The New Nation - Internet Edition

NATION BUSINESS REPORT

The World Bank yesterday approved a US$149 million IDA credit to Bangladesh, which will support the improvement of water supply and sanitation services to the population of Dhaka, according to a press release received from Washington.

Dhaka is one of the fastest growing megacities in the world, and its population is expected to reach nearly 22 million by 2025, up from 12 million today. This population growth is placing serious strains on the city's ability to provide basic water, sanitation and drainage services to its citizens. Delivery of these services throughout Dhaka is inadequate and uneven, but is particularly poor in slum areas.

"Poor water supply, sanitation, and drainage services hurt the poorest citizens the most," said Xian Zhu, World Bank Country Director for Bangladesh. "Households in slum areas tend to rely on more costly alternative sources and alternative providers which often pose quality issues. This project aims to improve and expand these services to all people living in Dhaka, especially poor people."

The Dhaka Water Supply and Sanitation Project is designed to improve sustainable delivery of storm water drainage, wastewater, and water services by the Dhaka Water Supply and Sewerage Authority (DWASA), which has the sole responsibility of providing these services in Dhaka. This will be achieved through rehabilitation, repair, and expansion of the city's sewerage network and treatment plants, and installation of stormwater pumping stations and rehabilitation of canals to help improve drainage and minimize urban flooding.

The project will also support DWASA's pilot expansion of water and sanitation services into some of Dhaka's slum areas to help increase services to the urban poor, and finance training to improve hygiene practice in the slums.

"Currently DWASA only supplies water to 70 percent of the population of the Dhaka Metropolitan Area and its suburbs," said Fook Chuan Eng, World Bank Senior Financial Analyst and Task Team Leader for the project. "The quality and quantity of service varies significantly even inside Dhaka. There are no piped distribution networks available in slum areas, where approximately 4 million people live. This project will help DWASA to bring water and sanitation services to about 305,000 poor people living in slums"

The World Bank is one of several development partners actively supporting DWASA and the provision of water, sanitation and drainage services in Dhaka.

It is envisaged that the project will be implemented in partnership and coordination with development partners in line with a Partnership Framework entered into in November 2007 by the Government of Bangladesh and development partners, which include the Asian Development Bank, the Danish International Development Agency, the Government of Japan, the Government of Korea and the World Bank.

The credit from the International Development Association (IDA), the World Bank's concessionary arm, has 40 years to maturity with a 10-year grace period; it carries a service charge of 0.75 percent.