More than 1,500 garment factories have been inspected and recommendations made for fire, electrical and structural safety improvement in all the units over the last two years, European-led Bangladesh Accord said in a statement on Friday. The Accord signed an unprecedented agreement to make garment factories safe in Bangladesh by global garment brands and retailers and two global unions and their national readymade garments (RMG) affiliates after the Collapse of Rana Plaza that killed more than 1,100 people and maimed thousands others on April 24, 2013. Many safety issues were identified at each inspected factory, and steps taken tom upgrade safety standards, the statement said. “Fixing all these hazards is a massive amount of work for the RMG industry, but safety remediation work at the inspected factories is underway. There has been especially good progress on electrical remediation which is positive as most factory fires are caused by electrical hazards. As a result, we have helped prevent fires in factories covered by the Accord,” the statement quoted Brad Loewen, chief safety inspector of the Accord as saying. “We are pleased to also report that we have verified the first fully remediated factories where all fire, electrical, and structural safety corrective actions from the initial inspections are complete.” With more than 200 company signatories and 1500 factories covered by the agreement, the Accord had embarked on a large scale effort to identify and resolve all major safety risks in these factories. The initial inspections by the Accord have brought the urgency to improve workplace safety in the Bangladeshi RMG to the fore. “Identifying the issues and developing plans to correct them is the first step. In the remaining three years of the Accord we will work with our signatories and suppliers to complete the remediation at all factories and ensure that a functioning safety and health committee capable of maintaining and monitoring safety issues on a day-to day basis is in place at every Accord listed factory. This requires a concerted effort from the factories with support from the Accord signatory companies and Accord union colleagues. The Accord team stands ready to support all parties if we hit obstacles in this road ahead,” said Rob Wayss, executive director of the Accord. The Accord continues to work intensively with its company and union signatories, workers, factory owners and their associations and the Government of Bangladesh – National Effort to realize the common goal of a safe and sustainable RMG industry in the country, the statement said. (SH)

Source: https://www.observerbd.com/2015/05/23/90295.php#sthash.vUhi04MN.dpuf

The Bangladesh Export Processing Zones Authority (BEPZA) has taken initiatives to adopt green practices at different export processing zones (EPZs) across the country by setting up solar-powered street lights and effluent treatment plants. BEPZA, with assistance from the World Bank, EU and South Korean government recently implemented a low carbon zone project at Chittagong EPZ at a cost of Tk 75 crore. Under the project, a total of 750 electric poles have been set up with solar panel on the streets, making the entire Chittagong EPZ under solar energy system. In addition, a solar panel of 75 KW has also been installed at BEPZA office in Chittagong EPZ and investors’ club to source solar energy. As a result, the Chittagong EPZ authority expects to save electricity of around Tk 32 lakh per year. Md Khorshid Alam, General Manager (in charge) of Chittagong EPZ, said implanting the low carbon project has facilitated the Chittagong EPZ to enjoy energy use in an environment-friendly way. Sources said the BEPZA is also working to establish an environmental laboratory at Chittagong EPZ to assess the volume of carbon the industrial units are emitting which will help to reduce the carbon emission volume. With the lessons learnt from this project, the BEPZA will turn to establish such green energy systems in its other EPZs in the country. Meanwhile, the BEZA has set up a central effluent treatment plant (CETP) at Comilla Export Processing Zone (Comilla EPZ) to ensure environment-friendly industrial practices. Prime Minister Sheikh Hasina is expected to inaugurate the CETP on May 25. With the CETP in Comilla EPZ, a total of three EPZs under BEPZA came under effluent treatment plant facilities which hopefully will expedite the green practices by the BEPZA. The BEPZA earlier installed two CETPs at Dhaka and Chittagong Export Processing Zones. Nazma Binte Alamgir, General Manager (Public Relation) of BEPZA, said they are putting their best efforts to make the EPZs efficient with utmost environmental practices.

Source: https://www.daily-sun.com/print/front-page/2015/05/23/504691#sthash.dPDANW09.dpuf

Bangladesh Export Processing Zones Authority (BEZA) has set up a Central Effluent Treatment Plant (CETP) at its Comilla Export Processing Zone (Comilla EPZ) with a view to ensure environment-friendly industrial operation there. Prime Minister Sheikh Hasina was expected to inaugurate the CETP on May 25 next. With establishing CETP in Comilla EPZ, a total of three EPZs of BEPZA came under effluent treatment plant facilities which hopefully will expedite the activities of BEPZA with green concept exercise. Earlier, BEPZA had established CETP in Dhaka and Chittagong Export Processing Zones respectively. Sources from BEPZA said that positive experience from CETPs in Dhaka and Chittagong EPZs have prompted BEPZA to establish effluent treatment plant at Comilla EPZ. BEZA has established CETPs at three EPZs as part of its move to operate industrial activities in an environment-friendly manner, It will also go forward in establishing effluent treatment plants in other EPZs soon, he said. According to information, BEZA, the monitoring body of the country’s Export Processing Zones (EPZs) have asked the investors to establish domestic effluent treatment plants in the industrial units so that high standard in production can be maintained through treating the wastes in friendlier ways. The effluent treatment plant has been set up in Comilla EPZ spending Tk 38.50 crore, sources said. It was learnt that the owners of the industrial unit will have to pay charge for their wastes which will be processed by the CETP. It was learnt that each industrial unit will have a digital meter to estimate how much wastes were gone to plant for processing and they will pay charge as per the volume of the wastes. Md. Abdus Sobhan, General Manager (in charge) of Comilla EPZ while talking to daily sun said that the CETP will help the EPZ grow in environment-friendly manner both for the workers and for the surroundings as well. Comilla EPZ sources said that there are 37 industrial units in operation at the Comilla EPZ while 15 industrial units are under implementation. The industrial units include garments, garment accessories, leather goods, yarn and fabrics. This is the third CETP that BEZA has established in EPZ considering the environmental concern, Nazma Binte Alamgir, General Manager of BEZA said adding that based on the necessity they will also establish CETPs in the other EPZs of the country.

Source: https://www.daily-sun.com/print/business/2015/05/21/504293#sthash.hTrVmGaP.dpuf

Commerce Minister Tofail Ahmed on Wednesday said sites for 17 economic zones for foreign investors have been already selected and China will get its preferred sites for establishing economic zones. The commerce minister was addressing the inaugural ceremony of the office of Bangladesh-China Chamber of Commerce and Industries (BCCCI) at Dilkusha in city’s Motijheel. He said China is the top readymade garments exporting country and Bangladesh is in second position. But the production cost is higher in China than Bangladesh. “So, China wants to transfer more investments to Bangladesh.” “We are ready to provide all sorts of cooperation to China, we have identified 17 sites for special economic zones and they can take whichever sites they want,” he said. He said there are many on-going projects in Bangladesh that have been funded by China. “They have provided fund for the Padma Bridge project. Besides, we have been developing an industrial park on a 60 bighas of land where a Chinese company has provided financial assistance,” Tofail said. BCCCI President Golam Dastagir Gazi presided over the inauguration ceremony where Prime Minister’s Adviser Salman F. Rahman, Chinese Ambassador to Bangladesh Ma MingKiang and former Industries Minister Dilip Barua were also present.

Source: https://www.daily-sun.com/print/front-page/2015/05/21/504332#sthash.j6JQtPU0.dpuf

The Anti Corruption Commission (ACC) yesterday registered a case against Sohel Rana, the owner of Rana Plaza, for allegedly accumulating wealth illegally, reports UNB. ACC deputy director Mahbubur Rahman filed the case with the Ramna police, ACC public relations officer Pranab Kumar Bhattacharya told the news agency. On Apr 2, the Commission sent a notice to a senior jail superintendent of Kashimpur Jail in Gazipur where Rana remained detained to convey the message to him (Rana) that the ACC asked him to submit his wealth statement to it within ACC-stipulated time. Although Rana is in prison now, his wife submitted an application to the ACC seeking time extension to submit the wealth report, but the Commission rejected the plea and it gave approval on May 18 for lodging a non-submission case against Rana. After the deadly Rana Plaza collapse on 24 April 2013, the ACC decided to conduct a probe against Rana to know how he accumulated a huge wealth, and formed a two-member inquiry team in this regard. According to the ACC inquiry report, Rana built two commercial buildings—Rana Plaza and Rana Tower—in Savar with ill-gotten money. He also has a five-storey residential building in Savar. Apart from the buildings, Rana, who was arrested after the building collapse on April 29, 2013, has huge movable and immovable wealth, ACC sources said. On April 12, 2015, the ACC also filed separate cases against his parents—Morzina Begum and Abdul Khaleque—on charge of amassing wealth worth around Tk 17 crore illegally. The Rana Plaza collapse is considered the deadliest garment-factory accident in history, as well as the deadliest accidental structural failure in modern human history claiming the lives of 1,129 people and leaving approximately 2,515 injured.

Source: https://www.theindependentbd.com/index.php?option=com_content&view=article&id=258806:acc-sues-owner-of-rana-plaza&catid=132:backpage&Itemid=122

The Anti Corruption Commission (ACC) Wednesday filed a case against owner of Rana Plaza for allegedly amassing wealth in illicit way. ACC deputy director Mahbubur Rahman filed the case with Ramna Police Station in the city, the commission’s spokesperson Pranab Kumar Bhattacharya told the FE. Rana hogged spotlight after the deadly factory building collapse on April 24, 2013 that killed 1,129 people and leaving around 2,515 injured. The complex housed a number of garment units. The commission sent a notice to a senior jail superintendent of Kashimpur Jail in Gazipur on April 2, 2015, to convey the message to Sohel Rana that the ACC asked him to submit his wealth statement to it within ACC-stipulated time. Although Rana is in prison now, his wife submitted an application to the ACC seeking time extension to submit the wealth report, but the commission rejected the plea and gave approval on May 18 for registering a non-submission case against Rana. The ACC decided to conduct a probe against Rana to know how he accumulated such an amount of wealth and formed a two-member inquiry team in this connection. According to the ACC inquiry report, Rana built two commercial buildings — Rana Plaza and Rana Tower — in Savar with money earned illegally. He also has a five-storey residential building in Savar. Apart from the buildings, Rana, who was arrested on April 29, 2013 after the building collapse, has huge movable and immovable wealth, ACC officials said. On April 12, 2015, the commission also filed separate cases against his parents — Morzina Begum and Abdul Khaleque — on charge of accumulating wealth worth around Tk 170 million illegally. The graft-fighting body has also decided to file a case against five Bangladesh Railway (BR) men including former General Manager Ferdous Alam for leasing 1,300 square feet of BR land illegally in Akhaura station of Brahmanbaria. The commission in its regular meeting approved a proposal for filing a case against the BR officials, according to an ACC official. The case will be filed soon against former BR GM Ferdous Alam, its deputy director (traffic and operation) Kabirul Alam, area operating manager M Shafiqur Rahman, assistant commercial officer of Kamalapur Railway Station Pranabesh Sarkar and upper division assistant Mosharraf Hossain. According to the ACC probe, all the accused in collusion with each other leased out 1,300 square feet of a godown located near Akhaura Rail Station in Brahmanbaria. They leased out the godown to one Jasmin Akter on May 25, 2010, preparing fake documents.

Source: https://thefinancialexpress-bd.com/2015/05/21/93495

It may sound strange that half of the cash incentives provided to the export-oriented sectors of the economy is virtually eaten up by the readymade garment (RMG) industry. However, one must not also ignore here the reality about the overwhelming presence of the RMG sector in the country’s economy. This sector far outshines all others in terms of productivity, employment, backward linkages and exports. With its whooping 75 per cent share in the country’s total exports, the RMG sector counts rather too heavily when it comes to government facilitations by way of incentives. Nevertheless, it remains to be seen whether feeding a single voracious sector is a well-guarded proposition or not. Cash incentive to export sectors has recently made news headlines, viewing it as highly disproportionate with too much focus on RMG that denies the required nourishment to some upcoming export sectors. More importantly, this is seen as an indirect deterrent to export diversification. Focusing on a single predominant sector thus tends to demean the prospect of others which, if provided with a slice of the pie, could shoot with their strengths and potential. A recent Bangladesh Institute of Development Studies (BIDS) study has quantified the cash benefits currently going to the RMG sector. It shows that the government had provided on an average Tk 25 billion to the knit and woven sub-sectors in the past three financial years in various forms. The flow of cash incentives to the knitwear exporters is extremely lucrative; they get more than 3.0 cent for earning one-dollar equivalent of exports as they use around 80 per cent local fabrics as the most vital input for their apparel products, the study says. As for the woven garment exporters, they get 1.3 cent against each dollar earned from export. Providing incentive package, including that of cash, has been integral to the government’s successive export policies, although the parameters followed for awarding a sector or rejecting another has been a matter of debate for a long time. There is thus definite logic in seeking a reasonably fair treatment for sectors which are getting less than they deserve, and the other ones that are not at all considered for the benefits. Although the government reviews the overall export scenario before preparing its export incentive package every year, it is often alleged to be an exercise not based on meticulous homework. Here comes the need to assess the capacity of an export sector in terms of its potential to meet market demands rather than judge it from its current earnings. This is to say, incentives should be more towards promoting productivity that, in turn, can materialise in higher earnings. If this figures as one of the key elements in the government policy in identifying products eligible for cash benefits, some of the neglected sub-sectors such as the bicycle industry, poultry, light engineering, agro-processing and few more can attain the desired eligibility. In this context, the issue of whether or not to slash the benefits of the RMG should be viewed very carefully, not just going by the fact that it is the largest beneficiary.

Source: https://www.thefinancialexpress-bd.com/2015/05/21/93437

US Ambassador in Dhaka Marcia Stephens Bloom Bernicat on Tuesday said Bangladesh must improve workers rights to retain the Generalised System of Preferences (GSP) facility. The US Ambassador disclosed the stance of her government on reinstatement of GSP while speaking at the Annual General Meeting (AGM) of the International Business Forum of Bangladesh (BFB) at a city hotel. The Ambassador, however, said the US recognises the progress made in Bangladesh by joint endeavours of owners, brands, government and trade union leaders at the RMG industry since the Rana Plaza collapses in 2013. “My message is clear…..There are more needed to be done, especially to improve workers’ rights,” Bernicat said. In her course of speech, the Ambassador, however, didn’t specify which components of workers’ rights needs to be improved as workers rights include many issues including fair wage, holiday, 8-hour work, common leave facility, maternity leave, healthcare and ending violence and various forms of humiliation at factories. Meanwhile, several ministers have been saying that foreign buyers and international community were lauding the initiatives taken and the implementation of the reform agenda to improve workers’ safety and rights in the RMG sector. Recently, State Minister for Labour and Employment Mujibul Haque Chunnu said Bangladesh had fulfilled all the conditions set by the US to revive the GSP status. Commerce Minister Tofael Ahmed told local media recently that “What is the use of Trade and Investment Cooperation Framework Agreement (TICFA), if there is no GSP.” Bangladesh had signed a TICFA with the US few years back to strengthen bilateral cooperation in the field of investment, trade and commerce. Bernicat also said the US is maintaining a long-term relationship with Bangladesh and it will continue to support Bangladesh as a development partner. “Trade and business engagement will increase in the coming days,” she said. The Ambassador said US is working in Bangladesh to improve education and living standard. Lauding the rapid expansion of the pharmaceutical sector in Bangladesh, she said, “I am delighted of what I have seen at local pharmaceutical units; their finished products, production procedures and use of raw materials.” She said blue economy is a new concept of economic development and the US is keen to work with Bangladesh in this regard sincerely. In his course of speech, FBCCI president Kazi Akram Uddin Ahmed said Foreign Direct Investment from the US remains low though US is the largest single buyer of Bangladeshi apparel products. “It is unfortunate. We expect it will increase,” he said. IBFB president Hafizur Rahman Khan chaired the event while founding IBFB president Mahmudul Islam Chowdhury and vice president (finance) of the forum, Humayun Rashid spoke on the occasion, among others.

Source: https://www.daily-sun.com/print/back-page/2015/05/20/504149#sthash.BmO9pofs.dpuf

The Bangladesh government has to emphasise more on the labour rights issues to restore the generalised system of preference in the US market, the US ambassador in Dhaka Marcia Stephens Bloom Bernicat said on Tuesday. ‘Bangladesh has made significant improvement in the workers safety and we acknowledge that. But there is scope for more to do in the workers rights issues. For the GSP, Bangladesh should emphasis on the labour rights issues,’ she said while addressing as chief guest at the opening session of annual meeting of International Business Forum of Bangladesh. She said improving the economic relations between the two countries is one of the focus of the US government. ‘The talks on Trade and Investment Cooperation Forum Agreement (TICFA) will take place later in the year,’ she said. Bernicat also said that the local business community also needed to focus on expatriate Bangladeshis to get them involved in the investment process of the country. ‘There are Bangladeshis in USA who want to invest in their own country and looking for a link. This is one area where the local business people should engage more,’ she said. Federation of Bangladesh Chambers of Commerce and Industries president Kazi Akram Uddin Ahmed said Bangladesh economy is in a fast lane and now the local businessmen are keen to invest in other countries. ‘Now we are looking for agricultural investment in African countries like Gambia and Senegal as those countries value our expertise in this field. So that is a sign of progress,’ he said. IBFB president Hafizur Rahman Khan said the country has huge potentials but the political uncertainty is affecting the economy. ‘I would like to request the political parties, irrespective of their views, to ensure the political stability so that we business people can do our work properly,’ he said. He also urged the government to develop the infrastructure by building highways to better connectivity across the country.

Source: https://newagebd.net/121316/bdesh-should-improve-labour-rights-for-gsp-revival-bernicat/#sthash.wulLJobb.dpuf

Export earnings from the Turkey market dropped by 19.50 per cent to $581.25 million in the first 10 months of the current fiscal year due to a devaluation of the euro as well as the Turkish currency lira, dashing the exporters’ hope of getting another billion-dollar-market. Bangladesh’s export earnings from Turkey in the July-April period of the financial year 2013-14 were $722.12 million, according to the Export Promotion Bureau data. Following the imposition of safeguard duties by Turkey on readymade garment imports from Bangladesh, country’s (Bangladesh’s) export earnings had witnessed a drastic fall in the FY 2011-12. Export earnings in FY12 had decreased by 64.26 per cent to $258.90 million against $724.45 million in the FY11, data showed. Overcoming the hassle of safeguard duties, Bangladesh’s exports rebounded in the Turkey market in the FY 2012-13. In the FY 2012-13, the export earnings from Turkey grew by 146.35 per cent to $637.81 million from $258.90 million in the FY12. The earnings in the FY 2013-14 increased to $856.19 million and the exporters expected that Turkey would be a billion-dollar-market in the FY 2014-15. According to the EPB data, the export of RMG, the major product, to Turkey in the first 10 months of the financial year 2014-15 decreased by 25.95 per cent to $388.04 million against $524.02 million in the same period of FY 2013-14. Anwar-Ul-Alam Chowdhury Parvez, managing director of Evince Garments Ltd, said the domestic consumption in Turkey decreased a bit due to a fall in the value of euro. In last one year, the Turkish currency lira depreciated by 2 per cent against the euro and about 20 per cent against the dollar that increased cost in import for the country, he said. Parvez, also a former president of Bangladesh Garment Manufacturers and Exporters Association, exports shirts to Turkey. ‘Amid the depreciation of local currency, Turkey usually will prefer local production to import,’ he said. ‘Despite having potentials in the Turkey market, our export witnessed a negative growth in the market due to depreciation of euro as well as lira,’ said Faruque Hassan, managing director of Giant Group. He said that due to devaluation of local currency production cost in Turkey became cheaper than import and so the country started to utilise their capacity in production. Depreciation of euro is one of the reasons for the negative export growth in Turkey as the payments between Bangladesh and Turkey are settled in euro, said Faruque, also a former vice-president of the BGMEA.

Source: https://newagebd.net/121323/turkish-market-for-bdesh-garment-on-the-wane/#sthash.xPWyJoNp.dpuf