Intensification
Project
©IFAD/GMBAkash
Cofinancing: Denmark (US$3.1 million)
Executing agency: Ministry of Land
Duration: 1988-1996
Project type: fisheries
Strategic objective
Increase the Oxbow lakes’ productivity and empower the poorest
users of these lakes to fully participate in aquaculture development.
Oxbow Lakes Small-Scale Fishermen Project
Cofinancing:
Norway (US$14.2 million)
Ford Foundation (US$2.4 million)
Gesellschaft fur Technische Zusammenarbeit (US$7.6 million)
Canadian International Development Agency (US$32.7 million)
Sweden (US$30.1 million)
German Credit Institution for Reconstruction (US$10.8 million)
Executing agency: Grameen Bank
Duration: 1989-1994
Strategic objective
Building on the success of previous Grameen Bank projects, double
the number of operational branches and expand the membership of
existing branches to extend credit and other services to more than
twice the number of borrowers.
Grameen Bank Phase III Project

64 65
Cofinancing: Denmark (US$ 3.2 million)
Executing agencies: Ministry of Fisheries and Livestock and the
Bangladesh Rural Advancement Committee
Duration: 1991-1999
Project type: livestock
Strategic objective
Increase the productivity and incomes of poor livestock owners,
specifically landless and poor women, by improving the nutritional
value of the animals and livestock management practices.
Smallholder Livestock Development Project
Cofinancing:
Denmark (US$2.1 million)
European Union (US$2.0 million)
Executing agencies: Cabinet Division of the President’s Secretariat,
District and Upazila Administration, Nationalized Commercial
Banks, Bangladesh Red Crescent Society and the Bangladesh Rural
Advancement Committee
Duration: 1991-1999
ƒ Rehabilitate the productive potential of people affected by the April
1991 cyclone by replenishing livestock and repairing infrastructure.
ƒ Increase community resilience in vulnerable areas by
strengthening capacity to cope with natural disasters.
Special Assistance Project for Cyclone Affected Rural Households
Cofinancing: World Food Programme (US$1.6 million)
Executing agencies: Department of Agricultural Extension, Bangladesh
Water Board and Local Government Engineering Department
Duration: 1993-1999
Project type: agricultural development
Strategic objective
Improve the living conditions and food security of small and marginal
farmers, people with little or no land and women with homestead
plots.
Netrakona Integrated Agricultural Production and Water
Management Project
©IFAD/GMBAkash

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©IFAD/GMBAkash
Executing agency: Agrani Bank
Duration: 1995-2001
Strategic objective
Generate employment in rural areas to benefit landless people,
women and potential microentrepreneurs.
Employment-Generation Project for the Rural Poor
Total cost: US$ 66.0million
Cofinancing:
Netherlands (US$6.8 million)
Asian Development Bank (US$32.0 million)
Executing agency: Local Government Engineering Department
Duration: 1995-2001
Strategic objective
Bring about a sustainable increase in agricultural production and
incomes for smallholders in western Bangladesh, by removing
constraints such as inadequate flood protection, water-logging and
limited irrigation, and by setting up and training water management
cooperative societies.
Small-Scale Water Resources Development Sector Project

68 69
Executing agency: Department of Agricultural Extension
Duration: 1997-2004
ƒ Boost agricultural production and incomes of rural poor people.
ƒ Establish and strengthen community organizations.
ƒ Increase employment opportunities.
ƒ Strengthen government services and NGOs to support farmers.
ƒ Develop basic rural infrastructure.
Agricultural Diversification and Intensification Project
Cofinancing:
Japan (US$50.7 million)
Sweden (US$7.2 million)
Duration: 1997-2004
ƒ Accelerate agricultural, nonfarm economic and social development
to reduce the extent of poverty by improving basic rural transport
and trading infrastructure.
ƒ Strengthen the participation of beneficiaries in the planning,
implementation and maintenance of the proposed infrastructure
works.
ƒ Provide direct employment and create income-generating
opportunities in the farm and nonfarm sectors for the rural poor,
including poor women.
Third Rural Infrastructure Development Project
©IFAD/GMBAkash

70 71
©IFAD/GMBAkash
Executing agency: Ministry of Fisheries and Livestock
Duration: 1998-2006
ƒ Boost fisheries and aquaculture production to increase poor
people’s incomes.
ƒ Establish and strengthen community organizations to ensure
viable and sustainable access of the target group to productive
resources.
ƒ Improve the status of women by targeting pond aquaculture and
income-generating activities.
ƒ Improve the resource base through the rehabilitation of suitable
large waterbodies and fish ponds.
ƒ Improve access, hence product marketing, to and from rural
communities through better rural roads and growth centres, and
create productive physical infrastructure.
Aquaculture Development Project
Executing agency: Department of Agricultural Extension
Duration: 1999-2006
Strategic objective
Improve food security and living standards while improving the
economic infrastructure serving targeted rural households.
Smallholder Agricultural Improvement Project

72 73
Executing agency: Rural Development and Cooperatives Division,
Ministry of Local Government, Rural Development and Cooperatives
Duration: 2001-2012
ƒ Improve access to essential services and resources.
ƒ Diversify livelihood options for the landless, marginal and small-
scale farmer households and women.
Sunamganj Community-Based Resource Management Project
Executing agency: Palli Karma-Sahayak Foundation
Duration: 2003-2010
ƒ Improve the livelihoods and food security of moderately poor and
extremely poor households.
ƒ Empower women by improving access to essential services and
resources, and supporting income-generating activities such as
livestock.
ƒ Provide access to savings and credit services through high-value
products with established marketing chains that do not require
large landholdings.
Microfinance and Technical Support Project
©IFAD/GMBAkash

74 75
©IFAD/GMBAkash
Duration: 2004-2010
ƒ Establish viable microfinance institutions to provide opportunities
for small and marginal farmer households to invest in on- and off-
farm enterprises.
ƒ Increase agricultural production through access to information,
adoption of new technologies and linkages to markets.
ƒ Develop and mainstream Palli Karma-Sahayak Foundation
(PKSF)’s operational procedures for lending to farmers and related
agro-enterprises.
Microfinance for Marginal and Small Farmers Project
Cofinancing: Netherlands (US$4.8 million)
Duration: 2005-2012
ƒ Improve market facilities and the terms of access for men and
women to rural markets.
ƒ Increase wage employment for poor women.
ƒ Increase production and sale of goods for the market.
ƒ Move primary producers up the value chain.
Market Infrastructure Development Project in Charland Regions

76 77
Total IFAD loan: US$35.0 million
Duration: 2007-2013
Strategic objective
Stimulate pro-poor growth to increase employment opportunities
and reduce poverty by expanding existing microenterprises and
establishing new ones.
Finance for Enterprise Development and Employment Creation
Project
Cofinancing: World Bank – International Development Association
(US$62.5 million)
Executing agencies: Department of Agricultural Extension, Department
of Livestock Services, Department of Fisheries, and Bangladesh
Agricultural Research Council
Duration: 2007-2014
Project type: research, extension and training
Strategic objective
Support the Government’s strategy to increase national agricultural
productivity and farm income by improving the effectiveness of the
national agricultural technology system in Bangladesh for the benefit
of small and marginal farmers.
National Agricultural Technology Project
Cofinancing: Asian Development Bank (US$ 55.0 million)
Duration: 2009-2018
Strategic objective
Support the Government of Bangladesh’s National Water Policy and
the development of flood management, better drainage and water
conservation to improve the lives of small-scale and marginal farmers.
The project involves smallholders in small-scale water resource
management through community-based associations.
Participatory Small-scale Water Resources Sector Project
©IFAD/GMBAkash
ONGOING PROJECTS

78 79
Cofinancing: Netherlands (US$15.8 million)
Duration: 2010-2018
Strategic objective
Reduce hunger and poverty for poor people living on newly accreted
coastal islands (chars) through improved and more secure livelihoods.
Char Development and Settlement Project IV
IFAD financing: US$71.1 million
Approved IFAD ASAP: US$15.0 million
Approved IFAD grant: US$1.0 million
Cofinancing: Spanish Fund (US$29.7 million)
Duration: 2011-2019
Strategic objective
Raise living standards and reduce the vulnerability of the poor by
improving road infrastructure, building local capacity and expanding
access to natural resources, technology and markets.
Haor Infrastructure and Livelihood Improvement Project - Climate
Adaptation and Livelihood Protection
©IFAD/GMBAkash
IFAD financing: US$60.0 million
Approved IFAD grant: US$1.0 million
Cofinancing:
German Credit Institution for Reconstruction (US$8.8 million)
Strategic Climate Fund (US$30.0 million)
Duration: 2013-2019
ƒ Improve the livelihoods of poor rural people by increasing their
income and food security.
ƒ Enhance climate resilience of rural populations, coastal roads and
market infrastructure.
Coastal Climate Resilient Infrastructure Project

80 81
Duration: 2014-2020
Strategic objective
Enhance the livelihoods of rural women and men by improving
profitable business opportunities for microentrepreneurs and creating
wage employment for moderately and extremely poor people.
Promoting Agricultural Commercialization and Enterprises Project
Cofinancing:
United States Agency for International Development (US$7.4 million)
World Bank – International Development Association
(US$176.0 million)
Duration: 2015-2020
Project type: research, extension and training
Strategic objective
Increase income and reduce extreme poverty and hunger by
improving agricultural technology and support the development of the
agriculture, fisheries and livestock sectors through the use of climate-
smart technologies and better market linkages.
National Agricultural Technology Programme – Phase II
©IFAD/GMBAkash

82 83
©IFAD/GMBAkash
Proposed IFAD loan: US$63.3 million
Duration: 2018-2024
ƒ Scale up successful past investments in rural infrastructure to
promote resilience of poor communities to climate change.
ƒ Improve options for off-farm employment.
ƒ Organize poor and extremely poor people to prepare and react
to extreme weather events, and improve access to climate
projections to inform investments and communities.
Promoting Resilience of Vulnerable through Access to
Infrastructure, Improved Skills and Information
Proposed IFAD loan: US$64.5 million
Duration: 2018-2023
Project type: agricultural development, diversification and marketing
Strategic objective
Contribute to smallholder farmers’ responsiveness and
competitiveness in high-value crops to increase their incomes and
livelihood resilience through demand-driven productivity growth,
diversification and marketing.
Smallholder Agricultural Competitiveness Project
PROJECTS UNDER DESIGN

84 85
Project financing
Since 1978, IFAD has approved a total of US$717.2 million in loans for
investments in 31 rural development programmes and projects. The
total investment, including government and beneficiary contributions,
amounts to US$1.9 billion. These projects have directly contributed to
improving the lives of 10,702,563 poor rural households.
IFAD provides loans to Bangladesh on highly concessional terms.
The loans have a term of 40 years, including a grace period of
10 years, and a service charge of three-fourths of one per cent
(0.75 per cent) per annum.
Programme/project Durationl Total IFAD
approved financing
Total financing by
the Government of
Bangladesh
National Agricultural Technology Programme - Phase II Project 2015-2020 US$23.8 million US$6.7 million
Promoting Agricultural Commercialization and Enterprises
Project
2014-2020 US$40.0 million
Coastal Climate Resilient Infrastructure Project 2013-2019 US$60.0 million US$ 31.3 million
Haor Infrastructure and Livelihood Improvement Project - Climate
Adaptation and Livelihood Protection
2011-2019 US$71.1 million US$ 32.4 million
Char Development and Settlement Project IV 2010-2017 US$47.3 million US$ 15.6 million
Participatory Small-scale Water Resources Sector Project 2009-2018 US$32.0 million US$ 29.1 million
National Agricultural Technology Project 2007-2014 US$19.5 million US$ 2.6 million
Finance for Enterprise Development and Employment Creation
Project
2007-2013 US$35.0 million
Market Infrastructure Development Project in Charland Regions 2005-2012 US$24.9 million US$ 8.5 million
Microfinance for Marginal and Small Farmers Project 2004-2010 US$20.1 million
Microfinance and Technical Support Project 2003-2010 US$16.3 million
Sunamganj Community-Based Resource Management Project 2001-2012 US$22.0 million US$ 4.6 million
Smallholder Agricultural Improvement Project 1999-2006 US$18.6 million US$ 4.4 million
Aquaculture Development Project 1998-2006 US$20.0 million US$ 2.1 million
Third Rural Infrastructure Development Project 1997-2004 US$11.7 million US$ 36.0 million
Agricultural Diversification and Intensification Project 1997-2004 US$18.9 million US$ 4.9 million
Small-scale Water Resources Development Sector Project 1995-2001 US$10.4 million US$ 13.3 million
Employment-Generation Project for the Rural Poor 1995-2001 US$14.8 million
Netrakona Integrated Agricultural Production and Water
Management Project
Special Assistance Project for Cyclone Affected Rural
Households
Smallholder Livestock Development Project 1991-1999 US$10.8 million US$ 1.0 million
Grameen Bank Phase III Project 1989-1994 US$8.0 million
Oxbow Lakes Small-Scale Fishermen Project 1988-1996 US$7.2 million US$ 0.8 million
Marginal and Small Farm Systems Development Crop
Intensification Project
Grameen Bank Project 1984-1988 US$23.6 million US$ 11.3 million
Small Scale Flood Control, Drainage and Irrigation Project 1983-1992 US$6.7 million US$ 3.2 million
North West Rural Development Project 1982-1990 US$3.2 million US$ 6.2 million
Southwest Rural Development Project 1981-1989 US$14.8 million US$ 7.5 million
Small Farmer Agricultural Credit Project 1980-1984 US$17.8 million US$ 7.5 million
Fertilizer Sector Programme 1979-1984 US$21.4 million US$ 11.1 million
Pabna Irrigation and Rural Development Project 1978-1991 US$30.0 million US$ 17.0 million
TOTAL 1978-2017 US$717.2 million US$ 261.3 million

86 87
Beneficiaries
The total number of households directly benefiting from all ongoing
and completed IFAD projects in Bangladesh is estimated at
10,702,563. At an average of 4.6 persons per household, IFAD’s
interventions have reached an approximate 50 million people.
Programme/project Directly benefitting
households
National Agricultural Technology Programme - Phase II Project 1,000,000
Promoting Agricultural Commercialization and Enterprises Project 452,000
Coastal Climate Resilient Infrastructure Project 455,173
Haor Infrastructure and Livelihood Improvement Project - Climate Adaptation
and Livelihood Protection
115,000
Char Development and Settlement Project IV 28,000
Participatory Small-scale Water Resources Sector Project 324,400
National Agricultural Technology Project 330,000
Finance for Enterprise Development and Employment Creation Project 117,700
Market Infrastructure Development Project in Charland Regions 87,500
Microfinance for Marginal and Small Farmers Project 210,000
Microfinance and Technical Support Project 276,000
Sunamganj Community-Based Resource Management Project 135,000
Smallholder Agricultural Improvement Project 82,000
Aquaculture Development Project 120,000
Third Rural Infrastructure Development Project 2,800,000
Agricultural Diversification and Intensification Project 86,000
Small-scale Water Resources Development Sector Project 140,000
Employment-Generation Project for the Rural Poor 45,140
Netrakona Integrated Agricultural Production and Water Management Project 90,550
Special Assistance Project for Cyclone Affected Rural Households 69,000
Smallholder Livestock Development Project 260,000
Grameen Bank Phase III Project 500,000
Oxbow Lakes Small-Scale Fishermen Project 6,800
Marginal and Small Farm Systems Development Crop Intensification Project 22,700
Grameen Bank Project 1,000,000
Small Scale Flood Control, Drainage and Irrigation Project 30,000
North West Rural Development Project 132,600
Southwest Rural Development Project 247,000
Small Farmer Agricultural Credit Project 73,000
Fertilizer Sector Programme 1,300,000
Pabna Irrigation and Rural Development Project 167,000
TOTAL 10,702,563

88 89
Contact information
Government of Bangladesh
Sultana Afroz
Additional Secretary
Economic Relations Division (ERD), Ministry of Finance
Room 13, Block 07, Planning Commission Campus, Sher-e Bangla
Nagar
Dhaka-1207, Bangladesh
Work: 00880 29180674
addlsecy-coordination@erd.gov.bd
IFAD
Benoit Thierry
Country Programme Manager
Via Paolo di Dono, 44
Rome, Italy
Work: +39 06545912234
Mobile: +39 3357769705
Fax: +39 0654593234
b.thierry@ifad.org
Sherina Tabassum
Country Programme Officer
Room No.14:23 (14th Floor) IDB Bhaban, Sher-e-Bangla Nagar
Dhaka, Bangladesh
s.tabassum@ifad.org
National Agricultural Technology
Programme – Phase II
Shah Md. Nasim
Project Coordination Director
Ministry of Agriculture
Project Management Unit of NATP2
BARC Complex, Farmgate
Mobile: 00880 1711478273
pdnatp2@gmail.com

90 91
Promoting Agricultural Commercialization
and Enterprises Project
Akond Md. Rafiqul Islam
Project Coordinator
Palli Karma-Sahayak Foundation (PKSF)
E-4/B, Agargaon Administrative Area
Sher-e-Bangla Nagar,
Mobile: 00880 1711437609
arafiq@pksf-bd.org
Coastal Climate Resilient Infrastructure
Project
A.K.M. Luthfur Rahman
Project Director
Local Government Engineering Department (LGED)
RDEC-LGED Bhaban (Level -3),
Agargaon, Sher-e-Bangla Nagar,
Work: 00880 28181128
luthfur1963@yahoo.co.uk
Haor Infrastructure and Livelihood
Improvement Project
Gopal Chandra Sarker
Project Director
RDEC-LGED Bhaban (Level -3),
Agargaon, Sher-e-Bangla Nagar
Tel: 00880 28144578
gopalpdhilip@gmail.com
Char Development and Settlement Project IV
Andrew Jenkins
Team Leader
Coordinating Office CDSP-IV,
23/1 Hasan Court (2nd floor), Motijheel C/A, Dhaka-1000
Work: 00880 29590543
andrewjenkins@btinternet.com
Md Shamsuddoha
Project Coordinating Director,
Coordinating Office CDSP-IV,
23/1 Hasan Court (2nd floor), Motijheel C/A, Dhaka-1000
Work: 00880 29590543
cdsppd@yahoo.com
Participatory Small-scale Water Resources
Sector Project
Sheikh Mohammad Nurul Islam
Project Director
RDEC-LGED Bhaban (Level -5)
Agargaon, Sher-e-Bangla Nagar, Dhaka-1207
Work: 00880 29127411
pd.psswrsp@lged.gov.bd
©IFAD/GMBAkash

Government of the People’s Republic of Bangladesh
Ministry of Finance
Economic Relations Division (ERD)
Room 13, Block 07
Planning Commission Campus
Sher-e Bangla Nagar

40 years cooperation IFAD and Bangladesh

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