TBT DESK: The World Bank (WB) has pledged $340 million (approximately Tk 3,400 crore) to improve sanitation and access to safe drinking water in Chattogram under the Chattogram Water Supply Development Project. The loan agreement was signed on Saturday, 10 May, at the Economic Relations Division (ERD) in Dhaka. Representing the Government of Bangladesh, ERD Secretary Md Shahriar Kader Siddiky signed the agreement, while Gail H Martin, Acting Country Director of the World Bank in Dhaka, signed on behalf of the lending institution.
The project is set to run until 31 December 2030. Its goal is to ensure safe, reliable, and climate-resilient drinking water for the people of Chattogram, alongside a significant upgrade of the city's sanitation system. The initiative also aims to enhance Chattogram WASA's operational efficiency and financial sustainability.
The loan comes with favourable terms. It includes a 6-year grace period and a total repayment period of 12 years. Importantly, the borrowed funds will not incur any service charge or interest. However, for $140 million drawn from the World Bank's Scale-Up Window, a front-end fee of 0.25% will apply. That portion of the loan will carry a more extended repayment period of 35 years, including a 5-year grace period.
The World Bank has long been a major development partner of Bangladesh, with a cumulative commitment of over $43.5 billion since the country's independence.
This collaboration reflects the strength of the partnership between Bangladesh and the international lender. Currently, the World Bank is financing 47 active projects in the country, amounting to $13.1 billion. These projects span sectors such as infrastructure, energy, institutional reforms, and economic development.
With this new commitment, the World Bank is reaffirming its support for Bangladesh's urban development and public health priorities, especially in the face of growing climate challenges.