GREEN BRICK PROGRAM
To support the government’s initiative to gradually replace the country’s polluting FCK based brick sector with energy efficient and environment friendly ones, IDCOL launched its ‘Green Brick Program’ in 2013 for setting up modern brick kilns using latest state of the art technology. Since then, IDCOL has been providing long term concessionary financing to encourage potential sponsors to set up environmentally friendly brick kilns.
In this regard, IDCOL approved around BDT 224 crore financing for 6 tunnel kiln and 1 HHK brick projects, with aggregate daily production capacity of 1.14 million bricks. Till date, over BDT 180 crore financing has been extended. IDCOL has also collaborated with Frankfurt School of Finance & Management GmbH (Frankfurt School) under the project, ‘Technical assistance (TA) for financing brick kiln in Bangladesh’ supported by United Nations Environment Program (UNEP) through funding from the Climate and Clean Air Coalition (CCAC).
IDCOL has approved debt financing to the following energy efficient bricks kilns projects: :
| 1 | Baridhara Corporation |
| 2 | A H Auto Bricks Limited |
| 3 | Makrail Auto Green Bricks Limited |
| 4 | Pretty Auto Bricks Limited |
| 5 | USA Agro & Auto Bricks Limited |
| 6 | Kushiyara Auto Bricks Limited |
| 7 | Nowhata Green Bricks Limited |
| 8 | Piya Auto Bricks Limited |
Commercial terms and features for financing in Auto Brick Sector:
| SL | Particulars | Details |
|---|---|---|
| 1 | Portion of the fund | Debt: 70% and Equity: 30% IDCOL Debt amount will not exceed BDT 300 Million |
| 2 | Rate of interest | 9% p.a. with semi-annual review |
| 3 | Tenor of loan | Maximum 9 years period including construction period of 1.5 years |
| 4 | Technology | Tunnel kiln technology with minimum production capacity of 100,000 bricks/day |
| 5 | Major agreement | Agreement with EPC Contractor and other related infrastructure development agents |
| 6 | Required land area | Minimum 8 acres of land for a project having capacity of 100,000 bricks per day |
| 7 | Eligible criteria: | Variable Refrigerant flow and high COP air conditioners |
| i. Land | In the name of the project company | |
| ii. Security | 100% of loan amount (Negotiable) | |
| iii. Permissions | Site Clearance Certificate (SCC) along with other permissions like NOC from local authority, brick burning license, electricity permission etc. | |
| iv. Security & Mortgage |
|
