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France has warned that it might cancel its financial offer of €50 million for garment factory remediation if Bangladesh failed to make required progress in this regard, officials said.
The French Development Agency (Agence Française de Développement, AFD) fielded a mission in Dhaka from June 11 to June 15, 2017 to review the progress in its credit facility programme undertaken for upgradation of safety standards of the country's export-oriented ready-made garment (RMG) sector. The mission was conducted by AFD team leader Mounia Chakir.
"The mission warned about AFD's deep concerns regarding slow progress in the preparation of the credit facility programme to Finance Safety Retrofits and Environmental Upgrades in the Bangladeshi RMG sector, which is raising serious questions regarding measures to be taken," the mission informed the finance ministry after its visit.
"The AFD board authorised a loan of €50 million for the project in December, 2015. The France government's agency managed to mobilise other development partners. The board of European Union committed a grant of €6.3 million in November, 2015, supplemented by a grant of €4.0 million sanctioned by the German government in March, 2016 (implemented by KfW). The programme will also benefit from a complementary GIZ initiative amounting to €3.0 million (in-kind TA)," according to the AFD data.
Negotiations on the loan agreement had been completed and credit facility agreement had received approval from the ministry of law.
According to the AFD data, "Project preparation is progressing extremely slowly and has become a major obstacle delaying and jeopardising the project implementation."
In this regard, the AFD management is deeply concerned about this project which, given its complexity and strategic nature, would require full commitment from the implementing agency, the AFD mission also mentioned.
During the last annual consultation meeting held in May 2017, the Bangladesh government and the AFD agreed that all financial agreements should be signed by September 2017.
The AFD in a letter recently requested the government to achieve requirements on the financial offer within the stipulated time.
The French agency said, "AFD would have no choice but to acknowledge the situation and proceed with the cancellation of financial offer."
AFD aims to assist and support Bangladeshi RMG factories to upgrade their safety standards (on a priority basis) as well as their social and environmental performances, sources concerned said.
The loan agreement will be signed between the Economic Relations Division (ERD) and AFD.
http://www.thefinancialexpress-bd.c...hreatens-to-withdraw-its-€50m-financial-offer
The French Development Agency (Agence Française de Développement, AFD) fielded a mission in Dhaka from June 11 to June 15, 2017 to review the progress in its credit facility programme undertaken for upgradation of safety standards of the country's export-oriented ready-made garment (RMG) sector. The mission was conducted by AFD team leader Mounia Chakir.
"The mission warned about AFD's deep concerns regarding slow progress in the preparation of the credit facility programme to Finance Safety Retrofits and Environmental Upgrades in the Bangladeshi RMG sector, which is raising serious questions regarding measures to be taken," the mission informed the finance ministry after its visit.
"The AFD board authorised a loan of €50 million for the project in December, 2015. The France government's agency managed to mobilise other development partners. The board of European Union committed a grant of €6.3 million in November, 2015, supplemented by a grant of €4.0 million sanctioned by the German government in March, 2016 (implemented by KfW). The programme will also benefit from a complementary GIZ initiative amounting to €3.0 million (in-kind TA)," according to the AFD data.
Negotiations on the loan agreement had been completed and credit facility agreement had received approval from the ministry of law.
According to the AFD data, "Project preparation is progressing extremely slowly and has become a major obstacle delaying and jeopardising the project implementation."
In this regard, the AFD management is deeply concerned about this project which, given its complexity and strategic nature, would require full commitment from the implementing agency, the AFD mission also mentioned.
During the last annual consultation meeting held in May 2017, the Bangladesh government and the AFD agreed that all financial agreements should be signed by September 2017.
The AFD in a letter recently requested the government to achieve requirements on the financial offer within the stipulated time.
The French agency said, "AFD would have no choice but to acknowledge the situation and proceed with the cancellation of financial offer."
AFD aims to assist and support Bangladeshi RMG factories to upgrade their safety standards (on a priority basis) as well as their social and environmental performances, sources concerned said.
The loan agreement will be signed between the Economic Relations Division (ERD) and AFD.
http://www.thefinancialexpress-bd.c...hreatens-to-withdraw-its-€50m-financial-offer
