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European Union

EIB Global Strengthens Support for Dhaka City's Water Security with EUR160 Million of Additional Financing for Two Major Infrastructure Projects

Strategic Insights

— 2 min read

As Dhaka, the capital of Bangladesh, faces severe water challenges, the European Investment Bank (EIB) has announced two major investments aimed at improving water supply for the city's residents. EIB Global, the development arm of the EIB, is expanding its support for sustainable water infrastructure in Dhaka with two new investments totaling EUR160 million. These projects will benefit more than 10 million people and are part of the world's largest water treatment programme supported by European partners under the Team Europe Initiative.

Key Takeaways:

  • The European Investment Bank (EIB) has committed EUR160 million to two major infrastructure projects in Dhaka, Bangladesh, to support water security for the city's residents.
  • The first project, the Dhaka Environmentally Sustainable Water Supply project, will receive EUR70 million, adding to the EUR100 million loan already in place, and will benefit more than 4.5 million people.
  • The second project, the Saidabad Raw Water Conveyor project, will receive EUR90 million, bringing the total investment to EUR130 million, and will benefit around 6 million people.
  • The two projects are part of the team Europe initiative and will directly benefit more than 10 million residents, improve public health by reducing water-borne diseases, and contribute to climate adaptation.
  • The Gandharbpur project is backed by the Asian Development Bank (lead financier), Agence Francaise de Developpement (AFD), and the European Union, which is providing grants. The Saidabad project is co-financed under the Mutual Reliance Initiative by Agence Francaise de Developpement (lead partner), Kreditanstalt fur Wiederaufbau (KfW), and the EIB.
  • The projects are aligned with the EIB Group Water Resilience Programme, which aims at an increased water investment of EUR15 billion from now to 2027.
  • The European Union's Global Gateway strategy aims to mobilise investment in sustainable infrastructure worldwide, while advancing climate action, environmental protection, and health in one of the world's most densely populated cities.

Statistics:

  • EUR160 million of additional financing for two major infrastructure projects in Dhaka, Bangladesh.
  • The Dhaka Environmentally Sustainable Water Supply project will benefit more than 4.5 million people.
  • The Saidabad Raw Water Conveyor project will benefit around 6 million people.
  • Total investment in the Gandharbpur project: EUR110 million (EUR100 million loan already in place + EUR10 million new commitment).
  • Total investment in the Saidabad project: EUR130 million (EUR40 million + EUR90 million new commitment).
  • The EIB Group's policy priorities include financing small and medium firms, innovation, digital and human capital, sustainable cities and regions, and sustainable energy and natural resources.
  • Global financing from the EIB Group totalled over EUR88 billion in 2024, with a record of over EUR50 billion invested in green finance.

Sources:

  • European Investment Bank. (2025). EIB Global strengthens support for Dhaka city's water security with EUR160 million of additional financing for two major infrastructure projects. Retrieved from https://www.eib.org/en/press/all/2025-398-eib-global-strengthens-support-for-dhaka-city-s-water-security-with-eur160-million-of-additional-financing-for-two-major-infrastructure-projects.

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