Asian Infrastructure Investment Bank (AIIB) has approved US$170 million loan to support government's efforts in developing Dhaka's sanitation system as about 1.5 million residents are expected to be benefited from this improved sanitation.
Board of Directors of the Asian Infrastructure Investment Bank (AIIB) approved a US$170 million loan to benefit about 1.5 million residents in Bangladesh's capital Dhaka after improving the city's sanitation services, said an AIIB press released today.
The loan was approved for a scheme namely Dhaka Sanitation Improvement project and the amount, co-financed by the World Bank, will support government investments in sanitation infrastructure comprising sewerage systems, water treatment, and pilot measures for hard-to-reach areas in the Pagla catchment, one of the most densely populated areas of the city, the release said.
Children below the age of five and vulnerable households bears the highest burden of poor sanitation through morbidity and the loss of productivity due to water-borne illnesses.
"AIIB is committed to ensuring that its projects improve quality of life for the most vulnerable communities. This project is expected to directly contribute to the achievement of Sustainable Development Goal (SDG) 6, which is to ensure access to water and sanitation for all," said AIIB Vice President, Investment Operations, DJ Pandian.
"The experience of implementing this project will strengthen AIIB's capacity to finance broad-based water supply and sanitation projects, which are in high demand in other areas of the region," he added.
The project funds will be used to reconstruct two trunk mains, build a new secondary and tertiary network and a wastewater treatment plant, the release said.
Other key components of the investment include strengthening the capacity of the Dhaka Water Supply and Sewerage Authority and testing the feasibility of locally adapted collection and water treatment solutions, it added.
The project is AIIB's eighth investment in the country, all of which are aligned with the country's top priority development plans and the SDGs. The approved project brings the Bank's total commitment in Bangladesh to $1.068 billion.