Press release number: IFAD 21/06

Rome, 3 May 2006 - Over 85,000 poor families living in remote and vulnerable villages will directly benefit from a new development project in Southern Bangladesh. The project will strengthen the capacity of food producers and traders to build market opportunities in poorly connected rural areas.

The US$43.9 million Market Infrastructure Development Project in Charland Regions will be financed by a US$25.0 million loan from the International Fund for Agriculture Development (IFAD). The loan agreement was signed today at IFAD headquarters in Rome by the President of IFAD, Lennart Båge, and the Ambassador of Bangladesh to Italy, Fazlul Karim.

The considerable efforts made by the Government of Bangladesh and development partners to build rural infrastructure have so far been concentrated in high-potential regions of the country. Charlands are areas of active river basins subjected to severe annual inundations and extensive erosion. They remain poorly connected to regional and national markets. Isolation is a serious constraint to their development.

“With economic modernization, new market opportunities are emerging even in remote areas of Bangladesh”, says Nigel Brett, IFAD's Country Programme Manager for Bangladesh. “The important thing is to equip poor rural producers in these remote areas with the skills to exploit market opportunities as and when they arise.”

There will be substantial infrastructure development during the seven year project. Sixty local and assembly markets will be rebuilt and their streets paved. Their surface will be raised above flood level, and drains, toilets and waste collection points will be built. Some 360 kilometres of roads and 40 landing piers for boats will also be built to facilitate transport from the production areas.

Poor food producers, fishermen, small traders and women labourers will all benefit from this project in the districts of Noakhali, Lakshmirpur, Bhola, Barisal and Patuakhali.

They will receive training that will help them increase the quality of their crops and find more efficient ways to sell their produce at markets, as well as to develop their technical and management skills. Access to micro-credit will help to eliminate dependence on moneylenders.

The project will support the country's National Strategy for Accelerated Poverty Reduction. Three quarters of the country's population and 85 per cent of poor people live in rural areas, making agriculture and rural development top priorities.

With this loan, IFAD will have financed 23 loans to Bangladesh for a total of US$388.0 million, since 1978.

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IFAD is a specialized agency of the United Nations dedicated to eradicating poverty and hunger in rural areas of developing countries. Through low-interest loans and grants, it develops and finances projects that enable rural poor people to overcome poverty themselves. There are 187 ongoing IFAD-supported rural poverty eradication programmes and projects, totalling US$6.2 billion. IFAD has invested more than US$2.9 billion in these initiatives. Cofinancing has been provided by governments, beneficiaries, multilateral and bilateral donors and other partners. At full development, these programmes will help nearly 80 million rural poor women and men to achieve better lives for themselves and their families. Since starting operations in 1978, IFAD has invested US$9.0 billion in 705 programmes and projects that have helped nearly 300 million poor rural men and women achieve better lives for themselves and their families. Governments and other financing sources in the recipient countries, including project participants, have contributed almost US$8.8 billion, and multilateral, bilateral and other donors have provided another US$7.0 billion in cofinancing.