Bangladesh could capture $1.2b of recycled textile industry
Bangladesh has the potential to produce $1.2 billion worth of recycled textile and garment items as the country has a big production base for cotton fibre clothing items, according to a recent study by the Global Fashion Agenda (GFA) and McKinsey & Company. In total, six major manufacturing countries — Vietnam, Turkey, India, Malaysia, Indonesia and Bangladesh — could tap into a $4.5 billion market in the form of this post-industrial recycling opportunity, as per the analysis. In 2020, the overall uptake of recycled fibres compared to the total fibre production was only around 8.1 per cent, with 7.6 per cent coming from recycled polyester from plastic bottles, not textiles. Cotton accounted for 24 per cent, or 26.5 million tonnes, of the global fibre market in 2020, while recycled cotton made up less than 1 per cent. From November 2020 to November 2021, the CFP mapped and traced 1,013 tonnes of textile waste on the Reverse Resources platform with 0.2 per cent of this waste coming from Bangladesh. It now regularly traces over 200 tonnes per month.
Deals inked for $2.66b Japanese loans
Japan will provide $2.66 billion to Bangladesh to support construction of two major mega projects, including building of Dhaka’s first underground metro rail project, said a statement from the finance ministry. Matarbari Ultra Super Critical Coal-Fired Power Project, one of the major power generation schemes of the government, is another project for which the world’s third-largest economy will provide $1.2 billion. Japan has already provided $2.63 billion for the project at Matarbari area of Maheshkhali upazila under Cox’s Bazar district. The project comprises two units, each of which would produce 600 megawatts of electricity. Beginning in July 2014, the project is set to be implemented by June 2023. Up until October 2021, some 49 per cent of the project has become visible, while 51 per cent of the money has been spent. Tokyo earlier provided around $500 million for the 31.2-kilometre MRT Line-1. The project implementation cost is estimated at Tk 52,561.43 crore. The Japan International Cooperation Agency will provide Tk 39,450.32 crore. Beginning in September 2019, the project is set to be completed by December 2026. The $365 million budget support comes with an interest rate of 0.55 per cent and a repayment period of 30 years, including a 10-year grace period. When the pandemic emerged in 2020, Japan provided the first-ever budget support of $320 million to Bangladesh.
Investment summit begins on Nov 28
Bangladesh Investment Development Authority (BIDA) is going to organise a two-day investment summit from November 28 to focus on the development of the investment environment in the country, reports BSS. BIDA will organise the summit in association with Bangladesh Economic Zones Authority (BEZA), Bangladesh Export Process-ing Zones Authority (BEPZA), Bangladesh Hi-Tech Park Authority (BHTPA), Public Private Partnership Authority (PPPA), Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and Foreign Investors’ Chamber Of Commerce and Industry (FICCI). The summit will be held at the Radisson Blu Dhaka Water Garden in the city.
$2.67b deals with Jica to finance MRT-1, Matarbari power plant
The government has inked final agreements amounting to $2.67 billion with the Japan International Cooperation Agency (Jica) to finance the country’s first underground metro rail (MRT Line-1), Matarbari coal-fired plant and also to provide Covid emergency budget support to tackle Covid-19. Fatima Yasmin, secretary to the Economic Relations Division (ERD), and Yuho Hayakawa, chief representative at Jica Bangladesh Office, signed the deals on behalf of respective sides at the National Economic Council auditorium in the capital. ERD officials said $1.10 billion loans from Jica would come as the second tranche for the Dhaka Mass Rapid Transit Development Project (Line 1) and about $1.20 billion as the 6th portion to implement Matarbari Ultra Super Critical Coal-Fired Power Project. A total of $2.3 billion loan will be disbursed as the first tranche of the 42nd ODA Yen Loan Package from Jica, while another $365 million will come as the second of the Covid-19 crisis response emergency support loan. In 2020, Japan provided $320 million as budget support for countercyclical expenditure plan to combat Covid-19 impacts in Bangladesh.
SCB partners with global RMG buyers
Standard Chartered Bank has disbursed USD Denominated Pre-Shipment Loans, to support the Ready-Made Garments industry face the challenges imposed by COVID-19. The unique COVID-19 response finance programme was designed through consultation with renowned buyers, enabling enhanced liquidity support for clients in a challenging environment. The Bank’s clients can avail one-year liquidity support for payment of wages, utilities and other operational expenses under this programme, with a moratorium period of 3 months. More than 20,000 workers received their multiple months salaries and festival bonuses on time through these loans.