SMESPD Circular Letter No. 03: Addendum of Operating Guidelines for JICA assisted Urban Building Safety Project

SME & Special Programmes Department
JICA-PIU (UBSP)

SMESPD Circular Letter No. 03 Date- 07 November 2018 CEO/MDs All Banks and Financial Institutions in Bangladesh Head Office, Dhaka. Dear Sirs, Regarding addendum of Operating Guidelines for JICA assisted Urban Building Safety Project (UBSP, BD-P84) Please refer to SMESPD Circular No. 03/2016 dated 25 September 2016 and the Operating Guidelines of UBSP project attached with the circular. With the aim of extending financial support for safe working environment of RMG sector and smooth implementation of the project, the following amendments in the Operating Guideline have been made:
1.3 Management Structure of the Project
1.3.2 (3) Composition of PMC 1
The existing table will be replaced by the following Table:
No Organization Title in Organization Title

1. Financial Institutions Division Secretary Chairman
2. Bangladesh bank Representative Member
3. PWD Project Director of
   PWD-PIU
   Member
4. Department of Inspection for Factories and
   Establishments
   Representative Member
5. PFIs Representative Member
6. JICA Representative Observer
7. Financial Institutions Division Additional Secretary Member
8. Bangladesh Bank Project Director of
   JICA-PIU
   Member Secretary
9. Economic Relations Division Joint Secretary Member
   10 Financial Institutions Division Deputy Secretary Member Bangladesh Bank (Central Bank of Bank) Head Office Motijheel, Dhaka-1000 Bangladesh

SME & Special Programmes Department
JICA-PIU (UBSP)
Following Clause 1.3.7 will be added immediate after the clause 1.3.6, as:
1.3.7 Project Implementation Committee (PIC) for UBSP Component 1
For the purpose of the smooth operation of TSL Project, Project Implementation Committee (PIC) under Component-1 of UBSP will be formed consisting 3(three) representatives BB-PIU and PWD-PIU respectively. PIC will meet on monthly basis.
2.2 Financial and technical Procedures for the End-borrower
Clause 2.2(1) will be replaced by
(1) Eligible Applicants:
Eligible applicant is a person who meets following conditions; a) An owner of building and factory, rented factory owner or building owner of RMG and Knitwear sectors who holds/is willing to hold a membership of BGMEA, BKMEA, BGAPMEA or other private building owner who is approved by PMC 1, and who is ready to carry out the initial assessment and subsequent construction works retrofitting, rebuilding or relocation of his factory. b) Ongoing construction work (Retrofitting, Rebuilding and Relocation will be considered to be financed under UBSP scheme. (Note: Condition of determining construction methods is described in Technical Guidance for the TSL Project as ANNEX-XII)
2.2 Financial and technical Procedures for the End-borrower
Following Clause 2.2(8) will be added immediate after the clause 2.2(7), as:
(8) The end borrower will reasonably consider the size of new building (“sub project”) regardless of the size of existing building in case of rebuilding/relocation.

SME & Special Programmes Department
JICA-PIU (UBSP)
2.2 Financial and Technical Procedures for the End-borrower
Table 2.1: Financial and Technical Procedure will be replaced by the following Table
Financial and Technical Procedures for End Borrowers Application with all legal documents Selection of eligible applicants by PFIs with detail credit assessmentand finalize the eligibility with credit risk assessment (maximum 15 days) Initial assessment by UBSP consultants with rough cost estimation (maximum 2 months) Negotiation with end borrowers by PFIs (max 10 days) Detail assessment and final cost estimation by UBSP consultants. (max 1 month) Loan sanction by PFIs (max 1 month) BB will disburse pre-finance or refinance (max 10 Days) Intermediary progress report from UBSP consultant and/or PWD enlisted contractor employed by the owner Fig: Financial and Technical Procedure

SME & Special Programmes Department
JICA-PIU (UBSP)

ANNEX-XII: Technical Guidance for the TSL Project under UBSP
At the end of ANNEX-XII, following paragraph will be added as:
Ongoing sub project
Sub projects for ongoing construction work (Retrofitting, Rebuilding and Relocation) will be considered for financing under UBSP scheme. In this case, the progress report will be commenced by the contractor employed by the end borrower or PWD-PIU consultants and PFI will recommend on the report. Then JICA-PIU will consider financing on the basis of PWD-PIU and PFI’s recommendation. All other clauses of the Operating Guidelines will remain unchanged. Sincerely Yours Md. Sharafat Ullah Khan Project Director & Deputy General Manager Phone: 9530331