It is now mandatory every industry that creates environmental pollution have Effluent Treatment Plant (ETP). The Bangladesh government has set 31st October as the deadline for those industries that do not have ETP to have it and will monitor implementation of the directive through its agent, Department of the Environment (DoE), but while ETP is highly effective in detoxifying chemical substances or weeding out pollutants, it takes time, money and space to set it up. In the light of the realities, ET met up with Mr. Anwar-Ul-Alam Chowdhury (Parvez), President of Bangladesh Garment Manufacturers & Exporters Association (BGMEA), to be au fait with how his sector is dealing with the ETP issue.
The Executive Times (ET): Government is pushing knit factories to set up Effluent Treatment Plant (ETP) by October 31, 2007.
Anwar-Ul-Alam Chowdhury (AC): Since the government took the initiative to get ETP installed by factories, we met Honourable Advisors and accordingly have drawn up our action plan to set up ETP at every required factory. Unfortunately the deadline set by the government is very short to ensure proper implementation, because it takes at least a year to run an ETP system perfectly. BGMEA has already taken positive and proactive steps to meet this requirement and we are moving proactively to set up ETP within the deadline.
ET: Approximately, how many garment factories will need ETP? And what are the challenges involved? AC: According to the BGMEA record, 35 factories have installed ETP in their factories while installation works of ETP in 25 factories are in progress and those in other 57 factories are under process.
Setting up ETP is very expensive. Land, infrastructural support and high cost of financing are some of the major challenges.
ET: What about setting up centrally located ETP? Do you think it is feasible, given many factories are sparsely located?
AC: To save individual ETP installation costs, a Central ETP system may be constructed by the govt. in places where factories are located in clusters. Central ETP may be installed at Fatullah, Narayanganj, Konabari, Board Bazar, Ashulia, Baipail, Rajfulbaria, Karnapara etc. This will ensure maximum coverage of the effluent discharging factories, and at the same time save manufacturers from high cost of installation and create a revenue earning source for the government as the Government can charge for this service at KG or meter wise.
ET: How much space is needed to set up ETP? Can small factories afford it?
AC: The requirement of land to set up ETP largely depends on the capacity of factories. On average 6000 sq. ft. land is required to set up ETP. ETPs are mainly needed for Dyeing factories or factories that have dyeing divisions. Small factories, especially Cutting and Making based factories, do not require ETP.
ET: BKMEA is known to have urged the government to sanction "Soft Loan" for setting up ETP. Donor agencies can play a role as well, can't they?
AC: BGMEA was the first initiator of requesting sanctioning soft-loan for setting up ETP. To discuss this matter we met Honourable Advisors and the Governor of Bangladesh Bank, but unfortunately we have not yet received any response. However, we will appreciate it if the govt. comes forward with suitable funding policies and we feel the same about any assistance that may come from the World Bank and other development partners.
ET: What impact will ETP have on the cost structure of RMG factories and the competitiveness of Bangladeshi RMG products in the global market?
AC: High investment cost with high interest rates to set up ETP would effectively increase the costing of a garment. If garment production costs increase RMG factories will become non-competitive in the global market.
ET: Are any major changes needed in operational systems to set up ETP in a knit factory?
AC: We don't think that major changes are needed in operational systems to set up ETP in a knit factory. What we realize is there is a need for efficient technicians to operate ETP systems. Govt. should take initiative to provide technical support to run ETP and also to recruit and train local operators to ensure efficient operations.
ET: Turning to the ETP technology, do we have it in Bangladesh?
AC: Some of the ETP technologies have already become available in Bangladesh. Since ETP involves complex technical aspects, problems are obvious to emerge in different areas. So, at this moment it needs more companies to come here with different technologies so that our manufacturers have wider options to choose from.
ET: Finally, what policy recommendations do you think the government should consider for facilitating setting up ETP in factories?
AC: Positive long-term policies of the government are most essential for setting up ETP at all RMG factories countrywide. We have seen how India have managed to set up ETP with the help of govt. Our govt. can take the similar step and make ETP a revenue generating source. In addition to this, clustering policy/ industrial parks, the need for water resource management through recycling, etc. should also be considered. Long-term trade pro-active policies would create a win-win situation for manufacturers, consumers, communities, environment and for the government as well.
