The government today signed $275 million loan agreement with the Asian Development Bank (ADB) for further improving and expanding water supply system in Dhaka.
Mohammad Mejbahuddin, Senior Secretary, Economic Relations Division (ERD), and Kazuhiko Higuchi, Country Director, Bangladesh Resident Mission of ADB, signed the agreement on behalf of Bangladesh and ADB respectively at a ceremony at ERD, Sher-e-Bangla Nagar, here, said a release.
Dhaka Water Supply and Sewerage Authority (DWASA) will implement $408 million project. Of 
the amount, ADB will provide $275 million from its ordinary capital resources under a soft-term loan agreement.
“Dhaka city is expanding fast, and demand for safe drinking water is rising rapidly,” said Country Director Kazuhiko Higuchi. “This project will help over seven million people in Dhaka get access to safe, regular, and affordable water services.
“Dhaka city dwellers will get supply of safe drinking water 24-hour a day once the project is implemented,” Deputy Project Director Engineer Abdus Salam told BSS.
The project, he said, is aiming at improving the water supply system in Dhaka by making it more reliable, sustainable, and climate-resilient. It would also enhance the efficiency of the water distribution network and improve the service delivery and the capacity of DWASA, he said.
Earlier, ADB provided DWASA with $400 million for improving water supply system in Dhaka but physical water losses still needs to be reduced to further improve service delivery in many areas.
The new ADB assistance under the Dhaka Water Supply Network Improvement Project will be used to rehabilitate water distribution pipelines and set up new district metered areas, with about 5,000 new and legalized connections established in low income communities, and 229,000 connections upgraded for households and communities.
Dhaka’s demand for water is projected to rise from 2,144 million liters a day in 2015 to around 2,616 million liters a day in 2020. The water supply authority is taking steps to expand capacity with ADB’s help, but it will not be enough to meet projected needs without a substantial cut in ongoing losses, the release added.
