Donors pledge $800m for project in Dhaka, Ctg

Five development partners have agreed to give Bangladesh $800 million as loans for a project for supplying safe drinking water through pipeline and improving sanitation services in Dhaka and Chittagong cities.
"We have initiated a big project to improve water supply in Dhaka and Chittagong and when the project completes, residents of these cities will get safe drinking water through pipeline," Local Government Division Secretary Safar Raj Hossain said yesterday.
"After implementation of the project the city dwellers will be able to drink water without boiling it," he said after signing the agreement with the donors.
The partners for the project are World Bank, Asian Development Bank (ADB), Japan government, Danish International Development Assistance (Danida) and the government of the Republic of Korea.
Sources in the local government ministry said ADB will provide about $450 million, World Bank $170 million and Danida $130 million and other partners will provide the rest $50 million for the project.
"The donors have agreed to provide the amount initially for the project. The amount may increase as chances are there that more donors will join the partnership," said a ministry official.
The government will, however, go for a number of reforms in the Water Supply and Sewerage Authority (Wasa) in Dhaka and Chittagong before launching the project, sources said.
"The government will bring changes in the Wasa organogram by outlining service and tariff rules," one source said, adding that the work has already begun for the reforms and government decision makers will finalise the matter soon.
The government will also release and "widely publicise" a citizen charter on the Wasa services, he said. It also plans improving governance and accountability and increasing transparency of operations and efficiency in resource utilisation of the Wasa.
The ADB will give support to water supply improvements in the capital while the World Bank plans to assist in sewerage and drainage improvements including scaling up successful models for water supply and sanitation service provision in low-income communities and slums.
The two donors will also assist in improving performance and management efficiency of Dhaka Wasa.
Danida will continue to extend credit for constructing the second water treatment plant at Sayedabad in the capital.
Japan government will assist in the water supply service in Chittagong city while Korea will support preparing a master plan for water supply and wastewater management in the port city.
Economic Relations Division Secretary Aminul Islam Bhuiyan, Local Government Division Secretary Safar Raj Hossain, ADB Country Director Hua Du, Danish Ambassador to Bangladesh Einar Hebogaard Jensen, Japanese Ambassador Masayuki Inoue, Ambassador of the Republic of Korea Suk Bum Park and World Bank Country Director Xian Zhu signed the agreement.
Local Government and Rural Development Adviser Anwarul Iqbal was also present at the programme.