Bangladesh and the World Bank's International Development Association (IDA) today signed a $280 million financing agreement to implement the Chattogram Water Supply Improvement Project (CWSIP).
The agreement was signed by Md. Shahriar Kader Siddiky, Secretary of the Economic Relations Division (ERD), and Gayle H. Martin, Interim Country Director of the World Bank.
Chattogram WASA under the Local Government Division will implement the project by December 31, 2030. The CWSIP aims to enhance access to safe, reliable, and climate-resilient water supply and improve sanitation in Chattogram. It also seeks to improve the operational efficiency and financial sustainability of Chattogram WASA, according to an ERD press release.
The $280 million loan comprises two parts: $140 million from the World Bank's Scale-up Window-Shorter Maturity Loan (SUW-SML) with a 12-year repayment period (including a 6-year grace period) and no service charge, commitment fee, or interest on withdrawn amounts. The remaining $140 million from the Scale-up Window (SUW) has a 35-year repayment period (including a 5-year grace period), a 0.25% front-end fee, a 0.25% commitment fee on the undrawn amount, and an interest rate of TONA + Variable Spread.
The World Bank is Bangladesh's largest multilateral development partner, having committed over $43.50 billion since the country's independence. Currently, the World Bank is financing 47 ongoing projects in Bangladesh, totaling $13.10 billion, across various sectors including economic and social development, institutional reforms, infrastructure, and energy.
