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Dhaka Tuesday,  Jun 19, 2018

ADB to provide $250 million for improving Dhaka water supply

DHAKA, April 24, 2014 (BSS) – The Asian Development Bank (ADB) signed a loan agreement with the government for US dollar
250 million to develop a surface water supply system benefiting more than 11 million people in Dhaka, where groundwater is
depleting rapidly.

The concessional assistance will help expand the coverage and
quality of water supplies, and develop a new raw water intake at
the Meghna River, about 22 kilometres east of Dhaka city, as well
as a pumping station. The assistance will also fund a water
treatment plant at Gandharbpur, capable of handling 500 million
litres a day, and install raw and treated water transmission
pipelines.

These initiatives, under the Dhaka Environmentally
Sustainable Water Supply Project, are expected to reduce
groundwater extraction by 150 million litres a day and help the
city water authority raise its overall surface water supply to
1.9 billion litres a day by 2021.

Mohammad Mejbahuddin, Secretary, Economic Relations Division
(ERD), and Kazuhiko Higuchi, Country Director for ADB’s
Bangladesh Resident Mission, signed the agreement, on behalf of
the government and ADB respectively, at a ceremony at ERD, Sher-
e-Bangla Nagar,

The project’s executing agency, Dhaka Water Supply and
Sewerage Authority, plans to reduce the dependence on groundwater
to about 30 percent of the total water supply by 2021, from the
current 78 percent, to ensure environmentally sustainable water
supply.

The project will cost nearly $675 million. On top of its
loan, ADB will also partially administer a $100 million loan from
Agence FranOaise de D,veloppement. The European Investment Bank
is also providing a cofinancing loan of $100 million while the
government will provide almost $225 million. The project is
expected to be completed by December 2019.

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