• The Inactive Factory Remediation Fund was launched to support Accord covered RMG factories that no longer have any Accord company signatories as customers.
  • The Accord has now approved a further two factories for support, bringing the total to five.
Factories that submit an application for funding must demonstrate they have made legitimate efforts to complete the safety remediation

Factories that submit an application for funding must demonstrate they have made legitimate efforts to complete the safety remediation

Safety remediation is set to be completed at five readymade garment factories in Bangladesh thanks to financial support being made available to another two businesses through the Accord Inactive Factory Remediation Fund.

The Accord on Fire and Building Safety this week approved two additional applications from Accord-covered factories to receive financial support for remediation through the Fund, adding up to a total of five factories.
 
The Inactive Factory Remediation Fund was launched to support Accord covered RMG factories that no longer have any Accord company signatories as customers. Remediation progress is slower at these factories than at factories with continued business with Accord signatory companies, the body says.
 
The factories receiving financial support are Hypoid Lingerie Ltd, Ritzy Apparels, Everbright Sweater Ltd., Ayesha Enterprise Ltd. and Meek Knit Ltd. The amount of support provided thus far totals more than US$514,000.
 
The Accord says it will contribute to the outstanding remediation costs of these factories and will distribute the funds in four instalments. The first is provided when signing the funding agreement, and the remaining three will be provided based on Accord verified completion of the remediation commensurate with the preceding instalment.
 
To be deemed eligible, factories that submit a funding application must demonstrate they have made legitimate efforts to complete the safety remediation. All immediate safety items such as removal of locking features from the egress doors/gates, load management to relieve column stress, and low cost maintenance remediation items must have been completed.

"The funding provided by the Accord through the Inactive Factories Remediation Fund does not require repayment by recipient factories," says Joris Oldenziel, Accord deputy director for implementation. "The Accord will closely monitor the expenditure to ensure that the financial support is spent exclusively on safety remediation work."

The Accord will monitor the factories' expenditure of funds and they will be recognised on its website.
 
Accord covered factories with no more business with Accord signatory companies for more than six months are encouraged to apply for financial support to complete remediation. The Accord is currently reviewing an additional five applications received from inactive factories.
 
Tawfiq Quadir, chairman Everbright Sweater Ltd, one of the factories receiving funding, says: "Everbright Sweater Ltd. signed the remediation financial support agreement with the Accord in December 2017. Two months later we have completed the outstanding retrofitting work and the installation of the fire hydrant system."
 
Likewise, Faruque Khan, managing director of Meek Knit Ltd, says: "After receiving the financial support through the Accord Inactive Factories Remediation Fund, we were able to open the Letter of Credit to import the fire detection and hydrant systems. Now we can move forward with the installation."