fbpx 49074-001: Sustainable Projects | Asian Development Bank

Bangladesh: Sustainable Projects

Nonsovereign (Private) Project | 49074-001 Status: Active

ADB will provide a 5-year senior unsecured term loan to BRAC Bank of up to $30 million. The proceeds will be used to finance socially and environmentally sustainable projects, which include (i) the construction or expansion of RMG factories that meet the high structural, fire, and electrical safety standards required by the accord or the alliance; and (ii) improvement of existing factories to meet any of the above standards. The loan will also fund construction of wastewater and ETPs in the industry sector, primarily in the textile and garment industry.

Project Details

Project Officer
Doukidis, Doukas Private Sector Operations Department Request for information
Country
  • Bangladesh
Sector
  • Finance
 
Project Name Sustainable Projects
Project Number 49074-001
Borrower/Company BRAC BANK LIMITED
Country Bangladesh
Location Nation-wide
Type or Modality of Assistance
3278 Loan Ordinary capital resources USD 30.00 million Committed
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Private sector development
Sector / Subsector

Finance / Finance sector development

Gender Equity and Mainstreaming Effective gender mainstreaming
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Portfolio Management Division, PSOD
Responsible ADB Officer Doukidis, Doukas
Project Sponsor(s) BRAC BANK LIMITED
Description ADB will provide a 5-year senior unsecured term loan to BRAC Bank of up to $30 million. The proceeds will be used to finance socially and environmentally sustainable projects, which include (i) the construction or expansion of RMG factories that meet the high structural, fire, and electrical safety standards required by the accord or the alliance; and (ii) improvement of existing factories to meet any of the above standards. The loan will also fund construction of wastewater and ETPs in the industry sector, primarily in the textile and garment industry.
Objectives and Scope The objective of the proposed project is to (i) enhance health and safety standards of garment industry in Bangladesh; (ii) promote finance sector development; (iii) enhance environmental standards in the industry sector. The project will finance socially and environmentally sustainable projects, which include (i) the construction or expansion of RMG factories that meet the high structural, fire, and electrical safety standards required by the accord or the alliance; and (ii) improvement of existing factories to meet any of the above standards. The loan will also fund construction of wastewater and ETPs in the industry sector, primarily in the textile and garment industry.
Status of Development Objectives On track in meeting most of its development objectives.
Status of Operation/Construction On-going.
Linkage to Country/Regional Strategy

the Mid-Term Review of Strategy 2020, ADB aims to strengthen its support for the finance sector by supporting the development of financial infrastructure, institutions, and products and services. The project supports three priorities identified by the mid-term review of Strategy 2020 including (i) poverty reduction and inclusive economic growth; (ii) environment and climate change; and (iii) private sector development and operations The project is aligned with the country partnership strategy (CPS) for Bangladesh for 2011-2015, which prioritizes private sector development to accelerate growth by developing the finance sector with an emphasis on clean energy, infrastructure finance and credit for SMEs. The CPS also notes that environmental considerations should be integrated into sector interventions.

By financing wastewater treatment plants in industrial sector, the proposed project is in line with ADB's Water Operational Plan, which identified wastewater management services as one of the key elements of ADB's operations in the water sector.

Safeguard Categories
Environment FI
Involuntary Resettlement FI
Indigenous Peoples FI
Summary of Environmental and Social Aspects
Environmental Aspects The borrower will be prohibited from using the proceeds of the ADB loan to finance projects that are category A under the Safeguard Policy Statement. The borrower will update its existing ESMS to ADB satisfaction before the first disbursement of the proposed loan. BRAC Bank will be required to increase its existing staff capacity to effectively carry out both the assessment and oversight. The enhanced screening process covers (i) fire safety aspects, including verification of accord and/or alliance corrective action plans, and screening out high risk factories; and (ii) environmental and social aspects, which include review of the social and labor audits conducted by the factories' buyers and compliance with local environmental regulations. Subprojects having high risk environment and safety issues will be excluded from financing. BRAC will review government certification, screen and monitor subprojects to ensure compliance with the national legislations, including those related to wastewater treatment plants and effluent treatment plants.
Involuntary Resettlement The proposed ADB funded sub-loans of BRAC Bank will support mainly the construction or expansion of textile plants and improvement of existing plants to meet standard of fire and building safety which are likely to have minor impacts on involuntary resettlement.
Indigenous Peoples The project is not expected to entail any significant impact on indigenous peoples.
Stakeholder Communication, Participation, and Consultation

Potential stakeholders include bank staff and their borrowers, national and local government, regulatory agencies, and the project beneficiaries (employees of textile factories, sustainable projects, including women).

Consultation meetings were conducted by the bank with the relevant stakeholders, including the poor and vulnerable groups at the factories and surrounding communities.

Timetable for assistance design, processing and implementation
Concept Clearance 31 Mar 2015
Credit Committee Meeting -
Approval 16 Sep 2015
Last PDS Update 28 Sep 2018

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Title Document Type Document Date
Senior Loan to BRAC Bank for Sustainable Projects: Initial Poverty and Social Analysis Initial Poverty and Social Analysis Nov 2015
Sustainable Projects: Report and Recommendation of the President Reports and Recommendations of the President Aug 2015

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.