The loan will build on the bank’s ongoing projects to strenghten water supply in the city.

Dhaka’s demand for water is estimated to increase to about 2,616 million liters a day in 2020, from 2,144 million liters per day in 2015.

Even though the Dhaka Water Supply and Sewerage Authority is taking steps to expand capacity with ADB’s assistance, it will not be enough to meet projected needs without a reduction in ongoing losses.

The authority will use the fresh loan to upgrade distribution pipelines and establish new district metered areas.

About 5,000 new and legalized connections will be set up in low income communities, and 229,000 connections upgraded for households and communities.

The new project is targeting 24-hour piped water supplies to a further 6.5 million people in the new district metered areas by 2022, with nonrevenue water losses cut to under 10%.

ADB South Asia Department economist Akira Matsunaga said: "Dhaka, with ADB support, is now delivering quality, reliable water to millions of its inhabitants but water losses remain substantial and hinder the ability of the city to fully meet rapidly growing customer needs.

"This fresh assistance will help the Dhaka Water Supply and Sewerage Authority further strengthen its distribution network and improve its management capacity, resulting in lower nonrevenue water losses and an expansion of supplies to neglected low-income communities."

The water supply authority of Dhaka also has plans to boost the capacity of its staff which includes providing training for about 700 staff members.

The ADB will also provide assistance to the water supply department in the preparation of an operational and financial improvement plan as well as creating public awareness about water wastage and water conservation.

Image: ADB is offering $275m to Bangladesh to improve water supply in Dhaka. Photo: Courtesy of Asian Development Bank.