World Bank Approves $370 Million for Dhaka Water Reform

The World Bank has approved a $370 million loan to tackle water pollution and sanitation challenges in Dhaka, equivalent to approximately BDT 4,528 crore at an exchange rate of BDT 122.39 per US dollar. The approval was granted during a board meeting at the Bank’s headquarters in Washington, D.C., according to a statement issued by its Dhaka office on Wednesday.

The programme, titled the Metro Dhaka Water Security and Sustainable Programme, aims to reduce water pollution across Greater Dhaka while strengthening the capacity of both local and national institutions. The initiative is expected to provide safe drinking water to 550,000 people and improved sanitation services to 500,000 residents. It will play a key role in enhancing the operational efficiency of city corporations and Dhaka WASA (Water Supply and Sewerage Authority), prioritising communities most affected by pollution and service deficits.

Jean-Pascal, the World Bank’s director for Bangladesh and Bhutan, stated: “Water is a lifeline for millions in Greater Dhaka. Yet rapid, unplanned urbanisation and industrial growth are exacerbating water pollution. This programme will help reduce contamination in rivers and canals while establishing the institutional foundation necessary for health restoration.”

Data from the World Bank highlights the urgent need for intervention: only 20% of Dhaka residents have piped sewer connections, and a mere 2% utilise functional faecal waste management systems. Over 80% of untreated waste and sewage is discharged directly into Dhaka’s waterways, while more than half of the city’s canals have become blocked or invisible, intensifying pollution.

Dhaka Waste and Water Pollution Indicators

IssueCurrent Status / Figures
Piped sewer connections20% of residents
Functional faecal waste management2% of residents
Untreated waste discharge>80% into waterways
Blocked or invisible canalsOver 50%
Export-oriented garment factories7,000+
Daily wastewater discharge2,400 million litres

Harsha Goel, Senior Water Supply and Sanitation Specialist at the World Bank, emphasised: “The programme will significantly reduce pollution in Dhaka’s water bodies, introduce digital real-time monitoring, restore rivers, and improve industrial wastewater treatment. The first phase will target selected areas of Dhaka and Narayanganj, expanding waste collection coverage, prioritising under-served communities, and strengthening recycling systems.”

Key objectives include halting the direct disposal of waste into major canals and rivers, enhancing drainage networks, and ensuring industrial effluent management. The initiative is expected to create vital infrastructure that will improve Dhaka’s environment, public health, and long-term urban sustainability.