The World Bank will provide an additional $140 million to Bangladesh to enhance water supply and sanitation services in Chattogram under an ongoing urban infrastructure project.
The Economic Relations Division (ERD) under the Ministry of Finance signed the additional financing agreement with the International Development Association (IDA), the World Bank’s concessional lending arm on Thursday in Dhaka. ERD Secretary Md Shahriar Kader Siddiky and World Bank Division Director for Bangladesh and Bhutan Jean Pesme signed the deal for their respective sides.
The funding will support the Chattogram Water Supply Improvement Project which runs through December 31, 2030. The project aims to expand access to safe, reliable and climate-resilient water while improving sanitation infrastructure. It will also strengthen the operational and financial capacity of the Chattogram Water Supply and Sewerage Authority (CWASA).
Under the IDA’s Scale-up Window-Shorter Maturity Loan, the $140 million package features a 12-year repayment period including a six-year grace period. The loan carries no service charges, commitment fees or interest.
As Bangladesh’s second-largest city and primary seaport and Chattogram faces mounting pressure on its urban services due to rapid population growth and expanding commercial activity. Officials emphasized that securing safe water and modern sanitation remains a critical development priority for the port city.
