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KFAED (Kuwait Goodwill Fund for the Promotion of Food Security in Islamic Countries) A tripartite grant agreement of US $10 million has been signed between the Government of Bangladesh (GoB), Kuwait Fund for Arab Economic Development (KFAED) and PKSF on 30 January 2011 with the purpose of funding microcredit and small loans for farming and small business activities. In line with this agreement, a subsidiary grant agreement between PKSF and KFAED has been signed on 18 May 2011. The main objectives of the programme are to raise household income, reduce vulnerability and improve food security by enabling targeted members to access and utilize the loan. This programme aims at facilitating the borrowers to invest in farming, micro and small business activities. A Project Implementation Plan (PIP) has been developed to deliver the fund through POs. To implement the programme, 8 POs have been selected on a primary basis. The project components are: • Microcredit and Small Loans: Microcredit and small loans are to be used to promote food production, food processing, storage, marketing of agricultural commodities and small businesses suitable for the targeted beneficiaries through the selected POs. • Capacity Building: PKSF shall utilize 50% of the interest and service charges of the fund for institution-building and technical services for the POs. These services include technology transfer, capacity building together with monitoring and evaluation of the programme.
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