Bangladesh secures World Bank loan to improve water supplies

The Government of Bangladesh has secured a $100m loan from the World Bank to improve water supply in selected 30 municipalities.

Awarded through International Development Association (IDA), the World Bank loan will support the government’s Municipal Water Supply and Sanitation Project to provide piped water to the municipality residents.

The project involves building associated infrastructures including water treatment facility, water storage and a pipe network as well as house connections with water metres.

A section of the credit amount will also be invested to improve sanitation and drainage facilities in the low income areas and slums.

Overall, around 600,000 people will benefit from this project.

World Bank country director for Bangladesh and Bhutan Mercy Tembon said: “Today, more and more people are living in cities, creating an urgent demand for quality urban infrastructures, including water and sanitation services.

“This project will help the people living in small towns, including the slum dwellers get piped water and improved sanitation and drainage services.

“With greater access to clean water, the women will have more time otherwise spent for collecting water, as well the health of their children will improve resulting in better school attendance.”

The World Bank loan carries a 30-year term for repayment with an interest of 1.25% and a service charge of 0.75%.

Besides World Bank support, the Municipal Water Supply and Sanitation Project has received $100m from the Asian Infrastructure Investment Bank (AIIB) and $9.53m from the union government.

Monowar Ahmed and Mercy Tembon signed the agreement on behalf of the government and the World Bank, respectively, at the Economic Relations Division.