Nine of the secondary towns--Brahmanbaria, Gaibandha, Jamalpur, Kushtia, Manikganj, Munshiganj, Mymensingh, Rajshahi and Sunamganj--will come under this project, the second phase of the Secondary Towns Integrated Flood Protection Project.

These towns are "prone to river flooding, river erosion, waterlogging, and flash floods", an ADB press release said.

The project's integrated approach will combine river protection works with drainage and basic sanitation services to create better environmental conditions and more hygienic living conditions for the poor in the slums.

"The urban sector presents a great opportunity for both pro-poor economic growth and targeted poverty reduction, yet its growth potential is severely undermined by frequent flooding," says Hun Kim, ADB principal urban economist.

"A flood-free and secure living environment will help promote economic growth and reduce poverty in Bangladesh's urban sector".

Flooding is a perennial problem in Bangladesh and urban areas are more prone to economic and human losses because of their high population density and concentration of industrial and investment sites.

Slum-dwellers in low-lying areas or in areas close to the embankment are the first to be inundated when the floods come as those areas lack proper drainage and sewerage. "Inhabitants in such areas must wade through knee-and waist-deep polluted water to go about their daily activities," says the donor agency.

The project comprises four components. The first will create new or upgrade existing flood protection facilities, such as earthen flood embankments, reinforced concrete floodwalls, and drainage regulators, in each of the selected towns.

The second component will improve the existing drainage works in such towns by constructing large lined drains and open unlined drainage outfalls, including small structures such as road culverts and bridges.

Under the third component, the project will focus on improving the urban environment. It will improve solid waste management by, among others, establishing landfill sites and building a pilot composting facility.

To tackle sanitation problems, the project will provide about 13,200 sanitary latrines and 22 public toilets. A sanitation management plan will also be prepared by each of the nine towns to address operation and maintenance needs.

A slum-improvement sub-component will provide basic infrastructure facilities for sanitation, drainage, footpaths, water supply, and street lighting for five out of the nine towns not covered by other development programmes.

The last component will ensure long-term sustainability of the project by building the capacities of the participating towns to manage the new assets to be created.

ADB's loan, which covers 62.1 percent of the total project cost of $128.88 million, comes from its concessional Asian Development Fund. It carries a 32-year term, including a grace period of 8 years. Interest is charged at 1.0 percent per annum during grace period and 1.5 percent per annum subsequently.

Executing agencies of the project are the Bangladesh Water Development Board under the Ministry of Water Resources, as the lead agency, and the Local Government Engineering Department under the Ministry of Local Government, Rural Development and Cooperatives. The project is due to complete in June 2009.