Dhaka, Bangladesh (BBN)– Bangladesh has launched Energy Efficiency Financing Loan to assist apparel and clothing industries for ensuring sustainable development.
The loan is targeted to the readymade garments (RMG) and textile industries who will invest in energy efficiency technology and the Technology Service Provider Companies who provide energy efficiency solutions, the organizers said.
BRAC Bank Limited, a leading private commercial bank (PCB), introduced the loan product –Planet Solutions – that will be an unsecured financing with an interest rate of 6.0 per cent.
Entrepreneurs and the technology service provider companies will be able to avail the Planet Solution loan with flexible loan tenors based on payback period within minimum processing time.
S K Sur Chowdhury, Deputy Governor of Bangladesh Bank (BB), and Selim R. F. Hussain, Managing Director and Chief Executive Officer of BRAC Bank, formally launched the loan product at a workshop on Water and Energy Efficiency Financing, organized by the International Finance Corporation (IFC), at a hotel in the capital Dhaka on February 28.
Mr. Sur Chowdhury emphasized on strengthening water and energy efficiency investment for achieving sustainable development.
“….mechanisms to capture the opportunities for water and energy efficiency investments need to be created or strengthened,” the deputy governor said while addressing at the workshop as chief guest.
For water and energy efficiency investments to be made, water and energy efficiency concepts must be marketed to enterprises, and specific projects must be identified, designed, and appraised, he explained.
“Despite the variety of sources for financing energy efficiency projects, it is clear that ultimately the key source of sustainable and sizable flows of finance in most countries is the local banking sector,” Mr. Sur Chowdhury observed.
On the occasion, Selim R. F. Hussain said: “I would like to stress on the strong partnership we have developed over the years with IFC in working on Green Finance. IFC’s customized and tailor-made support for BRAC Bank, complemented with their global knowledge and expertise has helped us structure, plan and launch the very first Energy Efficiency Loan product in Bangladesh.”
With the rising cost of energy and water uses, the growth trajectory of Bangladesh textile industry can only be sustained by investing in water and energy efficiency improvement in factories and nearby communities, according to Wendy Werner, IFC Bangladesh Country Manager.
“IFC Bangladesh is committed to the development goals of the industry and will extend support through capacity and business development through the PaCT(Partnership for Cleaner Textile) programme.”
The main objective for arranging the event was to support financial institutions and technology service providers in promoting water and energy efficiency products and services for the textile industry in Bangladesh.