The World Bank (WB), which will administer the fund, and the government of Bangladesh signed two agreements in this regard at a simple ceremony at the Economic Relations Division (ERD) yesterday.

ERD Secretary Aminul Islam Bhuiyan and WB Country Director Xian Zhu singed the agreements.

Of the total grant, $900,000 will be used for preparing the Clean Air and Sustainable Energy (CASE) and $700,000 for Dhaka Environment and Water Resources Management (DEWRM).

The Ministry of Environment and Forest will implement the CASE project to strengthen infrastructure, institutional and regulatory framework for air quality management.

"The project will address emission from major sources like industry and transport," said Mohammad Nasir, CASE Project Director.

The grant will be used for feasibility study, detailed designs, and environmental and economic assessments by June 23, 2008, he added.

The Local Government Division will prepare the DEWRM project aimed at promoting integrated pollution management in the watershed of greater Dhaka to improve environmental conditions. The grant would be utilised by July 7, 2008.