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.