Govt, WB sign $110m loan deal for sustainable enterprises

Staff Correspondent | Published: 00:05, May 17,2018 | Updated: 00:29, May 17,2018

 
 

World Bank will provide $ 110 million in loans to finance microenterprises for adopting clean energy and green technologies.
Economic Relations Division of the finance ministry on Wednesday signed a financing agreement with the global lender to implement the sustainable enterprise project.
The credit will come from the International Development Association, the WB’s concessional lending arm, with a 38-year term, including a six-year grace period, and a service charge of 0.75 per cent.
ERD secretary Kazi Shofiqul Azam and WB country director for Bangladesh, Bhutan and Nepal Qimiao Fan signed the agreement on their respective sides at ERD at Agargaon area in Dhaka.
The project will help about 20,000 microenterprises adopt environment friendly practices in the manufacturing and agribusiness sectors. It will also provide loans to microenterprises for innovative, environmentally sustainable technologies and practices.
WB in a press release said that half of the country’s population depended for livelihoods on 7 million existing microenterprises but 90 per cent of these negatively impact the environment.
For example, a 2014 survey shows only 6 per cent of microenterprises disposed solid wastes properly, it said.
The project will help microenterprise clusters use cleaner technologies and shared amenities to reduce pollution and become less vulnerable to climate change. It will also promote basic safety standards, certify eco-labeled products, and introduce new, resource-efficient technologies.
Investing in clean, green and climate resilient technologies helps countries reduce poverty and achieve sustainable growth, Qimiao Fan said.
The Project will help Bangladesh create quality jobs, improve competitiveness, and boost growth while improving environmental sustainability and resilience to climate change, he said. 

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