The government and the World Bank are likely to sign a deal to this effect by June this year under which the bank will give US$ 150 million to develop infrastructure for the proposed village.

"I hope we will reach an agreement by June," Executive Chairman of Board of Investment (BoI) Mahmudur Rahman told reporters after a meeting with BGMEA leaders at his office yesterday.

He said the government is contemplating to set up the 'garment village' alongside Dhaleshwari at Gozaria upazila in Narayanganj, some 30km off the capital city.

"If the deal is signed by June, another two or three years will be required to develop the infrastructure and utility facilities," Mahmud said.

The BoI boss said the initial negotiations with the World Bank have already been completed. "Developing a compliance-friendly village will not only boost the growth of the apparel industry but also ease pressure on residential areas of Dhaka," he said.

Earlier, a five-member delegation of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) met BoI executive chairman and sought his intervention in minimising the duration in getting registration for setting up industrial units and making the recommendation process easier.