City Bank, Water.org join hands for sanitation financing in Bangladesh

City Bank PLC and Water.org have entered a two-year partnership in Bangladesh to improve access to safe drinking water and sanitation facilities through expanded financing for micro, small and medium enterprises (MSMEs) and microfinance institutions (MFIs) operating in the Water, Sanitation and Hygiene (WASH) sector.

Under the arrangement, entrepreneurs in remote and underserved areas will be able to access loans on comparatively low interest rates and flexible repayment terms, according to a press statement. The initiative is designed to support the development of sustainable WASH services through private sector participation and community-level engagement.

As part of the agreement, City Bank PLC will allocate Tk 200 crore in financing for MSMEs and MFIs engaged in WASH-related activities. The programme also includes structured capacity-building training for entrepreneurs working in the sector, alongside awareness-raising initiatives such as courtyard meetings and local community sessions aimed at improving hygiene practices and the use of safe water.

The inauguration ceremony, titled “Shaping the Future of Safe Water,” was held recently at a hotel in Dhaka. The programme was attended by State Minister for Water Resources Forhad Hossain Azad, MP, as Chief Guest, and Husne Ara Shikha, Executive Director of the SME & Special Programmes Department (SMESPD) of Bangladesh Bank, who attended as Special Guest.

Senior representatives from both organisations were present at the event, including Md. Mahbubur Rahman, Additional Managing Director and Chief Financial Officer of City Bank; Kamrul Mehedi, Deputy Managing Director and Head of Small, Microfinance and Agent Banking Business; Md. Mohibur Rahman, Executive Vice President and Head of Agent Banking; and Sajid Amit, Executive Director for South Asia and Country Director of Water.org. Officials from banks, financial institutions, regulatory agencies and development organisations also participated.

During the event, the State Minister for Water Resources highlighted the need for coordinated efforts among stakeholders to achieve the Sustainable Development Goals (SDGs). He also expressed concern over the long-term implications of climate change and declining groundwater levels on access to safe water, while noting ongoing government interventions to address these challenges.

The Executive Director of Bangladesh Bank emphasised that the initiative aligns with sustainable finance policies and broader national priorities. She underlined the importance of the banking sector’s role in advancing SDG 6 (Clean Water and Sanitation) and SDG 8 (Decent Work and Economic Growth) through inclusive financing models and impact-driven investment.

Project Overview

The initiative is positioned as part of wider efforts to strengthen sustainable access to water and sanitation in Bangladesh through financial inclusion and capacity development at the community level.