Dhaka: Bangladesh and Germany have entered into two significant loan agreements totaling 160 million euro aimed at advancing the 'Climate Change Adapted Drinking Water Resources Management Dhaka II (Saidabad WTP Phase III)' project. The agreements were formalized today at the Economic Relations Division with the signing of a 'Loan Agreement' for an additional 70 million euro and an 'Amendment Agreement' to the main loan of 90 million euro.
According to Bangladesh Sangbad Sangstha, the agreements were signed by ERD Secretary Md. Shahriar Kader Siddiky on behalf of Bangladesh, while Carla Berke, Head of Division, Urban Development, South Asia, KfW Frankfurt, and Stefanie Klappenbach, Principal Portfolio Manager, Urban Development, South Asia, KfW Frankfurt, represented Germany. The core aim of this initiative is to create an environmentally sustainable and people-friendly water supply system, which will help reduce reliance on groundwater by optimizing the use of surface water.
The project, executed by Dhaka WASA under the Local Government Division, received approval for its Revised Development Project Proposal (RDPP) from the Executive Committee of the National Economic Council (ECNEC) on March 23, 2025. With a total estimated cost of Taka 16,014.83 crore, the Bangladesh government will contribute Taka 4,536.17 crore, while the project loan amounts to Taka 11,448.66 crore. The implementing agency will provide Taka 30.00 crore from its own resources. The project, spanning from July 1, 2015, to June 30, 2029, includes constructing a raw water intake and pumping station on the Meghna River at Haria, a 26 km raw water transmission pipeline, and an upgrade of the primary distribution network.
Under the revised 'Loan Agreement', KfW Development Bank's additional 70.00 million euro financing will facilitate these developments. The disbursement period for the original 90 million euro loan has been extended from June 27, 2024, to December 31, 2026, necessitating the 'Amendment Agreement'.
Germany has been a steadfast development partner for Bangladesh, with total commitments exceeding 4.00 billion euro since 1972. Currently, KfW Development Bank supports 13 projects in Bangladesh, funding 647.50 million euro in loans and providing 170.00 million euro in grants.