(Dhaka,8 December 2014) Dhaka Apparel Summit, first of its kind in Bangladesh, is being held at the Bangabandhu International Conference Center on 7-9 December. The summit was organized by Bangladesh Garment Manufacturers and Exporters Association (BGMEA) in collaboration with Brand Forum Bangladesh.
Press Release- Session 5
The 5th session of the Dhaka Apparel Summit titled “Remediation Financing for Transforming Bangladesh Garment Industry” was held at Bangabandhu International Conference Center (BICC) in Dhaka on 8 December.

This session focused on issues related to access to lower-cost financing required for the transformation of the industry. The discussion shed light on how to ensure lower-cost financing for relocating those factories built in unplanned to purpose-built buildings.
Opinions:

Thomas A. Nelson, Vice President, Supply Chain – Global Product Supply, VF Corporation, said that VF Corporation has first issued their fund for factory remediation. We are working with IFC and other organizations to ensure factory remediation.

Rob Wayss, Executive Director, Accord on Fire and Building Safety in Bangladesh, said that we are in discussion to provide commercial support and financial support by the lead brands for the factory remediation. We approached 10 brands and some of them are at their final stage to approve fund for factory remediation.
Muhammad A (Rumee) Ali, Advisor to the Interim Executive Director, BRAC; Chairman of BRAC EPL Investments Ltd., said that we need national standard to move finance available to garment factories because it is the need not only for the exporters but also importantly for the millions of workers.
Kyle Kelhofer, Country Manager, Bangladesh, Nepal and Bhutan, IFC, said that the industry is not waiting for solution on financial solution for the remediation the RMG sector needed. They are carrying on remediation, which is unique.

Recommendations:
Sarah Labowitz, Co-Director, NY University Stern Center for Business and Human Rights, said that the inspection of factories out of the purview of Accord and Alliance has fall under the National Action Plan. It is necessary to discuss how they will carry on remediation. I hope that real discussion will be on the practical solution to how finance comes to small and medium sized factories.
Md. Shahidullah Azim, Vice President, BGMEA, said that after inspection about 1000 factories may need to be relocated. About 1.5 million dollars will be required for remediation. So, about 2 million dollars of fund needs to be mobilized to relocate the factories. This fund of 2 million dollars may be provided to the entrepreneurs at low interest rate and with no hidden charges.
Ahsan H. Mansur, Executive Director, Policy Research Institute of Bangladesh (PRI), moderated the session.
Md. Shahidullah Azim, Vice President, BGMEA, Thomas A. Nelson, Vice President, Supply Chain – Global Product Supply, VF Corporation, Rob Wayss, Executive Director, Accord on Fire and Building Safety in Bangladesh, Sarah Labowitz, Co-Director, NY University Stern Center for Business and Human Rights, Muhammad A (Rumee) Ali, Advisor to the Interim Executive Director, BRAC; Chairman of BRAC EPL Investments Ltd., Olaf Schmidt, Global Sector Head, Retail, Real Estate & Hotel Investments, IFC, Kyle Kelhofer, Country Manager, Bangladesh, Nepal and Bhutan, IFC, and Shah A Sarwar, Managing Director, IFIC Bank Limited, took part in the session as panel speakers.