WB funds to help microenterprises adopt cleaner technologies

The government yesterday struck a financing agreement with World Bank (WB) to help microenterprises adopt cleaner technologies.

The $110 million Sustainable Enterprise Project will help about 20,000 microenterprises in the manufacturing and agribusiness sectors adopting environment-friendly practices. It will provide loans to microenterprises for innovative and environmentally sustainable technologies and practices.

“Around the globe, we have seen that investing in clean, green, and climate-resilient technologies helps countries reduce poverty and achieve sustainable growth,” said Qimiao Fan, country director of the WB, in a statement.

“The project will help Bangladesh create quality jobs, improve competitiveness and boost growth while improving environmental sustainability.”

According to the development lender, half of the country's population depend on 7 million existing microenterprises for livelihoods. But 90 percent of these cause a negative impact on the environment.

For example, a 2014 survey shows only 6 percent of microenterprises disposed of solid wastes properly.

The project will promote basic safety standards, certify eco‐labeled products and introduce resource‐efficient technologies.

“In recent years, the government of Bangladesh has taken concrete steps to promote a greener, cleaner, and more climate‐resilient economy,” said Kazi Shofiqul Azam, secretary to the Economic Relations Division.  “This project will contribute to more sustainable growth.”

The credit is from International Development Association, the WB's concessional lending arm, and has a 38-year term, including a six-year grace period and a service charge of 0.75 percent.