DHAKA, Oct 29, 2023 (BSS) - The Asian Development Bank (ADB) and the
government of Bangladesh today signed a loan agreement for $106 million to
improve water resources management and agricultural productivity in rural
Bangladesh.

An agreement for a grant of $17.80 million from the government of the
Netherlands was also signed. ADB will administer the grant, which will
finance innovative pilot works and consulting services focusing on
innovation.

Sharifa Khan, Secretary, Economic Relations Division (ERD), and Edimon
Ginting, ADB Country Director for Bangladesh, signed the agreements on behalf
of Bangladesh and ADB respectively, said a press release.

"The Climate and Disaster Resilient Small-Scale Water Resources Management
Project will provide accelerated support to address climate impacts and food
security by raising and strengthening flood embankments, deepening channels
to increase water retention, providing efficient electric pump-pipe
irrigation, providing training, developing capacity, and supporting climate-
smart agriculture, agribusinesses, and fishery development," said Country
Director Edimon Ginting.

"The project will help increase crop production with enhanced agricultural
marketing, and fisheries and aquaculture production expansion to support the
livelihoods of 380,000 households, especially women and vulnerable persons,"
he added.

Ginting also said crop production benefits include higher cropping intensity,
increased crop yields, improved produce quality, and greater crop
diversification.

The project builds on the success and lessons from three prior ADB-financed
participatory small-scale water resources management projects in Bangladesh.

It will scale up investment while intensifying support for climate and
disaster resilience and food security through new and improved water
resources infrastructures and services for flood and drought risk management,
drainage improvement, and irrigation systems modernization.

It will significantly increase agricultural productivity and profitability
through effective, participatory, and sustainable water resources management
of over more than 220,000 hectares in 42 districts, home to 77 percent of the
rural poor.

To be implemented by the Local Government Engineering Department, it will
establish 150 new water management cooperative associations and strengthen
230 existing ones; support emergency reconstruction and modernization of the
Bakkhali rubber dam scheme; construct 110 kilometers of farm and village
roads with all-weather features; and increase participation of women, youth,
and small ethnic communities.

The innovative and climate resilience features of the project have attracted
$42.98 million loan co-financing from the International Fund for Agricultural
Development and $17.80 million grant from the government of the Netherlands.
The government of Bangladesh provides $58.22 million of counterpart funds.

ADB is committed to achieving a prosperous, inclusive, resilient, and
sustainable Asia and the Pacific, while sustaining its efforts to eradicate
extreme poverty. Established in 1966, it is owned by 68 members-49 from the
region.