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The Local Government Division has submitted two major project proposals worth Tk 135.72 billion to expand surface water supply in Dhaka and Khulna city corporation areas.
Of the total outlay, Tk 50.11 billion will be financed from domestic resources, while around Tk 85.61 billion is expected to be covered through external project loans, Planning Commission officials said.
The third revised proposal of the Dhaka Environmentally Sustainable Water Supply Project, worth Tk 109.74 billion to draw water from the Meghna River for the capital, has been included in the agenda of the Executive Committee of the National Economic Council (ECNEC) meeting scheduled for today.
The Khulna Water Supply (Phase II) Project, worth Tk 25.99 billion, has not yet been formally listed but may be tabled, as its restructured Development Project Proposal (DPP) has reached the commission following clearance by the Project Evaluation Committee (PEC), officials added.
The Dhaka project was first approved by ECNEC in 2013 at an estimated cost of Tk 52.48 billion as the city's first surface water initiative under the Dhaka Water Supply and Sewerage Authority (DWASA) to supply 500 million litres of water per day (MLD). Initially planned for completion in 2019, the project has been repeatedly extended, with costs rising to Tk 81.67 billion.
The third revision proposes extending the project until June 2027, with a total cost of Tk 109.74 billion -- an increase of Tk 57.26 billion, or 109.1 per cent over the initial estimate. Of this, the government will provide Tk 42.13 billion from the state exchequer, while Tk 0.22 billion will come from DWASA's own funds.
The remaining Tk 67.40 billion is expected from loans and grants provided by the Asian Development Bank (ADB), Agence Française de Développement, and the European Investment Bank.
The Planning Commission's Physical Infrastructure Division expressed concern at a PEC meeting over the project's failure to complete even 12 years after ECNEC approval.
The project's main objective is to reduce Dhaka's reliance on groundwater, as aquifer levels continue to decline. Once operational, it will supply 500 MLD to areas including Old Dhaka, Motijheel, Paltan, Fakirapool, Uttara, Gulshan, Banani, Nikunja, Khilkhet, Badda, and Mirpur.
As of last February, the project achieved around 87 per cent physical progress, with spending exceeding 83 per cent of the approved cost. However, costs are expected to rise due to an expanded scope, including distribution feeder lines, 50 deep tube wells, higher land acquisition costs, and increased VAT, taxes, and customs duties.
Other cost drivers include higher road excavation charges, design modifications, price adjustments, and increased salaries, allowances, and office maintenance expenses.
A 2011 feasibility study initially recommended a 1,000-MLD treatment plant in Khilkhet. However, after a review from October 2012 to June 2013 funded by the ADB, it was decided to build a 500-MLD plant in two phases at Gandharbapur, sourcing water from the Meghna River.
Meanwhile, the new "Khulna Water Supply Project" is estimated at Tk 25.99 billion, with Tk 7.77 billion from the government and Tk 18.22 billion from the ADB.
The project aims to improve Khulna's existing water supply system by switching to surface water sources to ensure safe, adequate supply during the dry season and extend piped-water coverage to currently unserved areas.
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