World Bank to provide $370 million loan for Dhaka to tackle water pollution crisis

The World Bank is providing Bangladesh with a $370 million loan to address worsening water pollution, sanitation challenges and weaknesses in solid waste management in Dhaka and its surrounding areas. The funding primarily aims to restore rivers and canals and strengthen environmental infrastructure.

The loan proposal was approved at a meeting of the World Bank’s executive board on Tuesday. In a press release issued the following day, the organisation said institutional capacity to control pollution in greater Dhaka would be enhanced under the Water Security and Resilience Programme.

According to World Bank data, nearly half of Bangladesh’s formal employment and one-third of its gross domestic product come from the greater Dhaka region. As a result, environmental degradation in the area is directly affecting not only public health but also the national economy.

Through the new programme, around 550,000 people will gain access to safe sanitation facilities, while 500,000 people will receive improved solid waste management services. The World Bank said priority would be given to communities most affected by pollution.

World Bank division director for Bangladesh Jean-Pesme said rapid and unplanned urbanisation and industrialisation have placed severe pressure on Dhaka’s wastewater management system. The impact is clearly visible in public health, the environment and the overall economy. He expressed hope that the programme would create a long-term foundation for restoring the ecological balance of Dhaka’s rivers and canals.

Currently, only about 20 per cent of Dhaka’s residents are covered by a pipeline-based sewerage system. More than 80 per cent of untreated wastewater is discharged directly into nearby water bodies, further aggravating the situation.

Meanwhile, around 80 per cent of the country’s export-oriented ready-made garment factories are located in Dhaka. More than 7,000 factories discharge an estimated 2.4 billion litres of untreated wastewater into water bodies every day. The World Bank said this is increasing health risks, including skin diseases, diarrhoea and neurological disorders.