Two bilateral agreements – financial cooperation and technical cooperation – have been signed between Germany and Bangladesh on the ‘financing of environment and safety retrofits in the Bangladesh readymade garment sector’.
The objectives of the project are to enhance the capacity of the selected commercial banks to better address the funding needs of the RMG factories.
It is also to support RMG factories in bridging the knowledge gap regarding investments and remediation upgrades and also supporting the actual implementation of these investments.
“This will enable an effective utilization of the credit and promote workers safety and will also improve environmental standards in the RMG sector,” the Germany embassy said in a statement.
An ERD Additional Secretary Alkama Siddiqui and Ambassador Thomas Prinz signed the agreements respectively on Monday.
The project is a joint development effort by France, Germany and the EU. Germany will provide an amount of Euro 7 million as grant through KfW, 4 million, and GIZ, 3 million, in this regard.