Bangladesh Garment Manufacturers and Exporters Association (BGMEA) starts collecting funds today for establishing an industrial park at Baushia of Munshiganj for the ready-made garment sector.
The three-year project worth about Tk100bn, which the BGMEA aims to complete on June 30, 2016, will give priority to the non-compliant factories in Ashulia zone, to make them fully compliant ones.
The garment industrial park to be located 37km from Dhaka will have 577 plots for apparel units, which will be distributed on a first-come-first-serve basis.
The BGMEA will soon invite garment factories to contribute to the fund starting July 7.
It has also requested the technical and financial support of the World Bank.
In a proposal submitted on Sunday, it asked for loans on simple conditions against an interest rate of 1-2%. A BGMEA source said the World Bank would give its feedback within the next 10 days.
The association’s vice-president Shahidullah Ajim said the government had already allocated them over 215 hectares of land and the land acquisition process was going on.
He said Dhaka city would be free from traffic jam after the industrial park is established since all garment factories from Ashulia would shift there.
The project has been discussed for a decade. Now the initiative has been taken up following the deadly fire at Tazreen Fashions that killed 112 garment workers and the collapse of Rana Plaza that killed 1,127.
International pressure has mounted on the country’s apparel industry since the Rana Plaza incident, with several international buyers, including the Walmart, having already been warned not to export garment items from Bangladesh.