0

Promoting Agricultural Commercialization and

Enterprises (PACE) Project

(IFAD Loan No. 2000000722)

Yearly Progress Report

July 2015-June 2016

Palli Karma-Sahayak Foundation (PKSF)

PKSF Bhaban

Plot: E-4/B, Agargaon Administrative Area

Sher-e-Bangla Nagar, Dhaka-1207, Bangladesh

1

Contents

1. Introduction: .................................................................................................................................................... 2

2. Project description: ......................................................................................................................................... 2

3. Component wise progress of the project activities ........................................................................................ 6

3.1 Component 1: Financial services for microenterprises: ................................................................................ 6

3.2 Component 2: Value chain development .................................................................................................... 10

3.3 Component 3: Technology and product adaptation ................................................................................... 17

4. Project management: .................................................................................................................................... 21

5. Financial progress of the project: .................................................................................................................. 23

6. Conclusion: ..................................................................................................................................................... 24

2

1. Introduction:

Palli Karma-Sahayak Foundation (PKSF) was established by the Government of Bangladesh in 1990, as

an apex organization for poverty alleviation through employment creation. Since its inception, PKSF has

been implementing various programs and projects for poverty alleviation through its Partner

Organizations (POs). PKSF has been providing financial and non financial services to micro

entrepreneurs to run various enterprises since 2001. PKSF successfully completed implementation of

three projects financed by International Fund for Agricultural Development (IFAD), namely;

Microfinance and Technical Support (MFTS) Project, Microfinance for Marginal and Small Farmers

(MFMSF) Project and Finance for Enterprise Development and Employment Creation (FEDEC) Project.

The main feature of these three projects was combining technical supports with the financial services to

expedite the poverty reduction process.

Based on the experiences of above-mentioned three projects, PKSF launched Promoting Agricultural

Commercialization and Enterprises (PACE) Project in January 2015. The project is jointly financed by

PKSF, IFAD and POs of PKSF. The financing agreement of the project was signed on 11th

December

2014 between the Government of Bangladesh and IFAD. Subsequently, PKSF signed a Subsidiary Loan

and Grant Agreement (SLGA) with Ministry of Finance on 18th

January 2015.

Like other programs and projects, all activities under PACE project are being implemented across the

country through its Partner Organizations (POs). The project provides financial services to micro

entrepreneurs i.e. the borrowers of Micro enterprise program. The project targeted marginal and small

farmers involved in field crops, horticulture, fisheries, livestock and non-farm producers of various sizes

and professionals in service sectors. Both women and men are the direct beneficiaries of this project and

the majority of the direct beneficiaries are women. The project implementation period is six years

(January 2015 to December 2020).

This annual progress report of PACE project contains the descriptions of progress of different activities

done during the reporting year July 2015 to June 2016. The report also contains information of the

cumulative achievements of the project since its commencement. The project has passed one and half

year of its implementation from January 2015 to June 2016 and has made a good progress in expanding

financial services for microenterprises and making value chain interventions for sub-sector development

and in transferring proven technologies for different economic activities.

2. Project description:

2.1 Project Goal: The project goal is to enhance livelihoods (higher income from self

employment, business profit and wage employment and food security) of the moderate and

extreme poor project participants (men and women) in a sustainable manner.

2.2 Development Objective: The development objective is to increase sales and incomes from

existing and new micro-enterprises and to create new wage employment opportunities for extreme

and moderate poor people.

2.3 Project Components: The project has three complementary components; 1) financial

services for microenterprises, 2) value chain development, and 3) technology and product

adaptation. In addition, project management is an additional activity to implement and coordinate

all activities of the project.

3

2.4 Project Cost: The total project cost is USD 92.49 million. Component wise cost allocation is

given below.

Financial Services for Microenterprise : USD 70.60 million

Value Chain Development : USD 14.64 million

Technology and Product Adaptation : USD 0.87 million

Project Management : USD 6.38 million

..………………………………

Total USD 92.49 million

2.5 Project Financing: The project is jointly financed by IFAD, PKSF and POs of PKSF. The

breakdown of project financing is given below.

IFAD USD 40.00 million

PKSF USD 22.45 million

POs USD 30.04 million

………………………………

Total USD 92.49 million

2.6 Logical Framework

Design summary Performance targets and

indicators

Monitoring mechanism &

information sources

Assumptions

Project Goal: Enhance

livelihoods (higher income

from self-employment,

business profit and wage

employment, and food

security) of the moderate

and extreme poor (men and

women) in a sustainable

manner.

60% households reporting

improvements in household

asset ownership index

50% increase in income

of 70% participating

moderate and extreme

poor households from

farm, non-farm and

service type businesses

and wage employment

Impact surveys of households

at baseline, mid- term and

completion qualitative

(PRA) assessment of

participating HHs and

quantitative assessment

(profitability analysis) of

microenterprises

Economy maintains or

increase growth rates

Terms of trade for rural

communities shall not

deteriorates

Price inflation for staple

food (rice) remains

below 10%

Rural and peri-urban

infrastructure improves

Prolonged political

unrest does not hinder

business and other

economic activities.

Development objective:

Increase sales and incomes

from existing and new

microenterprises, and create

new wage employment

opportunities for extreme

and moderate poor people.

70% existing

microenterprises have

increased combined sales

by 50% after receiving

project credit and

technical support

70% of newly included

PACE project annual

assessment report on

business expansion and

employment creation impact

assessments PRA

assessments

Government maintains

pro-small business

policies

Government continues

to support microfinance

programme and NGO

activities Prolonged

4

Design summary Performance targets and

indicators

Monitoring mechanism &

information sources

Assumptions

enterprises (out of which

50% are owned by

women) are profitable 3

years after receiving

support new wage

employment positions

created through project

activities and taken up

by moderately and

extremely poor people

(of which10% are

women).

political unrest does not

adversely affects

business and economic

growth

Component-1: Financial services for microenterprise

Design Summary Performance targets and

indicators

Monitoring Mechanism &

Information Sources

Assumptions

Outcome 1: Sustainable

financial services for MEs

(farm, off-farm, trading and

service sectors) expanded.

PKSF’s portfolio in ME

program increases at least

by Taka 3,200 million.

POs’ portfolio in ME loan

program increases by Taka

5,600 million.

5% of POs offering the

new products 12 months

after the first introduction

by PKSF

5% percent of a POs'

portfolio consists of the

new loan products 2 years

after the first introduction

by the PO.

PKSF’s program/financial

reports POs

program/financial reports

PACE project report

Demand for

microenterprise loan

grows

POs remains

institutionally and

financially viable and

offer competitive loan

products.

No major external

shocks such as major

spread of disease

Outputs: 1. Expansion of on-going loan program for MEs in all sectors 2. Piloting of new loan products

3.Capacity building of

PKSF and POs

Increase in number of ME

borrowers by102,000.

Cumulative loan

disbursement to additional

project borrowers Taka

61,200 million;

Number of new product

piloted: 2-3;

125 PKSF, 250 PO

officers trained

Reports from PKSF and POs

Project MIS Independent

assessment of

microenterprise loan program

and performance of pilot

products Training assessment

report

Portfolio quality of ME

loan program of POs

remains high (PAR

<5%)

Loan recovery rate of

overall ME program

and ME loan of POs

remain high (>95%)

HR capacity of POs for

management of

microfinance

programme enhanced

PKSF maintains its

strong supervision of

POs

5

Component-2: Value chain development Design Summary Performance targets and

indicators

Monitoring Mechanism

& information Sources

Assumptions

Outcome2: Sustainable

inclusion of MEs and

businesses in value chains

in agriculture, off-farm and

service sectors to up-scale

business, production

technologies, and enhance

access to markets.

Taka 9000 million increase

in cumulative sales of

participating businesses

(farm and non-farm sectors)

in value chains

50% of microenterprises

(out of 300000 beneficiaries

of value chain subprojects)

operating 3 years after the

support received from the

project

Impact assessment of value

chains

Project reports and MIS

impact assessment,

Case studies

PKSF and POs remain

committed to facilitating

non-financial services

along with providing

financial services

program to MEs

PKSF and POs

successfully establish

collaborative business

arrangements between

MEs and mainstream

businesses.

No major external

shocks such as disease

Outputs: 1. MEs and agri-businesses

sustainably included in

agricultural value chains

in various parts of the

country

2. MEs sustainably

included in value chain

for non-farm

manufacturing,

processing and service

products or group of

products

3. Capacity of PKSF and

POs enhanced to

formulate and manage

large scale value chain

subprojects and identify

opportunities for

partnership with the

private business sector

for microenterprises

4. Capacity of PKSF, POs

and microenterprises to

identify, advocate and

strengthen pro- poor

business policies,

especially sector specific

policies, enhanced

5. Electronic platform

10,000 acres of additional

land brought under

production of selected VCs,

50% increase in poultry

birds and livestock of

beneficiaries of VCD

subprojects

VC development activities

in 15 agricultural and non-

farm subsectors

5,000 agricultural and 2,500

non-farm MEs linked with

larger firms as suppliers and

contract growers

200,000 agricultural and

50,000 non-farm

microentrepreneurs trained

200,000 MEs adopted new

technologies

10,000 Local service

providers (farm and non-

farm sectors) strengthened

in VCs

50 PKSF/GoB and 200 POs

officials trained on VC

project design and

management

80 PKSF/PO officials are

trained on preventing

environmental degradation

and improving conditions in

work place

5 policy papers written and

submitted and 5 dialogue

activities held

100 PKSF, GOB and POs

Impact assessment of value

chains

Project reports and MIS

Case studies

PKSF establishes

separate non-financial

services division with

competent human

resources

PKSF enhances overall

capacity to manage value

chain projects, supervise

POs in these areas

PKSF recruits adequate

officers

POs establishes separate

non-financial services

units and enhances

capacity to manage value

chain projects

Facilitation of non-

financial services

become mainstream

services of POs

Private business

companies are interested

in sourcing products

from microenterprises

and willing to engage in

partnership in the

selected value chains

6

Design Summary Performance targets and

indicators

Monitoring Mechanism

& information Sources

Assumptions

officials trained

business/sector policy

analysis and advocacy

Electronic platform

established

Component 3: Technology and Product Adaptation Design summary Performance targets and

indicators

Monitoring mechanism

&

information Sources

Assumptions

Outcome-3: Proven

technologies and products

introduced by MEs

Transfer of 10 proven

Technologies and products

successfully to Small

Producers.

Independent assessment

reports

PACE reports

PKSF and POs successfully

indentify technologies and

products for small

producers within value

chain subprojects and

outside

Outputs:

1. Resolution of

technological problem

identified under

component-2

2. Adaptation and

dissemination of readily

available technologies

and products

3. TA and studies

50000 MEs/farmers are

trained

20 subsector technical

feasibility, impact and

other studies conducted

Independent assessment

reports of technologies and

product introduced, PACE

reports, IFAD supervision

reports Case studies

Successful identification of

capable research stations

within the country.

3. Component wise Progress of the Project Activities

3.1 Component 1: Financial services for microenterprises:

The project is providing financial services to microenterprises to expand existing microenterprises and

undertake new enterprises. The outcome of this

component is sustainable financial services for

microenterprises (farm, off-farm, trading and service

sectors) expanded, while outputs of the component

are:

a) Expansion of microenterprise loans for various

sectors (e.g. agriculture, off-farm, trading and

services)

b) Piloting of new loan products, and

c) Capacity building of PKSF and POs in designing

and developing new financial products, monitoring &

evaluation, impact assessment of ME program and

application of information technology in management

of POs. Project activities and targets under this

component are:

Microenterprise financed by PKSF

7

Reach 102,000 microenterprise borrowers within first three years of the project, that is, by 2017.

PKSF and POs will mobilize an additional USD 50 million to finance this subcomponent. All IFAD

loan amount is expected to be drawn down within the first three years and PKSF/POs will continue

refinancing these new 102,000 borrowers during the rest of the project period and beyond. This

process will ensure exit for IFAD and sustainability of financial services.

Pilot 2 to 3 new loan products to develop new loan products to meet emerging needs of

microenterprises. The project budget allocated resources for feasibility studies as well as capital for

lending. POs will be the actual implementer of this piloting within their ME clients.

Train an estimated 375 persons (PKSF and PO officials) in areas such as management of large scale

ME loan program, monitoring and evaluation of ME program, impact assessment and application on

information technology in management of ME loan program. The training courses may be organized

by PKSF or outsourced from training providers such as business schools and qualified training

institutions.

Progress of the Implementation of the Components

a) Financial Services: PKSF launched its microenterprise program in 2001 and since then it has

been providing fund to its POs for implementing microenterprise lending program. The

Microenterprise Program of PKSF is now known as ‘Agrosor Program’ meaning program for

advanced people. PACE is intended to strengthen and expand this existing microenterprise

program of PKSF through its financial services component.

The net disbursement target of PKSF under this component is BDT 3200.0 million (*USD 40

million) in first three years of the project (2015-17). As per the project arrangement, IFAD

finances 50% of the net disbursement in any given period. Difference between opening

outstanding (loan balance with POs) and closing outstanding is considered as net disbursement.

The project’s target of net disbursement from PKSF to POs was BDT 1,604.65 million (USD 20.

million1) for the reporting year (July 2015 to June 2016). The project’s actual achievement (net

disbursement from PKSF to POs) during the period was BDT 1,715.7 million (USD 21 million).

The achievement is 107% of the target. On the other hand the budget for POs to Field in the

reporting period was BDT 1,250 million (USD 15.6 million) where actual achievement is BDT

13,763.62 million (USD 172 million), i.e. 1102.56%.

ME loans are invested in different enterprises under agriculture, trade, processing and service

sectors. POs disburse ME loan to the members from the fund received from PKSF, besides they

use their own resources generated by savings and equity for providing microenterprise loan.

At the end of reporting period 172 POs of PKSF were implementing Microenterprise Loan

program. The number of microentrepreneurs under the program was 966,140 as on 30 June 2016.

Among them, 25.8% was male and remaining 74.2% was female. A total of additional 318,264

microentrepreneurs have come under the ME program of PKSF since the inception of the project.

1 Exchange rate 1 USD=80 BDT

8

Detailed information of financial services is given below:

PKSF to POs level As on 31st

December

2014

As on

30th

June

2015

As on

30th

June

2016

Increase/Dec

rease from

July’15 to

June’16

Increase/Decr

ease during

the project

period

1 2 3 4 5

(4-3)

6

(4-2)

No. of districts : 64 64 64 0 0

No. of POs : 163 168 172 4 9

Cumulative disbursement

(BDT in million)

: 28124.1 31044.8 37945.8

6901 9,821.7

Cumulative recovery

(BDT in million)

: 18572.24 21981.66 26167.0

5185.3 7,594.76

Outstanding loans with POs

(BDT in million)

: 9551.858 10063.138 11778.8

1715.7 2,226.94

Cumulative Recovery Rate

(CRR)

99.26% 99.48% 99.57% 0.09% 0.31%

POs to Field level:

No. of borrowers with current

loan

: 647876 727287 966140 238853 318,264

Female : 446784 513146 716521 203375 269,737

Male : 201092 214141 249619 35478 48,527

Cumulative loan disbursement

(BDT in million)

: 206010.196 241710.186 331946.0

90235.81 125,935.80

Cumulative recovery (BDT in

million)

: 175767.103 205717.00 282189.2

76472.2 106,422.097

Outstanding with borrowers

(BDT in million)

: 30243.093 35993.182 49756.8

13763.62 19,513.707

Average loan size in BDT : 83496 81,683 87,961 6,278 4,465

Cumulative Recovery Rate

(CRR)

: 99.30% 99.36% 99.42% 0.06% 0.12%

9

Female74%

Male26%

Male Female Distribution of ME borrowers

a) Piloting of new loan products: The project has provision to pilot new financial products like

start-up capital loan, lease financing, livestock insurance etc. for MEs. PACE has initiated a

process to pilot two new loan products namely i) Start-up capital loan and ii) Lease Financing. In

the reporting period, the project recruited a consultant for conducting feasibility study on `Lease

Finanacing'. The process of recruiting consultant for conducting feasibility study on `Start up

capital' was initiated in June 2016. Both the studies will be completed by September 2016. The

piloting of the said two products will be started by December 2016 based on the findings of study

reports.

b) Capacity building of PKSF/POs to design and development of new financial products,

monitoring, evaluation, impact assessment of ME program and application of information

technology in management of POs:

Under the activity, the project has a plan to train a total of 75 PKSF officers and 100 PO officers

on design and development of new financial products, monitoring, evaluation and impact

assessment of ME program and application of information technology in management.

In the reporting year, the project organized training on this topic for 25 PKSF and 100 POs’

officials. The training courses were organized and facilitated through specialized training

institution.

10

3.2 Component 2: Value chain development

PACE project focuses on developing potential sub-sectors with a view to increase income and

employment in those subsectors. The outcome of this component is sustainable inclusion of

microenterprises and businesses run by the poor and the ultra-poor in value chains in agriculture, off-farm

and service sectors to up-scale business, production technologies and enhance access to markets.

The outputs of the value chain development component are to:

a) Establish and expand value chains of 15

agricultural sub-sectors (products or group of

products) in various parts of the country.

b) Establish and expand value chains for 15 non-farm

manufacturing, processing and service sub-sectors

(products or group of products) in various parts of the

country.

c) Strengthen capacity of PKSF and POs to

manage large-scale value chain subprojects

d) Enhence capacity of PKSF and POs to identify,

advocate and strengthen pro-poor business policies,

especially sector specific policies (i.e. through

capacity building).

The main activities under the value chain development

are to i) make VCD interventions on 15 farm subsectors

ii) make VCD interventions on 15 non-farm subsectors,

iii) capacity building of PKSF and POs in design and

management of large-scale value chain development

projects and iv) capacity building of PKSF and POs in

policy analysis and advocacy.

Progress of the implementation of activities under value chain development component

PKSF management approved 16 VCD projects (13 VCD projects in farm and 3 VCD projects in non farm

subsectors) from January, 2015 to June, 2016.

VC intervention for goat rearing

VC intervention for Beef Fattening

11

Farm Subsectors:

A list of the VCD projects in farm sub-sectors is given below.

Sl.

No.

Name of VCD

sub project

Implementing

PO Sector

Direct

beneficiaries

currently

enrolled

Date of

contract

with PO

Major activities

Male Female

1

Increase income

and employment

through Black

Bengal goat

rearing

Wave

Foundation Farm 0 6,000 28/6/2015

1. Create efficient livestock service provider (LSP).

2. Arrange vaccination camp.

3. Dissemination of perch system for goat rearing and

establishment of buck service station.

4. Establish market linkages with input suppliers, service

providers.

5. Arrange hands on training to increase efficiency on

goat rearing for the farmers.

2

Increase income

and employment

of entrepreneurs

through milking

cow rearing in

Char area

Society for

Social

Services (SSS)

Farm 0 5,000 6/7/2015

1. Arrange vaccination and deworming camp.

2.Develop efficient local livestock service providers

(LSP) through training.

3. Develop local milk market.

4. Establish market linkages between targeted

beneficiaries with input suppliers, bepari, foria, processor

and other related service provider.

5. Provide technical training to beneficiaries on milking

cow management.

3

Crab culture

value chain

development

project

Nowabenki

Gonomukhi

Foundation

(NGF)

Farm 5279

721 7/9/2015

1. Training on crab farming for efficiency development of

the farmers.

2. Technology transfer and demo crab cultivation of

various modern crab farming.

3. Establish information center for providing weather

forecast and market price of crabs to the farmer.

4. Provide financial along with market development

support for sustainable crab farming management

5. Online based e-marketing to be introduced for local and

foreign market extensions.

12

Sl.

No.

Name of VCD

sub project

Implementing

PO Sector

Direct

beneficiaries

currently

enrolled

Date of

contract

with PO

Major activities

4

Increase

entrepreneur's

income and

employment

creation through

year round beef

fattening and

fatten cattle

marketing

Eco-social

Development

Organization

(ESDO)

Farm 250 250 10/4/2016

1. Create trained and efficient livestock service provider

(LSP) for primary veterinary service.

2. Disseminate urea molasses straw (UMS) technology for

beef fattening.

3. Introducing cattle insurance.

4. Capacity development training for beef fattening

5. Establish market linkages among, balanced packaged

feed supplier and vaccine/medicine supplier.

5

Improvement of

natural fish

breeding

condition of

Halda river

Integrated

Development

Foundation

(IDF)

Farm 1866 234 10/04/2016

1. Arrange training for alternative sustainable income

sources.

2. Awareness programme to maintain natural condition of

Halda river.

3. To conduct training on improve carp culture technique.

6

Entrepreneurs

creation and

increase income

through milking

cow rearing

JAKAS

Foundaion Farm 250 775 19/4/2016

1. Develop efficient local livestock service providers

(LSP) through training.

2. Establish a veterinary laboratory to test the cowdung.

3. Arrange a vaccination and deworming camp.

4. Establish market linkages among AI worker, balanced

packaged feed supplier and vaccine/medicine supplier and

other service providers.

5. Provide technical training to beneficiaries on milking

cow management.

7

Beef fattening

value chain

development

project

MBSK Farm 0 1,220 19/04/2016

1. Arrange vaccination and deworming camp.

2. Disseminate urea molasses straw (UMS) technology for

beef fattening.

3. Introduce livestock insurance.

4. Provide technical training to beneficiaries on modern

beef fattening system.

5. Arrange vaccination and deworming campaign to

reduce cattle mortality and improve productivity.

8 Increase Social Up- Farm 1768 1183 25/4/2016 1. Develop efficient local livestock service providers

13

Sl.

No.

Name of VCD

sub project

Implementing

PO Sector

Direct

beneficiaries

currently

enrolled

Date of

contract

with PO

Major activities

entrepreneur’s

income and

employment

creation through

commercially hi-

yielding milking

cow rearing,

increase milk

production and

milk marketing

lifment society

(SUS)

(LSP) and AI workers through training.

2. Establish a cowdung testing lab.

3. Arrange vaccination and deworming campaign to

reduce cattle mortality and improve productivity.

4. Establish market linkages among AI worker, balanced

packaged feed supplier and vaccine/medicine supplier.

5. Training for efficiency development on improved cow

rearing management.

9

Increase farmer’s

income and

employment

creation through

high production

& proper

marketing of

Mung bean and

aromatic rice

production

Grameen Jono

Unnayan

Sonstha

(GJUS)

Farm 507 677 28/4/2016

1. Introducing high yielding Mung bean BARI-6 and

aromatic rice (BRRI rice 34) variety.

2. Technology transfer of using inoculum fertilizer instead

of chemical fertilizer.

3. Transfer technology of line sowing instead of

broadcasting method.

4. Training to the farmers for farming Mung bean and

aromatic rice and pest control.

5. Activities relating to market expansion of produced

Mungbean and aromatic rice.

10

Increase farmer’s

income and

employment

creation through

Mung bean and

Aman rice

production by

using improved

technology

Rural

Reconstruction

Foundation

(RRF)

Farm 8322 1678 5/5/2016

1. Introducing of high yielding Mung bean BARI-6 and

aman rice.

2. Dissemination the knowledge of use of inoculum

fertilizer.

3. Transfer technology of line sowing instead of

broadcasting method

4. Training to the farmers for farming Mung bean and

aman rice and pest control.

5. Activities relating to market expansion of produced

Mung bean and aromatic rice.

14

Sl.

No.

Name of VCD

sub project

Implementing

PO Sector

Direct

beneficiaries

currently

enrolled

Date of

contract

with PO

Major activities

11

Increase farmer’s

income and

livelihood

through safe

vegetable and

Moringa

production &

marketing

Society for

Development

initiatives

(SDI)

Farm 90 60 26/6/2016

1. Provide training on pesticide free vegetable production.

2. Dissemination of modern technologies like sex

pheromone trap, Brecon, Trikogama, Trikodrama etc.

3. To create linkage among the bepari, wholesaler, retailer

and producers.

4. Government and non –government collaboration

workshop for marketing and use of pesticide.

5.Establish of herbal pesticide laboratory.

12

Increase farmer’s

income through

Mung bean

production by

using modern

technology

Dhaka

Ahsania

Mission

(DAM)

Farm

Contract

will be

signed on

16 October

2016

1. Introducing of high yielding Mung bean BARI-6

variety.

2. Technology transfer of using innoculum fertilizer in

stead of chemical fertilizer.

3. Transfer technology of line sowing instead of

broadcasting method

4. Train the farmers for farming Mung bean production.

5. Market expansion activities for Mung bean.

13

Increase farmer’s

income through

Mung bean

production by

using modern

technology

Sangathita

Grananunaon

Karmasuchi

(Sangram)

Farm

Contract

will be

signed on

16 October

2016

1. Technology transfer of high yielding Mung bean

BARI-6 cultivation.

2. Technology transfer of using innoculum fertilizer in

stead of chemical fertilizer.

3. Transfer technology of line sowing instead of

broadcasting method

4. Train the farmers for farming Mung bean production.

5. Market expansion activities for Mung bean.

15

VCD projects in non-farm subsectors:

PACE project is now implementing 3 VCD projects in three non-farm subsectors. The list of the VCD projects in non farm sub-sectors is given

below:

Sl.

No.

Name of VCD sub

project

Implementing

PO

Sector Direct

beneficiaries

currently

enrolled

Date of

contract

with POs

Major activities

Male Female

1

Women lead

embroidery dress

production sub-

development value

chain project

Ashrai Off farm 0 3,050 18/10/2015

1. Hands on training for the entrepreneurs.

2. Establish linkages between entrepreneur and

quality raw material suppliers.

3. Training on design dress making.

4. Market expansion through linkage between

national and regional perspectives.

2

Establishment of

crab hatchery value

chain development

project

Nowabenki

Gonomukhi

Foundation

(NGF)

Off farm 14/3/2016

1. Establish crab hatchery for production of

crablets artificially.

2. Production of quality crablets in hatchery

and supply to the farmers.

3. Hatchery associated peoples are to be

efficient in hatchery management.

3

Technical

improvement,

increase income and

employment

creation of small

shoe industry

entrepreneurs’ value

chain development

project

People's

Oriented

Program

Implementation

(POPI)

Off farm 450 50 19/4/2016

1. Hands on training to the workers, designer,

cutting master on producing export quality

shoes.

2. Establish linkages between producers,

quality raw material suppliers and buyers.

3. Training on design shoe making.

4. Take initiative for healthy work environment

in the shoe factories.

16

Ultra Poor22%

Poor61%

Non Poor17%

Socio-economic classwise VCD Project Members

Male 47%Female

53%

Male Female Distribution in Value Chain Project Members

18-25 yr17%

25 and above yr83%

Agewise Distribution of VCD Benificiaries

Project participants in VCD projects:

The number of beneficiaries in 14 VCD projects was 39,680 as of June 30, 2016. Number of male and

female beneficiaries is 18,782 (47%) and 20,898 (53%) respectively.

According to the socio-economic class the division of beneficiaries are as Ultra Poor 8,811 (22%), Poor

24,027 (61%) and rest 6,842 (17%) are Non Poor. Among the beneficiaries 6,807 (17%) are aged under

25 and rest 32,873 (83%) are above 25.

17

Training of PKSF/GoB and POs officials on value chain project design and management:

The project has a provision to train 125 PKSF/GoB/ PO officials on value chain project design and

management. During the reporting period PACE project trained a total of 125 PKSF and POs officials on

the above mentioned subject. The achievement status is 100% against the target.

Training for PKSF/PO officials on preventing environmental degradation and improving

conditions in work place:

During the reporting period the project organized a training course on environmental degradation and

improving conditions in work place for 20 PKSF officials against the target of organizing training for 20

officials. The sessions of the training course were conducted by experts of department of environment

and resource persons of PKSF trained on this subject.

3.3 Component 3: Technology and product adaptation

PACE project is making attempts to solve technological problems in different potential economic

subsectors under the component of technology and product adaptation. The project provides

technological supports to the microentrepreneurs

engaged in various economic activities in different

region of the country.

The outcome of this component is proven

technologies and products (agricultural and off-

farm) from Bangladesh and international sources

introduced to micro entrepreneurs. The outputs are:

a) Resolution of technological problems identified

under component 2, b) Adaptation and

dissemination of proven technologies and products,

c) Provision for technical assistance.

The activities under Technology and product

adaptation are; a) address six technological problems;

b) transfer 15 proven technology/products to small

producers, c) conduct 26 sub-sector and technical

feasibility studies, 5 sector specific impact studies

and organize associated consulting services.

Perch method technology for goat rearing

Pheromone trap for pest control

18

Progress of the implementation of activities under Technology and product adaptation

(component:3)

PACE project identified a number of technological problems while designing VCD sub projects on

different sub sectors. The project is currently using 23 different technologies in different VCD sub

projects. The list of currently used technologies in different VCD projects is given below:

Sl. No. Technologies

1 Goat rearing through perch system

2 Urea molasses straw (UMS)

3 Scheduled vaccination and de-worming

4 Artificial insemination

5 Prepare balanced feed

6 Decrease cost by increasing longivity of bamboo platform used in nursery

7 Mono culture crab farming

8 Mix culture crab farming

9 Provide commercial food in crab nursery

10 Fingerling culture technology of Halda river fish

11 Improved carp culture technology of Halda river fish

12 Use of sex pheromone trap

13 Use of bio-pesticide

14 Use of inoculum fertilizer

15 Line sowing cultivation for Mung bean production

16 Introduce of aromatic rice seed BRRI-6 variety

17 Technology about Brady Rhizobium innoculum fertiliser

18 Crab hatchery management

19 Different types of handicrafts design technology transfer like Jessore Stitch, China Rose,

Dates Leaves etc.

20 Use of natural dying materials

21 Modern and improve packaging

22 High yielding green grass cultivation

23 Use of brady rhizobium innoculum fertilizer in mung bean production

19

The following table shows the name of technologies introduced in ongoing VCD sub projects

Sl.

No.

Name of VCD sub

project

Implementing

POs

Sector Technologies are being used

1

Increase income and

employment creation

through Black Bengal

goat rearing

Wave Foundation Farm 1.Goat rearing through perch

system.

2.Urea molasses straw (UMS).

3. Scheduled vaccination and

dewarming.

4. Prepare balanced feed.

2

Increase income and

employment creation of

entrepreneurs through

milking cow rearing in

char area

Society for Social

Services (SSS)

Farm 1. Artificial insemination (AI).

2. Urea molasesses straw (UMS).

3.Prepare balanced feed.

4. Hi-yielding Napier fodder

cultivation.

3

Crab culture value chain

development project

Nowabenki

Gonomukhi

Foundation

(NGF)

Farm 1. Decrease cost by increasing

longivity of bamboo platform

used in nursery.

2. Mono culture crab farming.

3. Mix culture crab farming

4. Provide commercial food in

crab nursery.

4

Women lead embroidery

dress production sub-

development value chain

project

Ashrai Off farm 1. Different types of handicrafts

design technology transfer like

Jessore Stitch, China Rose, Dates

Leaves etc.

2. Use of natural dying materials.

5

Establishment of crab

hatchery value chain

development project

Noabeki

Gonomukhi

Foundation

(NGF)

Off farm 1. Hatchery management

6

Increase entrepreneur's

income and employment

creation through year

round beef fattening and

fatten cattle marketing

Eco-social

Development

Organization

(ESDO)

Farm 1. Urea molasses straw (UMS).

2. Hi-yielding green grass

cultivation.

7

Improvement of natural

fish breeding condition

of Halda river

Integrated

Development

Foundation (IDF)

Farm 1. Fingerling culture technology

of Halda river fishes.

2. Improved carp culture

technology of Halda river fishes.

3. Using pheromon trap and

biopestiside for safe vegetable

production.

8

Entrepreneurs creation

and increase income

through milking cow

rearing

JAKAS

Foundaion

Farm 1. Artificial insemination

2. Hi-yielding green grass

cultivation.

9 Beef fattening value

chain development

MBSK Farm 1. Urea molasesses straw (UMS).

2.Prepare balanced ration.

20

Sl.

No.

Name of VCD sub

project

Implementing

POs

Sector Technologies are being used

project 3. Hi-yielding Napier fodder

cultivation

10

Technical improvement,

increase income and

employment creation of

small shoe industry

entrepreneurs’ value

chain development

project

People's Oriented

Program

Implementation

(POPI)

Off farm

11

Increase entrepreneur’s

income and employment

creation through

commercially hi-

yielding milking cow

rearing, increase milk

production and milk

marketing

Social Up-lifment

society (SUS)

Farm 1. Artificial insemination (AI).

2. Scheduled vaccination and

dewarming.

12

Increase farmer’s

income and employment

creation through high

production & proper

marketing of Mung bean

and aromatic rice

production

Grameen Jono

Unnayan Sonstha

(GJUS)

Farm 1. Uses of new variety of Mung

bean BARI-6.

2. Uses of aromatic rice seed

BRRI-6.

3. Use of Brady Rhizobium

innoculum fertilizer for

Mungbean VC project in the

project area.

13

Increase farmer’s

income and employment

creation through Mung

bean and Aman rice

production by using

improved technology

Rural

Reconstruction

Foundation

(RRF)

Farm 1. Use of inoculum fertilizer

2. Uses of Mungbean seeds:

BARI-6.

3. Line sowing for cultivation of

Mung bean

14

Increase farmer’s

income and livelihood

through pesticide free

vegetable and moringa

production & marketing

Society for

development

initiatives (SDI)

Farm 1. Use of sex pheromone trap

2. Use of bio-pesticide.

Signing MoUs with specialised organizations of Bangladesh:

PKSF has signed MoUs with different specialised technical organizations to extend technical assistance

to the entrepreneurs involved in various sub-sectors. Some notable organizations are: Bangladesh

Agricultural Research Institution (BARI), Bangladesh Shrimp and Fish Foundation (BSFF), Practical

Action Bangladesh, Bangladesh Agricultural University (BAU), Institution of Diploma Engineers,

Bangladesh (IDEB), Agricultural Value Chains (AVC) project and Grameen Yukiguni Maitake Ltd.

(GYM).

21

Technology transfer from other countries to Bangladesh:

PKSF initiated the process of establishing crab hatchery in Bangladesh in FY 2015-16. A feasibility

study was conducted to determine whether the crab hatchery could be established and run in a

sustainable way in southern part of

Bangladesh. Following the

recommendation of the feasibility study,

PKSF started construction of the hatchery

in Shymnagar of Satklhira district in April

2016. The crab hatchery technology was

transferred to Bangladesh from Vietnam.

Vietnamese development organization

named Center for Education and

Community Development (CECD)

provided supports and cooperation in

transferring the crab hatchery technology.

The production capacity of the hatchery is 3200000 crablets per year. This crab hatchery will have a far

reaching effect in expanding crab culture subsector in the southern part of Bangladesh. In the mean time,

about 5000 crablets have been released from the hatchery to crab nursery ponds.

4. Project management:

4.1 Project staffing: A Project management unit (PMU) has been established at PKSF for managing

project activities led by the Project Coordinator who is a General Manager of PKSF. The project has

provisions for following 26 positions;

1. Project Coordinator 1

2. Head of Microenterprise -1

3. Value Chain Project Supervisor- 2

4. Value Chain Specialist (farm ) -1

5. Value Chain Specialist (non-farm ) -2 (1 post vacant)

6. Value Chain Project Manger- 10

7. Assistant Manager (technology adaptation) -1

8. Assistant Manager (new product piloting) -1

9. Procurement/admin/logistic Specialist -1

10. M&E and KM Specialist -1

11. Financial Analyst (planning and budgeting) -1

12. Accounts Officer -2

13. Driver -2

The updated list of PACE project staffs as on June 2016 is given below:

Sl no. Name Designation

1 Mr. Akond Md. Rafiqul Islam Project Coordinator, PACE Project & General Manager (Ops),

PKSF

2 Mr. Gokul Chandra Biswas Chief of Microenterprise Program & AGM(Ops), PKSF

Country’s first successful crab hatchery established by

PKSF at Shyamnagar upazilla of Shatkhira

22

3 Mr. Md. Habibur Rahman Value chain supervisor, PACE Project & Manager (Ops),

PKSF

4 Mr. Md. Manir Hossain Value chain project Manager, PACE Project & Manager

(Ops), PKSF

5 Mr. Musharraf Hossain Value chain Supervisor, PACE Project & Manager (Ops),

PKSF

6 Ms. Mahmuda Morshed Value chain Project Manager, PACE Project & Deputy

Manager (Ops), PKSF

7 Mr. Moznu Sarkar VC Project Manager, PACE Project & Assistant

Manager(Ops), PKSF

8 MD. Mahamudur Rahman Assistant Manager, Technology and product adaptation,

PACE & Assistant Manager(Ops), PKSF

9 Kazi Abul Hasnat Value Chain Manager, PACE project & Assistant

Manager(Ops), PKSF

10 Dr. S. M. Faruk-Ul-Alam Value chain specialist, PACE Project (farm sector)

11 Mr. Md. Rafizul Islam VC Specialist, PACE Project (non farm)

12 Mr. Md. Mohidul Islam Financial Analyst, PACE Project

13 Mr. A B M Al Jaber Hirok Procurement Specialist, PACE Project

14 Mr. Mohammad Mizanur

Rahman

M&E and KM Specialist

15 Mr. Md. Zahed Al Nayon Assistant Manager (New Product Piloting)

16 Mr. Shaikh Nazrul Islam Value chain Project Manager, PACE Project

17 MS. Shanchita Islam Value chain Project Manager, PACE Project

18 Mr. Md. Masum Sharkar Value chain Project Manager, PACE Project

19 Mr. Md. Motiur Rahman Value chain Project Manager, PACE Project

20 Mr. Al Imran Value chain Project Manager, PACE Project

21 Mr. Md. Earfan Ali Value chain Project Manager, PACE Project

22 Mr. H M Anowarul Islam Accounts Officer, PACE Project

23 Mr. Abu Saleh Mohammad

Rajib

Accounts Officer, PACE Project

24 Mr. Zahirul Hoque Driver

25 Mr. Md. Hasan Driver

23

5. Financial progress of the project:

Budget Expenditure Burning Ratio

Components

Total Project

Budget for 2015-2020

Total Project Budget upto

Jun'16

Total project Budget

Jul’15-Jun'16

Total expenditure Jul'15-Jun’16

Total Expenditure upto Jun'16

% of project fund

for Jul'15-Jun’16

% of project fund upto

Jun'16

% of total

project fund

Component - 1: Financial Services for Microenterprises

5,647,440.00 3760830.00 2,854,800.00 13,763,676.00 19,514,542.00 482% 519% 346%

Component - 2: Value Chain Development

1,200,800.00 186475.00 149,900.00 48,043.35 53,443.54 32% 29% 4%

Component -3: Technology and Product Adaptation

70,320.00 17500.00 17,500.00 3,042.87 3,042.87 17% 17% 4%

Component -4: Project Management

510,880.00 116350.00 79,079.00 62,588.36 77,414.68 79% 67% 15%

Total 7,429,440.00 4,081,155.00 3,101,279.00 13,877,350.58 19,648,443.09 447% 481% 264%

24

6. Conclusion:

PKSF started implementing Promoting Agricultural Commercialization and Enterprises (PACE) project

in January 2015. This six-year project is being implemented all over Bangladesh through Partner

Organizations (POs) of PKSF. The project has three complimentary components i) Financial services for

microenterprises, ii) Value Chain Development and iii) Technology and product adaptation. The project

has made excellent progress in extending financial services for microenterprises. The progress of value

chain development is also remarkable. The project has taken initiative to transfer technologies to different

potential sub-sectors. The project has already transferred crab hatchery technology to Bangladesh from

Vietnam. The country’s first ever crab hatchery has been established under the technical supervision of

Vietnamese experts. Since the crabs produced in Bangladesh have huge demand in export market, the

introduction of crab hatchery will have far reaching effect in expanding crab culture sub-sector in the

country. PACE project has taken initiatives to transfer some proven technologies innovated in different

specialized/research institution to increase productivity and income of farmers and micrentrepreneurs.

The project is going to conduct sub-sector studies and technical studies to identify constraints in different

sub-sectors. It is expected that, PACE project will have a good contribution to expanding microenterprise

sector and creating employment for poor and ultra poor people in Bangladesh by implementing all

activities under its three components.