World Bank Approves $370 Million Loan for Dhaka Water Reform

The World Bank has approved a loan of USD 370 million to address water pollution and sanitation challenges in Dhaka. In Bangladeshi Taka, this amounts to approximately BDT 4,528 crore, based on a conversion rate of BDT 122.39 per US dollar. The approval was granted during a board meeting at the Bank’s headquarters in Washington, D.C., the World Bank’s Dhaka office confirmed in a press release on Wednesday.

According to the release, the initiative, titled the Metro Dhaka Water Security and Sustainable Programme, aims to significantly reduce water pollution across Greater Dhaka. It seeks to strengthen the capacity of both local and national institutions to ensure that approximately 550,000 residents gain access to safe drinking water, while 500,000 people benefit from improved sanitation facilities. The programme will play a key role in enhancing the operational capacity of city corporations and Dhaka WASA (Water Supply and Sewerage Authority). Priority will be given to communities most affected by pollution and inadequate services.

Jean Pem, Director of the World Bank’s Bangladesh and Bhutan division, stated, “Water is the lifeline for millions of people in Greater Dhaka. Yet rapid, unplanned urbanisation and industrial growth are worsening water pollution. This programme will help reduce contamination in rivers and canals and establish the institutional framework required for sustainable health improvements.”

The World Bank highlighted that only 20% of Dhaka’s residents have piped sewerage connections, and a mere 2% have access to functional fecal management systems. Over 80% of untreated waste and sewage is discharged into the city’s waterways, while more than half of Dhaka’s canals have either disappeared or become blocked, exacerbating pollution.

Key Statistics on Dhaka’s Waste and Water Pollution

IssueStatus / Quantity
Piped sewerage connections20% of residents
Functional fecal management2% of residents
Untreated waste discharge80% into waterways
Blocked or disappeared canalsOver 50%
Export-oriented garment factories7,000+
Daily waste discharge2,400 million litres

Harsha Goel, Senior Water Supply and Sanitation Specialist at the World Bank, noted that the programme will reduce pollution in Dhaka’s water bodies, implement real-time digital monitoring, support river rehabilitation, and improve industrial waste treatment. The first phase will focus on selected areas of Dhaka and Narayanganj, expanding waste collection coverage, prioritising underserved communities, and strengthening recycling infrastructure.

Ultimately, the initiative aims to halt direct waste disposal into major rivers and canals, reinforce drainage networks, and regulate industrial effluents. By doing so, it will lay the foundation for improved environmental quality, public health, and sustainable urban development in Bangladesh’s capital.

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