International Finance Corporation (IFC) is likely to provide funds to Bangladesh readymade garments factory owners to facilitate remediation works on fire, electrical and building safety.
The brands those are signatory to the Accord will guarantee the loan, with that guarantee the IFC would provide the loan to the factory owners, Rob Wayss, Executive Director of Accord Bangladesh Operation, told the Dhaka Tribune yesterday.
The factory owners will get loans at low interest, approximately 6-7%, and the factory owners can be provided with the money only for remediation works, he said. The possible duration for repayment of the loan would be three years.
The Accord on Fire and Building Safety in Bangladesh is working on the issues, which are not yet finalised. The Accord has sent the IFC proposal to the interested buyers and brands so the interested parties could contact the IFC for more details.
According to article 24 of the Accord agreement, the signatory companies shall assume responsibility for funding the activities of the steering committee (SC), Safety Inspector and Training Coordinator as set forth in this Agreement, with each company contributing its equitable share of the funding in accordance with a formula to be established in the Implementation Plan.
The SC shall be empowered to seek contributions from governmental and other donors to contribute to the costs. Each signatory company shall contribute funding for these activities in proportion to the annual volume of each company’s garment production in Bangladesh relative to the respective annual volumes of garment production of the other signatory companies.
The Accord on Fire and Building Safety in Bangladesh inspected 760 factories and identified less than 2% apparel factories vulnerable.
The Accord, a plat form of over 180 brands and retailers, had committed to improve safety standard, including fire, electrical and structural safety after the collapse of Rana Plaza, which killed 1,135 workers and injured over 2,500 last year.
Source: Dhaka Tribune
