The New Nation - Internet Edition

UNB, Dhaka

Denmark will provide US $ 100 million for a new 3-year project taken to ensure improved water supply in this densely-populated Dhaka city.

An agreement to this effect was signed between the governments of Bangladesh and Denmark here yesterday.

Joint Secretary, Coordination and Nordic, Economic Relations Division Dr. A.H.M Mustain Billah and Jan Møller Hansen, Chargé d' Affaires of the Embassy of Denmark in Dhaka, signed the agreement on behalf of their respective sides.

The project is aimed at providing help in designing and constructing a new large water treatment plant at Saidabad with a capacity of 225.000 cubic of water a day, said a press release. The project, 'Saidabad Water Treatment Plant Project, Phase II(2008-2011), will be implemented by Dhaka Water Supply and Sewerage Authority (DWASA) with an interest-free loan. Grants will also be provided for monitoring of the process and supervision during implementation of the project.

The project is expected to contribute to the improvement of public health and create better conditions for economic growth in Dhaka, the release added.

The project is financed by mixed credits from Denmark and is part of the partnership agreement between the government of Bangladesh and five main development partners, which provide assistance to urban water supply and sanitation in Bangladesh. Speaking at the agreement signing ceremony, Jan Møller Hansen said, "We hope that the Danish assistance will contribute significantly to the necessary improvements of the critical water supply situation in Dhaka City. The project is an element in the partnership framework between the government of Bangladesh and five main development partners that will address longstanding reform issues necessary for improving the governance and performance of water supply and sanitation services in Dhaka City."