ADB provides $292m loans to tackle river erosion, ensure clean water supply

The Asian Development Bank (ADB), one of the largest foreign lenders, on Tuesday inked two separate loan agreements worth $292 million with the Bangladesh government to finance different development projects on tackling river erosion across the country and to supply clean water in Dhaka.

Fatima Yasmin, secretary at the Economic Relations Division (ERD) under the finance ministry, and Edimon Ginting, country director of the ADB, signed the agreements at the ERD office in the capital, according to a press release.

Of the deals, one worth $157 million will help mitigate flood and riverbank erosion risks, strengthen climate resilience, and promote knowledge-based solutions along the Jamuna, Padma, and Ganges Rivers, it said.

"This programme supports the government's roadmap for long-term stabilisation of the river system in central Bangladesh through development and implementation of holistic planning strategies," said Edimon Ginting.

The programme aims to protect 15,400 hectares of land from erosion and 5 lakh people from damages. It is expected to recover 8,000 hectares of char land, according to the release.

The Bangladesh Water Development Board will execute the project.

The other loan of $135 million is expected to improve access to and quality of inclusive water supply services, while promoting environmentally sustainable surface water supply in Dhaka.

The assistance will provide additional support to the ongoing $674.9 million Dhaka Environmentally Sustainable Water Supply Project to which the ADB has a contribution of $250 million, Agence Française de Développement $64 million, and the European Investment Bank is providing $136 million.

Edimon Ginting said they would continue to help Bangladesh increase the use of surface water and develop the capacity to offer more efficient and quality water services in Bangladesh.