WB to give $110m loans for enterprise development

The World Bank (WB) will provide loans worth US$ 110 million for Bangladesh's enterprise development in a bid to ensure green industrialisation in the country.

Economic Relations Division (ERD) Secretary Kazi Shofiqul Azam and WB Country Director in Bangladesh Qimiao Fan signed the loan deal in the capital on Wednesday.

The $110 million credit of the Washington-based lender has a 38-year term, including a six-year grace period, and a service charge of 0.75 per cent.

Under the WB-funded Sustainable Enterprise Project, the government will help some 20,000 micro-enterprises in manufacturing and agribusiness sectors to adopt environment-friendly practices.

From the $110 million funds, it will provide loans to the micro-enterprises for using innovative and environmentally sustainable technologies.

WB in a statement said half of the country's population depends on the existing 7.0 million micro-enterprises for livelihoods. But 90 per cent of these enterprises negatively impact the environment.

A 2014 survey shows only 6.0 per cent of the micro-enterprises in Bangladesh dispose their solid wastes properly.

The WB-funded project will help micro-enterprise clusters to 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-labelled products, and introduce new resource-efficient technologies.

The ERD secretary said: "In the recent years, the government has taken concrete steps to promote a greener, cleaner and more climate resilient economy. This project will contribute to ensure faster and more sustainable growth."

The WB country director said: "Around the globe, we have seen that investing in clean, green and climate-resilient technologies helps the countries to reduce poverty and achieve sustainable growth."

"The project will help Bangladesh create quality jobs, develop competitiveness, and boost growth while improving environmental sustainability and resilience to climate change."

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