IFAD clears $324m fund for rural development

Bangladesh and the International Fund for Agricultural Development (IFAD) have strengthened their long-standing partnership through two investments of $324 million to improve climate resilience, rural livelihoods and food security.

The projects are expected to benefit around 2.5 million rural people, improving infrastructure, access to finance, skills development, markets and nutritious food. The Government of Denmark is also partnering in one of the initiatives, according to an official press release.

The latest milestone is the launch of the $112 million Climate Resilience and Livelihood Enhancement Project (CRALEP), which follows the launch of the $212 million Growth for Climate Resilient and Environmental Entrepreneurship and Nutrition (GREEN) project. Together, the initiatives seek to address both the physical risks posed by climate change and the economic challenges facing rural households and enterprises.

CRALEP will be implemented by Bangladesh's Local Government Engineering Department (LGED), focusing on the flood-prone Haor wetlands and the drought-prone High Barind region. The project aims to strengthen climate-resilient infrastructure and improve livelihoods in areas exposed to environmental shocks. GREEN will be implemented by Palli Karma-Sahayak Foundation (PKSF) under the Financial Institutions Division. It will cover the Haor, coastal, High Barind and river char areas, with an emphasis on environmental entrepreneurship, access to finance, skills, markets and nutrition.