DHAKA ENVIRONMENTALLY SUSTAINABLE WATER SUPPLY

Promoter – Financial Intermediary

The borrower is the People's Republic of Bangladesh represented the Ministry of Finance, who will then on-lend to Dhaka Water Supply and Sewerage Authority (DWASA).

Location

• Bangladesh

Description

The project will develop a new sustainable surface water resource that will contribute to meeting the increasing water demand in Dhaka. It will also enable a reduction in the extraction from over-exploited groundwater resources.

Objectives

The project will increase the security of water supply and improve the resilience to adverse impacts from climate change.

Comments

This operation is covered by the EU Guarantee for EIB loans outside the EU.

Sector(s)

• Water, sewerage - Water supply; sewerage, waste management and remediation activities

Under Global Europe NDICI guarantee

Under EFSD+ Guarantee

Proposed EIB finance (Approximate amount)

EUR 170 million

Total cost (Approximate amount)

EUR 493 million

Environmental aspects

It is expected that any significant impacts expected during construction can be mitigated through proper planning, conventional mitigation measures and prudent practices. The project will not affect environmentally sensitive areas. Some involuntary resettlements are expected and a Resettlement Action Plan is under preparation.

Procurement

The project is to a large extent expected to be implemented under a design-build-operate contract. This will contribute to smooth interfaces between the different project components, and designs that aim to minimise the costs over the whole life of the project. Procurement will be carried out according to ADB guidelines, supplemented with additional conditions to also comply with the Bank's Guide to Procurement.

Status

Signed - 30/06/2014