World Bank approves $370m programme to curb Dhaka water pollution, restore rivers

The World Bank yesterday (10 February) approved $370 million in financing to strengthen sanitation and solid waste management in Dhaka, aiming to reduce water pollution and help restore the capital's rivers and canals.

The funding will support the Metro Dhaka Water Security and Resilience Programme, a multi-phase initiative designed to strengthen institutions and address rising wastewater and industrial pollution in greater Dhaka, which accounts for nearly half of the country's formal employment and about one-third of its GDP.

Rapid urbanisation and industrial expansion have outpaced the city's wastewater management capacity. Currently, only around 20% of residents are connected to sewer networks, and just 2% have access to functional sludge management. As a result, more than 80% of untreated waste flows into rivers and canals, over half of which are now clogged or have nearly disappeared.

Under the programme, about 550,000 people will receive safely managed sanitation services, while another 500,000 will benefit from improved solid waste management. The initiative will prioritise pollution-affected and underserved communities and introduce a results-based financing model to help city corporations and the Water Supply and Sewerage Authority (WASA) deliver measurable improvements.

"Waterbodies are the lifeline for millions of people in greater Dhaka. But rapid, unplanned urbanisation and industrial growth have outpaced the city's capacity to manage wastewater and pollution, impacting public health, environment, and the economy," said Jean Pesme, World Bank division director for Bangladesh and Bhutan. He added that the programme would help build the institutional foundations needed to gradually restore the health of Dhaka's rivers and canals.

Industrial pollution remains a major concern, with around 80% of export-oriented garment factories located in Dhaka. More than 7,000 factories are estimated to discharge about 2.4 billion litres of untreated wastewater daily into nearby waterways, posing significant health and environmental risks.

The programme aims to mobilise private sector participation to expand effluent treatment and promote water reuse to reduce pollution.

Harsh Goyal, senior water supply and sanitation specialist at the World Bank and task team leader for the project, said this phase will focus on reducing pollution discharge into Dhaka's water bodies, strengthening regulatory monitoring, introducing digital real-time tracking and a comprehensive water quality index, and preparing integrated restoration plans for four major rivers surrounding the capital.

The first phase will target selected areas in Dhaka and Narayanganj, with plans to expand waste collection in underserved communities, upgrade recycling systems, and support community awareness campaigns alongside stricter enforcement against illegal sewage discharge, industrial dumping and solid waste disposal.

Since Bangladesh's independence, the World Bank has committed more than $46 billion in grants, interest-free loans and concessional credits. Its current portfolio includes over $12 billion across 43 active projects.