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Publish Date : 10-Aug-2017

The Washington-headquartered World Bank on Sunday has accomplished the signing of an agreement with the Government of Bangladesh for extending an additional financing of $47.50 million to the Asian nation.

The Government has secured the funds to carry on the construction of new water infrastructure in the port city of Chittagong to facilitate provisions for clean water for about 650,000 city residents.

The Additional Secretary at the Economic Relations Division (ERD) Mahmuda Begum has signed the agreement for the Government of Bangladesh, while the Acting World Bank Country Director for Bangladesh Rajashree Paralkar has inked the papers on behalf of her organization.

The deal signing ritual for this additional financing has taken place at the ERD.

The World Bank has extended $218.50 million in total for the project, including the newly offered funds.

The global donor has provided the money through its concessional lending division International Development Association (IDA).

The interest-free IDA credits carry a 38-year repayment period, including a grace period of six years. The credits come with a service charge of 0.75%.

The World Bank has extended the additional financing to the Chittagong Water Supply Improvement and Sanitation Project. The Chittagong Water Supply and Sewerage Authority (CWASA), with the receipt of new funds, will be able to complete the construction of the Modunaghat Water Treatment Plant and Patenga Booster Pumping Station. The CWASA will also be capable of establishing 60km long new water transmission pipeline and rehabilitating another 73km pipeline between Kalurghat and the Patenga Booster Pumping Station.

The World Banks Acting Country Director for Bangladesh Rajashree Paralkar revealed, "Only half of the people living in Chittagong Metropolitan Area, the country's second largest city, have access to improved water supply."

The official further stated, "The financing will help improve access to safe water and sanitation services in Chittagong city. We also hope that CWASA will be able to mitigate the city's water-logging issues by improving the drainage infrastructure with the implementation of the Drainage and Sewerage Master Plans that the project is supporting to finalize."

Provision for better water has already been given to 254,400 people through the project. Access to reliable supply of water will be created for 27,000 homes via establishment of 10,000 new piped household connections and rehabilitation of 17,000 existing connections using the additional financing. There are also plans to set up 150 community connections in the city's deprived areas as part of the project.

The CWASA, through this additional financing from the World Bank, will be able to boost its institutional capacity as well as finalize sanitation and drainage master plans for the port city of Bangladesh.

The ERD Additional Secretary Mahmuda Begum disclosed, "The financing will help establish a long-term water supply, sanitation and drainage infrastructure development and operational management program in Chittagong to better serve the growing population in Chittagong city."

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