Microenterprise Development Project (MDP)


Microenterprise Development Project (MDP)

With a view to further strengthening PKSF’s Microenterprise development program, PKSF has launched a new project titled “Microenterprise Development Project (MDP)” with the financial and technical assistance of the Asian Development Bank (ADB). MDP is designed to assist microentrepreneurs throughout the country carrying out environmentally sustainable and financially viable enterprises. The project aims to include an additional number of 40,000 microentrepreneurs under PKSF’s enterprise development program that has a present program participant base of 1.3 million at the end of 2017. This project has been designed with PKSF’s business cluster development approach.

 A Loan Agreement between Government of Bangladesh and ADB, and a Project Agreement between PKSF and  ADB were signed on 06 February 2019. A Subsidiary Loan Agreement (SLA) between PKSF and Government of Bangladesh were signed on 02 April 2019. Subsequently the project was declared effective on 04 April 2019 by ADB.   

Project Objective: ‘To promote development of Microenterprises (MEs) for inclusive economic development and rural poverty reduction’.

Project Period: The implementation period of the project is 02 years (01 January 2019 to 31 December 2020).

Signing of the Project Agreement by Mr. Md. Abdul Karim, Managing Director, PKSF & Mr. Manmohan Parkash, Country Director of the Asian Development Bank in the presence of Mr. Monowar Ahmed, Secretary, ERD & Mr. Md. Fazlul Kader, Deputy Managing Director of PKSF

Signing of the Project Agreement by Mr. Md. Abdul Karim, Managing Director, PKSF & Mr. Manmohan Parkash, Country Director of the Asian Development Bank in the presence of Mr. Monowar Ahmed, Secretary, ERD & Mr. Md. Fazlul Kader, Deputy Managing Director of PKSF

ME Activities:

 

Beef fattening

Beef fattening

Shoe Making

Shoe Making

 

Project Components: The overall project comprises of-

(i) An ADB Loan for USD 50.0 million equivalent to EURO 44.64 million (Approx. BDT 423.0 Crore) as a credit line to PKSF &

(ii) A Technical Assistance (TA) grant of USD 0.50 million for capacity development.

MDP expects to support additional 40,000 microentrepreneurs mainly engaged in Manufacturing, Agriculture, Livestock, Fisheries and Food Processing sectors with special focus on women entrepreneurship, environmental sustainability and social safeguard. MDP aims that at least 70% of the additional 40,000 ME borrowers will be women.

ADB will contribute USD 0.50 million as TA grant for the project. Under this TA component, preparing a midterm draft report on institutional and financial strategy for the consideration of PKSF’s Board, developing a gender inclusive ME finance operational guidelines for MFIs, training to PO’s officers, mobile based ME finance business model development, ME cluster development support scheme implementation and branding of three ME products will be implemented.

 

Expected Outputs, Outcome and Impact:

Result Chain Performance Indicators
Output -1 Fundingto MFIs for microenterprise loans expanded. Totalmicroenterprise loanoutstandingof PKSF reachedTk17billion.
Totalmicroenterprise loanportfoliooutstandingof PKSF’sPOsreachedTk81 billion,of whichatleast 70%are forwomen borrowers.
PKSFinstitutional strengtheningandmedium-termfinancingstrategy developed.
Output -2 MFIs’capacity in microenterprise lending enhanced. MFImicroenterprise lendingoperational guidelinesdeveloped.
80POstrainedon microenterpriselending operations.
At least10,000 microenterpriseborrowers from 3POsenrolledin mobilebased microenterprisefinance applicationandreceived training,ofwhichat least 70%arewomen.
Output -3 Microenterprise Development support extended. MFImicroenterprise clusterdevelopment supportscheme implementedforatleast3 enterpriseclusterscovering atleast1,000 microenterpriseborrowers, of which70%arewomen.
Atleast3 microenterpriseproducts brandedbyPKSFuploaded ine-commerceplatform.
Outcome Microenterprises’ access to MFI financing increased. Microenterpriseborrowers of PKSF’sPOsincreased by40,000,of whichatleast 70%arewomen.
Impact Growth of environmentally and economically sustainable MEs with stronger forward linkages having better opportunities for productive employment.

 

 

Quarterly Loan Disbursement Information (Link):