ADB gives additional loan to expand water resources project

The government yesterday signed $45 million loan agreements with the Asian Development Bank to expand a water resources management project in the southwest area of Bangladesh for improving agriculture and fisheries production and livelihoods of residents.

The government of the Netherlands will provide a grant of $7 million for the project, to be administered by the ADB, the Manila-based lender said in a statement yesterday.

Mohammad Mejbahuddin, senior secretary of the Economic Relations Division, and Kazuhiko Higuchi, ADB's country director for Bangladesh, signed the agreements at a ceremony at the ERD in Dhaka.

The additional assistance will increase the scope of the “southwest area integrated water resources planning and management project” that has sharply increased agriculture production and benefitted more than 191,000 people, including landless farmers and women, the lender said.

The ADB and the government of the Netherlands had provided $20 million and $12.5 million for the original project respectively.

The project was approved in 2005 and has renovated dilapidated infrastructure and established participatory water management planning and management system with livelihood improvement supports, according to the statement.

“We have seen considerable benefits in the project pilot areas of Narail and Chenchuri Beel already, with rice production nearly doubling and fish production rising 30 percent,” Higuchi said.

“This new financing will allow replication of the success of the project across nine nearby subproject areas, covering 84,000 hectares, and extending benefits to additional 470,000 people.”

In each of the new subproject areas, support will be given to enrol farmers into water management organisations to help them better operate and maintain the water infrastructure, and develop integrated water management plans. The expanded project will also support the development of skills for members of water management organisations to help them increase the productivity of their agriculture and fishing activities and enhance their livelihood opportunities.

On the infrastructure side, funds will be used to renovate or build gated water retention structures and flood embankments, and to re-excavate clogged drainage and irrigation canals. The expanded project is expected to be completed in June 2022.