World Bank to provide $280m loan to improve Ctg water supply, sanitation
The World Bank Group will provide $280.00 million in loan to Bangladesh to increase access to safe, climate resilient water supply and improve sanitation in Chattogram city.
To this end, the Bangladesh government and the International Development Association (IDA) of WB today (10 May) signed a financing agreement to implement the "Chattogram Water Supply Improvement Project (CWSIP)", reads a press release.
Md Shahriar Kader Siddiky, secretary of Economic Relations Division, and Gayle H Martin, country director (Interim) of World Bank, signed the agreement on behalf of their respective sides.
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The Chattogram Wasa of the Local Government Division (LGD), Ministry of Local Government, Rural Development and Cooperatives will implement the project by 31 December 2030.
The project aims to increase access to safe, reliable and climate resilient water supply and improved sanitation in Chittagong; and to improve the performance and financial sustainability of Chattogram Wasa.
The World Bank will provide a total of $280 million for the project: $140 million as a Scale-up Window-Shorter Maturity Loan (SUW-SML) with a 12-year repayment term, including a 6-year grace period and no service charge, commitment fee, or interest on withdrawn amounts.
The remaining $140 million (21,345,100,000 Japanese Yen) will come from the World Bank's Scale-up Window (SUW). A 0.25% Front-end Fee applies. The loan has a 35-year term, including a 5-year grace period, with a 0.25% Commitment Fee on undrawn funds and an interest rate of Tokyo Overnight Average Rate (TONA) + Variable Spread.
World Bank has committed over $43.50 billion for Bangladesh since its independence which indicates the direction for deepening cooperation between Bangladesh and the World Bank.
At present, the World Bank is financing $13.10 billion for Forty-seven ongoing projects that cover different sectors including economic and social development, institutional reforms, infrastructure development and energy sector development.
