Bangladesh, Germany sign €160m agreement for water project
Business Desk :
Bangladesh and Germany have signed agreements worth €160 million to expand financing for a major water supply project in Dhaka on Monday, aimed at reducing dependence on groundwater and ensuring sustainable access to drinking water.
The package includes an additional €70 million and an amendment to the original €90 million loan for the “Climate Change Adapted Drinking Water Resources Management Dhaka II (Saidabad WTP Phase III)” project, according to a press release.
The project is implemented by Dhaka WASA under the Local Government Division and was approved by the Executive Committee of the National Economic Council in March 2025.
The total estimated cost of the project is Tk 16,014.83 crore, with Tk 4,536.17 crore from the government, Tk 11,448.66 crore in loans, and Tk 30 crore from WASA’s own funds.
The additional €70 million (around Tk 988 crore) will finance the construction of a raw water intake and pumping station on the Meghna River at Haria, a 26 km transmission pipeline, and expansion of 54 km of the primary distribution network. With this financing, the disbursement period of the original €90 million loan has been extended to December 31, 2026.
Germany has been a long-standing development partner of Bangladesh, committing about €4 billion since 1972. KfW Development Bank is currently financing 13 projects in Bangladesh, including €647.5 million in loans and €170 million in grants.
The agreements were signed by Md Shahriar Kader Siddiky, secretary of the Economic Relations Division (ERD), on behalf of Bangladesh, and Carla Berke and Stefanie Klappenbach of KfW Frankfurt on behalf of Germany.
This new financing is expected to significantly improve water supply coverage in Dhaka, reduce pressure on groundwater, and support sustainable urban development in the capital.