$280m World Bank Loan to Boost Chattogram Water Supply

The World Bank will provide a US$280 million loan to enhance the water supply system in Chattogram, following the signing of an agreement with the Bangladesh government on Saturday. The agreement was signed by Md Shahriar Kader Siddiky, Secretary of the Economic Relations Division (ERD), and Ms. Gayle H. Martin, Interim Country Director of the World Bank.

Under the Local Government Division, the Chattogram Water Supply and Sewerage Authority (WASA) will implement the project, which is scheduled for completion by December 31, 2030. The initiative aims to expand access to safe, reliable, and climate-resilient water supply and improved sanitation services in the port city, while also strengthening the operational and financial sustainability of Chattogram WASA.

According to the ERD, the loan includes US$140 million from the World Bank’s Scale-up Facility (SUF), and an equivalent amount—US$140 million or 21.345 billion Japanese Yen—from the Scale-up Window (SUW). The SUW loan will carry a front-end fee of 0.25 percent, a 35-year repayment period with a 5-year grace period, and an interest rate based on the Tokyo Overnight Average Rate (TONA) plus a variable spread. A 0.25 percent commitment fee will also apply to undrawn funds.

The other US$140 million loan will have a 12-year repayment period, including a 6-year grace period, and will not carry any service charge, commitment fee, or interest on the disbursed amount.

The World Bank remains Bangladesh’s largest multilateral development partner, having committed about US$43.5 billion since the country’s independence. Currently, it is supporting 47 ongoing projects in Bangladesh with a total commitment of US$13.1 billion across various sectors such as infrastructure, energy, institutional reforms, and socio-economic development.