Ctg set for first full sewerage network but revenue challenge looms for Wasa

Highlights:

• Chattogram aims to be Bangladesh's first city with full sewerage
• Six catchments planned; four under construction, two awaiting approval
• Projects rely heavily on foreign loans, increasing revenue pressure
• Sewerage billing will link to water usage and flat tariffs
• Major challenge: non-revenue water, illegal sales, weak billing systems
• Wasa adopting digital tools and smart meters to improve collections

Chattogram is on course to become the first city in Bangladesh to have a complete sewerage network, as a series of major projects move ahead under the Chattogram Water Supply and Sewerage Authority's (Wasa) sewerage masterplan.

However, officials say the biggest hurdle will be ensuring proper revenue collection once the system becomes operational.

Chattogram Wasa has divided the port city into six catchment areas as part of the masterplan. Four catchments are currently under implementation at a cost of Tk15,332 crore, while two more projects worth Tk13,258 crore are awaiting approval.

Much of the funding for the projects comes from foreign loans, increasing pressure on the authorities to recover sewerage service revenue in the years ahead.

Officials say sewerage billing will largely be tied to water usage, a practice common in developed countries – households will pay sewerage charges based on the volume of water entering homes.

For properties without a Chattogram Wasa water connection, billing will follow the government's sewerage tariff policy per flat. But non-revenue water, illegal water sales and poor billing systems could make it difficult for Chattogram Wasa to collect payments.

"If we cannot properly collect water revenue, sewerage services will also be affected," Chattogram Wasa Chief Engineer Maksud Alam told The Business Standard.

"Initially, sewerage service will be provided only to Chattogram Wasa's water customers. Where there is no water connection, waste will be collected from septic tanks with vacuum trucks and transferred to a faecal sludge treatment plant," he added.

Infograph: TBS

Long-awaited sewerage plan now underway

Despite sewerage being part of Chattogram Wasa's name for 54 years, the organisation only prepared its sewerage masterplan in 2017. The plan aims to serve 89 lakh people across six catchments.

According to Chattogram Wasa, around 400 million litres of sewage are generated daily in the city and discharged into canals, the Karnaphuli and Halda rivers, and eventually the Bay of Bengal. 

At present, around 539 cubic metres of faecal sludge (human waste) is collected in septic tanks every day. Of this, only 35 cubic metres are treated – 15 cubic metres are treated under the management of the Chattogram City Corporation, and 20 cubic metres under NGO DSK – the rest is dumped into water bodies.

According to the master plan's recommendations, work on the first catchment area began in 2018 with a Tk3,800 crore project in Halishahar. Costs later increased to Tk5,219 crore. Progress now stands at 65%, and completion may be delayed to 2027. 

The plan includes a sewage treatment plant with a capacity of 100 million litres per day, a faecal sludge treatment facility with a daily capacity of 300 cubic metres, 200 kilometres of sewer pipelines, and 28,000 household connections.

The second project, covering catchments 2 and 4 in Kalurghat and Bakalia, was approved on 25 November last year at Tk5,152.56 crore – largely financed through loans from the Japan International Cooperation Agency (Jica), around Tk4,144 crore. 

Another project worth Tk2,163.27 crore has been approved for acquiring and developing 74.11 acres of land for these two catchments.

This February, the government approved the Tk2,797.21 crore catchment-5 project to bring residents of the city's Kattoli area under the central sewerage system. Of this, France's AFD will provide Tk1,872.12 crore in loan assistance.

Feasibility studies have been completed for catchment-3 in Fatehabad, estimated at Tk3,360 crore and likely to receive funding from South Korea's Economic Development Cooperation Fund. Meanwhile, Japan's Marubeni Corporation has shown interest in executing the Tk9,897.50 crore Patenga catchment-6 project on a public-private partnership basis.

Both these schemes are now undergoing review by the Planning Commission and may be approved by 2026.

Revenue collection a major challenge

According to Chattogram Wasa data, approved projects include Tk6,016 crore in foreign loans and Tk4,563 crore in government loans. All six projects are expected to be completed by 2035, with the first services expected to open in 2028.

But weaknesses in revenue collection remain. Around 25% of Chattogram Wasa's water is classified as non-revenue, with allegations of illegal water sales depriving the authority of income.

Chattogram Wasa has more than 96,000 water connections, serving 3.2 million people. However, at least 10% of customers do not receive a regular supply. 

Daily water production capacity is 560 million litres – currently meeting demand – but demand is expected to rise to 700 million litres by 2032 and 1.22 billion litres by 2040.

"We have reduced the non-revenue rate compared to before," Chattogram Wasa Chief Revenue Officer Rumon Dey said. "We are installing smart meters, connecting meter reading to apps, and strengthening digital management. We are even considering an app where customers can submit their own meter readings."

Push for digital transformation

Chattogram Wasa is now adopting modern tools – including a meter reading app, a management dashboard and non-revenue water monitoring – under a capacity-building programme supported by Jica.

Billing is still manual, with meter reading, bill preparation and distribution taking up to 12 weeks, and errors estimated at around 30%.

A pilot rollout of automated billing has begun with 3,000 users. Meter readings, customer history and even photographs of meters will be stored digitally, while GPS tracking will reduce scope for irregularities and fraud.

"This project aims to build stronger institutional management using technology and data," said Supervising Engineer Md Nurul Amin. "If implemented successfully, it will transform the entire supply chain from customers to operations."

Chief Engineer Maksud Alam said, "We expect good results once Jica's transformation is fully implemented and smart meters are in place."