JUTE INDUSTRY REHAB.

closed

To increase the technical efficiency and improve the organization, management and finances of Bangladesh's jute industry through rehabilitation, balancing and maintenance of existing production facilities and reorganization, improved incentive systems, and training programs. The jute industry provides about 50% of Bangladesh's export earnings. The Jute Rehabilitation Project will help the industry to stay competitive and help assure continued foreign exchange earnings and a market for the jute produced by 15% of Bangladesh's farmers. The risks directly associated with the project are not significant. The jute industry as a whole will continue to face the risks of strong competition from synthetics, possible adverse price movements, power supply difficulties and labor unrest. On the other hand, oil price trends give Bangladesh's jute industry an opportunity to remain competitive with synthetics and to operate profitably, given the improvements in operational efficiency financed under this project.