Title

Programme to Finance Safety Retrofits and Environmental upgrades in the Bangladeshi Ready-Made Garment (RMG) Sector

With the aim to secure and improve working conditions in the Bangladeshi RMG sector, in order to sustain its growth and its positive impact on the fight against poverty, the project provides soft loans to RMG factories for safety improvement and upgradation of environmental and social standards, supported by performance-based investment grants, and technical assistance.

Duration

From 26/12/2016 to 25/12/2023

Budget (Euro)

Total cost: EUR 63 605 000 ; EU contribution: EUR 6 605 000 from the EU Asia Investment Facility (AIF)

Locations

RMG factories in Bangladesh, mostly located in industrial belts around Dhaka (Ashulia, Savar, Gazipur, Narayanganj & etc.) and Chittagong.

Implementing Organization (s)

AFD is the project’s lead financial institutions, EU, KfW and GIZ are co-financiers. The Central Bank of Bangladesh is the Government implementing agency.

Objectives

Outcome (Specific Objectives) and Outputs (Expected results)

The Action aims at:

• Facilitating the financing of RMG factories in Bangladesh so that they can perform i) safety investments; ii) Environmental and social investments;
• Providing assistance to RMG factories to design their investment projects and to mitigate the environmental and social impacts of their business activity.

Overall objective: To secure and improve working conditions in the Bangladeshi RMG sector, in order to sustain its growth and its positive impact on the fight against poverty.

Specific objectives:

1. Improving safety standards;
2. Reduction of social and environmental costs linked to the RMG sector;
3. Improvement in the workplace wellbeing for workers;

Expected results:

1. RMG companies gain access to subsidized loans through the Project;
2. RMG companies gain access to performance premium for achieving the stated objectives of their investments;
3. Textile entrepreneurs are adequately supported (by service providers) with regard to the planning and implementation of investments that are relevant in safety and environmental aspects
4. Banks are adequately supported (by service providers) with regard to the consideration of safety, environmental and social aspects of the textile sector in the lending processes.

Target group(s)

Bangladeshi RMG sector

Final beneficiaries

Around 150 Bangladeshi export-based RMG factories