The Bangladesh government has signed a $140 million loan agreement with the World Bank to ensure the continuation and completion of the Chattogram Water Supply Improvement Project, following the diversion of a substantial portion of its original funding to an emergency response programme.
The additional financing agreement was signed on Wednesday by Md Shahriar Kader Siddiky, secretary of the Economic Relations Division (ERD), and Jean Pesme, the World Bank’s division director for Bangladesh and Bhutan, on behalf of their respective sides, according to an ERD release sent to media on Thursday.
The financing will be provided by the International Development Association (IDA), the concessional lending arm of the World Bank Group, under its Scale-up Window–Shorter Maturity Loan (SUW-SML) facility.
The Chattogram Water Supply Improvement Project (CWSIP), launched in 2025, is scheduled for completion by December 2030. The additional financing agreement will remain effective until December 31, 2030.
The Chattogram Water Supply and Sewerage Authority (Chattogram WASA), under the Local Government Division of the Ministry of Local Government, Rural Development and Cooperatives, is implementing the project.
The project aims to expand access to safe, reliable and climate-resilient water supplies and improve sanitation services in Chattogram. It also seeks to strengthen the operational performance and financial sustainability of Chattogram WASA.
According to the ERD, $140 million from the project’s original financing was repurposed for the Contingency Emergency Response Component (CERP). The government has now secured an additional $140 million to maintain the project’s implementation in line with its approved Development Project Proposal (DPP).
The additional loan, equivalent to 102.30 million Special Drawing Rights (SDR), carries a repayment period of 12 years, including a six-year grace period.
No interest, service charge or commitment fee will be payable on the amount withdrawn under the financing, according to the ERD.
The latest agreement reflects continued World Bank support for Bangladesh’s urban infrastructure development, particularly improvements in water supply and sanitation services in major cities.
The World Bank remains Bangladesh’s largest multilateral development partner, financing projects across economic and social development, institutional reforms, infrastructure and the energy sector.