The program has been initiated by the Government of Bangladesh with support of international development partners. The objective of the program is to provide Bangladeshi Ready-Made Garment (RMG) manufacturers financial and technical assistance to undertake safety retrofits, environmental and social upgradation of their factories.

Target Sector

Bangladesh Ready-Made Garment (RMG) sector

Target Areas

Safety retrofit for:

  • Fire protection
  • Electrical safety systems
  • Building strength and safety

Environmental upgradation for example:

  • Pollution control
  • Energy efficiency
  • Resource efficiency

Social upgradation for example:

  • Better working conditions
  • Creche for working mothers
  • Medical facilities
Financial Assistance

Through a Euro 50 million loan facility on-lent to Bangladesh Bank and channeled through selected Participating Financial Institutions

Performance based incentive grants to both RMG factories and Participating Financial Institutions on successful completion of project:

10% for safety remediation & retrofit investments
20% for environmental and social upgradation investments
90% of the incentive grant will be available to the factory
10% will be available to the financial institution
Technical Assistance

Targeted technical assistance to the main stakeholders:

  • Financial institutions: enhance their capacity to address the funding needs of safety remediation and environment and social upgradation of RMG factories and maintain an Environmental and Social Management System.
  • RMG factories: increase the knowledge of managers in the relevant technical areas, financial options to meet investment needs and prepare investment plans.
  • Local Service Providers: strengthen their ability to provide services, cost-benefit analysis and investment planning.
  • Industry associations: to help their members implement projects in the relevant areas.
  • National level partners: to enable Bangladesh Bank to implement the project and DIFE to implement industry standards.