Bangladesh water utility secures US$275m ADB loan


In a statement, the ADB said the capital will be used to expand the utility’s water supply to meet the growing demands of smart water as a result of the rapidly increasing population in Dhaka.

The city’s water demand is predicted to rise from 2.144m litres a day in 2015 to 2.616m litres a day in 2020.

The loan falls under an on-going partnership between the ADB and the water utility company towards enhancing water infrastructure. [Indian city integrates GPS in utility customer billing].

Non-revenue water

Commenting on the nature of the water landscape in Dhaka since the water authority started receiving assistance from the ADB, Akira Matsunaga, an economist in ADB’s South Asia Department, said: “Dhaka, with ADB support, is now delivering quality, reliable water to millions of its inhabitants but water losses remain substantial and hinder the ability of the city to fully meet rapidly growing customer needs.

“This fresh assistance will help the Dhaka Water Supply and Sewerage Authority further strengthen its distribution network and improve its management capacity, resulting in lower non-revenue water losses and an expansion of supplies to neglected low-income communities,” added Matsunaga.

[quote] In addition to the loan, DWASA will also receive a US$133m grant from the state government to back the ADB funding. [US federal departments partner on water and energy conservation].

The combined loan will be used to deploy a 5-year programme to establish new district metering points, as well as upgrade some distribution pipelines, to supply water to an additional 6.5m customers by 2022.

The project is expected to reduce water losses by 10%. A part of the loan will also be used to training the utility’s staff on how to effectively operate and manage the distribution network.

However, the authority has so far used a fraction of the ADB loan to set up some 5,000 new legal metering points and rehabilitate distribution lines providing water to 229,000 consumers in low income areas.

According to the water utility, its deployed water projects have so far improved access to clean water to some 7 million customers.


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