JICA gives Tk 100 crore for the purpose
The governments of Japan and Bangladesh will work together to restructure the risky buildings of readymade garments industries in Bangladesh,
said high officials of the two countries on Thursday.
As part of the move, Japan International Cooperation Agency will provide Tk 100 crore in loan for infrastructure development of the readymade garments industries.
The Japanese commitment announced at an expression of intention programme in which officials of Bangladesh Bank, Embassy of Japan, JICA, banks and financial institutions division of the finance ministry, public works department, and leaders of BGMEA and BKMEA attended.
The JICA fund came when the country’s RMG sector is facing severe criticism all over the world after the Savar tragedy in April this year.
The support will come from a Tk 500-crore JICA fund which is now using for a project ‘financial sector project for the development of small and medium-sized enterprises’.
The JICA loan agreement for the development of the country’s small and medium-sized enterprises was signed on May 18 in 2011.
The aim of Tk 100-crore fund is to provide financial support to the RMG enterprises which will conduct safety assessment of their buildings under the supervision of JICA experts and engineers of the public works department under the housing and public works ministry.
BB governor Atiur Rahman attended Thursday’s programme as chief guest.
He said financing was expected to commence soon on a pilot scale with the Tk 100 crore JICA fund.
Apparel factories of BGMEA and BKMEA members employing 100-2000 employees will qualify for getting finance up to 90 per cent of the rebuilding cost to be assessed by joint team of PWD and JICA, he said.
The amount of finance for any factory will not exceed Tk 10 crore and a five-year time frame envisaged for disbursement of JICA fund against the rebuilding loans by participants banks, he said.
‘To ease stresses from cost burden of rebuilding the factory buildings, banks participating in this initiative will lend to the factories for this purpose at an interest rate not exceeding 10 per cent per annum. Banks will draw refinance from the BB out of the JICA fund at a concessional rate of five per cent. The financing will be long-term, of up to 15 years including a two-year grace period,’ the BB governor said.
Japanese ambassador to Bangladesh Shiro Sadoshima said that the authority concerned should take immediate steps to rebuild the image of the RMG sector.
He stressed the speedy launch and implementation of the initiative to restore the confidence of the international community on the RMG sector of Bangladesh.
He assured that more fund would be given if the new project for RMG sector is implemented properly.
JICA Bangladesh office chief representative Tako Toda, housing and public works ministry secretary Khondaker Showkat Hossain, BGMEA president Atiqul Islam and BB general manager Sukumal Sinha Chowdhury addressed the programme, among others.
-With New Age input
