Japan International Corporation Agency (JICA) has committed Tk 1 billion for the renovation or relocation of factories located inside illegal buildings.
The JICA’s Residential chief in Bangladesh, Takao Toda, announced the fund at a programme organised by the Bangladesh Bank on Thursday.
“Japan is always beside Bangladesh. Japan has always lent a helping hand for development in Bangladesh. It will not be different for the ready-made garment sector.”
The fund will be part of the JICA aid to Bangladesh for manpower and infrastructure development.
Toda suggested the monitoring of RMG buildings.
The JICA representative said the money will come from the Tk 5 billion given to the Bangladesh Bank for distribution in the SME sector.
The central bank said the money would be used as a re-financing fund. The banks will get the money against five percent interest.
The money will be advanced at maximum 10 percent interest for 15 years to relocate or renovate RMG buildings. The first two years will be treated as a grace period.
Factories with at least 100 workers and a maximum of 2,000 workers will be eligible for loans. They will get 90 percent of the renovation or relocation cost which will not be more than Tk 100 million.
Before approval, JICA will inspect the factory.
Bangladesh Bank Governor Atiur Rahman said the security of workers was the most important thing.
Housing and Public Works Secretary Khandakar Shawkat Hossain said Bangladesh was behind in wages and security in the RMG sector. “The government has taken steps for improvement. However, the owners must follow the rules for workers’ security.”
Source: bdnews24