Bangladesh to get 160m Euros loan from Germany for Dhaka water project

Bangladesh and Germany yesterday signed agreements worth 160 million Euros to expand financing for a major water supply project in Dhaka aimed at reducing dependence on groundwater and ensuring sustainable access to drinking water.

The loan package includes an additional 70 million Euros and an amendment agreement to the main 90 million Euros loan for the "Climate Change Adapted Drinking Water Resources Management Dhaka II (Saidabad WTP Phase III)" project, according to a press release.

The project, implemented by Dhaka WASA under the Local Government Division, was approved by the Executive Committee of the National Economic Council in March 2025.

Its total estimated cost is Tk 16,014.83 crore, with Tk 4,536.17 crore from the government, Tk 11,448.66 crore in loans, and Tk 30 crore from WASA's own funds.

The additional 70 million Euros (around Tk 988 crore) will finance the construction of a raw water intake and pumping station on the Meghna river at Haria, a 26km transmission pipeline, and the expansion of 54km of the primary distribution network.

As a result of the new financing, the disbursement period of the original 90 million Euros loan has been extended to December 31, 2026.

Germany has been a long-standing development partner of Bangladesh, with commitments of about 4 billion Euros since 1972. KfW Development Bank is currently financing 13 projects in Bangladesh, including 647.50 million Euros in loans and 170 million Euros in grants.

Md Shahriar Kader Siddiky, secretary of the ERD, signed on behalf of Bangladesh. Carla Berke, head of division for urban development for South Asia, KfW Frankfurt, and Stefanie Klappenbach, principal portfolio manager for urban development for South Asia, KfW Frankfurt, signed for Germany.