A US$750,000 grant from the Asian Development Bank (ADB) will assist Bangladesh in implementing a planned multi-million loan project in 2010 to improve irrigation services in the South Asian country.

The grant, which was approved by ADB's board of directors, will assess existing irrigation systems' operations and maintenance planning, as well as their financing and implementation procedures, policy framework, institutional setup, and capacities, an ADB press statement said on Wednesday.

Following the assessment, proposals will be made on new service agreements and alternative management models, including private-public partnerships and independent service providers that would manage and operate the systems.

The grant will address constraints uncovered by an ADB-supported technical assistance in 2005 meant to prepare the groundwork for a proposed $50 million loan project that will enhance the performance of major water management systems in Bangladesh.

Only around 4.5 million hectares out of the 8 million hectares of farmable land in Bangladesh is irrigated. The irrigated area contributes around 13 million tons of cereals, mainly rice, the ADB said.