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The World Bank would provide US$ 280 million for improving the water supply system in Chattogram as it signed a loan agreement on Saturday with Bangladesh government.
Md Shahriar Kader Siddiky, Secretary, Economic Relations Division (ERD), and Ms Gayle H Martin, Country Director (Interim), World Bank, signed the deal.
The Chattogram WASA under the Local Government Division (LGD) would implement the project to upgrade the water supply system in the port city by 31 December 2030, the ERD said on Saturday.
The project is aimed at increasing access to safe, reliable and climate-resilient water supply and improved sanitation in the port city; and improving the performance and financial sustainability of Chattogram WASA.
According to the ERD, the WB would provide US$ 280 million in loan from its costly credit window -- Scale-up Facility (SUF).
US$ 140.00 million equivalent to 21.345 billion Japanese Yen will be provided from the Scale-up Window (SUW) of the World Bank which will charge 0.25 per cent as front-end fee. The repayment period of this loan is 35 years including a grace period of 5 years.
Commitment Fee of 0.25 per cent is payable on the undrawn amount of this loan; and the interest rate of this loan will be Tokyo Overnight Average Rate (TONA) + Variable Spread.
The repayment period of another $140 million loan will be 12 years including a grace period of 6 years. No Service Charge, Commitment Fee and Interest will be paid on the amount withdrawn from this loan, the ERD said.
The World Bank is the largest multilateral development partner of Bangladesh. It has committed some $43.50 billion for Bangladesh since its independence. Currently, the World Bank has made a commitment of $13.10 billion worth of funds for 47 ongoing projects that cover different sectors including economic and social development, institutional reforms, infrastructure development and energy sector development.
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