Bangladesh: EIB Global strengthens support for Dhaka city’s water security with €160 million of additional financing for two major infrastructure projects

• €70 million for the Dhaka Environmentally Sustainable Water Supply project in Dhaka city, the capital of Bangladesh.
• €90 million for the Saidabad Raw Water Conveyor project in Dhaka city.
• Together, the two projects will benefit more than 10 million people and form part of one of the world’s largest water treatment programmes supported by European partners under the Team Europe Initiative.

EIB Global, the development arm of the European Investment Bank, is expanding its support for sustainable water infrastructure in Dhaka with two major new investments aimed at improving water supply for the fast-growing capital of Bangladesh.

The first operation, Dhaka Environmentally Sustainable Water Supply increases EIB Global’s financing for the Gandharbpur water supply project by €70 million, adding to a €100 million loan already in place. This large-scale project, among the biggest of its kind globally, will benefit more than 4.5 million people by building and rehabilitating over 500 km of distribution lines and nearly 80 km of main pipelines. It includes a new water treatment plant in Dhaka’s north-eastern Gandharbpur area and a new intake on the Meghna River. Expected to be completed in 2027, the project will shift supply away from overexploited groundwater to surface water, helping to secure a sustainable drinking water source for Dhaka’s residents.

In parallel, EIB Global will provide a further €90 million for the Saidabad Raw Water Conveyor Project for which EIB has already provided €40 million. This investment will finance two new parallel pipelines bringing raw water from the Meghna River to the Saidabad I, II, and new III water treatment plants. By replacing contaminated river water currently in use, the project will ensure a reliable, climate-resilient source of clean drinking water for around 6 million people. Expected to be completed in 2028, it will also reduce dependence on unsustainable groundwater extraction, which threatens the city with land subsidence and increased flood risk.

The financing agreements for both projects were announced at the 2025 Annual Meetings of the World Bank Group and the International Monetary Fund in Washington D.C. by EIB Vice-President Ambroise Fayolle and Bangladesh’s Minister of Finance Salehuddin Ahmed.

“These projects will ensure safe, sustainable water supplies for millions of people in Dhaka, while reducing pressure on overstretched groundwater and building resilience to climate change,” said EIB Vice-President Ambroise Fayolle. “They also highlight the transformative impact of international cooperation and the strong commitment of Team Europe to sustainable development in Bangladesh.”

Dhaka, with a metropolitan population approaching 24 million and projected to reach 29 million by 2035, faces severe water challenges. Overexploitation of groundwater and pollution of surface water sources have made supply increasingly unsustainable. The two EIB-backed projects will directly benefit more than 10 million residents, improve public health by reducing water-borne diseases, and contribute to climate adaptation by safeguarding the city against droughts, flooding, and ground subsidence. Once completed, Dhaka will move closer to attaining water security through a sustainable and inclusive water sourcing system.

Both projects are being implemented by Dhaka Water Supply and Sewerage Authority (DWASA) and co-financed with strong international support. The Gandharbpur project is backed by the Asian Development Bank (lead financier), Agence Française de Développement (AFD), and the European Union, which is providing grants. The Saidabad project is co-financed under the Mutual Reliance Initiative by Agence Française de Développement (lead partner), Kreditanstalt für Wiederaufbau (KfW), and the EIB, with additional support from Denmark’s Danida Sustainable Infrastructure Finance (DSIF).

Together, they represent one of the largest water supply and treatment programmes in the world supported by European partners under the Team Europe Initiative. They are aligned with the EIB Group Water Resilience Programme, which aims at an increased water investment of  €15 billion  from now to 2027. They also contribute to the European Union’s Global Gateway strategy, which mobilises investment in sustainable infrastructure worldwide, while advancing climate action, environmental protection, and health in one of the world’s most densely populated cities.

Background information

About EIB Global

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by the Member States. It finances investments that pursue EU policy objectives. EIB Global is the EIB Group’s specialised arm devoted to increasing the impact of international partnerships and development finance, and a key partner of Global Gateway. It aims to support €100 billion of investment by the end of 2027 – around one-third of the overall target of this EU initiative. Within Team Europe, EIB Global fosters strong, focused partnerships alongside fellow development finance institutions and civil society. EIB Global brings the EIB Group closer to people, companies and institutions through its offices across the world. Photos of EIB headquarters for media use are available here.

EIB Global provided a total of €8.4 billion financing during 2024 to help address global challenges and foster growth and opportunity all over the world. EIB Global is part of Team Europe, which means it partners with the European Commission, EU Member States and European development finance institutions to deliver on common objectives and maximise the EIB Group’s impact. EIB Global is also a key partner of the European Green Deal, and of the EU’s Global Gateway initiative, under which it aims to support €100 billion of investment by the end of 2027.

In December 2024 the EIB Group was one of ten multilateral development banks to pledge to significantly increase support for the water sector between 2025 and 2030. According to a World Bank study, the annual funding gap to achieve universal access to safe and affordable drinking water and sanitation is estimated at $138 billion (a mid-range estimate) between 2017 and 2030. 

About the EIB Group

The EIB Group, consisting of the European Investment Bank and the European Investment Fund, is the biggest multilateral financial institution in the world and one of the largest providers of finance for climate action. As the bank of the European Union, its shareholders are the EU Member States, and it works in close collaboration with the European Commission. In 2024, global financing from the EIB Group totalled over €88 billion, of which a record of over €50 billion was invested in green finance. The EIB Group’s policy priorities are financing small and medium firms, innovation, digital and human capital, sustainable cities and regions, and sustainable energy and natural resources. Its work extends beyond Europe to over 160 countries.

About EIB Global in Bangladesh:

The EIB is the largest multilateral public bank in the world. In 2024 it financed around €8.4 billion in investments outside the European Union via EIB Global, the arm of the EIB created in 2022 for activities beyond the EU. Since the beginning of its operations in Bangladesh in 2000, the EIB has supported several projects in the country, investing over €1 billion primarily in transport, water and energy sectors.

About the Global Gateway Investment Agenda:

EIB Global is a key partner in the implementation of the European Union’s Global Gateway Investment Agenda, supporting sound projects that improve global and regional connectivity in the digital, climate, transport, health, energy and education sectors. Investing in connectivity is at the very heart of what EIB Global does, building on the Bank’s 65 years of experience in this domain. Alongside our partners, fellow EU institutions and Member States, we aim to support €100 billion of investment (around one-third of the overall budget of the initiative) by the end of 2027, including in Bangladesh and Asia.

About the Team Europe Initiative:

Team Europe Initiatives focus on identifying critical priorities that constrain development in a given country or region, where a coordinated and coherent effort by ‘Team Europe’ partners would ensure results with a transformative impact.