World Bank to Fund $280 Million for Chittagong Wasa Improvement Project
Bangladesh has signed a $280 million financing agreement with the International Development Association (IDA), a part of the World Bank Group, to enhance water and sanitation infrastructure in Chittagong.
The agreement, signed on Saturday by Economic Relations Division Secretary Md Shahriar Kader Siddiky and Interim World Bank Country Director Gayle H Martin, will fund the “Chittagong Water Supply Improvement Project (CWSIP).”
The project, set to be completed by December 31, 2030, will be implemented by Chittagong Wasa under the Local Government Division. It aims to ensure access to safe, reliable, and climate-resilient water and improved sanitation while strengthening the operational and financial capacity of Chittagong Wasa.
According to the Economic Relations Division (ERD), the loan consists of two components:
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$140 million from the Scale-up Window–Shorter Maturity Loan (SUW-SML), repayable over 12 years, including a 6-year grace period. This portion bears no interest, service, or commitment fees.
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$140 million from the Scale-up Window (SUW), repayable over 35 years with a 5-year grace period. A 0.25% front-end fee and a 0.25% commitment fee on undrawn funds apply, with an interest rate based on TONA plus a variable spread.
The World Bank has been a key development partner for Bangladesh, contributing over $43.5 billion in support since the country’s independence. Currently, it is financing 47 ongoing projects in Bangladesh, worth $13.1 billion, across sectors like infrastructure, social and economic development, energy, and institutional reform.