$350mn project to strengthen BB’s regulatory capacity: Dr Atiur
03 August 2015, Nirapad News: Bangladesh Bank governor Dr Atiur Rahman has said the central bank has undertaken a US$350 million project to strengthen its regulatory and supervisory capacity and improve the country’s financial market infrastructure.
He informed this while addressing a workshop on Energy Efficiency in Industries and CEA Certificate Award Ceremony at Hotel Amari in the city’s Gulshan area on Sunday.
The project, named ‘Financial Sector Support Project (FSSP)’, was undertaken with the financial assistance of the International Development Association (IDA).
Of the total $350 million fund, the IDA will provide $300 million and the rest $50 million will be borne by the central bank.
USAID and Catalyzing Clean Energy in Bangladesh (CCEB) jointly organised the function which was addressed, among others, by IIDFC Chairman M Motiul Islam, Acting Director of EG Office USAID/Bangladesh Colin Holmes, and Chief of Party of CCEB Craig VanDevelde.
Representatives of different energy audit firms, banks, financial institutions, textile, RMG, frozen food, steel and jute sectors also attended the function.
Dr Atiur Rahman said the part of FSSP fund will be utilised in establishing a long-term financing window for greening the manufacturing firms and export-oriented industries.
These manufacturing and export-oriented industries may be greatly benefited from the green auditors in identifying green and green monitoring perspective, he observed.
The central bank governor also informed that the Bangladesh Bank is coming up with 200 million dollar Medium to Long Term Green Fund (MLTGF).
This fund will be utilised for supporting textile, leather sector and other products for water use of efficiency in wet processing; water conservation and management; waste management (solid & liquid).
Resource efficiency and recycling, renewable energy, energy efficiency, heat and temperature management, air ventilation and circulation efficiency and work environment improvement initiatives will also get support from this fund.
He said the technical and supervision guidelines of green auditors must be of immense help for these green industries and products.
Dr Atiur observed that creating mass awareness is necessary for ‘green’ financing, fostering technical expertise in drawing up ‘green’ project initiatives, capacity building in financial appraisal of ‘green’ projects.
He hoped that Bangladesh Bank’s newly established Sustainable Finance Department will take greater initiatives in areas like solar energy and ‘green’ products.
“I sincerely believe that sponsors, manufacturers, technical experts, service providers and the people involved in different manufacturing industries such as textile, RMG, jute, frozen food, steel will engage themselves in adopting energy efficient measures,” he added.
The governor appreciated the USAID and associates for organising a demand-oriented energy efficiency programme and workshop.
He said this will certainly play a significant role in promoting these products and its benefits thus gradually will ensure energy security for industries in the days to come.
He said this is very encouraging that USAID-CCEB program has been supporting different industries by conducting free energy audit and providing grant funds for initial boosting.
The Bangladesh Bank governor noted that the program has already conducted energy audit for 100 industries in the last three years.