WB likely to provide $280m loan

The World Bank (WB) is likely to give US$280 million worth of loan to upgrade Chattogram city's water supply and sewerage systems, an official of Economic Relations Division (ERD) said.

The Bangladesh government has recently negotiated with the WB on the terms and conditions of the proposed loan, he said. "We have recently held talks with the WB team. They have assured us of providing the loan as soon as possible."

The $280 million loan will be utilised to replace the older water supply pipelines, enhance the use of surface water, install smart water supply system, and strengthen the capacity of the Chattogram WASA (CWASA), said the ERD official.

Most of the water supply pipelines of CWASA are older resulting in poor water flow, he said, adding that the WB support will help the water supply authority to ensure smart water supply system in the port city.

An official of Local Government Division (LGD) said the WB is providing the $280 million financial support to finance the Chattogram Water Supply Improvement Project worth about Tk 37.45 billion.

He said the CWASA will replace 300-km existing pipelines and install 87,000 smart meters across the city. The project will improve the city's water supply infrastructure as well as operational efficiency with the prospect of increasing revenue for the organisation, he said.

The Planning Commission's Project Evaluation Committee has already recommended the project for approval by the Executive Committee of the National Economic Council (ECNEC).

"When the project will be placed before the ECNEC and will get the nod, we will go for signing a loan agreement with the WB," said the ERD official.

The CWASA operates a 1,300-kilometre pipeline network in Chittagong metropolis.

Earlier, the CWASA replaced the 45-km pipeline under the Karnaphuli Water Supply Project-01, 150-km pipeline under the Chittagong Water Supply Improvement and Sanitation Project, and 700-km pipeline under the Karnaphuli Water Supply Project-02.

[email protected]