Bangladesh - Chattogram Water Supply Improvement Project : Additional Financing

Overview & Synopsis

The development objective of the Chattogram Water Supply Improvement Project for Bangladesh is to increase access to safely managed water supply in Chattogram and improve operational performance and financial sustainability of the Chattogram Water Supply and Sewerage Authority (CWASA). The additional financing responds to a financing gap created when resources were reallocated under a Rapid Response Option to meet urgent national fuel needs, and its objective is to restore resources so procurement and implementation can proceed without altering the project’s scope, development objectives, or implementation arrangements while adding an intermediate results indicator on More and Better Jobs (MBJ). The Bank will focus the additional financing on Component 1 to enable network rehabilitation and expansion, formation of 46 Smart District Metered Areas (DMAs), installation and rehabilitation of about 50,000 metered household connections, and the major works contract known as Package W1, which together are expected to reduce Non-Revenue Water (NRW), improve pressure and service reliability, and extend safely managed water supply to an estimated 1.04 million people. Complementary activities continue under existing financing: Component 2 supports piped water and non-networked sanitation for low-income communities through climate-informed designs, community engagement, affordability measures, and gender-responsive service models; Component 3 strengthens utility systems through a Water Supply Master Plan, digital transformation and asset management, customer relationship management, and tariff reform, including adoption of a revised tariff framework to sustain operations and maintenance cost recovery; Component 4 maintains a fully staffed and functioning Project Management Unit for fiduciary, environmental and social management, monitoring, and governance; and Component 5 retains a Contingent Emergency Response Component (CERC) for eligible emergencies. The project intends to deliver measurable results aligned with performance-based conditions, including beneficiaries provided with safely managed water services, operational smart DMAs with reduced NRW, and sustained operations and maintenance cost recovery of at least one hundred twenty percent, while advancing digital asset management, integrated financial data systems, and a climate-resilience plan for service delivery. The restructuring introduces MBJ tracking to reflect labor-income gains from improved water and sanitation services and anticipates direct, indirect, and induced employment from construction and operations, alongside gender outcomes such as time savings for women and targeted employment opportunities in low-income communities. By restoring the project’s financial integrity and protecting preparation and early implementation investments, the additional financing ensures continuity of critical urban water service improvements, supports institutional reforms, and contributes to the broader Multiphase Programmatic Approach (MPA) objectives of stronger urban water security, utility performance, and resilience.