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IDCOL plans to mobilise $250m to make RMG sector energy efficient

FE REPORT | Published: October 24, 2019 10:39:06 | Updated: October 26, 2019 10:16:37


- FE file photo

Infrastructure Development Company Limited (IDCOL) plans to mobilise US$ 250 million to help make the country's garment sector energy efficient.

Of the total, $150 million will be sought from the Green Climate Fund (GCF) and the rest $100 million will be co-financed by the financial institutions including banks.

It was revealed at a dissemination and stakeholder consultation workshop organised by the IDCOL, a state-run financing company, at a city hotel.

Speaking as chief guest, IMED secretary Abul Mansur Md Faizullah pointed out that Bangladesh still needs increasing its capacity to get access to the GCF as the process is quite complex.

The IDCOL conducted a number of studies under the GCF programme titled "Promoting private sector investment through large-scale adoption of energy saving technologies and equipment for garment sector of Bangladesh".

While presenting the brief of the project, IDCOL's GCF Unit head M Mosleh Uddin said concessional loan will be sought from the GCF while local banks and financial institutions including Southeast Bank, BRAC Bank, IDLC Finance, and City Bank will co-finance the initiative.

The garment sector borrowers will also make equity contributions in the project.

Member of the Sustainable and Renewable Energy Development Authority (SREDA) Siddique Zobair focused on modification of building design using construction materials like heat protecting glass and hollow bricks which will help in passive cooling system.

This will reduce the cooling load and improve the working environment of readymade garment factories, he said.

Vice president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Moshiul Azam underscored the importance of easily accessible green financing scheme in Bangladesh.

He said local financial institutions needed to be sensitised about the importance of the green financing in the country.

Economic Relations Division additional secretary Sultana Afroz said Bangladesh has good reputation in addressing climate change issues.

"For accessing to the climate funds, for example GCF proposals, we must strongly address climate rationale along with the environmental, social, and gender issues," she said.

Associate Professor of Jahangirnagar University Dr Sharmind Neelormi emphasised that the GCF proposals needed to be aligned with the development priorities of national policies like Seventh Five Year Plan and NDC.

To be technically efficient in terms of achieving energy efficiency in RMG sector, both male and female workers should get equal opportunity, she said.

IDCOL's vice president and environmental specialist Dr Ahmedul Hye Chowdhury said assessing the risks and impacts on environmental, social, and gender issues is needed while preparing the guidelines.

Deputy chief executive officer of IDCOL S M Monirul Islam said energy efficient initiatives will help the RMG industry to become more productive and competitive.

He also said presently the IDCOL is developing a number of mitigation and adaptation projects for GCF, addressing the climate change imperative for the country.

IDCOL's Head of Renewable Energy programme Enamul Karim Pavel in his welcome speech elaborated the organisation's role in climate change initiatives.

syful-islam@outlook.com

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