Economic Relations Division Secretary Monowar Ahmed and World Bank Country Director for Bangladesh and Bhutan Mercy Tembon penned the deal in Dhaka, said the global lender in a statement on Wednesday.
The credit is from the World Bank’s International Development Association (IDA), has a 30-year term, including a five-year grace period, and carries a service charge of 0.75 percent and an interest of 1.25 percent.
The project also includes $100 million financing from the Asian Infrastructure Investment Bank (AIIB) and $9.53 million financing from the government of Bangladesh.
The municipal water supply and sanitation project will provide safe piped water to residents of selected municipalities that currently do not have piped water facilities.
“Today, more and more people are living in cities, creating an urgent demand for quality urban infrastructures, including water and sanitation services,” said Tembon.
“This project will help the people living in small towns, including the slum dwellers get piped water and improved sanitation and drainage services. With greater access to clean water, the women will have more time otherwise spent for collecting water, as well the health of their children will improve resulting in better school attendance.”
The project will also help construct public toilets. It will invest in septage management and disposal, as well as provide training to cleaning workers in fecal sludge management. It will also identify and mitigate measures for critical areas prone to flooding.
“In the sector development plan and the national strategy for water supply and sanitation, the government has aimed for 85 to 90 percent piped water supply coverage in municipalities by 2025,” said Ahmed.
To facilitate citizen’s feedback, the project will develop mobile apps, IT enabled complaint redressal systems and annual citizen surveys.