Home / Knowledge / News / Apparel/Garments / ADB loan to support Bangladesh RMG industry safeguards
ADB loan to support Bangladesh RMG industry safeguards
28
Apr '16
The Asian Development Bank (ADB) has signed a loan agreement with Bangladesh's BRAC Bank under the $30 million loan facility approved by ADB's Board, which will be used to finance the construction and upgrade of ready-made garment factories in the country that have taken steps to meet globally agreed standards for structural improvements and worker rights and safety.

In a press release, the ADB also said the loan will also be used to build badly needed effluent treatment facilities in the textile and garment industry. Many factories in Bangladesh still operate without effluent treatment plants, resulting in widespread water pollution which is particularly damaging in rural areas where communities rely on surface water for washing, bathing, irrigation and fishing.

“This loan, with a 5-year tenure, will help meet the need for longer term finance currently unavailable from local banks and international capital markets, and will be used exclusively by BRAC Bank to finance socially and environmentally sustainable projects,” said Biao Huang, Investment Specialist in ADB's Private Sector Operations Department.

Transforming the factories in line with agreements after the Rana Plaza tragedy of 2013, however, requires substantial outlays, with the cost estimated at around $250,000 to $400,000 per factory. Given the lack of long term funding available in Bangladesh, ADB's loan will enable BRAC Bank to offer longer tenure financing to companies wanting to upgrade and improve structural, safety and social standards at their factories.

ADB will also be working with the bank on a rollout of a gender action plan, which will ensure factory upgrades reflect the needs of women. This includes the provision of day care facilities, safety measures for females, and health clinics. Women make up nearly 80 per cent of all workers in the textile and garments industry in Bangladesh. (SH)

Fibre2Fashion News Desk – India


Must ReadView All

US merchandise trade with India, 2012–16; Courtesy: USITC

Textiles | On 27th Jul 2017

India becomes US’ 9th largest trading partner in 2016

In 2016, India became the United States’ 9th-largest single-country...

Textiles | On 27th Jul 2017

GST will lead to further increase of MMF prices

The Goods & Services Tax (GST) rolled out on July 1, 2017 is not...

Textiles | On 27th Jul 2017

Global yarn production improved 30% q-o-q in Q1: ITMF

In the first quarter of 2017, global yarn production rose by almost...

Interviews View All

Headhonchos
Indian textile value chain

Adopt innovative techniques, go for automisation rather than being...

Binoy Ravjani
Hero's Fashion

‘One of the recent trends in hand block printing is the indigo process,...

Pinkesh Jain
Everflow Petrofils Ltd

‘An innovative technology which India needs desperately is the...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Thanks for your valuable feedback. Claim your free latest sustainability e-book.


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X