participatory livestock development ii: completion report · pcr – project completion report pksf...

Completion Report

Project Number: 35228 Loan Number: 2070 October 2013

Bangladesh: Second Participatory Livestock Development Project

CURRENCY EQUIVALENTS

Currency Unit – taka (Tk)

At Appraisal At Project Completion 19 November 2003 10 September 2012

Tk1.00 = $0.0172 $0.012236 $1.00 = Tk58.2 Tk81.725

ABBREVIATIONS

ADB – Asian Development Bank CEW – community extension worker DLS – Department of Livestock Services EIRR – economic internal rate of return GAP – gender action plan IGA – income generating activity LGED – Local Government Engineering Department NGO – nongovernment organization PCR – project completion report PKSF – Palli Karma-Sahayak Foundation PLDP – participatory livestock development project PMU – project management unit ULDC – Upazila livestock development center

GLOSSARY

enterprise – any livestock-related income generating activity in which a beneficiary might invest, such as enterprises related to poultry production, , goat rearing, dairy cattle, beef fattening, or milk processing.

farmer – any beneficiaries, including the landless and beneficiaries with small landholdings, that engage in livestock production

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 Bindu N. Lohani, Vice President-in-Charge (Operations 1) Director General J. Miranda, South Asia Department (SARD) Country Director M. T. Kho, Bangladesh Resident Mission (BRM), SARD Team leader Stefan Ekelund, Deputy Country Director, BRM, SARD Team members Nazmul 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

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 7

F. Implementation Arrangements 7

G. Conditions and Covenants 8

H. Consultant Recruitment and Procurement 8 I. Performance of the Borrower and the Executing Agency 8

J. Performance of the Asian Development Bank 9

III. EVALUATION OF PERFORMANCE 9

A. Relevance 9

B. Effectiveness in Achieving Outcome 10

C. Efficiency in Achieving Outcome and Outputs 11

D. Preliminary Assessment of Sustainability 12

E. Impact 13

IV. OVERALL ASSESSMENT AND RECOMMENDATIONS 14

A. Overall Assessment 14

B. Lessons 14

C. Recommendations 14

APPENDIXES

1. Project Upazilas Allotted to Partner NGOs 16 2. Project Framework 18 3. Physical Progress: Targeted versus Actual 27 4. Detailed Actual Cost against Appraisal by Expenditure Category 28 5. Support Services Delivery 29 6. Women’s Empowerment and Gender Equality Measures 42 7. Project Implementation Schedule 48 8. Status of Compliance with Loan Covenants 49 9. Economic and Financial Analyses 58 10. Socioeconomic Impacts of Project Interventions 65

BASIC DATA A. Loan Identification 1. Country 2. Loan Number 3. Project Title 4. Borrower 5. Executing Agency 6. Amount of Loan 7. Project Completion Report Number

Bangladesh 2070-BAN(SF) Second Participatory Livestock Development Project People’s Republic of Bangladesh (i) Palli Karma-Sahayak Foundation (PKSF), and (ii) Department of Livestock Services (DLS) SDR13,969,000 ($20 million equivalent) PCR:BAN 1424

B. Loan Data 1. Appraisal – Date Started – Date Completed 2. Loan Negotiations – Date Started – Date Completed 3. Date of Board Approval 4. Date of Loan Agreement 5. Date of Loan Effectiveness – In Loan Agreement – Actual – Number of Extensions 6. Closing Date – In Loan Agreement – Actual – Number of Extensions 7. Terms of Loan – Interest Rate – Maturity (number of years) – Grace Period (number of years) 8. Terms of Relending (if any) – Interest Rate – Maturity (number of years) – Grace Period (number of years) – Second-Step Borrower

7 July 2003 15 July 2003 3 November 2003 4 November 2003 19 December 2003 10 February 2004 10 May 2004 30 June 2004 1 30 June 2010 30 June 2012 2 1% per annum during grace period and 1.5% per annum thereafter 32 8 From Borrower to PKSF 1.25% 20 5 PKSF to partner nongovernment organizations (NGOs)

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9. Disbursements a. Dates Initial Disbursement

27 October 2004

Final Disbursement

26 July 2012

Time Interval

93 months

Effective Date

30 June 2004

Original Closing Date

30 June 2010

Time Interval

72 months

b. Amount (SDR’000) Category or Subloan

Original

Allocation

Last Revised

Allocation

Amount

Canceled

Net Amount

Available

Amount

Disbursed

Undisbursed

Balance a

1 685.00 0 01A

b 5.75 0 5.75 5.73 0.02

01Bb 406.00 0 406.00 400.07 5.93

2 4,945.00 7,165.45 0 7,165.45 7,165.44 0.01 03A 272.00 137.16 0 137.16 137.16 0.00 03B 105.00 63.40 0 63.40 55.10 8.30 03C

b 340.18 0 340.18 340.18 0.00

03Db 503.31 0 503.31 416.37 86.94

4 1,327.00 21.20 0 21.20 21.17 0.03 04A

b 560.00 0 560.00 556.51 3.49

04Bb 145.00 0 145.00 122.00 23.00

5 747.00 0.00 0 0.00 0.00 0.00 05A

b 79.50 0 79.50 73.46 6.04

05Bb 15.66 0 15.66 13.46 2.20

6 1,194.00 1,571.10 0 1,571.10 1,509.51 61.59 7 496.00 295.50 0 295.50 221.75 73.75 8 3,101.00 146.00 0 146.00 145.88 0.12 08A

b 2,010.40 0 2,010.40 1,942.53 67.87

08Bb 0.00 0 0.00 0.00 0.00

9 503.00 503.00 0 503.00 496.36 6.64 10 594.00 0.39 0 0.39 0.00 0.39 Total SDR 13,969.00 13,969.00 0 13,969.00 13,622.68 346.32 Total $

c 20,000.00 21,346.82 0 21,346.82 20,819.86 526.96

Source: Loan Financial Information System of Asian Development Bank (ADB). a

Cancelled at closing of loan account (10 September 2012). b

Created during revised allocation. c Total US dollar equivalent.

10. Local Costs (Financed) - Amount ($) 14,053,771 - Percent of Local Cost 23 - Percent of Total Cost 21

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C. Project Data

1. Project Cost ($‘000)

Cost Appraisal Estimate Actual

Foreign Exchange Cost 5,000.00 6,766.09 Local Currency Cost 50,800.00 61,030.41 Total 55,800.00 67,796.50 Source: Loan Financial Information System of ADB and project completion reports (PCRs) of PKSF and DLS.

2. Financing Plan ($million)

Cost Appraisal Estimate Actual

Implementation Costs Borrower Financed 5.6 2.3 ADB Financed 19.5 20.0 Danish International Development Agency 0.5 0.0* PKSF 16.5 24.5 NGOs 11.1 16.9 Beneficiaries 2.1 3.3

Total 55.3 67.0

IDC Costs Borrower Financed 0.0 0.0 ADB Financed 0.5 0.8 Other External Financing 0.0 0.0

Total 55.8 67.8

ADB = Asian Development Bank, IDC = interest during construction, NGO = nongovernment organization, PKSF = Palli Karma-Sahayak Foundation

* The Danish International Development Agency informed initially but did not materialize as co-financing or parallel financing under the project.

3. Cost Breakdown by Project Component ($million)

Component Appraisal Estimate Actual

A. Base cost

1. Community Development 2.1 1.7

2. Livestock Development Enterprises 34.5 57.0 3. DLS Capacity Building 6.1 3.5 4. Project Services 6.9 4.8 Subtotal (A) 49.7** 67.0 B. Contingencies

1. Physical Contingencies 2.4 0.0 2. Price Contingencies 3.0 0.0

Subtotal (B) 5.4 0.0 C. Interest charge during implementation Subtotal (C) 0.7 0.8

Total (A+B+C) 55.8 67.8

Source: Loan Financial Information System of ADB and PCRs of PKSF and DLS.

** Rounded figure.

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4. Project Schedule

Item Appraisal Estimate

Actual

1. Community Development

(a) Farmer Organizations Formed and Strengthened – Date started Jun 2004 Jun 2004 – Date completed Jun 2010 Jun 2010 (b) Participating NGOs Strengthened for Improved Service

Delivery

– Date started Jun 2004 Jun 2004 – Date completed Jun 2010 Jun 2010 (c) Developing Marketing and Market Entrepreneurs – Date started Jun 2004 Jun 2004 – Date completed Jun 2010 Jun 2010 (d) Training Conducted

– Date started Jun 2004 Jun 2004 – Date completed Jun 2010 Jun 2010

2. Livestock Enterprises Development

(a) Short-Term Credit for Poultry and Ducks – Date started Jun 2004 Jun 2004 – Date completed Jun 2010 Ongoing

f

(b) Medium-Term Credit for Ruminant Production – Date started Jun 2005 Jun 2005 – Date completed Jun 2010 Ongoing

f

(c) Village-Level Marketing of Feeds and Eggs – Date started Jun 2005 June 2005 – Date completed Jun 2010 Ongoing

f

(d) Medium-Term Credit for Milk Processing – Date started Jun 2005 June 2006 – Date completed Jun 2010 Ongoing

f

(e) Milk Processing Entrepreneurs Assistance Package a

– Date started Jun 2005 - – Date completed Jun 2010 -

(f) Starter Credit for Community Extension Worker (CEW) b


(g) Sub-district Administrations Assisted with Animal Markets and Slaughter Slabs

c


(h) Medium-Term Credit for Environmental Mitigation (biogas)

d


(i) Contracts for Innovative Applied Research e


(j) Asset Establishment for 5,000 Ultra poor

– Date started Jun 2004 Sep 2004 – Date completed

Jun 2006 On-goingf

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(k) 5,000 Ultra poor Trained in Technical and Non-farming Disciplines

– Date started Jun 2004 Sep 2004 – Date completed Jun 2006 Jun 2010

(l) Monthly Household Social Development and Health Packages for 10,000 Ultra poor


3. DLS Capacity Building Strengthening and Reorienting DLS Capabilities for the

Future

– Date started Jun 2004 Dec 2005 – Date completed Jun 2009 Jun 2012

4. Project Services

(a) Recruiting Specialists for the Project Management Unit (PMU) and Establishing the Unit Functional


(b) Implementation Coordination Committee Functioning – Date started Jun 2004 Dec 2004 – Date completed Jun 2006 Jun 2012

(c) Social Development Monitoring and Evaluation Unit Designed and Incorporated into PKSF

– Date started Jun 2004 Dec 2004 – Date completed Jun 2005 Dec 2005

(d) Vehicles and equipment purchases completed – Date started Jun 2004 Dec 2004 – Date completed Jun 2005 Mar 2005 a Assistance package for milk processing entrepreneurs was not provided as such, but linkage established with the active private milk processing companies like Milk Vita, Aarong,and PRAN.

b Starter credit support to CEWs was not provided, but the starter kits were supplied to them free of cost under the project.

c Postponed, as this was not workable under the project.

d Project credit not provided but established through specialized service providers like Grameen Shakti, and Infrastructure Development Company Limited.

e Not pursued due to lack of interest from DLS.

f Continuing utilizing revolving credit fund created under the project.

5. Project Performance Report Ratings

Implementation Period

Ratings

Development Objectives

Implementation Progress

From 1 July 2004 to 28 February 2006 Satisfactory Satisfactory From 1 March 2006 to 31 December 2010 Satisfactory Highly Satisfactory From 1 January 2011 to 30 June 2012 Satisfactory Satisfactory

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D. Data on Asian Development Bank Missions

Name of Mission

Date

No. of Persons

No. of Person-Days

Specialization of Members

Appraisal 7–15 Jul 2003 7 56 a, b, d, e, f, g Inception 7-9 Sep 2004 3 6 a, b, c Review 1 19 Jun–3 Jul 2005 1 10 a Review 2 12-21 Dec 2005 1 9 a Review 3 5-22 Jun 2006 2 20 a, c Review 4 8-12 Dec 2006 2 8 a, c Review 5 10-20 Jun 2007 2 18 a, b Review 6 22-30 Jan 2008 1 8 a Mid-term review 16 Jun-2 Jul 2008 3 30 a, b, c Review 7 22 Feb-4 Mar 2009 3 30 a, b, c Review 8 1-12 Nov 2009 1 10 a Review 9 11-23 May 2010 4 32 a, b, c, f, Review 10 25 Jan–6 Feb 2011 3 20 a, b, c Review 11 14-29 Feb 2012 3 30 a, b, c Review 12 6-14 Aug 2012 3 24 a, b, c Project completion 4-9 Apr 2013 4 17 a, b, c, d a = project manager/agriculture specialist, b = social development officer/gender specialist, c = project analyst, d =

staff consultant/ financial analyst, e = counsel, f = project economist, g = director

I. PROJECT DESCRIPTION 1. To complement the priority agenda (i.e., rural economic growth, employment generation, women’s empowerment, and social development) of the Government of Bangladesh, the Asian Development Bank (ADB) supported the second participatory livestock development project (PLDP-II). The project was aimed at accelerating the economic growth in the country’s northwest and north central regions through promoting livestock-related income generating activities (IGAs) and entrepreneurship development.1 The project objective was to enhance the status of women and increase IGAs and employment from livestock-related enterprises. The ultimate goal was to improve the living standards of the landless and marginal farm households, with a special focus on female-headed poor households. The support services included capacity building trainings, microcredit, technical services, and marketing assistance. The project design considered experiences and lessons learned under the ADB funded participatory livestock development project implemented during 1997–2003 in the same region.2 The design process of the project included consultation with the major stakeholders, including targeted beneficiaries. 2. The project’s envisaged outputs were: (i) improved community capabilities to develop and manage IGAs including livestock enterprises, through technical and social development training programs,3 (ii) ensured access to microfinance and technical support services for undertaking livestock enterprises, including support for the ultra-poor community through a pilot program of asset development and training, and (iii) enhanced capacity of partner nongovernment organizations (NGOs) and the Department of Livestock Services (DLS).4

3. The project area comprised 35,000 square kilometers covering 13,993 villages under 1,747 unions and 157 upazilas (the next administrative unit under a district) under 20 districts of northwest and north central regions (8 districts in the Rajshahi Division, 8 districts in the Rangpur Division, and 4 districts of the greater Mymensingh region). The list of project upazilas is in Appendix 1.

II. EVALUATION OF DESIGN AND IMPLEMENTATION A. Relevance of Design and Formulation 4. ADB provided a project preparatory technical assistance grant for designing a project to complement the government’s initiatives for livestock sector development. The project was designed based on the outputs, findings, and reports of this project preparatory technical assistance.5 The project design, including its components, activities, and envisaged outcomes, matched adequately with ADB’s operational priorities during preparation and remained relevant to ADB’s policies and operations at project completion. The project design was fully aligned with the development agenda of the government6 for economic growth and poverty reduction in the

1 ADB. 2003. Report and Recommendation of the President to the Board of Directors on a Proposed Loan to the

People’s Republic of Bangladesh for the Second Participatory Livestock Development Project. Manila. 2 ADB. 2003. Project Completion Report of Participatory Livestock Development Project. Manila.

3 This includes community mobilization by 15 partner NGOs under the leadership of Palli Karma-Sahayak Foundation

(PKSF). 4 Implementing agencies were the PKSF and the DLS. The PKSF was established by the government as a not-for-

profit company registered under Companies Act 1913/1994. It is run as a company under the leadership of a managing director reporting to a governing body. It works with partner NGOs. The DLS is a government department responsible for livestock development under Ministry of Fisheries and Livestock.

5 ADB. 2002. Technical Assistance for preparing the Second Participatory Livestock Development Project. Manila.

6 Planning Commission. 2005. Unlocking the Potentials. Dhaka.

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northwest and north central areas.7 The approach followed included mobilization and selection of targeted beneficiaries, awareness building, imparting need-based training to harness beneficiaries potential and opportunities, extending credit support for setting up supervised livestock-related enterprises, regular monitoring, providing technical and treatment services, and offering marketing assistance. Some additional civil works, equipment, and important technical services (e.g., artificial insemination for breed improvement, peste de petits ruminants vaccination for goats, and de-worming) for livestock improvement, were included by a minor change in project scope during implementation to further enhance relevance.8 5. The project supported enhanced production of livestock products (e.g., milk and milk products, eggs, meats, hides and skins) and created opportunities for the development of livestock enterprises, which increased the income of the beneficiaries.

6. The project was aligned with the interventions to address food insecurity and malnutrition of the growing population, especially mothers and growing children per the United Nations’ Millennium Development Goal targets for 2015.9

7. The project was relevant and consistent with the government’s priority development agenda and ADB’s operational priorities at design and completion. B. Project Outputs 8. The project’s key outputs are discussed in paras. 9–30 against original and revised targets agreed during the implementation. The project’s design and monitoring framework analysis reflecting targets, actual achievements, and remarks are presented in Appendix 2, and the actual physical outputs are presented in Appendix 3.

1. Community Development

9. Social Mobilization and Group Formation. The project envisaged the social mobilization of approximately 660,000 members of poor farm households, organized into social groups and farmers’ organizations and associations. Compared to the target of forming 26,000 farmer groups, the project organized a total of 29,897 beneficiary groups, enrolling a total of 907,343 members during the implementation period.10 At completion, a total of 25,955 groups involving 553,652 members remained in operation. The partner NGOs facilitated regular group meetings to discuss common issues and interests, credit installment collection, savings deposits, IGA operations, and product marketing. 10. Beneficiary Training. To make the project beneficiaries eligible for project credit and to impart basic knowledge and skills needed for livestock rearing, the project arranged a general technical training for the project beneficiaries. A total of 589,043 beneficiaries were trained during a 3-day program on general livestock rearing, which constituted 97% of the revised target. The original target for beneficiary training was 175,000, which was revised considering the needs of the newly enrolled beneficiaries. In addition, the project had a target to train 52,000 group leaders and 13,000 association leaders on leadership development, and it was able to actually train 39,578 group leaders and 522 association leaders. Subsequently, training for

7 Planning Commission. 2011. Sixth Five-Year Plan (2011–2015). Dhaka.

8 PKSF. 2010. Project Completion Report, PKSF Part, PLDP-II. Dhaka.

9 UNDP. 2011. Millennium Development Goal, Targets and Achievements in Bangladesh, Progress Report.

10 Includes dropouts and migrated beneficiaries.

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association leaders was discontinued due to a lack of proper functioning of the association and federation and the association leaders’ inability to reach consensus on the common issues. However, the groups were strengthened through interactions and various trainings to reach the goal of social advancement.

11. Selection, Training, and Placing Community Extension Workers (CEWs). As appraised, 1,300 CEWs were selected from the local community, trained, and provided with starter kits. In addition, these CEWs attended the training of trainers courses. The trained CEWs provided extension services, including primary animal healthcare, to the beneficiaries. The DLS organized training courses for CEWs to impart technical skills in disease diagnosis, vaccination, and primary healthcare and treatment. These trainings helped the CEWs to be self-employed by providing technical services to the project beneficiaries and other interested farmers. The achievement against the original target was 100%. 12. Institutional Development Training. The project trained implementing staff of the partner NGOs and DLS for improved services delivery to project beneficiaries. A total of 2,513 NGO staff was trained (95% of the targeted 2,640) on general livestock rearing. In addition, 106 area managers and 2,148 program organizers received refresher training, and 2,406 program assistants and farmers’ leaders participated in cross visit programs. In addition, capacity development training for 610 officers and staff of DLS on various livestock-related technical subjects, such as disease monitoring, quality control, and primary healthcare for birds and animals, were organized. 13. Establishing Fodder Demonstration Plots. The partner NGOs, in collaboration with the local DLS office, successfully established 776 fodder demonstration plots (against the revised target of 800). These were established at the farmer group level to disseminate fodder cultivation under 106 area offices of the partner NGOs. These improved fodders demonstration plots serve as a source of planting materials to expand improved high yielding fodder varieties. Expanded and improved fodder cultivation impacted positively on rearing large ruminants, particularly milch cows. 14. Organizing Vaccination and De-worming Camps. As preventive measures, the partner NGOs, in close collaboration with the DLS, distributed de-worming tablets and arranged camps for goats, cattle, chicken, and ducks for mass vaccination against deadly diseases. In these camps, the quality of the vaccines was maintained using a cold chain. For example, about 1.9 million goats in 16 project districts were vaccinated against peste de petits ruminants. About 1.66 million de-worming tablets were distributed to goat rearers at a cost of Tk6.64 million. This activity was not included in the original scope but was added considering need during implementation.

15. Assistance for Input Supply for IGAs. The partner NGOs provided active support to the project beneficiaries in arranging inputs (improved breeds, improved day-old chicks, and quality feeds) for different IGAs. Satisfactory progress was achieved against set targets in supporting most of the IGAs undertaken by the beneficiaries.

16. Artificial Insemination Services. To improve local breeds and to maintain and improve the productivity levels of local cows, proper artificial insemination service is a prerequisite. The partner NGOs ensured artificial insemination services for the cows of beneficiaries when they needed them. Mobile phones played a significant role in ensuring these services and other technical and treatment services such as primary healthcare and medical care for sick animal.

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17. Treatment Services.11 The partner NGOs and CEWs played an important role in providing various treatment services. The CEWs took care of primary healthcare services and other treatment needs and provided support in linking beneficiaries with veterinary experts from the DLS and other sources. Again, mobile phones played a key role in ensuring these services.

18. Bio-digesters for Alternate Energy Supply. The project encouraged project beneficiaries, in particular those involved in cow and heifer rearing, to set up bio-digesters at the homesteads for alternate energy supply.12 The beneficiaries established 170 bio-digesters (125 in Joypurhat, and 45 in Dhunot) in the project areas. Despite some maintenance and post-establishment problems, most of the bio-digesters were in operation at project completion.

2. Livestock Enterprises Development 19. Credit Operation. At completion, the PKSF had disbursed a total of Tk3,838.2 million ($55.6 million equivalent) to the partner NGOs, of which Tk2,906 million ($35.6 million equivalent) was repaid to the PKSF (Table A5.3).13

20. The partner NGOs provided credit (1,769,293 loans) amounting to Tk16,614.5 million ($203.3 million equivalent) to 813,403 beneficiaries through revolving the amount received. Around Tk2,000 million ($24.5 million equivalent) is being revolved amongst engaged partner NGOs, and the credit repayment rate is around 98%. The average loan size for the beneficiaries stood at Tk9,388 at completion. The overall credit repayment rate was about 98%. 21. The target for the number of beneficiaries engaged in poultry and duck rearing was 250,000, but at completion, 68,409 (27% of the target) beneficiaries were involved in poultry and duck rearing using credit facilities. During the implementation period, a bird flu (avian influenza) outbreak occurred in several project areas, and people, including project beneficiaries, encountered high losses in their poultry and duck populations. As a result, many beneficiaries switched to other IGAs, such as rearing large ruminants (e.g., cows, heifers). These affected beneficiaries were compensated to some extent as they got cash compensation from the government through the DLS. This shift in IGAs did not have significant impacts on project costs and benefits. 22. At completion, a total of 813,043 beneficiaries had accessed credit under the project. Of these, 497,371 beneficiaries accessed credit two times, 285,783 three times, 121,895 four times, 47,435 five times, 3,183 six times, and 223 seven times. The outstanding amount totaled Tk2,143.73 million ($26.2 million equivalent) and beneficiary savings was Tk719.52 million ($8.8 million equivalent). Of the total disbursed credit to the beneficiaries, 66% went to the rearing of large ruminants, 23% to the rearing of small ruminants, 7% to the rearing of poultry, and 4% to the rearing of other types of livestock.

23. Popular Enterprises. Among the project supported livestock enterprises, the six most popular enterprises were: (i) goat rearing (241,003 beneficiaries with 498,313 loans); (ii) heifer rearing (207,120 beneficiaries with 457,012 loans); (iii) milch cow rearing (127,661 beneficiaries with 326,419 loans); (iv) beef fattening (132,264 beneficiaries with 283,723 loans); (v) poultry rearing (38,069 beneficiaries with 72,694 loans); and (vi) duck rearing (26,785 beneficiaries with 43,818 loans). These six enterprise categories constituted about 92% (Tk15,331 million) of the

11

Included treatment for sick animals and veterinary services. 12

Heifer is a young cow not yet having had her first calf. 13

As per exchange rate at completion ($1 = Tk81.70).

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total credit disbursed (Tk16,614 million). Under medium-term microcredit, the rearing of goats, heifers, and cows was undertaken, and targets were significantly overachieved. 24. Ultra Poor Pilot Program. Initially, a special program for the ultra poor in areas prone to flooding and river erosion was piloted in 38 upazilas under 11 project districts to create an asset base and to increase family income. Following successful piloting, all project upazilas were brought under this special program before the completion of the project by creating a revolving fund with each partner NGO. The project achieved success under this scheme. A total of 7,934 members enrolled, of which 6,128 were in operation at completion. This program arranged intensive awareness campaigns, including health, education, and human rights campaigns, and specific technical trainings were also arranged for 4,511 beneficiaries. The project extended credit support of Tk151.4 million (cumulative) on concessional terms (at 1% interest) to this ultra-poor community. At completion, the total borrowers numbered 4,147, and the recovery rate was about 98%. This special initiative created opportunities for the ultra poor to be engaged in productive activities, and the progress was fully satisfactory. 25. Entrepreneurship Development. As part of entrepreneurship development, the project undertook various measures, which included imparting training, enhancing skills and knowledge for value addition and marketing of products, setting up milk collection centers, and linking beneficiaries with industrial buyers to ensure fair prices of their products. The project organized various specialized training programs relating to entrepreneurship development in potential sites (para. 38 and table A5.5). More than 3,000 beneficiaries participated in entrepreneurship training related to dairy products. The partner NGOs made follow-ups on the use of skills gained through the training of the participants. The credit operation data from all partner NGOs indicates that about 60,000 beneficiaries had accessed to credit to operate their small-scale enterprises at project completion. The project beneficiaries were connected with 147 milk collection centers of different milk processing companies in the project area. In this component, the project achieved lower than expected progress. 26. Gender Awareness and Mainstreaming. Since 98% of the beneficiaries were women, a women’s empowerment agenda was implemented. A gender action plan was prepared and implemented satisfactorily to promote gender equality and women rights throughout the project’s implementation.

3. Capacity Building for Department of Livestock Services 27. Capacity Building Training. The project had a special focus to enhance the capacity of the DLS in providing technical services to the general public, including PLDP-II beneficiaries. Various technical trainings for DLS staff were organized to upgrade their skills and knowledge (Appendix 5). In addition, the DLS organized two weeks of technical training for the selected 1,300 CEWs, and provided start-up kits.14 The trained CEWs were deployed at the community level. 28. Civil Construction. ULDCs are core technical service providers for livestock development. However, due to fund constraints and the lack of basic facilities and logistical support, DLS upazila and district offices were not able to meet required levels of service delivery to the general public, including project beneficiaries. The project allocated funds for constructing, upgrading and repairing ULDCs in the project area. The completed civil works

14

Starter kits consisted of a thermo flask, syringes and needles, vaccines, galipot for dilution of vaccines, scissors, forceps, scalpel blade, and cotton.

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included (i) 33 new ULDCs, (ii) 41 boundary walls for ULDCs, (iii) land development for 26 ULDCs, (iv) repair works in 26 ULDCs, (v) two training halls: one in Belkuchi ULDC, and the other in the district livestock office at Sirajganj, and (vi) one artificial insemination shed in one district (Sirajganj). The achievement of this output was almost 100% against revised targets. 29. Technical Services by the DLS. The primary responsibility of regulating critical inputs for livestock development lies with the DLS, which include, ensuring supply of day-old chicks of improved poultry breeds, ensuring quality of feed, supplying and administering important vaccines, ensuring artificial insemination services, and treatment services for the animals. The DLS ensured the supply of the requested number of vaccines for beneficiaries in the project areas, and DLS field offices helped establish workable and continuing partnerships with the partner NGOs in technical service delivery to farmers, including project beneficiaries for the development of livestock. 30. Procurement and Supply of Vehicles, Goods, and Equipment. To improve the overall capacity of the DLS offices including technical services delivery to the farmers, the project supplied vehicles (116 motorcycles, 8 pickup vans, and 3 field vehicles) for better mobility; new microscopes (130) and diagnostic kits (130) in the ULDCs to enhance disease diagnostic abilities; new furniture sets (80) and computers (72 desktops and 38 laptops with multimedia capabilities) to improve logistics and office facilities; necessary chemicals for laboratories; 1,300 kit boxes for CEWs; and fodder seeds to establish fodder demonstration plots in ULDCs in the project area. C. Project Cost 31. At appraisal, the estimated project cost was $55.8 million equivalent, including contingencies and interest of $6.1 million. The actual project cost at completion was $67.0 million, and interest during implementation was $0.8 million, raising the total cost to $67.8 million. The actual total project cost increased by 21.5% over the appraisal estimate. The actual foreign currency cost was $6.77 million compared with the appraisal estimate of $5.00 million. For the PKSF part, the total expenditure increased by 25%, and ADB financing increased by 4%. The categories that experienced increased costs included livestock enterprise (credit), the ultra-poor program, and supervision and implementation. Increased cost for ADB financing was met through reallocation of loan proceeds by category. For the DLS component, the total actual cost was $3.59 million, 22% less than the $4.62 million estimated cost at appraisal. ADB financing increased by about 2% due to a higher exchange rate. The categories that experienced increased costs were civil works, vehicles, and equipment, while the categories that experienced decreased costs were consultancy services and training. Most of the increases were due to price escalation, minor changes in scope, and changes to the DLS component, including revised target setting and delayed start and completion dates. Most of the increased actual cost was borne by the borrower. Despite the cost increase, the economic internal rate of return (EIRR) increased to 37% by the time of the project completion report (PCR) preparation. This compared with the appraisal estimate of 8%, showing higher economic benefit even at higher project cost (Appendix 9). D. Disbursements 32. The initial disbursement was made on 27 October 2004, and the final disbursement took place on 26 July 2012. ADB disbursed $20.819 million following the revised allocation, 4.1% higher than appraisal estimates, which was due to depreciation of the taka. The unutilized loan proceeds of $0.525 million were cancelled at loan account closing. For the DLS part, the imprest

7

advance system at the initial stage and the statement of expenditures procedures during the later part of the project period worked well, and no fund scarcity was reported. The PKSF component followed the reimbursement method. E. Project Schedule 33. ADB approved the loan on 19 December 2003, and it became effective on 30 June 2004. The project activities started on 1 July 2004, and physical implementation was completed on 30 June 2012. The loan account was closed on 10 September 2012. The project experienced a 1.5-year delay due to slow action in commencing the DLS component, which had adverse impacts on the key institutional development initiatives, including staff capacity building measures. The PKSF component started as scheduled. A chart illustrating actual implementation against the target schedule for major activities of the project is presented in Appendix 7. F. Implementation Arrangements 34. As the lead executing agency, the PKSF dealt mainly with community development, livestock enterprise development, and project management in close collaboration with the DLS. The PKSF engaged 15 partner NGOs to provide service delivery to the project beneficiaries. The PKSF established a project management unit (PMU) with a full-time project director in Rangpur to monitor project activities and a liaison office at its headquarters in Dhaka to coordinate with the PMU. A full-time deputy project director from the DLS was deployed at the PMU to lead project activities under the DLS component and to ensure collaboration in technical services delivery to the project beneficiaries. Implementation arrangements, as envisaged, worked well. 35. The project provided staff and office support for an initial 2 years to the partner NGOs. To assist the partner NGOs in establishing their outreach capability, the project also provided them with motorcycles, bicycles, equipment, and furniture.

36. The DLS deployed a qualified deputy project director at the PMU to implement project activities under the DLS component, ensure coordination, and establish a good partnership in the delivery of services to the project beneficiaries. The PMU and DLS organized regular coordination meetings at sub-district and district levels. DLS local field offices played significant roles in technical services delivery and in providing treatment services to the beneficiaries. In addition, DLS technical officers served as trainers during technical trainings for beneficiaries and implementing staff.

37. An inter-ministerial project steering committee co-chaired by the secretaries of the Finance Division, Ministry of Finance, and Ministry of Fisheries and Livestock provided policy guidelines, and a departmental implementation and coordination committee provided guidance and monitored the project activities. The PMU was responsible for providing implementation support in the form of expertise, logistics, and budgeting to the field offices of the partner NGOs and to the DLS. Implementation arrangements, including the monitoring of project activities under the guidance of the PKSF, worked adequately in achieving envisaged accomplishments.

8

G. Conditions and Covenants 38. All loan covenants were generally complied with, although not all in a timely manner. Certain covenants, such as the full commercialization objective of livestock inputs and the vaccines production and distribution system, could not be achieved due to the lack of available government funds, inadequate interest of policy makers, and weak accountability systems. However, some mitigating measures have been taken, such as re-fixing costs of inputs to meet cost recovery for input production and distribution systems. The status of compliance with covenants is in Appendix 8. H. Consultant Recruitment and Procurement 39. Consultants. The project recruited individual consultants following ADB’s Guidelines on the Use of Consultants (2002, as amended from time to time). Under the PKSF component, 343 of 400 domestic person-months (86%) were utilized. The performance of the consultants was satisfactory in general. For the DLS component, only 12 of the revised target of 24 domestic person-months (50%) were utilized due to complexities in the recruitment process, lack of interest in undertaking reforms, non-availability of qualified experts agreeing to work in Rangpur, and procedural complexities. The original targeted consultancy provision of 147 person-months (45 international person-months and 102 domestic person-months) was revised during implementation. 40. Vehicles, Goods, Equipment, and Services. The executing agencies procured vehicles, goods, equipment, and services complying with ADB’s Procurement Guidelines (1999, as amended from time to time) and with the prior approval of ADB. The procurement process was highly satisfactory and no complaints were reported. 41. Civil Works. The civil works included 33 new ULDCs, land development in 26 ULDCs, 41 boundary walls for ULDCs, repair works in 26 ULDCs, two training halls and one artificial insemination shed under the DLS component. The PKSF supported beneficiaries through partner NGOs to establish 19 mini hatcheries (against the targeted 15), to supply improved day-old chicks to the community. I. Performance of the Borrower and the Executing Agency

1. The Borrower 42. The borrower was committed to livestock development, provided necessary counterpart funds and logistical and staff support, and approved the government’s development project proposal for the DLS component. The borrower responded positively to the actions and recommendations of the ADB review missions. The borrower also arranged a smooth fund flow from ADB to the project, monitored project activities, and provided guidance through an inter-ministerial steering committee at the ministerial level that met as per need of the project. The overall performance of the borrower during project formulation and implementation was satisfactory.

2. The Executing Agencies 43. Palli Karma-Sahayak Foundation. As the lead executing agency, the PKSF established a PMU at Rangpur and a project liaison unit at PKSF headquarters in Dhaka. The PKSF issued guidelines and directives to the PMU to effectively implement and monitor project

9

activities. The PKSF provided guidance, deployed qualified staff, placed project funds timely, and acted quickly to expedite project implementation. It also took appropriate actions to continue support services to project beneficiaries through engaged partner NGOs. The engaged partner NGOs performed adequately in delivering all the intended support services, including credit to the project beneficiaries. Despite challenges, the PKSF component largely achieved its targets in a timely manner. The PKSF’s capability assessment at appraisal was reasonably correct. Overall, PKSF’s performance was rated satisfactory. 44. Department of Livestock Services. The DLS executed capacity building of the DLS component extending guidance and support to the project. It also arranged counterpart funds for the civil works and other procurements. The DLS took actions to improve the capacity of its field offices by ensuring that procurement procedures were in strict compliance with ADB guidelines, although in some cases the process was slow. The project experienced slow and delayed action in the development project proposal approval process. The DLS’s overall performance was satisfactory in implementing project activities and achieving most of the targets at completion, although its capacities were somewhat underestimated at appraisal. J. Performance of the Asian Development Bank 45. ADB quickly formulated and processed the project in 2003. Initially, the project was administered from ADB headquarters before being delegated to the Bangladesh Resident Mission on 9 September 2004. ADB fielded 12 review missions at regular intervals to closely review and monitor project progress, and it acted promptly to ensure the smooth flow of funds and expedite project implementation. During project review missions, ADB interacted closely with project beneficiaries and other stakeholders to get direct feedback. ADB agreed to a minor change in scope and allowed additional civil works and additional equipment procurement. The project had three different mission leaders. ADB closely followed up loan covenants and policy issues with the relevant ministries to facilitate early actions and address challenges faced by the project. The performance of ADB was rated satisfactory.

III. EVALUATION OF PERFORMANCE

A. Relevance

46. In general, as envisaged in the project design, the project supported rural poor households through capacity building, employment generation and income enhancement, and living standard improvements by undertaking increased livestock-related IGAs. During appraisal as well as at completion, the project was in line with the government’s priority to ensure food and nutritional security for a growing population under its poverty reduction agenda.15 The project activities matched well with the completed Fifth Five-Year Plan, the ongoing Perspective Plan 2010–2021, the Sixth Five-Year Plan (2011–2015), and sector policies.16 The project’s support and services also contributed significantly to the government’s priority agenda of extending need-based support to farmers in the form of modern livestock technologies, credit and marketing assistance, and effective partnerships between beneficiaries, public agencies and NGOs. The project also supported the government’s Vision 2021 plan to reduce poverty and meet nutritional requirements (Appendix 2).17 In addition, the project was relevant and

15

Government of Bangladesh. 2010. Outline Perspective Plan of Bangladesh 2010–2021. Dhaka. 16

Government of Bangladesh. 2010. Sectoral Strategies, Program and Policies, Sixth Five-Year Plan (2011–2015). Dhaka.

17 Government of Bangladesh. 2010. Accelerating Growth and Reducing Poverty. Dhaka.

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contributed to achieving targets toward the Millennium Development Goal of improving child nutrition. 47. At appraisal in 2003, the project was relevant, and it remained relevant at completion in line with ADB’s Country Assistance Plan for Bangladesh, ensuring food and nutrition security for the majority rural population (footnote 6). 48. Overall, the project was rated relevant. B. Effectiveness in Achieving Outcome

49. The project’s objective was to improve the status of women and increase IGAs and employment from livestock-related enterprises. The success of the outcomes was measured according to the following indicators: (i) increased annual household income by about 20%, which include about 20% from livestock. (ii) achieved poverty reduction goal of 20% by project completion; (iii) improved capacities for 660,000 beneficiaries mobilized into 26,000 farmer groups; (iv) improved sustainable partnerships between beneficiaries, the DLS, and the partner NGOs through training, communication, and service delivery; (v) efficient and effective credit operations through partner NGOs for undertaking livestock related IGAs; and (vi) entrepreneurship development in livestock-related IGAs.

50. The actual key outcomes included (i) increased production of livestock products and significantly increased household income, (ii) successful operation of the targeted farmers’ groups, (iii) improved capacities of women beneficiaries, (iv) a highly successful credit operation, (v) a workable partnership amongst partner NGOs and DLS field offices in providing technical services to the project beneficiaries, and (vi) improved knowledge among beneficiaries on gender equality and rights of women.

51. The project is rated effective in achieving intended outcomes based on outputs and results delivered during and after the project period as described in paras. 52-60.18

52. The actual achievement was an increased average household income of 30% against the envisaged 20% per annum. The share of income from livestock rose by 28% against the envisaged 20%. The average household income of beneficiaries increased from Tk34,469 (during the baseline year 2004) to Tk104,859 (during the final impact assessment in 2010) and Tk148,174 (during the PCR mission survey in April 2013). This average income of the project beneficiaries was 78% higher than the farmers of non-project area. 53. The project took effective measures in mobilizing poor farmers through partner NGOs to undertake cost-effective livestock-related IGAs. A total of 29,897 farmer groups enrolling 907,343 members were formed of which 589,043 members were provided with awareness and skills training. Credit support and technical services were provided to 813,403 member beneficiaries.

54. To improve technical and other necessary services for the project beneficiaries, the project selected qualified CEWs from the locality, trained them with technical knowledge and skills, supplied them with starter kits, and placed them in their localities. In line with targeted estimates, 1,300 CEWs were deployed at community level. Group activities, including

18

The sources included baseline survey, mid-term impact evaluation, final impact evaluation, project completion reports of executing agencies, and focus group discussions with NGOs.

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participating in technical training, interaction, and regular communication contributed to fostering a tripartite relationship between DLS offices, partner NGOs, and beneficiaries, which contributed to the incremental production of livestock products (milk, meat, and eggs) in the project areas. 55. The gender awareness and mainstreaming target was overachieved to a great extent. Of the 907,343 member beneficiaries, about 98% (889,196) were women. Most women beneficiaries became enlightened and strengthened their role in the decision-making process within their families.

56. The envisaged outcome of capacity building of the NGOs was achieved. Of the targeted goal of 2,640, 2,513 NGO staff participated in a training course on general livestock rearing, 2,148 NGO program organizers participated in refresher training courses, and 106 area managers participated in a course on leadership training. In addition, program assistants and some farmers participated in 84 batches of field visit to share experiences. On average, about 95% of the envisaged capacity development training was achieved. 57. The credit operation component that took place during and after the project was highly successful and comprised the milestone achievement of the project. All involved parties acted in a timely manner and worked effectively to make the credit operation a success. The lead EA PKSF disbursed $55.6 million (Tk3,838.2 million equivalent), including $18.78 million ADB credit fund, to the partner NGOs. The partner NGOs disbursed a total of Tk16,614 million to beneficiaries, maintaining 98% repayment rate (Appendix 5).

58. The project contributed positively to improving the overall standard of living of the project beneficiaries. The key impacts were on household income, land purchase and acquisition, increased livestock and poultry ownership, asset building, and improved amenities. In addition, the beneficiaries accumulated increased savings, increased food consumption (especially animal protein), and increased expenditures on children’s education and medical care.

59. The project was also effective in clearly defining the service needs of the poor farmers and in establishing workable partnerships between the DLS and partner NGOs to provide necessary services. 60. The project undertook various interventions to disseminate information on production technologies for livestock-related IGAs. These enabled the project farmers to adopt new and improved technologies for higher production of livestock products. C. Efficiency in Achieving Outcome and Outputs

61. The PCR mission conducted an economic reevaluation and financial analyses and calculated the EIRR to be 37% against the appraisal estimate of 8% (Appendix 9). The appraisal estimate had considered only dairy cows for milk production to calculate the EIRR, and a full-scale cost benefit analysis was not undertaken. High profitability, the higher than envisaged number of beneficiaries covered, and the conducive and enabling environment that prevailed during the project period are the reasons for this high return at completion. The total cost was higher than envisaged, although some minor changes in scope were agreed upon. The extra cost was borne by the borrower. Regarding efficiency of the implementation process and procedures, for the PKSF part, the process was efficient in taking actions. For the DLS part, however, the actions were slow, delayed, and a bit lengthy in many cases. The return on investment in 10 livestock related major IGAs ranged from 9% to 96% (Appendix 10, para. 18).

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62. Considering the overall implementing process and procedures followed during project implementation, the project implementation was rated efficient. The key measuring indicators are described in paras. 63-69.

63. The project was efficient in motivating the farmers to rear highly productive, improved cattle and poultry breeds, resulting in an increase in the rearing of these breeds in the project area (Appendix 10). The higher rearing rate of Frisians, Shahiwal cows, the acceptance of the popular Sonali breed of poultry, and the dissemination of the highly productive Black Bengal goat breed led to higher growth in the livestock subsector.

64. The project facilitated the selection of enterprises among beneficiaries. For example, the beneficiaries were free to select and switch to less risky and more profitable IGAs when a bird flu outbreak occurred, with many beneficiaries switching from poultry rearing to large or small ruminant rearing or beef-fattening activities. 65. The project was able to efficiently support beneficiaries to increase their family income through livestock enterprises. The project efficiently improved women's access to inputs, increased control over their resources, and improved their technical skills. The average household income increased by 260% in 2013 over the figures reported during the baseline study in 2006. The project was efficient in increasing the production of poultry and dairy products in the project areas. The project contributed an incremental supply of 281.78 million liters of milk, 89 million eggs, 34,000 tons of beef and mutton, and 3.57 million kilograms of chicken to the market chain in 2012 (Appendix 9).

66. The project was efficient in improving service delivery capacities of DLS field offices and district veterinary hospitals. The deployment of CEWs and technical staff of the partner NGOs contributed to the establishment of linkages between beneficiaries and DLS field offices. Mobile phones also contributed significantly to ensure technical services for the beneficiaries. 67. The project was instrumental in linking project beneficiaries with active private milk processing companies in the project area. The signing of a memorandum of understanding between the project, the PKSF, and a private milk processing company (Milk Vita) to ensure the collection of milk at a fair price was a milestone achievement. 68. The project’s credit operation was efficient in disbursing Tk16,614 million ($203.3 million equivalent) and achieving a recovery rate of about 98%. Many beneficiaries obtained loans several times (some up to seven times) within the project period. 69. The risks encountered included (i) floods in 2005 and 2007 (out of 20 total districts, 6 project districts were affected in 2005 and 12 were affected in 2007); (ii) a limited outbreak of bird flu in the poultry enterprises in 2005, 2007, and 2008; and (iii) a limited outbreak of cattle anthrax in 2010. The project, in close cooperation with DLS, took immediate measures and arranged compensation for the affected beneficiaries. D. Preliminary Assessment of Sustainability

70. The project support and services increased the confidence and the ability of project beneficiaries to increase their production of livestock products, which contributed to increased income and an improved quality of life. The beneficiaries’ enhanced skills and knowledge will continue to be used for increased earnings because of increased demand for nutritious, high

13

quality livestock products. The linkages established among beneficiaries, NGOs, and the DLS during the project will continue due to their mutually beneficial nature. The beneficiaries will need support services, including credit to continue and scale up their profitable activities. NGOs will come forward to support beneficiaries for their earning and to continue their activities, and the DLS will continue to offer technical services as part of their mandatory duties and responsibilities, and also for increasing earning of the technical staff.

71. The other measures contributing to the sustainability of project activities include (i) the integration of the project credit fund into PKSF’s core program, regular repayment of principal and interest to the government (borrower) by the PKSF, establishment of a revolving credit fund with the partner NGOs, and continuing credit fund disbursements to the partner NGOs to continue credit support to the project beneficiaries; (ii) the establishment of a revolving fund with the NGOs to ensure technical services like artificial insemination, vaccination, and treatment services; (iii) the creation of a revolving fund for establishing fodder demonstration plots at the beneficiary level; (iv) the establishment of a revolving fund for ultra-poor beneficiaries; and (v) the establishment of linkages between project beneficiaries and private companies. All these activities continue to be in operation two years after the completion of the project.

72. Another important element of the project was involving 98% women as beneficiaries. The project undertook massive capacity enhancement initiatives and ensured access to capital and necessary inputs, which are likely to be sustainable because women are found to be more serious and more committed managers to operate homestead based livestock-related IGAs. Because of more income-earning opportunities, men sometimes migrate to other areas, including urban cities and overseas, but women generally continue to be involved in profitable livestock-related IGAs to upgrade their social and economic status. 73. Given increasing demand for livestock products and the high potential for growth, it is likely that the majority of the beneficiaries will continue to be engaged in livestock-related IGAs, despite challenges and risks.

74. The project’s overall outcomes were rated likely sustainable.

E. Impact

75. The project contributed to the following key impacts: (i) increased annual income of the beneficiaries by about 25%–30%, (ii) increased employment generation, (iii) improved social harmony, (iv) improved standards of living, and (v) women’s empowerment. The project contributed significantly to the overall empowerment of female beneficiaries, especially in relation to access to capital, inputs, control over resources, and an increased role in family decision making (Appendixes 2, 6, and 10). 76. The project contributed to beneficiaries’ improved living standards, including improved household food security, increased intake of more nutritious food, better healthcare support, better educational opportunities for their children, improved housing, better sanitation, and increased participation in social events. In addition, due to group activities, social harmony and cohesiveness improved (Appendix 10).

77. The project activities did not have any adverse environmental impacts. On the contrary, the project produced more organic manure due to increased poultry and ruminants rearing by the beneficiaries, which increased soil productivity and was sold in the market on a regular

14

basis, contributing a cleaner environment. In addition, a few beneficiaries used this manure on a pilot basis to establish a bio-digester for an alternate energy supply. However, due to high establishment and maintenance costs, the activity did not expand as expected.

IV. OVERALL ASSESSMENT AND RECOMMENDATIONS A. Overall Assessment 78. The project design was largely followed during implementation of the project activities. The PKSF component was completed on time with satisfactory progress. For the DLS component, ADB and the borrower agreed to a few minor changes in scope, including the introduction of additional civil works, equipment, and various technical services via reallocation of loan proceeds and a 2-year extension for improving DLS’s capacity. The project achievements were satisfactory despite delayed action in some cases by DLS. Overall, the project was rated successful. B. Lessons 79. The project offered the following four key lessons:

(i) Effective service delivery (of mobilization, training, credit support, technical services, and intensive monitoring) to a large number of rural poor spread over a wide geographical area is possible by establishing workable partnerships between partner NGOs and the government’s service department.

(ii) Livestock enterprises can be potential sources of an increase in income for the

rural poor because of high demand for livestock products, the potential for high returns, and due to easy access of rural poor to livestock inputs and production techniques.

(iii) DLS field offices are able to provide improved technical services e.g., artificial

insemination, vaccination, de-worming, and treatment services for the sick animals to project beneficiaries through establishing effective coordination mechanisms and by ensuring capacity enhancement support.

(iv) Selecting CEWs from the local community, teaching them technical skills,

supplying starter kits to them, and deploying them in the community worked well for service delivery and for establishing linkages amongst project beneficiaries and between DLS field offices and NGOs.

C. Recommendations 80. The major recommendations are:

Project related (i) There should be provisions for performance-based incentives for the

implementing staff to encourage improved service delivery to the beneficiaries.

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PKSF related (ii) Ensure adequate credit support, monitoring, and scaling up of the livestock-

related IGAs of the project beneficiaries through partner NGOs. Maintain monitoring, separate books of accounts, and a database for the project and for any future ADB assisted project at least up to the preparation of the project performance evaluation report.

(iii) Strengthen livestock development support services, including technical staff

under the PKSF’s core program, and put more emphasis on entrepreneurship development, value addition, and value chain development. Initiate and integrate risk management measures for livestock-related IGAs.

(iv) Ensure effective support to women to become entrepreneurs. Care should be taken so that women are not used as fronts, or credit carriers or legal borrowers for male-controlled enterprises. Any monitoring should provide sex disaggregated data.

DLS related (v) Place adequate operation and maintenance funds at the field offices under the

government’s annual development program with strict monitoring and accountability mechanisms.

(vi) The government should continue capacity building efforts (infrastructure and

logistics) of DLS field offices to improve technical services delivery and put more emphasis on commercially viable livestock entrepreneurship development.

(vii) The DLS should take additional action to meet cost recovery for production and distribution of livestock inputs, including important vaccines.

General (viii) National livestock development policy emphasizing clear regulatory role and core

tasks of DLS, partnership with the private sectors, and NGOs in ensuring improved technical services delivery to the farmers, commercially viable livestock enterprises, improvement of local breeds of animals with higher productivity should be updated and /or formulated and enforced immediately.

(ix) Establish complete database of animal resources in the country, and ensure use of information technology for improved service delivery and to develop the livestock sector.

(x) Train more CEWs and place at the community level across the country to improve technical service delivery to the farmers.

(xi) The project performance evaluation report can be prepared by 2014.

16 Appendix 1

PROJECT UPAZILAS ALLOTTED TO PARTNER NGOs

NGO District Upazila a Number

ASKS Pabna Atghoria, Pabna Sadar, Sathia, Sujanagar 4

Subtotal 4

ASOD Bogra Adamdighi 1 Noagaon Dhamoirhat, Mohadevpur, Naogaon Sadar, Potnitala 4

Rangpur Badarganj, Kaunia, Taraganj 3

Subtotal 8

ESDO Panchagarh Boda, Debigonj, Tetulia 3 Thakurgaon Baliagandi, Haripur, Pirganj, Ranishankail, Thakurgaon 5

Subtotal 8 GBK Dinajpur Birampur, Birgonj, Bochagonj, Khansama 4 Joypurhat Akelpur 1

Subtotal 5

GUK Bogra Bogra Sadar, Gabtali, Putia 3

Subtotal 3

HEED Dinajpur Chirirbandar, Ghoraghat, Parbatipur 3 Gaibandha Gobindagonj 1 Joypurhat Panchbibi 1

Subtotal 5

PMK Mymensingh Dhoboura, Fulbaria, Fulpur, Gafargaon, Haluaghat, Muktagacha, Mymensingh Sadar

7

Subtotal 7

PMUK Rajshahi Charghat, Paba, Putia 3 Subtotal 3

POPI Lalmonirhat Hatibandha, Kaligonj, Lalmonirhat Sadar 3

Mymensingh Bhaluka, Gouripur, Ishwargonj, Trishal, 4

Netrokona Atpara, Barhatta, Durgapur, Kalmakanda, Khaliajuri, Kendua, Madan, Mohangonj, Netrokona, Purbodhala

10

Rangpur Gangachara 1

Subtotal 18

RDRS Dinajpur Birol, Kaharul 2 Kurigram Bhurungamari, Chilmari, Fulbari, Kurigram Sadar, Nageswai,

Rajarhat, Rajibpur, Rowmari, Ulipur 9

Lalmonirhat Aditmari, Patgram 2 Nilphamari Dimla, Domar, Jaldhaka, Kishoregonj, Nilphamari Sadar, Syedpur 6 Panchagarh Atowari, Panchagarh 2

Subtotal 21 SKS Gaibandha Fulchari 1

Subtotal 1

SSS Jamalpur Bakshigonj, Dewanganj, Islampur, Jamalpur Sadar, Madergonj, Melandah, Sarishabari

7

Mymensingh Nandail 1 Sherpur Jhenaigati, Nakla, Nalitabari, Sherpur Sadar, Sriburdi 5

Subtotal 13 Swanirvar Gaibandha Gaibandha Sadar, Palashbari, Sadullapur, Sundargonj 4

Subtotal 4

7

Appendix 1 17

NGO District Upazila a Number

TMSS Bogra Dhunut, Dupchachia, Kahalu, Nondigram, Sariakandi, Sherpur, Shibgonj

Chapai Nawabgonj

Bholahat, Gomostapur, Nachol, Shibgonj 4

Gaibandha Shagata 1 Joypurhat Joypurhat Sadar, Kalai, Khetlal 3

Naogaon Atrai, Badalgachhi, Manda, Neyamatpur, Porsha, Raninagar, Shapahar

7

Natore Bagatipara, Borigram, Gurudaspur, Lalpur, Singra 5

Pabna Chatmohor, Faridpur, Ishwardi, Vangura 4

Rajshahi Bagha, Bagmara, Durgapur, Godagari, Mohanpur, Tanor 6

Rangpur Mithapukur, Pirgonj 2

Sirajgonj Kamarkanda, Kazipur, Tarash, Ullapara 4

Subtotal 43

UDPS Chapai Nawabgonj

Chapai Nawabgonj 1

Dinajpur Dinajpur Sadar, Fulbari, Hakimpur, Nawabgonj 4

Natore Natore Sadar 1

Pabna Bera 1

Rangpur Pirgacha, Rangpur Sadar 2

Sirajgonj Belkuchi, Chowhali, Raigonj, Shazadpur, Sirajgonj Sadar 5

Subtotal 14

Total 157 a An upazila is the next administrative unit under a district.

ASKS = Annanya Samaj Kallyan Shangstha; ASOD = Assistance for Social Organization and Development; ESDO = Eco-Social Development Organization; GBK = Gram Bikash Kendra; GUK = Gana Unnayan Kendra; HEED = Health, Education, and Economic Development; NGO = nongovernment organization; PMK = Palli Mongal Karmashuchi; PMUK = Padakkhep Manobik Unnayan Kandra; POPI = People’s Oriented Programs Implementation; RDRS = Rangpur Dinajpur Rural Services; SKS = Samaj Kallyan Sangstha; SSS = Society for Social Services; TMSS = Thengamara Mohila Sabuj Sangha; UDPS = Uttara Development Program Society.

18 Appendix 2

PROJECT FRAMEWORK

Design Summary

Performance Target/Indicators

Monitoring Mechanisms

Assumptions and Risks

Achievements and Remarks

Development Goal Reduced poverty among rural poor in 20 districts of northwest Bangladesh

By 30 June 2010, spatial poverty will have been reduced by 20% in the project area. 30% of the Millennium Development Goals (MDGs) will have been reached in the project area.

Project performance audit report Bangladesh Bureau of Statistics reports

The project report and recommendation of the President (RRP) recorded a poverty level of 72% in 2003 in the project area (Rajshahi and Rangpur Division). In relation to achieving Millennium Development Goals (MDGs) by 2015, the salient features of northwest and north central Bangladesh (20 project districts), as per the Household Income and Expenditure Survey 2010, included: (i) rural poverty in Rajshahi division reduced from 53.3% in 2005 to 36.6% in 2010; (ii) poverty gap reduced from 12.0 in 2005 to 6.4 in 2010; (iii) square poverty gap has also reduced from 3.8 in 2005 to 1.9 in 2010; (iv) percentage of underweight children under 5 nationwide reduced from 54% in 2005 to 45% in 2010. The government’s Sixth Five-Year Plan (2011–2015) reported a reduction from 28% in 2005 to 20% in 2012 in the number of people nationwide with a calorie intake deficiency. It also reported that the child mortality rate in the Rajshahi region decreased from 46 per 1,000 births in 2007 to 41 in 2010. Generally, project interventions and services had a positive impact on improving the livelihoods of the project beneficiaries. The Final Impact Assessment Study in April 2010 reported an increase in the average incomes of the beneficiaries by 107% against 54% in the control group in 4 years (2006 to 2010). Regarding achievement of MDGs by 2015, the achievements against targets were (i) about 84% in poverty reduction; (ii) 65% in relation to child malnutrition (underweight); and (iii) 73% in child mortality rate.

Objective/Purpose Enhance the status of women and increase income generating activities and employment from livestock-related enterprises

By 30 June 2010, at least 660,000 farming families will have increased incomes by 20% and improved nutrition from livestock by 20%

Monitoring and evaluation reports including time-slice surveys Project review missions Project completion reports

Government policies and actions promote increased nongovernment organization (NGO) and private sector supply of inputs and services.

Project support services reached a total of 813,403 poor farm households. The Final Impact Assessment Study (2010) reported increased average income of the project beneficiaries by 107% in four years, and increased food intake, including livestock products, of 14%–25%.

Appendix 2 19

Design Summary





By 30 June 2010, livestock income in gross domestic product for the project area will have increased by 20% per annum. Women will comprise 70% of project beneficiaries; about 462,000 will have been trained or provided with microfinance.

Department of livestock (DLS) reports

Government and the participating NGOs are committed.

Beneficiaries’ income from livestock activities increased significantly and production of livestock products increased due to project support and services (mobilizing small scale farmers, raising awareness, imparting technical training, extending microcredit support, ensuring technical and treatment services, extending marketing assistance, and monitoring activities). Women comprised over 98% of the total beneficiaries. 589,043 beneficiaries were trained during a 3-day training course on livestock rearing and management. 813,403 beneficiaries were provided with microcredit and maintained about 98% repayment rates. The project had special focus on women’s empowerment and satisfactory progress was achieved in implementing a gender action plan.

I. Outputs Component 1: Community Development (i) Farmer organizations formed, strengthened, and prepared for growth

By 30 June 2010, 26,000 farmers group will have been formed.

NGO reports submitted to project management unit (PMU) Project monitoring reports Project quarterly and annual reports

Qualified NGOs are selected and participated as planned. Effective training of trainers is provided and the participatory planning process is implemented.

29,897 farmers groups were formed, of which 25,955 groups were in operation at project completion. During project completion report (PCR) preparation most group members were in operation, and the involved farmers were getting support services from the partner NGOs and the DLS.

By 30 June 2010, 175,000 farmer group members (mostly women) will have been trained in group activities.

A total of 589,043 project beneficiaries (farmers) were trained during a 3-day course arranged in close vicinity of the group farmers. The training was conducted by qualified and experienced technical trainers and concentrated on general livestock rearing, group activities, and women’s socio-economic empowerment issues. To ensure training quality, the trainers attended a training of trainers course. The training courses followed a participatory approach and planning process. Considering need, the beneficiary training target was raised to 610,000. Considering this revised target the achievement rate was 96.5%.

20 Appendix 2

Design Summary





By 30 June 2010, 52,000 group leaders will have been trained for their role and responsibilities in group management. By 30 June 2010, 1,300 associations will have been formed from farmer groups to act as apex bodies for input/output activities. By 30 June 2010, 13,000 association leaders (including 70% women) will have received leadership training and acquired new skills in community development.

PMU records of training contracts Project review missions

Agriculture extension agents in NGOs support farmers’ organizations effectively and introduce new techniques of livestock rearing.

A total of 39,578 group leaders (taking two from each group) were trained. Initially, 243 associations with 9,274 leaders formed. Subsequently, forming associations and activities of the formed associations were postponed due to unforeseen procedural complexities of benefit sharing among association and group members. At the initial stage, 522 association leaders were trained. In addition, 39,578 group leaders were trained, of which 95% were women.

By 30 June 2009, 1,300 community extension workers (CEWs), including about 70% women) will have been trained to provide the community with livestock services.

Although it was behind schedule, the DLS completed a 2-week residential technical training for the selected 1,300 CEWs and provided them with start-up kit boxes. The trained CEWs are providing extension services, including primary animal healthcare, to the beneficiaries. The CEWs were selected locally, having received training on livestock from other sources, including the Youth Development Department.

By 30 June 2008, 900 CEWs will have received basic TOT to become farmer trainers.

The 1,300 selected CEWs were trained in technical aspects, including training of trainer skills. About 1,000 CEWs (about 76% of the total) are still engaged in providing services to the community, including to project beneficiaries. They serve as effective networking agents between farmers and DLS upazila (the next administrative unit under a district) offices, and they act as farmer trainers in many areas.

Appendix 2 21

Design Summary





By 30 June 2010, 900 CEWs will have received refresher training.

Feedback from farmers’ organization via project monitoring staff

The DLS was not able to organize refresher courses for CEWs due to time constraints and lack of training facilities.

(ii) Participating NGOs strengthen for improved service delivery

By 30 June 2010, 2,600 group association leaders will have benefited from cross-association experiential learning visits.

Monitoring and evaluation reports Project monitoring reports

Forming and nursing associations were found not workable and feasible as experienced by the Palli Karma-Sahayak Foundation (PKSF) and other organizations like Rangpur Dinajpur Rural Services. At the initial stage, the association leaders tried to take advantage of other group members in accruing benefits from the project services.

By 30 June 2007, 2,640 NGO program organizers and assistants of farmer organizations will have received a basic training in livestock technology, microfinance, social development, and environment.

A total of 2,513 (95% of the target) staff from engaged partner NGOs were trained in general livestock rearing techniques, social development issues and environment protection.

By 30 June 2010, 2,640 NGO program organizers and assistants will have received refresher training in the topics above.

Project quarterly and annual reports PMU records of training contracts Project review missions

A total of 2,148 program organizers (81% of the target) of the partner NGOs received refresher training.

By 30 June 2010, 10 participating NGO area managers, or program organizers will have received leadership training to equip them for future roles.

All 106 area managers of the partner NGOs were trained in leadership development.

By 30 June 2010, 1,500 program assistants will have benefited

A total of 84 batches involving 2,520 (168% of target) program assistants, including some farmer leaders, participated in the cross visit program.

22 Appendix 2

Design Summary





from cross-district experiential learning visits.

(iii) Marketing and market entrepreneurs developed

By 30 June 2008, 85 chilling center operators will have been trained in milk collection, milk chilling, milk hygiene and agribusiness.

Monitoring and evaluation reports Project quarterly and annual reports PMU records of training contracts

Entrepreneurs are willing to invest in new enterprises.

In line with the target, 85 interested group members were trained in milk chilling centers operations, including milk collection, chilling, and hygiene.

By 30 June 2009, 60 beneficiaries will have been trained in milk processing to run processing plants.

Project review missions

By June 2012, 418 beneficiaries against the target of 60 were trained on milk processing techniques by the partner NGOs in close collaboration with the DLS. The target was significantly overachieved (600%).

By 30 June 2009, 3,000 unemployed will have been trained in milk hygiene/ processing for self-employment in milk collection/ vending.

Milk chilling and treatment center monthly/ annual records Market management committee records of market activities

A total of 2,657 beneficiaries (89% of the envisaged target) were trained in 89 batches on dairy entrepreneurship, including milk collection and handling.

By 30 June 2009, 1,000 market management committee members will have been trained in market management.

Postponed, because the construction and improvement of slaughter slabs was not found feasible due to inadequate fund provision and procedural complexity to be followed by local government engineering department (LGED) in implementing this component under the project. It is worth to mention that from other on-going LGED projects, capacity building measures, including training of rural market management committee members, were undertaken.

By 30 June 2009, 200 butchers from new and existing slaughter slabs will have been trained in meat hygiene and butchery skills.

Municipality records of slaughter slab inspections

In line with the target, 200 butchers were trained in meat hygiene and butchery skills.

By 30 June 2009, 500 rural pharmacy owners will have been trained in basic animal health treatment and drug supply.

CEW records of issues associated with drug procurement

A total of 423 (85% of the target) rural pharmacy owners were trained in basic animal health treatment and animal drug supply, including operation of a local veterinary pharmacy.

Appendix 2 23

Design Summary





Component 2 : Livestock Enterprise Development (i) Short-term micro finance for poultry production packages

By 30 June 2008, 250,000 beneficiary families will have taken up microfinance for poultry and duck production

NGO and PKSF micro-finance records and reports

Beneficiaries are willing to invest in livestock production, processing, and marketing enterprises.

As of 30 June 2010, 68,409 beneficiaries were involved in poultry and duck rearing using the project’s credit support. Due to involved risk factor like avian influenza infection, the beneficiaries’ involvement in poultry rearing was lower than envisaged.

(ii) Medium-term micro finance for ruminant production packages

By 30 June 2008, approximately 50,000 beneficiary’s families will have taken up microfinance for cattle rearing and fattening, milking cows, fodder production and feed supplementation.

Monitoring and evaluation reports. Project quarterly and annual reports. Project review missions. NGO and PKSF micro finance records and reports

Government does not distort the market for micro finance by imposing a ceiling on NGO interest rates charged to beneficiaries.

As of 30 June 2010, 710,612 beneficiaries accessed microcredit support for rearing of cattle, milking cows, goats, poultries and for production of fodder crops. In addition, 32,382 beneficiaries accessed credit in other trades. The beneficiaries’ engagement in ruminant rearing and milch cow rearing was substantially higher than envisaged due to high profit potential.

(iii) Medium-term credit for processing and marketing packages

By 30 June 2008, 30 credit packages will have been obtained by entrepreneurs, farmer associations and small NGOs for 30 milk chilling/ treatment centers.

Monitoring and evaluation reports Project quarterly and annual reports Project review missions

CEWs contribute to reduction in animal disease by vaccinating animals.

Five private milk chilling plants were established in Chapai Nawabgonj, Rajshahi, and Naogaon districts with the active technical assistance from the project. Credit support provided from the project partially met the requirement of IGA operation.

(iv) Starter kits for CEWs

By 30 June 2008, 1,300 CEWs will be supplied with animal health and breeding starter kits to begin self-employed services to livestock communities.

Monitoring and evaluation reports Project quarterly and annual reports Project review missions

Project is completed on schedule. No natural disasters affected the project area. Service providers can meet demand requirements. Production inputs are available on time and in sufficient quantity.

A total of 1,300 starter kits were procured and distributed to 1,300 trained CEWs. Using these kits, CEWs are providing preliminary animal healthcare services to the beneficiaries. For serious cases, CEWs consult and make referrals to nearby veterinary surgeons or doctors. Inputs like day-old chicks and quality feed are available in the locality and in market and in government farms. Mobile phones played a significant role in providing technical service delivery to the project beneficiaries.

(v) Sub district administrations assisted with animal and meat marketing

By 30 June 2009, 200 live animal markets will have been established (150) or improved (50).

Subdistrict administration reports Monitoring and evaluation reports

This was postponed as it was found to be not feasible given existing government systems and procedures.

24 Appendix 2

Design Summary





By 30 June 2009, 50 slaughter slabs will have been established at sub district level.

Project quarterly and annual reports. Follow-up market spot surveys

Postponed due to procedural complexity. However, LGED is establishing slaughter slabs in markets through its different projects.

(vi) Medium-term credit for environmental mitigation

By 30 June 2008, 500 beneficiaries with cattle will have obtained credit for biogas digesters.

Ministry of Environment reports Monitoring and evaluation reports Project quarterly and annual reports

170 biogas digesters were established at the project beneficiary level with credit assistance from Grameen Shakti and Infrastructure Development Company Limited.

(vii) Innovation and applied research

A schedule of research subprojects will be annually circulated and contracted to successful applicants from research organizations, individual researchers, university departments and other suitably staffed organizations.

Monitoring and evaluation reports Project quarterly and annual reports PMU performance report

Due to time constraints and a lack of interest at the DLS, the adaptive research component was excluded in the revised development project proposal of the project.

(viii) Asset establishment for ultra-poor households

By 31 December 2006, 5,000 ultra-poor beneficiaries will have established their asset bases.

NGO progress report Monitoring and evaluation reports Project quarterly and annual reports

Sufficient NGO staff can be recruited and trained to deliver asset establishment and training packages for the ultra- poor.

A total of 7,934 beneficiaries were included in this component, of which 1,786 dropped out, resulting in 6,128 beneficiaries as of 31 December 2010.

(ix) Technical training of ultra-poor households

By 30 June 2006, 5,000 ultra-poor beneficiaries (70% women) will have received technical training in a range of farming and non-farming disciplines.

Monitoring reports Project quarterly and annual reports

The poor, particularly women are correctly identified and reached.

A total of 4,511 members (90% of the target) received technical training in asset building and other topics.

Appendix 2 25

Design Summary





I. Component 3: DLS Capacity Building

Strengthening and reorienting DLS capabilities for the future

By 30 June 2010, 140 DLS officers and 20 NGO staff will have received leadership and change management training.

Monitoring and evaluation reports Project quarterly and annual reports PMU records of training contracts Project review mission

DLS management and staff are committed to reorientation of their role, and appropriate trainees are selected for training.

The DLS was not able to organize leadership training and change management training for DLS officials due to a lack of interest on reform measures and reorientation. Instead, DLS arranged technical training for the implementation officers.

By 30 June 2010, DLS staff will have been trained in disease monitoring, veterinary public health, and livestock quality assurance.

A total of 40 DLS officers trained in disease monitoring and quality assurance. A total of 540 field staff were trained in disease monitoring. The project trained 30 DLS officers in Thailand for two weeks on skill development and project management.

The other completed capacity development initiatives were: (i) construction of 33 upazila livestock development centers (ULDCs) with land development works in 26 ULDCs, and boundary walls at 41 ULDCs, two training halls and an artificial insemination shed; (ii) 116 high quality motorcycles supplied to ULDCs; (iii) 11 vehicles (3 jeeps and 8 pickup vans) supplied to DLS; (iv) 130 microscopes supplied to DLS field laboratories; (v) furniture sets supplied to 80 DLS field offices; (vi) 136 computers (72 desktops and 38 laptops with multimedia capabilities); (vii) 130 diagnostic kits for field offices; and (viii) and an adequate quantity of chemicals for field laboratories and hospitals.

By 30 June 2008, the 3-year action plan for DLS institutional change will have been implemented.

Although insufficient, initiatives were taken to introduce institutional change in the DLS. The initiatives included (i) posting a citizen charter in each DLS field office mentioning availability of services, (ii) rationalizing cost of production for major vaccines, and (iii) increasing the cost of day-old chicks produced at DLS farms.

26 Appendix 2

Design Summary





Component 4 : Project Services (i) Recruitment of specialists for the PMU which is established and functional

All PMU specialists will have been recruited 1 month after loan effectiveness.

Project quarterly reports and annual reports

Suitable qualified personnel can be recruited on time.

The PMU was established, project staff was employed on time, and a full-time project director was in place from October 2004. Immediately after loan effectiveness, actions were initiated to recruit qualified specialists.

All specialists are operational 2 months after loan effectiveness.

Monitoring & evaluation reports; study and research reports; and project review reports

Supervision by the PMU and NGOs is adequate and sustained.

All specialists staff were on-board timely.

By 31 March 2004, the implementation coordination committee at field level will have been established.

Project accounts and reports

Project monitoring is effective, and problems are effectively addressed.

A district implementation coordination committee (DICC) was formed for each district, but meetings were not held regularly. Due to continuous follow-up, DICC meetings were held as and when required during 2008-2010 period.

Contracts will have been entered into for innovative applied research in 2004, 2005, and 2006.

The innovative applied research component was not implemented due to lack of interested and qualified institution and a lack of initiative from PKSF.

(ii) Design of social development monitoring and evaluation system of PKSF

By loan effectiveness a suitable monitoring and evaluation system for social development will have been designed and incorporated into PKSF monitoring processes.

Project quarterly and annual reports Monitoring and evaluation reports

PMU monitored project implementation monitored by a PKSF-designed monitoring system. After completion of the PKSF part, the PKSF has integrated project activities into its core program, and the activities are continuing under PKSF’s core program. Currently the PKSF is providing increased funds to partner NGOs for livestock-related activities under many programs like microenterprise development, rural microfinance, and other related programs. Currently, project beneficiaries have better scope to scale up their livestock-related income generation activities, and they can borrow even up to Tk one million.

Appendix 3 27

PHYSICAL PROGRESS: TARGETED VERSUS ACTUAL

Components, Outputs, and Key Activities

Target

Actual Achievement

at Project Completion

Achievement (%)

Appraisal Revised

PKSF Component

1 Mini hatcheries (No.) 0 15 19 1272 Livestock enterprise (member) 660,000 660,000 813,403 1233 Consulting service

a. Domestic (p-m) 400 400 343 864 Vehicles and equipment

a. Vehicles, including 1 microbus, 4 pickups, 138 motorcycles, and 920 bicycles (No.) 1,063 1,063 1,063 100

b. Equipment (No.) 51 48 48 1005 Training

a. Beneficiary (person) 610,000 610,000 589,043 97b. Staff: PKSF and NGO (person) 2,650 2,650 2,513 95c. Staff refresher: PKSF and NGO (person) 2,120 2,120 2,148 101

6 Assistance for ultra poor (person) 5,000 5,000 6,714 1347 Survey, studies, and market promotion (No.) 128 40 40 1008 Supervision and monitoring

a. Incremental staff cost i) Staff recruitment of PMU and PLU (p-m) 1,764 1,764 1,385 79ii) Staff recruitment of NGOs (p-m) 43,440 43,440 43,198 99

b. Operating cost i) PMU and PLU (month) 72 77 69 90

ii) Each NGO (month) 24 24 24 100 DLS Component

9 Civil works: includes construction of ULDC boundary wall and land development (No.)

a

27 55 55 100

10 Consulting service a. International: dropped as not required (p-m) 45 - - 0 b. Domestic (p-m) 102 24 12 50

11 Vehicles and equipment a. Vehicles, including 8 pickups, 3 jeeps, and

116 motorcycles (No.) 119 123 123 100 b. Equipment with machinery (packages)

b 5 13 13 100

12 Training a. DLS staff (person) 2,960 2,960 2,960 100 b. CEWs (person) 1,300 1,300 1,300 100

13 Supervision and monitoring a. Incremental staff:

DLS staff recruitment (p-m) 196 336 330 98

b. Operating cost (month) 72 84 60 71 a Increased number, mostly for land development and boundary walls, from surplus in the loan proceeds, and Government own funds.

b Includes office equipment, veterinary equipment, and reagents procured during the latter part of the project for DLS capacity building

CEWs = community extension workers, DLS = Department of Livestock Services, NGO = nongovernment organization, p-m = person-month, No. = number, PLU = Project Liaison Office, PKSF = Palli Karma-Sahayak Foundation, PMU = project management unit, ULDC = upazila livestock development center.

28

Ap

pe

ndix 4

DETAILED ACTUAL COST AGAINST APPRAISAL BY EXPENDITURE CATEGORY ($ million)

DLS = Department of Livestock Services, PKSF = Palli Karma-Sahayak Foundation.

Appraisal Cost Actual Cost Category

Item Local

Currency Foreign

Exchange

Total Local

Currency Foreign

Exchange

Total

A. PKSF Component

01A Mini hatcheries 0.87 0.25 1.12 0.00 0.01 0.01 2 Livestock enterprises 34.20 1.60 35.80 51.43 3.23 54.66 03A Vehicles 0.19 0.19 0.39 0.18 0.14 0.31 03B Equipment 0.06 0.03 0.09 0.17 0.08 0.20 4 Training 2.70 0.18 2.88 0.06 0.00 0.06 04A Training 0.00 0.00 0.00 1.60 0.10 1.60 5 Consulting services 0.18 0.29 0.47 0.00 0.00 0.00 05A Consulting services 0.00 0.00 0.00 0.01 0.10 0.12 6 Ultra-poor program 1.80 0.00 1.80 2.34 0.05 2.39 7 Survey, study, and market promotion 1.00 0.00 1.00 0.34 0.00 0.34 8 Supervision and implementation 6.65 0.29 6.93 0.33 0.01 0.34 08A Supervision and implementation 0.00 0.00 0.00 2.20 1.28 3.48 09 Interest during construction 0.00 0.58 0.58 0.00 0.70 0.69

Sub-total 47.65 3.41 51.05 58.67 5.54 64.21

B. DLS Component

01B Civil works 0.35 0.33 0.68 2.00 0.00 2.00 03C Vehicles 0.11 0.11 0.22 0.31 0.38 0.68 03D Equipment 0.14 0.07 0.21 0.00 0.63 0.63 04B Training 1.80 0.12 1.92 0.06 0.13 0.19 05B Consulting services 0.52 0.81 1.33 0.00 0.02 0.02 08B Supervision and implementation 0.25 0.01 0.26 0.00 0.00 0.00 09 Interest during construction 0.00 0.14 0.14 0.00 0.07 0.07

Sub-total 3.17 1.60 4.76 2.37 1.23 3.57

Total 50.82 5.01 55.81 61.04 6.77 67.78

Appendix 5 29

SUPPORT SERVICES DELIVERY 1. In Bangladesh, most of the rural farm families are in some way involved in livestock rearing activities. In general, livestock rearing is considered a profitable activity due to high market demand for its products, easy access to inputs and production technologies, and relative ease of management. From household income point of view, among the on-farm activities, livestock rearing is generally considered a secondary occupation for many rural households. 2. Considering its potential and opportunities, the Asian Development Bank (ADB) supported the project aimed at providing support services to the 660,000 targeted small and marginal farmers to establish commercially viable small-scale livestock-related enterprises. The project goal was to reduce poverty by increasing income generating activities (IGAs) through the promotion of livestock enterprises. Involving women and making productive use of their available time was another key objective of the project. The target beneficiaries were landless and marginal farmers, 70% of which are women.

3. To achieve the project goal and objectives, all stakeholders, including the targeted beneficiaries, had to be prepared for making good use support services under second participatory livestock development project (PLDP-II) for development of livestock enterprises. The project therefore focused on the capacity building of all stakeholders, including the Department of Livestock Services (DLS), the Palli Karma-Sahayak Foundation (PKSF), nongovernment organizations (NGOs), service providers, and the beneficiaries, through organizing need-based training programs, which targeted the beneficiaries and were designed and implemented to achieve the envisaged outputs and outcomes. 4. The project had two interlinked parts, each with its own set of tasks and activities, implementation arrangement, and executing agency. Effective coordination and partnership between the two executing agencies were the keys for ensuring effective service delivery for the project beneficiaries.

5. The lead executing agency was the PKSF.19 Its major responsibilities were (i) selecting and mobilizing target beneficiaries; (ii) raising awareness and holding regular group meetings; (iii) providing technical training; (iv) providing credit support and ensuring repayment; (v) extending assistance for inputs and starting materials; (vi) ensuring technical (artificial insemination, de-worming, vaccination) and treatment services; (vii) providing intensive monitoring and supervision; and (viii) providing support and assistance for the marketing of products.

6. The other project component concentrated on the capacity building of the DLS to improve technical service delivery. The DLS was the executing agency for this component. The project’s PKSF component started as envisaged and continued for 6.5 years from July 2004 to December 2010. Activities under the DLS component started 1.5 years late in February 2006 and ended in June 2012. 7. Cumulative Progress. The overall progress of the entire project was 96% at completion (Table A5.1). The PKSF component was completed on 30 June 2010, and the DLS component was completed on 30 June 2012.

19

The PKSF is a networking organization of NGOs established by the government under the Ministry of Finance. The PKSF has its own governing body and work modality.

30 Appendix 5

8. Overall Fund Utilization. The total available ADB fund for the project was $21.346 million, and the fund utilization was $20.820 million (97.5%) (Table A5.2). The PKSF was able to utilize $18.773 million of the available fund’s $19.156 million, which was 98% of the allocation. Under DLS part, the total ADB available fund was $2.178 million, and fund utilization was initially low in several subcategories like expert consultancy services. Upon request of the government, through reallocation, ADB allowed to spend more funds than envisaged at appraisal in the civil works and equipment subcategories. The overall fund utilization for this part was 94% ($2.047 million). The fund utilization by category is presented in Table A5.2. 9. The project’s implementation modality and achievements, grouped by component, are highlighted below. PKSF Component20 10. Operation Modality. As the lead executing agency, the PKSF established a project management unit (PMU) in the project area at Rangpur and engaged 15 partner NGOs following its own selection criteria to implement project activities and to ensure required service delivery to the project beneficiaries. The project supported the establishment of 106 area offices engaging implementing staff of the 15 partner NGOs. The PMU was staffed with a full-time project director, technical staff, expert consultants, and support staff, and it was equipped with necessary support services. During the project period, the PMU intensively monitored and supervised the project implementation through management information system (MIS) and other reporting systems. A total of 2,479 staff out of a targeted 2,985 under the 15 partner NGOs were recruited for service delivery to the project beneficiaries. 11. Capacity Development Training (Staff Training). Under capacity development initiatives of implementing staff, about 2,650 staff of different levels, were trained to ensure effective service delivery to the beneficiaries. To ensure the quality of the trainings, the PMU developed a comprehensive training management plan (including guidelines), prepared training materials and manuals. All these were supplied to partner NGOs. In addition, the PMU organized training of trainers sessions for the selected trainers. A total of 2,513 implementing staff of the partner NGOs against the target of 2,640 were trained on various subjects. Pre- and post-evaluation exercises were undertaken in each training course. The consultant team monitored overall quality to ensure training quality. A total of 405 technical staff (55 livestock development officers and 350 specially trained livestock development assistants) engaged by the partner NGOs were working in the project areas at completion. After project completion, most partner NGOs integrated these technical staff into their core program. 12. Use of Expert Consultancy Services. The project had a provision of 400 person-months of domestic expert consultancy services in various disciplines, including a full-time project director, and the PKSF utilized 343 person-months (86% of the envisaged input). There were difficulties and delays in recruiting a qualified gender specialist and consultants for communication, documentation and reporting. The performance of consultants was generally satisfactory and they maintained good working relationship with the executing agencies.

20

Sources of data are (i) different PKSF reports relating to PLDP-II, (ii) aide memoires of ADB review missions, and (iii) project completion report (PCR) a small-scale household survey, and (iv) discussion meetings, field visits, and focus groups discussions with the implementing staff of partner organizations, beneficiaries, concerned line ministries, and PKSF.

Appendix 5 31

Progress by Component Part I. Community Development 13. Group Formation and Awareness Raising. The project formed a total of 29,897 beneficiary groups, which enrolled 907,343 members during the implementation period. At completion, 25,955 groups involving 553,652 members were in operation. The partner NGOs facilitated regular group meetings to discuss common issues and interests, credit installment collection, savings deposits, IGA operation, and products marketing. 14. Beneficiary Training. To make the project beneficiaries eligible for project credit, and to impart basic knowledge and skills for livestock rearing, the project arranged a general technical training for the project beneficiaries. A total of 589,043 beneficiaries (97% of the envisaged target) were trained during a 3-day long program on general livestock rearing. The local DLS officials and technical personnel of the partner NGOs acted as resource persons in these training sessions. Most trainers, in particular technical staff of partner NGOs, participated in a training of trainers course to ensure the quality of the beneficiary training. To ensure effective use of knowledge and skills gained by the beneficiaries, the PMU and partner NGOs made post-training follow-ups on a continuous basis during the project period. 15. In addition, to enhance community capacity to undertake community-based livestock improvement and continuous supply of technical services needed, leadership training was designed for group leaders at village and upazila (sub-district) levels; and association leaders at apex level (upazila). The project envisaged that 52,000 group leaders and 13,000 association leaders were to be trained on leadership development. At the initial stage of the project, training was organized for 39,578 group leaders and 522 association leaders at the village level. Afterwards, training for association leaders was postponed and discontinued due to the lack of proper functioning of the association and the inability to reach a consensus on common issues, including prioritizing credit support to the beneficiaries. The association leaders tried to establish control over the activities of the partner NGOs. 16. Fodder Demonstration Plots. Green fodder is essential for large ruminant rearing, particularly of milch cows, beef cattle, and heifers. The partner NGOs in collaboration with local DLS offices successfully established 776 fodder demonstration plots at the group level (against the target of 800) to disseminate fodder cultivation under 106 area offices of the partner NGOs. These improved fodder demonstration plots serve as sources of planting material to expand high yielding and improved fodder cultivation. Expanded improved fodder cultivation impacted positively on the rearing of large ruminants. In addition, the DLS has also established fodder demonstration plots in project upazila livestock development centers (ULDCs) to supply cuttings to interested farmers, including project beneficiaries.

17. Organizing Vaccination and De-worming Camps. As a preventive measure, the partner NGOs in close collaboration with the DLS arranged camps for goats, cattle, chicken, and ducks for mass vaccination and de-worming tablet distribution. In these camps, the quality of the vaccines was maintained using cold chain. For example, about 1.9 million goats in 16 project districts were vaccinated against peste des petits ruminants. About 1.66 million de-worming tablets have been distributed at a cost of Tk6.64 million.

18. Assistance for Input Supply for IGAs. The partner NGOs provided support to the project beneficiaries in arranging improved breeds, improved day-old chicks, quality feed for

32 Appendix 5

different IGAs under the project. Satisfactory progress was achieved against targets in supporting most of the IGAs.

19. Artificial Insemination Services. To improve local breeds and to maintain and further improve the productivity levels of cows, proper artificial insemination services are a prerequisite. The partner NGOs ensured artificial insemination services for the cows of the beneficiaries at their time of need. Mobile phones played a very significant role in ensuring artificial insemination services and other technical and treatment services.

20. Treatment Services. The partner NGOs and community extension workers (CEWs) played important roles in providing various treatment services. CEWs took care of primary healthcare services, and for other treatment needs, they provided support in linking beneficiaries with veterinary experts from the DLS and other sources. Again, mobile phones played a key role in ensuring these services.

21. Bio-digesters for Alternate Energy Supply. The project encouraged the beneficiaries, in particular, those involved in cow and heifer rearing, to set up bio-digesters at the homesteads for alternate energy supply. The beneficiaries established 170 bio-digesters (125 in Joypurhat and 45 in Dhunot) in the project areas. Despite some maintenance and post-establishment problems, most of the bio-digesters were in operation at project completion. Part II. Livestock Enterprise Development 22. Credit Operation. At completion, the PKSF had disbursed a total of Tk3,838.2 million ($55.6 million equivalent) to the partner NGOs, of which Tk2,906 million ($35.6 million equivalent) was repaid to the PKSF. By revolving the amount received, in cumulative terms the NGOs were able to disburse Tk16,614 million ($203.3 million equivalent) with an average loan amount of Tk9,388 ($115 million equivalent). The outstanding amount in credit operation stood at Tk2,143.7 million ($26.2 million equivalent) at completion (Table A5.3).

23. In cumulative terms, a total of 813,403 beneficiaries (1,769,293 loans) were provided with credit support. The maintained credit repayment rate was around 98%.

24. The partner NGOs got funds from the PKSF at certain interest rates, and they charged interest for microcredit disbursed to the beneficiaries per the regulations of the microcredit regulatory authority of the government. Not much deviation was reported. 25. At completion, a total of 497,371 beneficiaries had accessed credit twice, 285,783 three times, 121,895 four times, 47,435 five times, 3,183 six times, and 223 beneficiaries seven times. The outstanding amount totaled Tk2,143.73 million ($26.2 million equivalent) and beneficiary savings was Tk719.52 million ($8.8 million equivalent). Of the total disbursed credit to the beneficiaries, 66% went to rearing of large ruminants, 23% to the rearing of small ruminants, 7% to the rearing of poultry, and 4% to the rearing of other types of livestock. 26. During project completion report (PCR) preparation, the PKSF reported that 744,269 members were registered under different credit support programs, including PLDP-II, after the completion of the project. Of these, 535,131 beneficiaries took loans. The outstanding loan amount was Tk4,885.29 million ($59.8 million equivalent), more than double the amount at project completion. Total beneficiary savings were reported to be Tk926.82 million ($11.3 million equivalent), 29% higher than completion. The loan recovery rate was approximately 98%.

Appendix 5 33

27. After project completion, the PKSF integrated the PLDP-II credit fund into its core fund basket and continued fund disbursement to the partner NGOs to continue credit and other technical services to the project beneficiaries. Many of the PLDP–II beneficiaries were integrated into other programs supported by the PKSF. Based on the experiences and lessons learnt, the livestock sector got more attention and importance on PKSF’s core program (generating more employment and income for the poor in the rural areas). The PKSF established a separate wing for supporting livestock development and continued to monitor PLDP-II activities through its core monitoring mechanisms. 28. A comparison of credit operation scenarios at completion and during PCR preparation is in Table A5.4. As of April 2013, 744,269 beneficiaries are enrolled as group members with the partner NGOs. Of these, 535,131 accessed credit to continue or scale up their livestock-related IGAs. The amount of loans disbursed by NGOs has increased, and the average loan size stands at Tk19,400 ($237.4 equivalent). The DLS and the partner NGOs continuing to cooperate in providing service delivery to the project beneficiaries. 29. Considering increasing market demand for livestock products and high potential of livestock related IGAs, it is likely that most of the beneficiaries will continue to be involved in the livestock-related IGAs. Despite challenges, innovative beneficiaries will scale up their activities slowly by applying a learning-by-doing approach. 30. Group Members’ Savings. The partner NGOs encouraged group members to practice weekly mandatory savings at an agreed rate. At project completion, the total accumulated savings of the project beneficiaries stood at Tk719.5 million ($8.8 million equivalent). During the PCR mission, the total savings of the project beneficiaries with the partner NGOs stood at Tk926.8 million ($11.3 million equivalent). The NGO partners issued a passbook to each beneficiary member, giving them the right to access their savings when they needed, and providing savings interest per microcredit regulatory authority regulations. 31. Popular Enterprises. Among the project-supported livestock enterprises, the six most popular enterprises were (i) goat rearing (241,003 beneficiaries with 498,313 loans); (ii) heifer rearing (207,120 beneficiaries with 457,012 loans), (iii) milch cow rearing (127,661 beneficiaries with 326,419 loans), (iv) beef fattening (132,264 beneficiaries with 283,723 loans), (v) key poultry rearing (38,069 beneficiaries with 72,694 loans), and (vi) duck rearing (26.785 beneficiaries with 43,818 loans). These six enterprise categories constituted about 92% (Tk15,331 million) of the total credit disbursed (Tk16,614 million), with about 95% of the total credit disbursement going to these six enterprises. 32. Ultra Poor Pilot Program. Initially, a special program for the ultra poor in areas prone to flooding and river erosion was piloted in 38 upazilas under 11 project districts to create an asset base and increase family income. Following successful piloting, all project upazilas were brought under this special program before the completion of the project by creating a revolving fund with each partner NGO. The project achieved success under this scheme. A total of 7,934 members enrolled, of which 6,128 were in operation at completion. The program arranged intensive awareness campaigns, including health, education, and human rights campaigns. Specific technical trainings were also arranged for 4,511 beneficiaries. The project extended credit to the ultra poor community amounting to Tk151.4 million (cumulative) ($1.9 million equivalent) on concessional terms (at 1% interest). At completion, the total borrowers numbered 4,147, and the recovery rate was about 98%.

34 Appendix 5

33. Entrepreneurship Development. As part of entrepreneurship development the project undertook various measures, which included imparting training, enhancing skills and knowledge for value addition and marketing of products, setting up milk collection centers, and linking beneficiaries with industrial buyers to ensure fair prices of their products. The project organized various specialized training programs relating to entrepreneurship development in potential sites (Table A5.5). More than 3,000 beneficiaries participated in entrepreneurship training related to dairy products. The partner NGOs made follow-ups of the use of skills gained through trainings with the participants. The credit operation data from all partner NGOs indicates that about 60,000 beneficiaries had accessed credit to operate their small-scale enterprises at project completion. The project beneficiaries were linked with 147 milk collection centers of different large milk processing companies (Milk Vita, Aarong, and PRAN). 34. Continuation of Services Delivery after Completion. Based on the experiences and lessons learnt, PKSF included livestock development support in its core program (generating more employment and increased income for the poor). The PKSF established a separate wing for supporting livestock development and continued to monitor PLDP-II activities through its core monitoring mechanisms and continued fund disbursement to the partner NGOs to continue credit and other technical services to the project beneficiaries. Many of the PLDP-II beneficiaries were integrated into other programs supported by PKSF. Currently, employment generation and increasing productivity in rural areas through livestock entrepreneurship development is highly emphasized in PKSF’s core program. 35. The PKSF has reclassified their microcredit program into 20 packages emphasizing enterprise development in the livestock subsector. 36. Considering increasing market demand for livestock products and high potential for growth, it is likely that most of the beneficiaries will continue to be involved in the livestock related IGAs. Despite challenges, innovative beneficiaries will scale up their activities further by applying a learning-by-doing approach and making use of support facilities. DLS Component Part III: Capacity Building for the DLS 37. Operation Modality. The DLS component started about 1.5 years late due to delayed approval of the development project proposal. The DLS seconded a qualified deputy project director placed at the PMU up to the completion of the PKSF component to ensure coordination and establish an effective partnership in service delivery to the project beneficiaries. PMU and DLS organized regular district and sub-district coordination meetings. DLS local field offices played significant roles in technical service delivery and in providing treatment services to the beneficiaries. In addition, DLS technical officers served as trainers in technical trainings for beneficiaries and implementing staff. 38. Capacity Building Training. The project had a special focus on enhancing the capacity of DLS to provide technical services to the general public, including PLDP-II beneficiaries. Various technical trainings for DLS staff were organized to upgrade their skills and knowledge. The trainings included (i) a 3-week training course on leadership development in Thailand attended by 30 mid-level officers, (ii) a 1-week training course on disease monitoring attended by 540 veterinary field assistants and compounders in 27 batches, (iii) a 1-week training course on quality assurance systems attended by 540 veterinary field assistants and compounders in 27 batches and 20 mid-level officers in one batch, and (iv) a 1-week course on veterinary public

Appendix 5 35

health at the Central Disease Investigation Laboratory attended by 20 DLS staff. In addition, the DLS organized a 2-week-long technical training session for the 1,300 CEWs, provided start-up kits. The trained CEWs were deployed in the community. Training accomplishments did not fully meet the envisaged targets due to slow and delayed action by DLS, and lack of interest of the selected DLS personnel. 39. Civil Construction. ULDCs are considered core development service providers for livestock development, but due to fund constraints and a lack of basic facilities, DLS upazila and district offices were not able to meet required levels of service delivery to the general public. The project allocated funds for constructing, upgrading and repairing these ULDCs in the project area. The completed civil works included (i) 33 new ULDCs, (ii) 41 boundary walls for ULDCs, (iii) land development for 26 ULDCs, (iv) repair works in 26 ULDCs, (v) two training halls at ULDC of Belkuchi and one in the district livestock office of Sirajganj district, and (vi) one artificial insemination shed in one district (Sirajganj). Considering envisaged and revised targets, the achievement was 100%. 40. Technical Services by the DLS. The primary responsibility of regulating critical livestock inputs lies with the DLS, which include supply of day-old chicks of improved poultry breeds, ensuring quality of feed, production and administration of important vaccines, ensuring artificial insemination services, and treatment services for the sick animals. The DLS ensured the supply of the requested number of vaccines for beneficiaries in the project areas, and DLS field offices helped establish workable and continuing partnerships with the NGOs in technical service delivery for the development of the livestock sector, including to PLDP-II beneficiaries. 41. Procurement and Supply of Vehicles, Goods, and Equipment. To improve the overall capacity of the DLS offices and to improve service delivery, the project supplied vehicles (116 motorcycles, 8 pickup vans, and 3 field vehicles for better mobility; new microscopes (130) and diagnostic kits (130) in the ULDCs to improve disease diagnostic abilities; new furniture sets (80) and computers (72 desktops and 38 laptops with multimedia capabilities) to improve office facilities; necessary chemicals for the laboratories; 1,300 kit boxes for CEWs; and fodder seeds. 42. Use of Expert Consultancy Services. A total of 147 person-months of consultancy services (45 international and 102 domestic consultants) were provided at appraisal. As of December 2012, only 12 person-months of domestic consultancy services were used, amounting to 50% of the revised target of 24 person-months. This revision of consultancy inputs and low utilization was due to the Danish International Development Agency’s similar support under a separate project. The performance of the consultants was satisfactory. 43. Innovative Adaptive Research. This important sub-component was abandoned due to a lack of interest, and a lack of timely actions by DLS, and time constraints within the DLS.

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Table A5.1: Overall Project Progress

Weightage = percentage of project activities in terms of pre-implementation phase, implementation phase by cost allocation, and contract awards and disbursements.

Target Achievement at Completion

Sl. No.

Name of the Component

Appraisal

Revised

Weightage

(%)

Physical

Percent

Progress on Weighted Average

(%)

I. PKSF Part A. Pre-Implementation Phase: (10%)

1 Establishment of PMU and PLU (No.) 2 2 2.00 2 100.00 2.00

2 Establishment of PSC and ICC (No.) 2 2 1.00 2 100.00 1.00

3 Selection of NGOs (No.) 15 15 2.00 15 100.00 2.00

4 Establishment of NGOs area offices (No.) 106 106 2.00 106 100.00 2.00

5 Baseline, physical, and socio-economic survey (No.) 2 3 1.00 3 100.00 1.00

6 Selection of CEWs (No.) 1,300 1,300 2.00 1300 100.00 2.00 Subtotal (A) 10.00 10.00

B. Implementation Phase: (80%)

1 Livestock enterprise* (No.) 660,000 660,000 47.47 553,652 83.89 39.82

2 Civil work (No.) 106 15 0.04 19 126.67 0.05

3 Consulting services

a. Domestic (p-m) 400 400 0.54 343 85.75 0.46

4 Vehicles and equipment

a. Vehicles, including jeep, pickup, motorcycle, & bicycle (No). 1,063 1,063 0.89 1,063 100.00 0.89

b. Equipment (set) 51 48 0.41 48 100.00 0.41

5 Training

a. Beneficiaries (No). 610,000 610,000 0.81 589,043 96.56 3.68

b. Staff (No.) 2,650 2,650 0.02 2513 94.83 0.02

c. Staff refresher (No.) 2,120 2,120 0.01 2148 101.32 0.01

6 Assistance for ultra poor (No.) 5,000 5,000 10.59 6714 134.28 14.22

7 Survey, studies, and market promotion (No.) 128 40 1.99 40 100.00 1.99

8 Supervision and monitoring

a. Incremental staff cost

i. Staff recruitment of PMU and PLU (p-m) 1,764 1,764 0.31 1,385 78.51 0.25

ii. Staff recruitment of NGOs (p-m) 43,440 43,440 7.69 43,198 99.44 7.64

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37


Sl. No.


Appraisal

Revised

Weightage

(%)

Physical

Percent

Progress on Weighted average

(%)

b. Operating cost

i. PMU and PLU (month) 72 77 4.76 69 89.61 4.26

ii. NGOs (month) 24 24 1.48 24 100.00 1.48 Sub-total (B) 80.00 75.18

C. Contract Award and Disbursement: (10%)

I. Contract Award ($ million) 18.412 18.423 5.00 18.078 98.13 4.91

II. Disbursement ($ million) 19.103 19.103 5.00 18.77 98.26 4.91

Sub-total (C) 10.00 9.82

Grand total (A+B+C) 95.00

Elapsed loan period as of 30 June 2010 100.00

II. DLS Part A. Pre-Implementation Phase: (10%)

1 Establishment of PMU and PLU (No.) 2 2 3.00 2 100.00 3.00 2 Established of PSC and ICC (No.) 2 2 3.00 2 100.00 3.00 3 Preparation of bidding documents (No.) 30 55 3.00 55 100.00 3.00 4 Preparation of training manual for CEWs (No.) 1 1 1.00 1 100.00 1.00

Sub-total (A) 10.00 10.00

B. Implementation Phase: (80%) 1 Civil works including construction of ULDC boundary wall and

land development (No.) 27 55 41.47 55 100.00 41.47

2 Consulting services a. International (p-m) 45 0 0.00 0 0.00 0.00 b. Domestic (p-m) 102 24 7.74 12 50.00 3.87

3 Vehicles and equipment a. Vehicles – pickup, motorcycle (No.) 119 123 7.64 123 100.00 7.64 b. Equipment (with machinery) (set) 5 13 6.45 13 100.00 6.45

4 Training a. DLS and NGOs management (No.) 2,960 2,960 11.33 2,960 100.00 11.33 b. CEWs (No.) 1,300 1,300 4.98 1,300 100.00 4.98

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CEW = community extension workers, DLS = Department of Livestock Services, ICC = implementation and coordination committee, NGO = nongovernment organization, No. = number, PKSF = Palli Karma-Sahayak Foundation, PLU = project liaison unit, p-m = person-month, PMU = project management unit, PSC = project steering committee, Sl. No. = serial number, ULDC = upazila livestock development center. *Considered net number of beneficiaries, i.e., excluding dropout members. Source: Quarterly progress reports and aide memoires of the ADB review missions.


Sl. No.


Appraisal

Revised

Weightage

(%)

Physical

Percent

Progress on Weighted average

(%)

5 Supervision and monitoring

a. Incremental staff: DLS staff recruitment (p-m) 196 336 0.31 330 98.21 0.31

b. Operating cost (month) 72 84 0.08 60 71.43 0.06

Sub-total (B) 80.00 76.10


I. Contract Awards ($ million) 2.152 2.152 5.00 1.974 91.73 4.59

II. Disbursement ($ million) 2.234 2.234 5.00 2.05 91.76 4.59

Sub-total (C) 10.00 9.17



Overall project progress combing PKSF and DLS

A. Pre-Implementation Phase: (10%) 10.00 10.00

B. Implementation Phase: (80%) 80.00 76.04

1 PKSF 95.00

2 DLS 95.28


I. Contract Awards ($ million) 20.574 20.574 5.00 20.052 97.46 4.87

I. Disbursement ($ million) 21.342 21.342 5.00 20.82 97.55 4.88

Sub-total (C) 10.00 9.75



Appendix 5 39

Table A5.2: Fund Utilization by Category

Category Item $ PKSF Part 01A Mini hatcheries 8,521 2 Livestock enterprise microfinance 10,931,400 03A Vehicles 204,712 03B Equipment 82,472 4 Training 31,326 04A Training (net of tax) 847,647 05A Consulting services 113,877 6 Ultra-poor program portion ii(a) and (iii) 2,342,189 7 Survey, studies, and market promotion 343,413 8 Supervision and implementation 214,160 08A Supervision and implementation 2,958,474 9 Interest charged 694,469

Subtotal 18,772,660 DLS Part 01B Civil works 618,696 03C Vehicle 520,092 03D Equipment (net of tax) 625,058 04B Training (net of tax) 190,071 05B Consulting service (net of tax) 20,526 08B Supervision and implementation 0

Interest charged 72,760

Subtotal 2,047,203

Grand total 20,819,863

DLS = Department of Livestock Services, PKSF = Palli Karma-Sahayak Foundation. Source: Asian Development Bank’s Loan Financial Information System

Table A5.3: Cumulative Credit Disbursement and Recovery

Disbursement/

Recovery Amount

(Tk million) A. Disbursement by PKSF to partner NGOs 3,838.20

B. Disbursement by NGOs to beneficiaries 16,614.48

C. Recovery from NGOs to PKSF a. Principal 2,650.00

b. Service charge 256.50

D. Recovery from beneficiaries to NGOs a. Principal 14,470.75

b. Service charge 1,810.15

E. Outstanding amount with beneficiaries 2,143.73

F. Outstanding service charge 719.52

G. Recovery percentage from beneficiaries (%) 98.14

NGO = nongovernment organization, PKSF = Palli Karma-Sahayak Foundation. Source: PKSF project completion report.

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Table A5.4: Credit and Savings Scenario at Completion and During Project Completion Report Preparation by

Nongovernment Organization

At Completion (30 June 2010)

During PCR Mission (30 April 2013)

NGO Members Enrolled

Subborrower (No.)

Amount Outstanding (Tk million)

Beneficiaries Savings

(Tk million)

Recovery Rate (%)

Members Enrolled

Subborr-ower (No.)

Amount Outstanding (Tk million)

Beneficiaries Savings

(Tk million)

Recovery Rate (%)

ASKS 33,117 28,934 64.18 18.27 97.13 7,939 5,622 39.97 11.39 98.90

ASOD 28,616 25,778 56.36 15.37 95.34 7,098 6,247 87.12 2.14 95.39

ESDO 45,827 43,782 94.77 29.37 97.00 10,597 7,429 82.64 29.45 98.52

GBK 26,060 27,753 50.46 21.01 98.82 16,085 13,380 116.19 15.70 99.56

GUK 31,047 23,958 93.25 22.95 99.74 16,737 13,938 218.94 30.73 99.60

HEED 27,943 23,506 72.50 25.68 97.26 18,316 14,044 125.81 37.36 99.55

PMK 43,660 39,033 79.61 37.30 96.68 17,607 14,638 111.33 41.47 99.38

PMUK 21,399 19,623 51.43 22.27 97.68 16,669 15,694 66.35 94.75 98.68

POPI 108,931 98,305 217.41 76.17 95.79 24,072 19,319 76.13 50.79 98.24

RDRS 96,686 81,653 259.40 102.68 97.32 36,488 30,401 644.75 64.31 99.65

SKS 10,772 9,058 23.47 7.55 98.78 50,733 44,825 372.20 22.53 98.72

SSS 72,471 61,430 113.73 36.38 97.56 56,048 47,441 314.54 261.04 99.72

Swanirvar 24,377 19,641 63.35 12.66 95.62 118,502 78,209 715.64 2.62 95.95

TMSS 269,590 251,902 648.58 211.27 99.77 129,057 107,120 1,012.35 244.09 99.65

UDPS 66,847 59,047 255.23 80.57 98.81 218,321 116,824 901.49 18.45 99.49

907,343 813,403 2,143.73 719.52 97.55 744,269 535,131 4,885.29 926.82 98.73

ASKS= Ananya Samaj Kallyan Shangstha, ASOD= Assistance for Social Organization and Development, ESDO= Eco-Social Development Organization, GBK= Gram Bikas Kendra, GUK= Gram Unnayan Karma, HEED= Health, Education and Economic Development, NGO = nongovernment organization, PCR = project completion report, PMK= Palli Mongal Karmosuchi, POPI= People’s Oriented Program Implementation, RDRS= Rangpur-Dinajpur Rural Service, SKS = Samaj Kallyan Shangastha, SSS= Society for Social Services, TMSS = Thengamara Mohila Sabuj Shangha, and UDPS= Uttara Development Program Society. Subborrwer = beneficiaries

Source: PKSF reports consolidated from the reports of partner NGOs.

Appendix 5 41

Table A5.5: Specialized Entrepreneurship Development Training

Training Subject

Participants

Duration (days)

Target

Achieved

Total %

Dairy entrepreneurship Beneficiaries 10 3,000 2,657 89

Milk collection and handling Beneficiaries

4 85 85 100

Milk collection and processing Beneficiaries 3 500 418 84

Veterinary pharmacy operation Unemployed youths 3 500 423 85

Field visit (exposure training)

Beneficiaries and NGO staff

3 2,700 2,406 89

Environmental awareness and mitigation NGO and DLS staff 4 150 29 19

Farmer leadership training

Beneficiaries 2 52,000 39,578 76

Meat quality and marketing issues Butchers 3 200 200 100 Mini hatchery using rice husk Beneficiaries 30 50 20 40

Social development training for CEWs Unemployed 3 1,300 1,300 100

CEW = community extension worker, DLS = Department of Livestock Services, NGO = nongovernment organization. Source: Executing agency’s project completion report

42 Appendix 6

WOMEN’S EMPOWERMENT AND GENDER EQUALITY MEASURES A. Introduction 1. The Second Participatory Livestock Development Project (PLDP-II) aimed at reducing poverty among the rural poor in 157 upazilas (the next administrative unit under a district) in 20 districts of northwest and north central regions of Bangladesh. The key objective was increasing income by creating income generating activities (IGAs) and employment from livestock related enterprises, with a particular focus on women’s empowerment. B. Scope 2. The project supported increased IGAs and employment from livestock related enterprises for the rural poor, particularly landless households and households headed by women in 157 poverty-stricken upazilas in 20 northern districts (16 in northwest region, and 4 in north central region) of the country. The project formed and strengthened farmer groups, established and expanded livestock enterprises, and developed individual and community capabilities in managing livestock enterprises. The support included group mobilization; provision of microfinance for a range of IGAs, including livestock enterprises, small businesses, and marketing initiatives; development of livestock input supply services; and creation of employment opportunities in the private sector. 3. The project specifically targeted women and the ultra poor to help build their asset base and enhance their socioeconomic status through mobilization and the enhancement of skills and knowledge. The project services included (i) improving community capabilities to develop and manage IGAs through a technical and social development training program; (ii) providing microfinance and technical support services for livestock enterprise development, including assistance to the ultra poor through a pilot program of asset development and training; (iii) building Department of Livestock Services (DLS) capacity to provide livestock related technical services; and (iv) supporting the implementation and management of the project. C. The Gender Action Plan 4. Gender and development objectives were embedded within the design of the project and were highly relevant with the project objectives and outputs. Consistent with the project results framework, the project design undertook a gender equity approach for maximizing the positive impacts on women’s lives. A gender action plan (GAP) was developed during the design stage to address gender concerns in the livestock sector. The design emphasized benefitting women from livestock related enterprises, and the partner NGOs adopted an implementation strategy to give priority to women while selecting beneficiaries and providing access to resources and services. The GAP included actions relevant for women’s benefits in all project components: community development, livestock enterprise development, the pilot program for the ultra poor, innovative and applied research, institutional capacity building of the implementing agencies, and monitoring. 5. The GAP was effective in enhancing the capacity of women to increase their involvement in and benefits from the livestock sector. The project supported (i) creating an enabling environment for women’s participation in the livestock sector; (ii) capacity building of the stakeholders in addressing gender concerns of the sector while working for poverty reduction; (iii) providing women with access to resources and inputs (microfinance, information and training, livestock support services, such as veterinary services and artificial insemination

Appendix 6 43

services) to enhance their income and capacity to utilize increased resources effectively and efficiently; (iv) enhancing the capability of women to access markets and available resources for a sustainable livelihood by facilitating linkages; and (v) facilitating social and economic empowerment through the formation of women’s farmer groups. D. Assessment of Gender Related Results 6. Women’s Participation in Livestock-Related IGAs. The following table (A6.1) illustrates the involvement of women in the project activities.

Table A6.1: Women’s Participation in the Project

Project Activities

Involvement

Groups formed (number) Women groups formed (number) Group members (people) Women group members (people)

29,879 29,281

907,343 889,196

Project Borrower (people) 813,403 Women members organized (people) 797,134 Total beneficiaries trained (people) 589,043 Women beneficiaries trained (people) 577,262 Group leaders trained (people) 39,578 Amount of loan (Tk million) Amount of loan to women (Tk million)

16,614 16,365

Ultra-poor women supported (people) 6,128

Source: Executing agencies’ project completion report.

E. Economic Empowerment 7. The project’s support and services helped the women beneficiaries gain access to productive income earning opportunities and technical knowledge about livestock enterprises. The project was able to cover a total of 907,343 targeted beneficiaries, of which 98% were women, including widows or heads of households. In particular, the ultra-poor component primarily supported the poorest women of the community with awareness on benefits of livestock enterprises and asset base building to start IGAs and improve their livelihoods. 8. A survey on gender conducted by the Bangladesh Resident Mission found that the women beneficiaries joined the project to (i) increase family income (64% of the surveyed women), (ii) arrange money for increase husband’s income (32%), and (iii) create their own pool of savings (22%). As per small-scale household survey conducted in April 2013, 97.0% of respondents benefited from the credit provided for engaging in livestock-related IGAs, and 86.5% benefited from technical trainings and awareness building. The survey revealed, 22% of women respondents benefited from training received on the marketing of livestock and dairy products. Women beneficiaries were able to access project resources, earn income, and contribute toward enhancing their family income and consumption, especially their children’s education and intake of nutritious food. 9. The project offered new opportunities for women by giving them access to livestock rearing technical knowledge, management of enterprises, credit opportunities, a source of

44 Appendix 6

capital, marketing support, and increased income. About 98.5% of the total loan disbursed was amongst women. Women also generated a substantial amount of savings to meet their needs during crisis. Livestock related IGAs contributed about 74% of the family income. Poor women beneficiaries could afford three meals for their family members, despite price hike as per study on gender and the Project. 10. Women were mostly involved in rearing and caring of the livestock (poultry, cows, and heifers) by utilizing their time and efforts and the skills and knowledge acquired through project support and services. The new and scaled-up IGAs created additional employment opportunities for women and some partner NGOs also employed some women. 11. Increased Engagement in Livestock Related IGAs. The PCR small-scale household survey revealed that 48% of respondents manage the livestock related enterprises along with their household works; 16% got help from children, 54% received help from other family members (i.e., husbands, brothers-in-law, sisters-in-law, and mothers-in-law). Only 3% of respondents hired additional persons to help them. The male family members are involved in marketing of products, arranging artificial insemination, and treatment for sick animals. The workload of women increased. Most women recognize this increased engagement in livestock related IGAs was rewarding despite increased workload. In the process, new partnership and sharing of work at the household level has developed within the family. 12. Influence in Decision Making. The PCR small-scale household survey found that 26.1% of women chose livestock activities unilaterally, 60.0% chose in consultation with their husbands, 13.9% chose in consultation with the project personnel. A total of 83.2% of the respondents contributed jointly in decisions related to household well-being, children’s education, daily necessities, schooling and their increased income has contributed towards decision making process. This shared decision making was a very valuable achievement of the project as often men are the decision makers in the family. The BRM survey on gender and the Project found that 79.5% women respondents influenced decisions related to children’s schooling, 68.1% influenced procurement of daily necessities, 85% decided on children’s vaccinations, 85% had say on borrowing from NGOs, 54.7% influenced children’s marriages, 59.4% decided on voting, 73.2% decided on family planning methods, and 33.5% contributed in decisions related to land purchases. This indicates that women have a greater influence in family affairs owing to their participation in productive work, but their influence in important decisions like land purchase is still low. 13. Social Development Benefits. Some of the benefits were strategic and empowering for women. Participating in community-based groups improved their self-confidence and self-respect. Women’s roles in community activities increased and group cohesiveness developed. Participation of women beneficiaries in different group activities is depicted in Table A6.2.

Appendix 6 45

Table A6.2: Women’s Participation in Group Activities under the Project

Activity Percentage of respondents

Attend weekly meetings 92.4 Serve as executive members 6.7 Conduct meetings and write resolutions 8.1 Support NGO staff in maintaining registers and checking income expenditures

15.1

Assist chairperson in gathering members of meetings

21.9

Assist NGO staff in mobilizing group members 18.9 Attend training 16.8 Help identify training needs 11.4 Conduct fodder demonstration 3.8 Campaign for artificial insemination, vaccination, and treatment

1.8

Facilitate discussion of social awareness topics 11.1 Source: PCR small-scale household survey

14. Human Capital Development. The NGOs helped women acquiring technical and managerial skills. Women benefited from skills training in livestock rearing and marketing. Meetings and training sessions for the women’s groups were arranged at times and venues suitable to them. About 86.7% women respondents during the survey on gender and the Project felt that more training could help further develop their enterprises. The group leaders found the on training (bookkeeping and accounts, profitability in business, maintaining accounts with the banks) were beneficial for group management in addition to the IGA related training. 15. Women received social awareness from NGOs during group meetings on issues like early marriage, the effects of different parental attitudes toward male and female children, the traditional preference for sons, HIV/AIDS, human trafficking, the importance of marriage and birth registration, the environment, and available services at the nation building departments, particularly at the union parishads (lowest tier of local government). According to PCR small-scale household survey, 36.5% respondents said that health and hygiene awareness training helped keep members of the family health and environment friendly and hygienic, and 22% said legal rights training informed them of their legal rights and privileges. The weekly meetings mainly concentrated on savings, the repayment of credit installments, and some knowledge development on social issues, but the meetings could have been used more efficiently for education and diversified skills of higher benefits on women. 16. Services and Linkages. The intensive involvement of women in livestock-related IGAs also helped them gain more control over the benefits and resources generated through the enterprises, and they could utilize the training. Though women now are informed about the services of nation building departments, union councils, and banks, and they are able to access them to some extent and are in contact with the DLS, continued efforts from partner NGOs to develop women’s abilities in managing their own income are still necessary.

46 Appendix 6

17. Mobility for Services. Personal mobility is an indicator of confidence and freedom. As indicated in the study (footnote 21), 37% of women beneficiaries moved around by themselves and the rest were accompanied by their husbands, children, neighbors, or relatives when visiting doctors and relatives. Of the women beneficiaries, 15% went to the market to sell their products, while about 56% of the respondents sold their products from home. Table A6.3 indicates the extent of women’s mobility for services, showing that project beneficiaries frequently visited different service venues to receive services.

Table A6.3: Women’s Mobility for Services

Service Venue Percentage Public healthcare centers 98.6 Banks and NGO offices 86.4 Government offices 86.5 Union parishad offices 98.0

NGO = nongovernment organization. Source: PCR small-scale household survey

18. Control over Resources and Changes in Livelihood. Since women are responsible for household work and rearing animals in rural households, they were chosen to be project beneficiaries to create opportunities for them to gain from the project activities. The project created opportunities for the women beneficiaries to control livestock resources and to accrue related benefits. Women’s control remained higher normally over homestead-based small-scale IGAs involving poultry or livestock activities. Larger enterprises were mostly family enterprises owned jointly by women and men. While women were chosen as beneficiaries, but for the larger enterprises, the management and control generally remained with the men, although women were involved at different levels of the enterprises as workers. 19. In situations where husbands were actively involved in other businesses, women has more chance to gain new knowledge and control over resources by being directly involved in the enterprises. But the partner NGOs lacked confidence on women in extending higher amount of loan. They analyzed credit worthiness and repayment capacity on the basis of the men’s resources to decide the size of the loan. Therefore, though the family benefits, women did not get adequate control over resources and income. 20. Women beneficiaries enjoyed comparatively more freedom to spend money on household utensils, food and education for children, and medicine compared to purchase of assets like land. In terms of using accumulated resources from business, women remained in favor of buying land in the name of their husbands or fathers-in-law. Women were also not in the habit of maintaining bank accounts. Therefore, women never developed an awareness of the benefits of having assets in their own names or jointly with their husbands.

21. Other Impacts. The project has helped transform gender relations. Women beneficiaries are now more involved in productive roles with increased workloads. In many scenarios, women have become center points of homestead-based livestock enterprises. The husbands and sons helped with marketing and the rearing of large animals and the daughters helped with household chores and poultry rearing. However, women beneficiaries considered the additional workload rewarding as this brought them income. 22. GAP Monitoring. During the first one year, the implementation of the GAP was hampered in the absence of a gender specialist. The PKSF recruited a gender specialist for 6

Appendix 6 47

months and she oriented the partner NGOs on their roles in implementation of the GAP. Due to the absence of an interested and qualified gender specialist after six months, the partner NGOs continued the GAP implementation and monitoring activities. Considering the lack of support from a gender specialist inputs, the project modified the GAP targets in the area of gender training. Progress reports were prepared using generic data, not maintaining sex disaggregated data. 23. Conclusion. Since about 98% of the project beneficiaries were women, it can be concluded that the project’s support and services substantially benefited women. The PKSF component was completed in June 2010, and the partner NGOs continued support services, including credit and technical services, through core and other ongoing PKSF-supported programs, including urban microcredit, rural microcredit, microenterprises, and a program initiative for monga (seasonal hunger) eradication. 24. The GAP targets were overachieved in terms of the number of beneficiaries organized, supported in accessing credit, and receiving technical training. As the GAP was an integral part of the project, the gender equality results were consistent with the project objectives and contributed toward overall objectives of the project. The PKSF and the partner NGOs continued providing women with credit support even after the project completion for livestock-related IGAs. Linkages with livestock service providers have been established. Therefore, it is likely that the project’s results and envisaged goals will be sustained. Women manage the household health and food security. As most of the project areas are within the flood prone and poverty stricken areas of Bangladesh, livelihood enhancement initiatives, such as the support and services offered to women under the project, have the potential to substantially benefit overall poverty reduction in the project area.

48 Appendix 7

Appendix 8 49

STATUS OF COMPLIANCE WITH LOAN COVENANTS

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1 The Borrower shall cause the Project to be carried out with due diligence and efficieancy and in conformity with sound administrative, financial, engineering, environmental, microfinance, livestock development, veterinary and business practices.

LA, Section 4.01 (a) Complied with.

2 The Borrower shall make avilable promptly as needed, the funds, facilities, services, land and other resources which are required, in addition to the proceeds of the Loan, for the carrying out of the Project.

LA, Sepction 4.02 Complied with.

3 In the carrying out of the Project, the Borrower shall cause competent and qualified consultants and contractors, acceptable to the Borrower and ADB, to be employed to an extent and upon terms and conditions satisfactory to the Borrower and ADB.

LA, Section 4.03 (a) Complied with, although consultancy inputs were reduced considering need as the Danish International Development Agency provided similar support to the DLS under a separate project.

4 The Borrower shall cause the Project to be carried out in accordance with plans, design standards, specifications, work schedules and construction methods acceptable to the Borrower and ADB. The Borrower shall furnish, or cause to be furnished, to ADB, promptly after their prepareation, such plans, design standards, specification and work schedules, and any material modificiations subsequently made therein, in such detail as ADB shall reasonably request.

LA, Section 4.03 (b) Complied with.

5 The Borrower shall ensure that the activities of its departments and agencies with respect to the carrying out of the Project and operation of the Project facilities are conducted and coordinated in accordance with sound administratives, financial, engineering, environmental, and operations and maintenance policies and procedures.

LA, Section 4.04 Complied with.

6 The Borrower shall make arrangements satisfactory to ADB for insurance of the Project facilities to such extent and against such risks and in such amounts as shall be consistent with sound practice.


7 Without limiting the generality of the foregoing, the Borrower undertakes to insure, or cause to be insured, the goods to be imported for the Project and to be financed

LA, Section 4.05 (b) Complied with. Suppliers carried out transportation of the procured items.

50 Appendix 8

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out of the proceeds of the Loan against hazards incident to the acquisition, transportation and delivery thereof to the place of use or installation, and for such insurance any indemnity shall be payable in a currency freely usable to replace or repair such goods.

The Borrower shall maintain, or cause to be maintained, records and accounts adequate to identify the goods and services and other items of expenditure financed out of the proceeds of the Loan, to disclose the use thereof in the Project, to record the progress of the Project (including the cost thereof) and to reflect, in accordance with consistently maintained sound accounting principles, the operations and financial condition of the agencies of the Borrower responsible for the carrying out of the Project and operation of the Project facilities, or any part thereof.


9 The Borrower shall (i) cause PKSF and DLS to maintain, separate accounts for the Project; (ii) have such accounts and related financial statements audited annually, in accordance with appropriate auditing standards consistently applied, by independent auditors whose qualifications, experience and terms of reference are acceptable to ADB; (iii) cause PKSF and DLS to furnish to ADB, as soon as available but in any event not late than nine months after the end of each related fiscal year, certified copies of such audited accounts and financial statements and the report of the auditors relating thereto (including the auditors’ opinion on the use of the Loan proceeds and compliance with the covenants of the Loan Agreement as well as on the use of the procedures for imprest account/ statement of expenditures), all in the English language; and (iv) furnish to ADB such other information concerning such accounts and financial statements and the audit thereof as ADB shall from time to time reasonably request.

LA, Section 4.06 (b) Complied with. The audit reports were submitted annually in a timely manner. The reports included the auditor’s report, management letter, auditor’s report on special account, audit opinion on statements of expenditure, and note on financial accounts. For the PKSF component, no objections were reported. For the DLS component, three non-serious observations were reported in FY 2011–12, and actions are underway to resolve those observations. Up to FY 2010–11, all observations were settled.

10 The Borrower shall furnish, or cause to be furnished, to ADB all such reports and information as ADB shall reasonably request concerning (i) the Loan, and the expenditure of the proceeds and maintenance of the service thereof; (ii) the goods and services


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and other items of expenditure financed out of the proceeds of the Loan; (iii) the Project; (iv) the Subloans; (v) the administration, operations and financial condition of DLS, PKSF and the participating NGOs in the Project and any other agencies of the Borrower responsible for the carrying out of the Project and operation of the Project facilities, or any part thereof; (vi) financial and economic conditions in the territory of the Borrower and the international balance-of-payments position of the Borrower; and (vii) any other matters relating to the purposes of the Loan.

11 Without limiting the generality of the foregoing, the Borrower shall furnish, or cause the PMU to furnish, to ADB, PKSF and DLS quarterly and annual reports on the carrying out of the Project and on the operation and management of the Project facilities. Such reports shall be submitted in such form and in such detail and within such a period as ADB shall reasonably request, and shall indicate, among other things, progress made and problems encountered during the quarter under review, steps taken on proposed to be taken to remedy these problems, and proposed program of activities and expected progress during the following quarter.


12 Promptly after physical completion of the Project, but in any event not later than three months thereafter or such later date as may be agreed for this purpose between the Borrower and ADB, the Borrower shall the PMU to prepare and furnish to ADB, DLS and PKSF a report, in such form and in such detail as ADB shall reasonably request, on the execution and initial operation of the Project, including its cost, the performance by the Borrower of its obligations under this Loan Agreement and the accomplishment of the purposes of the Loan.

LA, Section 4.07 (c) Complied with.

13 The Borrower shall enable ADB’s representatives to inspect the Project, the goods financed out of the proceeds of the Loan, and any relevant records and documents, including those maintained by PKSF and the participating NGOs.


14 The Borrower shall ensure that the Project facilities are operated, maintained and


52 Appendix 8

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repaired in accordance with sound administrative, financial, engineering, environmental, and maintenace and operational practices.

15 The Borrower shall cause PKSF, promptly as required, to take all action within its powers to maintain its corporate existance, to carry on its operations and to acquire, maintain and renew all rights, properties, powers, privileges and franchises which are necessary in the carrying out of Parts II (a) and (b) of the Project.


16 Except as the Borrower and ADB may otherwise agree, the Borrower shall cause PKSF not to sell, lease or otherwise dispose of its assets, except in the ordinary course of business.


17 The Borrower shall exercise its rights under the PKSF Subsidiary Loan and Grant Agreement in such a manner as to protect the interests of the Borrower and ADB and to accomplish the purposes of the Loan.


18 No rights or obligations under the PKSF Subsidiary Loan and Grant Agreement shall be assigned, amended, or waived without the prior concurrence of ADB.


19 It is the mutual intention of the Borrower and ADB that no other external debt owed a creditor other than ADB shall have any priority over the Loan by way of a lien on the assets of the Borrower. To that end, the Borrower undertakes (i) that, except as ADB may otherwise agree, if any lien shall be created on any assets of the Borrower as security for any external debt, such lien will ipso facto equally and ratably secure the payment of the principal of, and interest charge and any other charge on, the Loan; and (ii) that the Borrower, in creating or permitting the creation of any such lien, will make express provision to that effect.


20 PKSF and DLS shall be the project Executing Agencies. PKSF shall be responsible and accountable to the Government (Borrower) for the implementation of Parts I(a), II(b) and IV of the Project, and DLS shall be responsible for the implementation of Parts I(b), II(c) and III of the Project.

LA. Schedule-6, Para.1

The PMU and project liaison unit were established, staffed, and operated satisfactorily. Implementation of the PKSF component started in July 2004 as scheduled; the DLS component commenced after approval of the development project

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proposal in November 2005 and the deputy project director joined in February 2006.

21 Parts I(a), II(a)(i),II(a)(iii), II(b)(i), II(b)(iii),and IV of the Project shall be Implemented by PKSF, with the assistance of the partcipating NGOs. The participating NGOs shall be implementing the training program under part I of the Project, the microfinance activities under Part II(a) of the project; and the credit activities under Part II(b) of the Project.

LA. Schedule-6, Para. 2

Activities under the PKSF component were completed as scheduled on 30 June 2010. The DLS component was completed on 30 June 2012 after a 2-year extension.

22 Parts I(b), II(a) (ii), II(c) and III of the Project shall be implemented by DLS. DLS and service providers shall be responsible to the PMU for the delivery of technical services and technical training to NGOs, and shall facilitate livestock improvement in the Project area. PKSF will provide fund as grants to the local Government Engineering Department (LGED) for the construction of livestock markets and salughter slabs under part II(b)(ii) of the Project.


The DLS implemented Parts I(b), II(a)(ii), II(c), and III of the project satisfactorily. Since other ongoing projects of the LGED took care of the construction and improvement of rural markets, including livestock markets and slaughter slabs, these activities were not implemented under the project. This was approved by project steering committee of the government, and ADB.

23 PKSF, in cooperation with DLS shall establish a field level PMU based in Rangpur. The PMU shall be staffed by independently recruited qualified subject matter specialists and be headed by a Project Director. PKSF and DLS shall each appoint Deputy Project Director to the PMU. PKSF shall appoint a Project Manager to coordinate its project activities through the Project Division in its Dhaka office


The PMU was established in Rangpur in July 2004, a month after loan effctiveness. It was fully staffed and functional.

24 The PMU shall act as a facilitating agency, and will (i) prepare annual work plans, and relevent project reports in consultation with the participating NGOs and other service providers; (ii) supervise all project activities and the performance of the implementing agencies and service providers; and (iii) carry out the field level monitoring and evaluation of project activities, outputs and expected impacts. The PMU shall be accountable to PKSF.


The PMU in Rangpur closed on 30 November 2010, and the PKSF absorbed some staff in its core program and monitored the project activities. From 1 December 2010, the office of the DLS component was shifted to Rangpur’s district livestock office, and the activities implemented smoothly.

54 Appendix 8

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25 Within one month of the effective date, the Borrower shall establish a Project Steering Committee (PSC) to oversee Project Implementation


Complied with.

26 Within one month of the effective date, the Borrower shall establish a Implementation Coordination Committee (ICC) to guide the PMU on a regular basis.


Complied with.

27 Within one month of the effective date, the Borrower shall have approved the Project Concept Paper and Project Proforma for the carrying out of the DLS components for the Project.


Complied with late. The government approved the project proforma for the DLS component in November 2005, a delay of about 1.5 years.

28 The Borrower shall ensure the PKSF and the participating NGOs enter into Subloan Agreements, which shall, among other things, specify, the responsibilities of the participating NGOs for Project implementation activities, accountability, and repayment of loan to PKSF.


Complied with

29 The Borrower shall ensure that the participating NGOs identify and select the beneficiaries under Part I of the Project through PKSF’s and the participating NGOs’ regular participatory methods acceptable to ADB.


Complied with.

30 Within six months of the effective date, PKSF shall establish a revolving fund, with terms and conditions acceptable to ADB, for microfinance activitiers related to livestock enterprises for poverty reduction under Parts II(a) and II(b) of the Project.


The PKSF established a revolving fund with the partner NGOs for livestock-related microfinance activities.

31 PKSF shall ensure that each participating NGO provides its area office in the Project area with (a) adequate staff, including an area manager and at least two program organizers (technical and credit); and (b) adequate logistic support to ensure that the area office is able to provide the participating farmers and entrepreneurs with support for Project investment activities.


Complied with.

32 Within one month of the effective date, PKSF shall (a) select the participating NGOs, satisfactory to ADB, to deliver and manage the microfinance activities and training activities in Parts I (a), II (a) and (b) of the Project. PKSF shall enter into Subloan Agreements with the participating NGOs, which shall among other things, document


The PKSF engaged partner NGOs following appropriate criteria to deliver and manage microfinance, training and other activities. The engagement of NGO and its functioning were accomplished in due time.

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the flow, accountability, and repayment of microfinance activities, and the implementation of the training activities in Parts I and II of the Project.

Subloan agreements signed with 15 selected NGOs to implement assigned tasks.

33 The Borrower, through PKSF, shall ensure that beneficiaries under Part II (a) (iii) of the Project are selected in accordance with criteria agreed with ADB, including, but not limited to the following: households that (a) are income dependent upon female day work or begging; (b) own less that 0.04 ha of land including the homestead; (c) have no adult active male member; (d) if children are present, are unable to pay for schooling; (e) do not receive current assistance from any other government or NGO supporting program; and (f) have at least one active adult woman capable of being involved in an income generating activity.


Complied with.

34 The Borrower shall ensure that DLS prepares annually a schedule of research subproject, and circulates the schedule to research organizations, individual researchers, university departments, and other suitably staffed organizations for tendering. The Borrower shall also ensure that stakeholders are provided with the opportunity to develop and submit their applied research proposals for Project funding.


Not complied with due to lack of interest at the DLS. Instead, the DLS used transferable production technologies developed by the Bangladesh Livestock Research Institute.

35 The Borrower shall ensure that the approved three-year and ten-year action plans, as submitted to ADB, to transform DLS into a facilitator and regulator of sector development, and a promoter of private sector development, are implemented in accordance with the schedule set out in the action plans.


Partly complied with. Various reform initiatives and measures included: (i) updating and formulating livestock and poultry policies in 2007, making them friendlier to the private sector; (ii) enacting the Bangladesh Animal Quarantine Act, 2005; Meat Inspection Act, 2011; Animal Slaughter, Hygiene, and Quality Control Act, 2011; Meat Inspection Act. 2011; and formulating and reinforcement of various regulations under those acts. In addition, implementation of sectorial action plan under Vision 21, which is a part of livestock policy reforms, is underway.

56 Appendix 8

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36 Within eighteen months of the effective date, the Borrower shall have implemented the July 2003 action plan, as submitted to ADB for the commercialization of DLS livestock input supply production and deregulation of product prices.


Partly complied with. A livestock input supply and production system is yet to be fully commercialized. Some actions, like the deregulation of product prices by the Ministry of Fisheries and Livestock and the DLS, have been taken, though not at the expected level. Input costs have been rationalized to some extent, and some cost recovery measures are underway.

37 The Borrower, through PKSF and DLS, shall ensure that the requirements of the Gender Action Plan set out in Appendix 11 to the RRP are met during Project implementation.


Complied with.

38 PKSF shall ensure that, under Part I and Part II (a) (iii) of the Project, the participating NGOs provide Project beneficiaries with social development training, including awareness raising, group management, legal rights, governance, health, and hygiene.


Complied with.

39 The Borrower shall ensure that, in the even involuntary resettlement and land or asset acquisition are required for the constuction of markets under Part II (b) (ii) of the Project, a resettlement plan will be prepared. LGED shall publicly disclose the resettlement plan in such manner as agreed with ADB. The Borrower shall ensure that the resettlement plan is prepared in accordance with ADB’s Handbook on Resettlement, and includes a complete census and inventory of losses. LGED shall not award any civil works contract for any livestock market improve-ments unless a resettlement plan (if required), in form and substance acceptable to ADB, has been submitted to and approved by LGED, the PMU, and ADB. Land acquisition work including compensation payments shall be completed prior to possession of land and other assets, in accordance with the agreed resettlement plan.


Complied with for the DLS. The LGED was not involved in the project activities as deemed, found not feasible and workable.

40 Within six months of the effective date, the PMU will conduct initial baseline physical and socioeconomic surveys, and submit a detailed implementation monitoring plan for


Complied with late. The survey was completed in February 2006.

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ADB’s review and concurrence.

41 The Borrower shall ensure that the mitigation measures identified in the initial Environmental Evaluation for this Project are carried out during Project implementation.


Complied with.

42 Fielding of cousultants: PMU implementation consultants (approximately 400 domestic person months) and DLS part consultants (28 international person months)

Complied with. The PKSF engaged all PMU implementation consultants. Under the PKSF component, consultancy services were satisfactory. Two consultants under the DLS component completed their assignments. The DLS did not require any legal consultant. Under the DLS component, utilization of consultancy input was low.

ADB = Asian Development Bank, DLS = Department of Livestock Services, LGED = local government engineering department, NGO = nongovernment organization, PKSF = Palli Karma-Sahayak Foundation, PMU = project management unit.

58 Appendix 9

ECONOMIC AND FINANCIAL ANALYSES

A. Background and Assumptions 1. Implementation of the Second Participatory Livestock Development Project (PLDP-II) commenced in July 2004 and was completed in two phases: (i) on 30 June 2010 for the Palli Karma-Sahayak Foundation (PKSF) component and (ii) on 30 June 2012 for the Department of Livestock Services (DLS) component. This economic analysis is a post-evaluation exercise based on implementation monitoring documents of the Asian Development Bank (ADB), the executing agencies’ benefit monitoring and evaluation reports, quarterly progress reports, project completion reports, and a small-scale socioeconomic survey conducted by the project completion review mission. The analysis presents the post-evaluation results applicable to entire project area. 2. The objectives of the project were to increase household income and reduce poverty in the target households through livestock farming assisted by nongovernment organization (NGO) microcredit support and capacity building. The project’s support and services directly benefited 813,403 beneficiary households against a target of 660,000 households through the undertaking of livestock related enterprises. The analysis considered nine main activities that involved more than 98% of the beneficiaries: poultry layer, poultry chick rearing, key poultry rearing, model breeder rearing, duck rearing, goat and sheep rearing, milk cow rearing, beef fattening, and buffalo rearing. 3. The dynamics and structure of the beneficiary enterprises changed from year to year depending on the business climate and expected profitability and risks (Table A9.6). During the mid-term impact assessment study conducted in 2008, 67% of households engaged in backyard poultry rearing, including key rearing and model breeder; 56% in cattle rearing of milk cows and bulls; 36% in goat and sheep rearing; and 12% in duck rearing. During the final impact assessment, there was a 12% reduction in the number of households engaged in cattle farming, a 32% reduction in poultry rearing, and a 15% reduction in goat farming. The project completion report (PCR) small-scale household survey indicated improved beneficiary involvement in cattle rearing (47%), goat and sheep rearing (30%), poultry layer (27%), poultry chicks rearing (2%), and small business (30%) comparing to total livestock enterprises. As income supplementary activities, many beneficiaries involved themselves in small businesses within or outside the livestock sector like agriculture production in leased land and marketing, day labor, and transport services, particularly to cover gestation gap in income flow from livestock-related income generating activities (IGAs). 4. The financial and economic analyses followed ADB’s Guidelines for Economic Analysis of Projects (2006). The incremental benefits have been estimated by comparing “with” and “without” project situations. The main quantifiable benefits included in the analyses are increased milk production (dairy cow rearing), beef fattening, goat and sheep rearing, and poultry and duck rearing. Benefits from milk processing and marketing, beef and meat selling, and feed production enterprises were an insignificant part of the project and were therefore not considered. The analyses used data and information from the mid-term and final impact assessment studies, progress reports, ADB review mission reports, and the PCR mission’s small-scale household survey. To derive the net incremental benefits, net benefits accrued by the project beneficiaries were compared with the farmers in the control area. The economic internal rate of return (EIRR) was estimated based on cash flows derived from the difference between project costs and net incremental benefits. The project operating cost and debt servicing obligation will be met by the government beyond the project completion period. A 5%

Appendix 9 59

of total investment cost equivalent will be allocated for operation and maintenance costs until the end of the project’s economic life up to 2024. B. Methodology and Project Costs 5. The economic cost included the investment cost incurred from five sources: ADB, the Government of Bangladesh, the PKSF, NGOs, and beneficiaries. Since July 2004, assuming a project life of 20 years, the analysis converted financial prices into economic prices by using conversion factors. All costs and benefits are expressed in taka. 6. To derive economic cost, the flow of financial costs was multiplied by a standard conversion factor of 0.9. Unskilled labor in agriculture was weighted by a factor of 0.75 to arrive at an economic cost. Hired labor and the farmers’ own labor was proportioned at 60:40 as reported by the beneficiaries (Table A9.1 – A9.4). 7. The project was an economic development and poverty reduction intervention targeted toward the landless and poor members of the community. The project envisaged increased production of egg, milk, meat, and other livestock products. The entrepreneurship development concept was consistent with the country strategy of meeting excess demand for livestock products due to rapid population growth, the demand for nutritious foods for growing children, and increased affordability to build house, improve nutrition intake, improved sanitation, and income growth. 8. The project has made a significant contribution to produce, supplying 281.78 million liters of milk, 89.00 million eggs, 34,000 tons of beef and mutton, and 3.57 million kilograms of chicken in 2012 for domestic market. The establishment of farmer-level milk collection and chilling centers with large dairy product processing industries such as Milk Vita, Aarong, and PRAN has solved the problems of marketing milk to a great extent. The price of eggs, chicks, and meat is determined by market forces as compared to government’s subsidized price. 9. All costs, including civil works, plant and machinery, vehicle supplies, office and laboratory equipment, furniture, microcredit, training and fellowship, consulting services, project management, operation and maintenance, and service charges, were considered as capital costs for the purpose of the financial and economic analyses. Farm operation and management costs were considered as enterprise operation and maintenance costs. 10. The economic analysis used constant 2008 prices for livestock products used for farm models developed by the mid-term study. Actual market prices net of subsidies and taxes reflected in the economic estimates of costs and returns. The economic prices of non-traded items, such as construction and farm laborers, construction materials, livestock, and financial services, were adjusted by a standard conversion factor of 0.9. 11. A discount rate of 12% has been used as the opportunity cost of using capital to calculate net present value of the net incremental benefits and costs, and to derive the benefit –cost ratios. C. Quantifiable Benefits 12. At project appraisal, major anticipated benefits included (i) poverty reduction of 20% among poor, landless, marginally landless, and female-headed beneficiary households; (ii) the provision of self-employment opportunities to beneficiaries in livestock rearing enterprises,

60 Appendix 9

income enhancement, social awareness, and capacity building of individual (beneficiaries) and community (beneficiary groups, DLS, PKSF, and NGOs); and (iii) the incremental production of milk, eggs, and meat to meet children’s nutritional demands as recommended to meet United Nations Millennium Development Goals. The project has satisfactorily achieved the poverty reduction goal and other project objectives. 13. The economic reevaluation includes only quantifiable benefits in terms of the net incremental value of 10 major enterprise types for the “with” and “without” project scenarios. The financial and economic analysis was done for enterprise activities, including poultry layer, poultry key rearing, model breeder and poultry rearing, milch cow, beef fattening, goat and sheep rearing, and milk buffalo farming. 14. The financial budget for each of the major project activities in livestock was estimated by items of costs and returns based on data collected during the mid-term impact study. Those costs were updated by the PCR mission to reflect 2012 price levels. 15. Compared with the baseline survey, the number of milch cows per family increased by 18% from 2.24 to 2.65 while productivity per cow improved by 15% from 2.58 liters to 3.85 liters. The baseline in 2006 cow population of the beneficiary farms was 338,000, and this increased by 21% to 410,000 from 2008 to 2012. D. Unquantifiable Benefits 16. Among the unquantifiable benefits, the enhancement of the social status of 598,043 women through training and income generating activities in livestock has been most commendable by baseline and monitoring surveys and ADB review missions. A total of 29,897 farmers’ organizations were formed and strengthened through a participatory process and training in leadership, 1,300 community extension workers (CEWs) were recruited and trained in livestock services, 1,500 livestock technical assistants were recruited and trained in livestock technology, and 2,640 NGO program officers were trained in livestock and the environment. The benefits also included the training of 85 chilling center operators on chilling of milks up to delivery to large dairy processing industries, the training of 418 beneficiaries in milk processing, the training of 423 rural pharmacy owners on disease prevention and treatment, and the procurement and distribution of 998 kit boxes for disease testing and diagnosis. All training courses embedded the concept of social awareness in health, hygiene, and the environment. The intangible benefits were livestock infrastructure and logistic improvement, functioning of disease diagnostic laboratories, and improvement of treatment facilities. E. Results 17. Table A9.5 and Table A9.6 show the financial and economic costs and benefit streams respectively during the project life. The financial analysis shows the financial rate of return at 23%, the financial net present value at Tk1,729 million, and the benefit–cost ratio at 1.37 at a 12% discount rate. The economic analysis shows the EIRR at 37%, the net present value at Tk2,404 million, and the benefit–cost ratio at 1.56. The EIRR was much higher than the appraisal estimates of 8%, which only accounted for milk production. The high EIRR is likely due to the large number of beneficiaries who undertook livestock enterprises from the first year and generated higher actual cash flows than estimates at appraisal. The prices of products escalated faster than the appraisal estimates. At appraisal, only milk production was considered, and the initial investment was high for milk production-related IGAs.

Appendix 9 61

18. Incremental net benefits for different production enterprises were assessed for the “with” and “without” project scenarios based on quantified data collected by the benefits monitoring and evaluation studies, particularly by the mid-term impact study. The PCR study prepared farming costs and net return models for the “with” and “without” project scenarios. This quantification of data helped calculate the real worth of the project benefits. 19. The PCR financial and economic analysis did not consider many direct and indirect benefits of the project, including (i) milk chilling and processing technology; (ii) electric mini hatchery, (iii) artificial insemination and breed improvement, (iv) peste des petits ruminants vaccines for goats, (v) fodder cultivation, (vi) extension services and disease treatment and control, (vii) nutrition and hygiene improvement, and (viii) social bondage and linkages with service providers. All these have substantial financial and socioeconomic impacts for the whole region.

Table A9.1: Net Return (Financial and Economic) from Livestock Enterprises (Project Area)

Income

Generating Activity

Gross Revenue Financial

(taka)

Gross Revenue

Economic (taka)

Gross Cost (taka)

Gross Cost

(Financial) (taka)

Gross Cost (Economic)

(taka)

Economic Return (taka/

enterprise)

Financial Return (taka/

enterprise)

Beef fattening 22,000 19,800 16,053 1,058 16,053 14,289 5,511

Buffalo rearing 14,025 12,623 12,443 1,058 12,443 11,040 1,583

Chick rearing 14,637 13,173 10,444 1,068 10,444 9,239 3,934

Dairy cow 18,780 16,902 16,747 2,627 16,747 14,678 2,224

Duck rearing 3,425 3,083 1,747 535 1,747 1,492 1,591

Goat rearing 3,850 3,465 2,220 350 2,220 1,946 1,520

Model breeder 30,830 27,747 25,000 14,758 25,000 20,286 7,461

Poultry layer 3,998 3,598 2,647 1,083 2,647 2,220 1,378

Poultry rearing 3,987 3,588 1,654 368 1,654 1,433 2,155

Sheep rearing 3,700 3,330 2,494 54 2,494 2,237 1,094

Source: PCR Small-Scale Household Survey.

Table A9.2: Net Return (Financial and Economic) from Livestock Enterprises (Non-Project Area)

Income

Generating Activity

Gross Revenue Financial

(taka)

Gross Revenue

Economic (taka)

Gross Cost (taka)

Labor Cost (taka)

Gross Cost

Financial (taka)

Gross Cost Economic

(taka)

Economic Return (taka/

enterprise)

Financial Return (taka/

enterprise)

Beef fattening 15,250 13,725 10,840 1,000 10,840 9,940 3,785 4,410

Buffalo rearing 12,050 10,845 11,302 900 11,302 11,167 -322 748

Chick rearing 0 0 0 0 0 0 0 0 Dairy cow rearing 15,100 13,590 13,554 1,650 13,554 12,069 1,521 1,546

Duck rearing 2,395 2,156 1,182 300 1,182 912 1,244 1,213

Goat rearing 3,150 2,835 1,882 450 1,882 1,477 1,358 1,268

Model breeder 0 0 0 0 0 0 0 0

Poultry layer 2,965 2,103 2,103 871 2,103 1,319 784 862

Poultry rearing 0 0 0 0 0 0 0 0

Sheep rearing 3,240 2,916 2,653 563 2,653 2,146 770 587


62 Appendix 9

Table A9.3: Net Incremental Benefits (Financial and Economic) from Livestock Enterprises

Project Area Non-Project Area

Net Incremental Benefits

(taka/enterprise)

Income Generating Activities

Net Return (Economic)

(taka/enterprise)

Net Return (Financial)

(taka/enterprise)

Net Return (Economic)

(taka/enterprise)

Net Return (Financial)

(taka/enterprise) Financial Benefits

Economic Benefits

Beef fattening 1,378 1,351 784 862 489 594

Buffalo rearing 3,934 4,193 3,785 4,410 -217 149

Chick rearing 2,155 2,333 -322 748 1,585 2,477

Dairy cow 7,461 5,830 0 0 5,830 7,461

Duck rearing 1,590 1,678 1,521 1,546 132 69

Goat rearing 1,094 1,206 1,244 1,213 -7 -150 Key poultry rearing 1,520 1,630 1,358 1,268 362 162

Model breeder 2,224 2,033 0 0 2,033 2,224

Poultry layer 1,583 1,582 0 0 1,582 1,583

Sheep rearing 5,511 5,947 770 587 5,360 4,741

Total 28,449 27,783 9,139 10,634 17,149 19,309 Source: PCR Small-Scale Household Survey.

Table A9.4: Output and Price

Income Generating Activities

Output

Output Unit Price (taka) Project Non-Project

Beef fattening Taka/Live bull/kilogram 120 0 12,000

Buffalo dairy Milk/liter/day 6 4 9

Chicken broiler Chick/kg 344 0 40

Chicken layer Egg/bird/year 98 60 6

Dairy cattle Milk/liter/day 4 3 9

Duck Egg/bird/year 70 60 8

Goat rearing Taka/live goat 2,150 1,800 2,150

Key poultry rearing Chick/week 18 0 190

Model breeder Chick/egg 90 0 6

Sheep rearing Taka/live sheep 1,555 1,100 1,555

Source: PCR Small-Scale Household Survey. / = per unit

Ap

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63

Table A9.5: Financial Analysis of Livestock Enterprises (Tk million)

Costs Benefits Year Invest-

ment Cost

Operat- ing Cost

Total Cost

Poultry Layer

Chick Rearing

Key Poultry Rearing

Model Breeder Rearing

Duck Rearing

Sheep Rearing

Goat Rearing

Milch Cow

Buffalo/ Cow

Beef Fatten- ing

Total Benefit

Tax and Value Added Tax

Net Benefits

2005 616 304 920 217 24 7 7 73 13 14 153 2 37 547 9.112 -381

2006 616 304 920 239 27 7 7 80 14 16 169 3 40 602 9.112 -327

2007 616 304 920 263 29 8 8 88 16 17 185 3 44 662 9.112 -266

2008 616 304 920 289 32 9 9 97 17 19 204 3 49 729 9.112 -200

2009 616 304 920 304 34 10 10 107 18 20 224 3 54 783 9.112 -145

2010 616 304 920 319 36 10 10 112 19 21 236 4 57 823 9.112 -106

2011 616 215 831 351 37 11 11 118 20 22 247 4 59 880 9.112 40

2012 215 215 368 39 11 11 124 21 23 260 4 62 924 709

2013 215 215 387 41 12 12 130 22 24 273 4 65 970 755

2014 215 215 406 43 12 13 136 23 26 286 4 69 1018 803

2015 215 215 426 45 13 13 143 24 27 301 5 72 1069 854

2016 215 215 448 48 13 14 150 26 28 316 5 76 1123 908

2017 215 215 470 50 14 15 158 27 30 331 5 80 1179 964

2018 215 215 494 52 15 15 166 28 31 348 5 84 1238 1023

2019 215 215 518 55 16 16 174 30 33 365 6 88 1300 1085

2020 215 215 544 58 16 17 183 31 34 384 6 92 1365 1150

2021 215 215 572 61 17 18 192 33 36 403 6 97 1433 1218

2022 215 215 600 64 18 19 201 34 38 423 6 102 1505 1290

2023 215 215 630 67 19 20 211 36 40 444 7 107 1580 1365

2024 215 215 662 70 20 20 222 38 42 466 7 112 1659 1444

Present Value

4,781 6,552 11729.14

Note: financial net present value = 1,729, benefit–cost ratio = 1.37, financial internal rate of return = 23%. Source: PCR Small-Scale Household Survey.

64

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Table A9.6: Economic Analysis of Livestock Enterprises (Tk million)

Costs Benefits

Year Invest-ment Cost

Operating Cost

Total Cost

Poultry Layer

Chick Rearing

Key Poultry Rearing

Model Breeder Rearing

Duck Rearing

Sheep Rearing

Goat Rearing

Milch Cow

Buffalo/ Cow

Beef Fatten-

ing

Total Benefit

Net Benefits

2005 554 274 828 264 23 6 9 54 7 6 221 5 41 637 -191

2006 554 274 828 270 25 7 9 60 7 7 243 6 45 679 -148

2007 554 274 828 275 27 7 10 66 8 8 268 6 50 726 -102

2008 554 274 828 280 30 8 11 72 9 8 294 7 55 776 -51

2009 554 274 828 286 32 9 13 80 10 9 324 8 60 829 2

2010 554 274 828 292 33 9 13 84 10 9 340 8 63 862 35

2011 554 194 748 298 35 10 14 88 11 10 357 9 67 897 149

2012 194 194 304 37 10 15 92 11 10 375 9 70 932 739

2013 194 194 310 39 11 15 97 12 11 394 10 73 970 776

2014 194 194 316 41 11 16 102 12 11 413 10 77 1,009 816

2015 194 194 322 43 12 17 107 13 12 434 10 81 1,050 857

2016 194 194 329 45 12 18 112 13 13 456 11 85 1,093 899

2017 194 194 335 47 13 19 118 14 13 478 12 89 1,138 944

2018 194 194 342 49 14 20 124 15 14 502 12 94 1185 991

2019 194 194 349 52 14 21 130 15 15 527 13 98 1,234 1,040

2020 194 194 356 54 15 22 136 16 15 554 13 103 1,285 1,091

2021 194 194 363 57 16 23 143 17 16 581 14 109 1,338 1,145

2022 194 194 370 60 17 24 150 18 17 610 15 114 1,394 1,201

2023 194 194 377 63 18 25 158 19 18 641 15 120 1,453 1,259

2024 194 194 385 66 18 26 166 20 19 673 16 126 1,514 1,321

Present Value

4,303 6,707 2,404

Note: net present value = 2,404, benefit–cost ratio = 1.56, internal rate of return = 37%. Source: PCR Small-Scale Household Survey.

Appendix 10 65

SOCIOECONOMIC IMPACTS OF PROJECT INTERVENTIONS A. Background 1. The project completion report (PCR) mission undertook a small-scale household survey to capture overall socioeconomic impacts of the project’s support services provided to project beneficiaries. The response from the beneficiary respondents reflected the project impacts and provided an indication of whether the project investment generated enough benefits envisaged at appraisal. The survey also revealed the lessons learned from successes and failures during the implementation and beyond (2004 – 2013). In addition, various progress reports, Asian Development Bank (ADB) aide memoires, impact assessment reports, monitoring reports, the executing agencies’ PCRs, and the PCR mission’s findings were analyzed to validate socioeconomic impacts of the project interventions. 2. The project was implemented in 157 upazilas (the next administrative unit under a district) of 20 districts of northwest and north central regions of Bangladesh. The regions are considered the poorest area in the country, and portions are affected by monga (seasonal hunger and famine). Landless, marginally landless, and female-headed poor households were the main focus and beneficiaries of the project. The survey captured responses of project beneficiaries from a sample of eight upazilas of eight districts and two upazilas of control districts. B. Project Area Profile 3. The project area covered 35,000 square kilometers in the northern regions constituting one-third of the country. At appraisal, there were 2.9 million households in the project area, of which 2.1 million (72%) lived below the poverty line. The main occupation of the people was agriculture and agro-related activities, including livestock and poultry rearing. Of the total number of households as of 2010, 20% were landless, 38% were marginally landless, and 14% were female-headed poor households.21 To reduce the severity of household poverty, the region was in need of a project that would generate employment and income opportunities for the poor. More than 70% of the households have been rearing livestock at subsistence management system that needed credit and technical services for enhanced income and improved livelihood. This is still required even at a lower scale. C. Approach and Methodology 4. A small-scale but focused sample survey was carried out to collect socioeconomic information to assess the impacts of project. The questionnaire is in supplementary Appendix 2. The survey collected data, including quantitative information, on livestock enterprises, costs and benefits, capacity building of households and the community, social awareness and livestock rearing training, and support services from partner nongovernment organizations (NGOs) and from the Department of Livestock Services (DLS). The questionnaire included both close and open-ended questions on social and economic well-being expressing in incremental earning, use of savings, access to livestock services an finance, participating with government’s and private livestock service providers, input suppliers, improved housing, improved sanitation, increased enrollment of children education.

21

Government of Bangladesh. 2010. Household Income and Expenditure Survey.

66 Appendix 10

5. The survey was administered on a specifically drawn sample of households of project beneficiaries. The same questionnaire was used for collecting information on household profiles and livestock related activities in both project and control areas. Control households are those who resided outside the project area and did not receive project support. 6. To validate the collected information and data, focus group discussions in eight partner NGO offices and two district level DLS offices were organized. Opinions were sought from the partner NGOs to establish an informed basis for assessing project impacts. The geographical distribution of households is given in Table A10.1. 7. The socioeconomic survey was conducted on 420 randomly selected beneficiary households in the project area and 104 households in the control area. Primary information obtained included: (i) Socioeconomic profile of beneficiary households; (ii) Income and expenditure status of the respondents, including income from livestock enterprises and expenditures on food, clothing, housing, sanitation, education, and healthcare; (iii) Household credit worthiness situations and NGO services and credit support system (amount of credit received, repaid, outstanding, and defaulted.); (iv) Utilization of credit and credit diversion for purposes other than the ones for which credit was sought (causes of loan deviation); (v) Household level livestock and poultry rearing and management practices, including livestock farming and ownership, caretaking, value of livestock assets, and improvement of livestock shed; (vi) Costs and returns of livestock farming, including costs of rearing, production activities, return on investment, and risks encountered; (vii) Household total net income from agriculture, business, livestock farming, and other activities; and (viii) Gender disaggregated data on household labor rendered, farmer group activities, credit received and repaid, marketing of output, and other productive activities related to livestock rearing. 8. Initially the sample size was selected for 384 households. For even distribution of households across eight upazilas of eight districts, a sample of 400 households was initially selected, with 52 households in each district. A total of 524 households were surveyed. This reduced the margin of error to 4.7%. 9. The geographical dispersion of sample districts covered five districts of the Rangpur division, two districts of the Rajshahi division, and one district from greater Mymensingh in the project area. Two districts (Chuadanga and Meherpur) were selected from three control districts. The distribution of the respondent households is shown in Table A10.1.

Appendix 10 67

Table A10.1: Distribution of Sample Households in the Project Area

District

Upazila

Number of Respondents

Project Area

Gaibandha Sundargonj 52

Jamalpur Madarganj 52

Joypurhat Panchbibi 53

Natore Gurudaspur 54

Nilphamari Jaldhaka 52

Panchagarh Tetulia 53

Rangpur Kaunia 52

Sirajganj Belkuchi 52

Total 420

Control Area Chuadanga Chuadanga Sadar 52

Meherpur Mujibnagar 52

Total 104


10. Land Ownership Scenario of the Sample Households: Agricultural land represents famer’s most valuable asset in terms of livelihood as well as for social status. The figures presented in table A10.2 are for agricultural land ownership. The figures indicate that 39% of sample rural households in the project area did not have agricultural land of their own, and 38% were small holders and marginal farmers owning fewer than 0.5 acre of land. Large farms having two acres of land accounted for only 1.9% of sample households. The situation of sample households in the control area was better in terms of land ownership, with 25% landless, 23.3% marginal, and 52% small to large farms. More landless household in rural areas depend on supplying agriculture or other non-agriculture labor for livelihood. The land ownership scenario of the sample households is presented in Table A10.2.

Table A10.2: Land Ownership Scenario

Land Ownership Category

(agricultural land)

Project Area Households

(%)

Control Area Households

(%)

Landless 39.0 25.0 Less than 50 decimals 38.0 23.3 50 to 99 decimals 12.8 20.0 100 to 199 decimals 8.3 28.3 200 decimals or more 1.9 3.3

Source: PCR Small-Scale Household Survey. 1 acre = 100 decimals

D. Results 11. The views and opinions of beneficiaries with regard to their perception and satisfaction level regarding livestock rearing, production and credit operation, input supplies, and marketing of products were recorded and are summarized in table A10.5.

68 Appendix 10

12. The reasons for joining and participating in PLDP-II activities, including group formation, training, input supply, credit support for livestock rearing, group meetings, and institution building, are presented in Table A10.3.

Table A10.3: Reasons for Joining the Project

Reasons

Beneficiaries (%)

Self-employment 45.7

More livestock rearing skills 38.9

Help husband receive credit 43.2

Earn money for the family 37.3

Save money 22.2


13. Beneficiary Training and Participation. The participation of beneficiaries in all activities, including training and capacity development, credit operation, livestock rearing, procurement of inputs and technical services, marketing and sales activities are presented in Table A10.4. The training programs organized by partner NGOs were of different durations and held at different venues, and the PKSF, the DLS, and NGOs conducted training sessions. NGOs in collaboration with the DLS and PKSF organized training courses on general livestock rearing for 589,043 beneficiaries, of which 98% were female. A total of 29,897 groups were formed and the group leaders trained. 14. Training also included awareness on health and hygiene, awareness on legal rights, and bookkeeping and accountancy skills. Training activities were rated as satisfactory by the beneficiaries. Training instructions included distribution of reading material, instruction manuals, audio-visual presentations, film shows, poverty mapping, van diagram (a diagram drawn by the farmers indicating land use of a village). Livestock rearing general training was attended by 87% of beneficiaries, and credit operation courses were attended by 97% beneficiaries. Table A10.4 summarizes training course participation.

Table A10.4: Participation of Beneficiaries in Training Courses

Subject

Beneficiaries (%)

Marketing of livestock products 21.9 Awareness on health and hygiene 36.5 Awareness on legal rights 21.6 Credit operations 97.0 General training on livestock rearing 86.5 How to keep accounts 6.5 How to determine profitability of an enterprise 14.9 Operating bank accounts 9.7 Others 0.3


15. The socioeconomic household survey assessed the satisfaction of beneficiaries on several support services provided by the partner NGOs and the DLS. Table A10.5 summarizes the results.

Appendix 10 69

Table A10.5: Beneficiary Satisfaction on Support Services

Enterprise

Respondents (%)

Highly benefited

Moderately benefited

Poorly benefited

Livestock and poultry feeding and fodder production

4.9 20 80 0

Management of mother hen, hatching of eggs and chicks

0.2 100 0 0

Marketing of milk and eggs 0.7 66.7 33.3 0

Milk processing, milk hygiene, production and storage

2.9 58.3 41.7 0

Primary treatment and vaccination of animals and birds

2.7 45.5 45.5 9

Rearing of livestock and poultry 88.3 40.9 54.1 4.9

Others 0.2 0 100 0


16. Group Activities. Group activities performed by beneficiaries in addition to their own enterprise activities and related training are presented in Table A10.6. During the project implementation period, most beneficiary women obtained experience in social and group activities.

Table A10.6: Group Activities Performed as Group Members

Activity

Beneficiaries (%)

Assisted chairperson to gather members for the meeting

21.9

Assisted in mobilizing group members 18.9 Attended meetings 92.4 Conducted meeting 8.4 Served as executing committee member 5.7 Facilitated social awareness topic 11.1 Maintained registers 15.1 Participated in artificial insemination, vaccination, and treatment activities

1.4

Participated in bookkeeping and accounting activities 13.0 Participated in fodder demonstration activities 3.8 Received training as per invitation by other training providers

16.8

Supported identification of training needs for others 11.4 Wrote resolutions 2.4 Others 0.3 Source: PCR Small-Scale Household Survey.

17. The project’s support and services had a positive impact on living standards. Household expenditures and the percentage of income spent on different items reflected this improved standard of living, particularly in education, healthcare, sanitation, and entertainment. Household possessions and services, including vehicles, electricity, fans, and televisions, also reflected this improvement. Table A10.7 summarizes the project’s impacts on living standards.

70 Appendix 10

Table A10.7: Summary of Impacts on Standard of Living

Item of expenditure

Income (%) Baseline 2006 Mid-term 2008 Review 2013

Project Area

Control Area

Project Area

Control Area

Project Area

Control Area

Clothing 1.61 6.17 3.30 6.88 4.10 6.32 Ceremonies and parties 3.41 3.33 3.45 2.16 2.40 2.14 Education 3.87 3.75 3.64 3.51 4.15 5.00 Farm equipment, machinery, and tools 5.92 0.02 6.14 2.03 1.18 1.22 Food and drinks 52.31 58.12 44.71 50.82 41.12 47.00 Furniture 0.30 0.01 0.70 0.01 0.12 1.22 Housing (e.g., construction, repairs) 5.66 4.10 8.05 5.30 10.20 5.10 Inputs (e.g., seeds, fertilizer, water, electricity)

8.49 7.94 9.26 10.42 9.22 10.10

Medical treatment 4.36 7.07 3.70 5.38 3.22 5.34 Sanitation 0.01 0.01 0.01 0.01 1.16 1.13 Household Possessions

Bicycle 7.92 - 21.25 - 51.80 - Electricity 3.58 - 13.63 - 33.25 - Pucca and semi-pucca houses - - 9.00 5.50 26.70 10.00 Sanitary latrine - - 15.82 10.54 29.58 24.48

Television 4.22 - 31.25 - 38.40 - Source: PCR Small-Scale Household Survey. Pucca = fully brick made house, semi-pucca = partly brick and partly corrugated sheet

E. Key Impacts 18. Income Improvement. The income of the project beneficiaries increased due to self-employment opportunities in the livestock enterprises, higher production of livestock products and marketing activities increased livestock related production, increased crop production, and increased opportunities to engage in small businesses from 2004 to 2013. The survey confirmed that the income of the beneficiaries increased at an average rate of 30% per annum at project completion and 25% during the project completion review period due to the adoption of an improved management system and the availability of NGO support services. Depending on the type of enterprise, income increases ranged from 9% to 96%. The returns were 9% from milch cow, 50% from poultry layer rearing, 41% from key rearing, 23% from model breeder, 73% from goat rearing, 48% from sheep rearing, 55% from heifer rearing and beef fattening, and 13% from buffalo and cow rearing. Benefit monitoring and evaluation and final impact assessment studies supported the findings of enhanced incomes of the project beneficiaries. 19. Income increases of the beneficiary farmers in the project area ranged from 22% to 100% over the non-project farmers in the control area. The detail of income enhancement by enterprise type with project supports and services under PLDP-II and of enterprises in the control area has been discussed in the economic reevaluation and analyses in Appendix 9.

20. Living standards improved substantially in the project households due to higher incomes and expenditures than non-project households. The socioeconomic condition of women improved and the target of maintaining gender equity was achieved adequately (Appendix 6). 21. Employment Generation. The project achieved its employment generating objective for the project beneficiaries, including for ultra-poor households. In addition, the final impact

Appendix 10 71

assessment study (2010) reported a significant increase in person-days of employment in livestock-related activities in the project area. The study concluded that in the project areas, on- farm (crop and livestock related) employment increased while non-farm employment decreased. 22. Change in Ownership of Land. The benefit monitoring and final impact studies found that the beneficiaries intend to spend their additional income in acquiring tangible assets22. Subsequent studies, including the PCR survey, found that land ownership of the project beneficiaries increased.23

Table A10.8: Change in Land Ownership

Type of land (decimals)

Mid-term 2008 Final 2010 Overall Change

Project Area

(decimal)

Control Area

(decimal)

Project Area

(decimal)

Control Area

(decimal)

Own homestead land 11.91 4.66 8.55 5.71 -4.41 Own homestead garden 0.95 1.15 16.09 9.47 6.82 Own pond area 1.37 0.09 17.36 8 Own agricultural (irrigated) 34.98 11.07 63.39 32.80 6.67 Fallow land 0.58 0.02 17.73 49.66 Others 0.03 0.00 - - Average cultivated area owned

47.73 21.41 65.49 23.97 15.20

Source: PCR Small-Scale Household Survey. 1 acre = 100 decimals

23. Increased Social Harmony. Besides impacts on income, employment, and production, the project generated an integration of community culture and social harmony through group mobilization, social awareness, and protection of human rights irrespective of gender and religious bias. The PCR field survey and focus group discussions validated that that communities organized under the project are now better organized. 24. Other Impacts. In addition, the project contributed to (i) better access to hygienic facilities (sanitary latrines, pure drinking water, and better housing); (ii) better access to quality education for children; (iii) in-depth knowledge of and skills related to livestock rearing; (iv) livestock healthcare services and disease control; (v) regular updates on market information for products and inputs; and (vi) improved working partnerships between the beneficiaries, NGOs, the PKSF, and the DLS.

22

2008. PKSF. Mid-term impact evaluation survey. Dhaka 23

2010. PKSF. Final impact evaluation survey. Dhaka

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