Asian Development Bank(ADB) Provides $202 Million To Improve Bangladesh Water Supply
Tuesday, 11 December 2007

The Asian Development Bank (ADB) is providing $202.5 million to improve water supply services in Bangladesh's capital city of Dhaka. The goal is to promote better health conditions and contribute to sustainable economic growth.

The Dhaka Water Supply Sector Development Program will receive loans and a grant. The two loans totaling $200 million and a $2.5 million grant come from the Manila-based multilateral lending agency, an ADB press statement says on Monday.

It is the first phase of a long-term support program for the urban water supply sector based on the Partnership Framework between external development partners and the government of Bangladesh.

The ADB-assisted program will help reduce child mortality and improve the general health condition of the project area. It will also increase the productivity of women and children by reducing the time required to fetch and store water, and conserve a water supply.

Under the program, the ADB will provide a $50 million loan in two trances to support reforms in the urban water supply sector. The reforms will help the government improve the management and operation of urban water supply institutions and water supply and sewerage authorities.

"The reforms will help achieve sustainable and improved operation of water supply services in the urban areas, particularly in Dhaka," said Tomoo Ueda, Urban Development Specialist of ADB's Operations Evaluation Department.

ADB will also extend a $150 million loan for the rehabilitation and strengthening of the water supply system in Dhaka, which is in line with the long-term policy and investment roadmap of the government. The loan forms part of a total estimated project cost of $212.7 million, with the balance covered by the government.

The loan has three components. The first involves the rehabilitation and optimization of the water distribution network of the Dhaka Water Supply and Sewerage Authority (DWASA) to minimize losses and allow for 24-hour pressurized water supply and assure water quality, the statement adds.

The second component involves the establishment of sound financial management, efficient billing, revenue collection and customer record systems. The component also entails comprehensive staff training and extensive demand control and awareness campaign for consumers. The third component will provide project management and implementation support.

The ADB will also provide a $2.5 million grant to fund a $3.125 million technical assistance to extend advisory support to the government in improving and strengthening the management and capacity building of staff at urban water supply agencies.

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