Bangladesh has received $256.5 million from the global Green Climate Fund to promote private sector investment through large scale adoption of energy-efficient technologies in the textile and garment sectors.

The Idcol, as the direct access entity (DAE) of the GCF, received the approval of the funding proposal for the program titled ‘Promoting private sector investment through large scale adoption of energy-saving technologies and equipment for Textile and Readymade Garment sectors of Bangladesh.’

It is the largest approved funding proposal for any DAE of the GCF accredited globally, Under the program, Idcol will get $250 million concessional loan for a tenure of 20 years with a grace period of five years for financing energy-efficient equipment.

Another $6.5 million will come as technical assistance (grant) to develop enabling environment by covering areas such as capacity building, awareness, support in loan disbursal and monitoring and evaluation of the programme parameters. Out of $250 million loan, $100 million will be utilized to finance textile sector energy efficiency projects, while $150 million will be channeled to four local financial institutions for financing energy efficiency projects in the RMG sector.

The total program size will be $423.50 million, including co-financing from Idcol, local financiers and the project sponsors.