$500m WB deal on livestock project

FE Report | Published: December 19, 2018 21:44:15

The World Bank (WB) will lend $500 million to help improve livestock and dairy production in Bangladesh.
The funds also aim to provide better market access to 2.0 million household farmers and small- and medium-scale agro-entrepreneurs in the country.
To this end, the government signed an agreement with the multilateral lender at the Economic Relations Division (ERD) on Wednesday, a WB press statement said.
ERD secretary Monowar Ahmed and acting WB country director for Bangladesh, Bhutan and Nepal Dandan Chen inked the deal on behalf of their respective sides.
The Livestock and Dairy Development Project aims to help stimulate private-sector investment and sustainable development of livestock value chains in Bangladesh, according to the WB.
It is expected to help address the country's current shortages in eggs, dairy and meat production, the release said.
By 2021, the country may face annual shortages of 1.5 billion eggs and nearly 6.0 million tonnes of milk.
By enhancing availability of dairy, egg and meat products, the project will help improve nutrition for citizens, especially children, pregnant women and new mothers.
"Through improving market linkages and ensuring good practices, Bangladesh can increase livestock production significantly," the statement quoted Mr Chen.
"Growth in livestock productivity potentially leads to growth in jobs for women, youth, and other vulnerable groups," he stated.
According to the release, the project will help small-scale livestock farmers-half of whom are women-adopt improved agricultural technologies.
It will also help support basic livestock infrastructure, including processing and marketing as well as value change development.
It will help the government strengthen the coverage of livestock insurance aimed at protecting the assets and livelihoods of the small and medium producers.
In Bangladesh, climate change affects livestock production, it said, adding that the project will promote climate resilient emission-saving practices in the sector.
The project will address issues related to food safety, environmental pollution, anti-micribial resistance and animal welfare.
It will directly contribute to the national climate change policies and commitments.
"The government recognises the importance of livestock in its National Livestock Development Policy and in the Seventh Five-Year Plan," the WB release said, quoting the ERD secretary.
He was also quoted as saying: "The project will contribute to achieving the government's plan to substantially increase livestock production to feed the growing population."
The credit from the WB's International Development Association (IDA) has a 30-year term, including a five-year grace period.
It carries a service charge of 0.75 per cent and an interest of 1.25 per cent.
The WB was among the first development partners to support Bangladesh following its independence.
Since then, the lender has committed over $30 billion, mostly in grants and interest-free credits to Bangladesh.
Bangladesh currently has the largest IDA programme totalling $12.4 billion.
smjahangirfe@gmail.com