EIB Global, the development arm of the European Investment Bank, has expanded its support for sustainable water infrastructure in Bangladesh by approving €160 million in new financing for two major projects in Dhaka. These initiatives aim to improve the city’s water supply system and enhance resilience to climate challenges, benefiting more than 10 million residents. The investments are part of one of the world’s largest water treatment programmes supported by European partners under the Team Europe Initiative.
The first investment involves an additional €70 million for the Dhaka Environmentally Sustainable Water Supply project, increasing EIB Global’s total financing for the Gandharbpur water supply initiative to €170 million. The project, which will serve more than 4.5 million people, includes constructing a new water treatment plant in Dhaka’s Gandharbpur area, a new intake on the Meghna River, and more than 500 km of new distribution lines. Scheduled for completion in 2027, it will help shift the city’s water supply from overused groundwater to more sustainable surface water sources.
The second operation adds €90 million to the Saidabad Raw Water Conveyor Project, supplementing an existing €40 million loan. This project will fund two parallel pipelines to deliver raw water from the Meghna River to the Saidabad I, II, and III treatment plants. It will replace polluted river sources with clean, climate-resilient water and provide safe drinking water to around 6 million people. Completion is expected by 2028, contributing to reduced groundwater extraction, mitigating land subsidence, and lowering flood risks in Dhaka.
Announced at the 2025 Annual Meetings of the World Bank Group and IMF in Washington, D.C., the financing agreements highlight the collaboration between EIB Vice-President Ambroise Fayolle and Bangladesh’s Finance Minister Salehuddin Ahmed. Fayolle emphasized that the projects will deliver sustainable water solutions for millions while advancing climate resilience and public health.
Dhaka, one of the world’s fastest-growing cities, faces acute water shortages due to pollution and groundwater depletion. These two EIB-supported projects will significantly improve water access, reduce waterborne diseases, and strengthen the city’s climate adaptation capacity. Implemented by the Dhaka Water Supply and Sewerage Authority (DWASA), the projects are co-financed by the Asian Development Bank, Agence Française de Développement (AFD), Kreditanstalt für Wiederaufbau (KfW), and Denmark’s Danida Sustainable Infrastructure Finance (DSIF), with EU grant support.
Aligned with the EIB Group’s Water Resilience Programme and the European Union’s Global Gateway strategy, these investments demonstrate Team Europe’s commitment to sustainable infrastructure, climate action, and public health improvements in one of the world’s most densely populated urban areas.
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