Jagannath University
Assignment on
Project Management



Submitted TO:













































Table of Content


No Topics
1. Introduction
2. The Project
3. Objectives
4. Components of the Project
5. Implementation Arrangements
6. Risk Analysis
7. Problems
8. Recommendation
9. Conclusion










Executive summary
The Microfinance for Marginal and Small Farmers Project was
conceived to introduce an innovative approach to deliver financial services to the
farming community, in partnership with Palli Karma-Sahayak Foundation (PKSF),
which was established by the Government of Bangladesh in 1990 as a not-for-profit
company and as the apex organization providing funds to MFIs. Covering 14
districts in north-west and north-central Bangladesh, the main project target group
was small and marginal farm households.
The project made important and innovative contributions to enhancing access to finance by marginal and small farmers, who had previously had little access to credit from either banks or NGO-MFIs. The project introduced a lump-sum repayment modality that could
better match the borrowers’ cash flows, in place of the weekly repayments that had
normally been practiced with NGO-MFI microcredits.
While under implementation, PKSF incorporated “seasonal loan” and “agriculture sector
microcredit” products as part of their core program, and restructured its lending
policies to partner organizations. This means that with PKSF being a major source of funding for most of the partner organization’s microcredit operations, NGO-MFIs have a sustainable source of funding for seasonal and agricultural lending, and they have also mainstreamed such loan products to serve rural populations.
The project was implemented with high efficiency and competency, benefiting from
the experience of PKSF and partner organizations and their prior working relations. This was the case in terms of the timeliness of implementation, appropriate partner organizations selection based on an established system and working experience, an established progress reporting system from partner organizations to PKSF, and PKSF’s existing management information system.










Introduction:
In Bangladesh, traditionally, poverty has been associated with landlessness. Many
initiatives and programs aimed at poverty reduction normally targeted those
households with no land or very little land (the “functionally landless”).In the microfinance sector, NGO-MFI services were primarily targeted at the landless poor, and did not cater sufficiently to small and marginal farmers.
At the same time, poor farmers had limited access to credit for agricultural
purposes from banks. The project was conceived to introduce an innovative
approach to deliver financial services to the farming community in partnership with
Palli Karma-Sahayak Foundation (PKSF), which was established by the Government
of Bangladesh in 1990 as a not-for-profit company and as the apex organization
providing funds to MFIs.


The Project:
The Microfinance for Marginal and Small Farmers Project in Bangladesh was
implemented from 2005-2011 with the objectives of improving access to microfinance
services by small and marginal farmers and increasing their agricultural production.
Previously, microcredit services provided mainly through microfinance institutions (MFIs)
had largely targeted the landless; poor farmers with small landholdings had little or no
access to either MFI services or bank loans.
MFMSFP was a US$29.7 million project over a six-year period (2005-2011), with the goal “to provide improved livelihoods to 210,000 poor small and marginal farmer households”.
The aims of the project are:
(i) Enable marginal and small farmers and agro entrepreneurs (both men and
women) to access and utilize viable microfinance services in order to invest in
existing and new farm and off-farm enterprises;
(ii) Increase agriculture production through access to information, the adoption of new technologies and linkages to markets;
(iii)Develop and mainstream PKSF operational procedures for
lending to farmers and related agro enterprises.



Objectives of the Project:
Objective 1: To enable marginal and small farmers and agro entrepreneurs to access and utilize viable microfinance services in order to invest in existing and new farm and off-farm enterprises.
The main instrument for achieving the objective was the provision of credit funds by PKSF to selected POs, who would then on-lend to members of small and marginal farmer group. The key questions then would be: whether the group members would have had less access to microcredit and the loan products that were made available without project support; and, whether microcredit extended with project support enabled the borrowers to invest in on- and off-farm entrepreneurs. The objective was largely achieved in terms of enabling marginal and small farmers to access and utilize microfinance services. This was mainly for financing existing farming activities with low commercial orientation (i.e. rice) and to some extent agricultural diversification.
Objective 2: To increase agricultural production through access to information, the adoption of new technologies and linkages to markets.
The project provided capacity-building support for agricultural extension serviceproviders and beneficiaries (i.e. training, demonstration and field day. The assessment