IFAD FINANCES WATER DEVELOPMENT PROJECT IN BANGLADESH
Press Release
IFAD/514
IFAD FINANCES WATER DEVELOPMENT PROJECT IN BANGLADESH
19951219 ROME, 15 December (IFAD) -- The International Fund for Agricultural Development (IFAD) and the Government of Bangladesh signed today a $10.4 million loan agreement to help finance the Small-Scale Water Resources Development Sector Project. The agreement was signed at IFAD's Headquarters in Rome by the Ambassador of Bangladesh to Italy, Khurshid Hamid, and the Assistant President, Programme Management Department of IFAD, Basudev Dahal.The project, worth a total of $66 million, aims at generating employment opportunities for the most vulnerable groups and increasing household incomes and food security by creating a sustainable increase in agricultural production. The quality of life in western Bangladesh, where more than half the population are below the poverty line, will thus be improved. A total of 140,000 rural families -- 750,000 people -- will be the direct beneficiaries of the project, which includes three main components: beneficiary participation and water management association development; development of small-scale water resource control systems; and institutional strengthening.
The project, which will be financed by the Asian Development Bank and the Government of the Netherlands, will improve agricultural extension services in order to promote the adoption of improved, environmentally-sound agricultural practices. In an area where low productivity and poverty is caused by a shortage of irrigation water and early flooding at the end of the dry season, the project will establish efficient water control systems. It will also promote the active participation of rural women in development and generate employment opportunities for them in marketing, the processing of farm products and farm services.
Bangladesh has received 15 loans so far, amounting to about $235 million. With the new loan, Bangladesh continues to be one of the largest beneficiaries of IFAD's resources. The terms of the loans are highly concessional, including a grace period of ten years, with a service charge of 0.75 per cent per annum.
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