The European Investment Bank (EIB) will lend 100 million euros to Bangladesh to upgrade a new surface water supply system in Dhaka.
The financing contract was signed in Dhaka yesterday, the EIB said in a statement.
The water supply system comprises a raw water intake in the Meghna river, a 21km raw water transmission pipeline and a new water treatment plant in Rupganj with a capacity to treat 500 million litres of water a day. The project will also include a 14km treated water transmission pipeline.
The project will be implemented by 2019.
This is the second lending operation to the public sector in the country from the EIB. In November last year, it gave €82 million in support of more efficient power generation in Bangladesh.
The EIB is the long-term lending institution of the European Union, and makes finance available for sound investment in order to contribute towards EU policy goals.