Completion Report Project Number: 32193 Loan Number: 1782-BAN(SF) November 2011 Bangladesh: Northwest Crop Diversification Project CURRENCY EQUIVALENTS Currency Unit – taka (Tk) At Appraisal At Project Completion 17 August 2000 12 January 2010 Tk1.00 = $0.019 $0.014 $1.00 = Tk54.00 Tk69.26 ABBREVIATIONS ADB – Asian Development Bank BB – Bangladesh Bank BADC – Bangladesh Agriculture Development Corporation BARI – Bangladesh Agriculture Research Institute BME – benefit monitoring and evaluation BRAC – Bangladesh Rural Advancement Committee DAE – Department of Agricultural Extension DAM – Department of Agricultural Marketing FAO – Food and Agriculture Organization of the United Nations FFS – farmers’ field school FGD – focus group discussion GDP – gross domestic product GKF – Grameen Krishi Foundation HCI – head count index HDP – Horticulture Development Project HIES – household income expenditure survey – horticulture training and demonstration center HPI – human poverty index HVC – high value crop IFAD – International Fund for Agricultural Development kg – kilogram KRF – Krishi Rin Foundation LGED – Local Government Engineering Department MIS – management information system MMC – market management committee MOA – Ministry of Agriculture NCDP – Northwest Crop Diversification Project NGO – nongovernment organization O&M – operation and maintenance PKSF – Palli Karma Sahayak Foundation PIU – project implementation unit PLDP – Participatory Livestock Development Project PMU – project management unit PPER – project performance evaluation report PSU – project supervision unit RAKUB – Rajshahi Krishi Unnayan Bank RDRS – Rangpur Dinajpur Rural Service SCDP – Second Crop Diversification Project SFG – small farmer group TA – technical assistance TOT – training of trainers WTO – World Trade Organization NOTES (i) The fiscal year (FY) of the government ends on 30 June. FY before a calendar year denotes the year in which the fiscal year ends, e.g., FY2009 ends on 30 June 2009. (ii) In this report, "$" refers to US dollars. Vice-President X. Zhao, Operations Group 1 Director General S. H. Rahman, South Asia Department (SARD) Country Director T. Kandiah, Bangladesh Resident Mission (BRM), SARD Team leader A. K. Saha, Senior Project Officer, BRM Team member M. N. Alam, Project Analyst, BRM In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. CONTENTS Page BASIC DATA ii MAP vi I. PROJECT DESCRIPTION 1 II. EVALUATION OF DESIGN AND IMPLEMENTATION 1 A. Relevance of Design and Formulation 1 B. Project Outputs 2 C. Project Costs 6 D. Disbursements 6 E. Project Schedule 6 F. Implementation Arrangements 6 G. Conditions and Covenants 7 H. Consultant Recruitment and Procurement 7 I. Performance of Consultants, Contractors, and Suppliers 7 J. Performance of the Borrower and the Executing Agency 8 K. Performance of the Asian Development Bank 8 III. EVALUATION OF PERFORMANCE 9 A. Relevance 9 B. Effectiveness in Achieving Outcome 9 C. Efficiency in Achieving Outcome and Output 10 D. Preliminary Assessment of Sustainability 12 E. Impact 12 IV. OVERALL ASSESSMENT AND RECOMMENDATIONS 14 A. Overall Assessment 14 B. Lessons 14 C. Recommendations 15 APPENDIXES 1. Project’s Framework Analysis 16 2. Physical Progress: Target versus Actual 28 3. Highlights of Training and Extensions Activities 29 4. Mobilization and Credit Operation for High Value Crop Farmers 38 5. Adaptive Research conducted under the Project 42 6. Marketing Support and Market Construction 46 7. Activities under Pilot Agribusiness Credit Line 53 8. Project Implementation Schedule 57 9. Compliance Status of the Loan Covenants 60 10. Economic Analysis and Net Average Farm Income under Major Cropping Patterns Involving High Value Crops 70 11. Women Empowerment and Gender Quality Initiatives 81 12. Socioeconomic Impacts of Project Interventions 85 SUPPLEMENTARY APPENDIX 1. Household Survey Questionnaire 94 BASIC DATA A. Loan Identification 1. Country Bangladesh 2. Loan Number 1782-BAN(SF) 3. Project Title Northwest Crop Diversification Project 4. Borrower People’s Republic of Bangladesh 5. Executing Agency (i) Department of Agricultural Extension (ii) Bangladesh Bank (BB) 6. Amount of Loan SDR35,710,000 7. Project Completion Report Number PCR:BAN 1288 B. Loan Data 1. Appraisal – Date Started 7 August 2000 – Date Completed 17 August 2000 2. Loan Negotiations – Date Started 11 October 2000 – Date Completed 13 October 2000 3. Date of Board Approval 21 November 2000 4. Date of Loan Agreement 18 December 2000 5. Date of Loan Effectiveness – In Loan Agreement 18 March 2001 – Actual 9 August 2001 – Number of Extensions 3 6. Closing Date – In Loan Agreement 31 December 2008 – Actual 12 January 2010 – Number of Extensions 1 7. Terms of Loan – Interest Rate 1.0% per annum during the grace period and 1.5% per annum thereafter – Maturity (number of years) 32 years including grace period – Grace Period (number of years) 8 8. Terms of Relending Government to BB: – Interest Rate 2% for crop production credit and 3% for agribusiness credit line – Maturity (number of years) 20 – Grace Period (number of years) 5 – Second-Step Borrower BB 9. Terms of On-lending BB to Rajshahi Krishi Unnayan Bank: – Interest Rate 1.5% below BB rate for crop production credit; BB rate for agribusiness credit line – Maturity No longer than 30 days of receipt from non- government organizations for crop production credit 2 years for agribusiness credit line iii 10. Disbursements a. Dates Initial Disbursement Final Disbursement Time Interval 15 May 2002 17 December 2009 91 months Effective Date Original Closing Date Time Interval 9 August 2001 10 January 2010 101 months b. Amount (SDR million) Category Last Net or Original Revised Amount Amount Amount Undisbursed Subloan Allocation Allocation Canceled Available Disbursed Balance 01 4.47 3.60 (0.87) 3.22 3.22 0.38 02A 0.37 0.40 0.03 0.39 0.39 0.01 02B 0.85 1.50 0.65 1.44 1.44 0.06 03 2.54 1.60 (0.95) 1.49 1.49 0.12 04 5.08 2.10 (2.98) 1.97 1.97 0.13 05 0.34 0.09 (0.25) 0.07 0.07 0.02 06 13.52 17.46 3.93 17.43 17.43 0.03 07 0.77 0.40 (0.37) 0.33 0.33 0.07 08 0.26 1.50 1.24 1.41 1.41 0.10 09 0.09 0.80 0.70 0.64 0.64 0.17 10 1.02 1.03 0.00 0.98 0.98 0.05 11 6.39 0.00 (6.39) 0.00 0.00 0.00 99 0.00 0.00 0.00 0.00 0.00 0.00 Total 35.70 30.48 5.24 29.37 29.37 1.14 11. Local Costs (Financed) - Amount ($) 27,324,367 - Percent of Local Costs 53% - Percent of Total Cost 40% C. Project Data 1. Project Cost ($ million) Cost Appraisal Estimate Actual Foreign Exchange Cost 19.50 16.89 Local Currency Cost 46.70 51.32 Total 66.20 68.21 2. Financing Plan ($ million) Cost Appraisal Estimate Actual Implementation Costs Borrower Financed 9.60 6.18 Beneficiary Financing 10.30 17.82 ADB Financed 45.00 42.71 Other External Financing 0.00 0.00 Subtotal 64.90 66.71 Interest During Construction Costs Borrower Financed 0.00 0.00 ADB Financed 1.30 1.51 Other External Financing 0.00 0.00 Subtotal 1.30 1.51 Total 66.20 68.22 ADB = Asian Development Bank. iv 3. Cost Breakdown by Project Component ($ million) Component Appraisal Estimate Actual A. Base Cost 1. Training and extension 12.70 7.90 2. Farmer mobilization and credit 25.80 43.69 3. Marketing support 8.60 5.42 4. Adaptive research 0.70 0.07 5. Pilot agribusiness credit 1.70 0.85 6. Project management support 3.30 8.78 Subtotal (A) 52.80 66.71 B. Contingencies 1. Physical 1.30 0.00 2. Price 10.80 0.00 Subtotal (B) 12.10 0.00 C. Interest During Construction Subtotal (C) 1.30 1.51 Total (A+B+C) 66.20 68.22 4. Project Schedule Item Appraisal Estimate Actual Date of contract with consultants September 2001 March 2003 Completion of engineering designs January 2004 December 2008 Civil Works Contract Date of award February 2003 November 2004 Completion of work July 2006 December 2009 Equipment and Supplies First procurement July 2002 June 2002 Last procurement June 2008 December 2009 Completion of equipment installation June 2008 December 2009 5. Project Performance Report Ratings Ratings Development Implementation Implementation Period Objectives Progress From 31 December 2000 to 30 September 2005 S S From 1 October 2005 to 30 September 2006 S HS From 1 October 2006 to 31 December 2006 S S From 1 January 2007 to 31 December 2007 HS HS From 1 January 2008 to 31 January 2008 HS S From 1 February 2008 to 31 December 2009 HS HS HS = highly satisfactory, and S = satisfactory. v D. Data on Asian Development Bank Missions No. of No. of Specialization of Name of Mission Date Persons Person-Days Members Appraisal 7–17 August 2000 4 40 g, c, e, e Inception 8–12 September 2001 2 8 g, b Review 1 19–24 November 2001 2 10 g, b Review 2 17–27 November 2002 3 30 a, g, b Review 3 30 Nov–8 Dec 2003 5 25 a, b, g, d, h Midterm review 24 June–10 July 2004 4 40 a, g, b, b Review 4 11–30 January 2005 2 20 a, b Review 5 14–31 August 2005 2 20 a, b Review 6 26 Feb–15 March 2006 3 20 a, b, d Review 7 5–8 September 2006 3 9 a, b, d Review 8 27 March–10 April 2007 3 18 a, b, d Review 9 22 Oct–26 Nov 2007 4 32 a, b, g, h Review 10 27 April–12 May 2008 3 21 a, b, h Review 11 2 Oct–16 Nov 2008 2 16 a, h Special review 11–17 March 2009 2 10 a, d Review 12 17–25 August 2009 3 24 a, b, h Project completion review 3–19 April 2011 3 60 a, b, e a = agriculture specialist, b = project analyst, c = counsel, d = economist, e = procurement, or consultant specialist, f = control officer, g = program officer, and h = gender specialist.