AIIB approves loans to improve Bangladesh sanitation infrastructure

The Asian Infrastructure Investment Bank (AIIB) said Monday that it has approved loans worth 170 million U.S. dollars to help improve sanitation infrastructure in Bangladesh's capital Dhaka.

The AIIB said the Dhaka project, co-financed with the World Bank, will support the Bangladeshi government's investments in sanitation infrastructure including sewerage systems, sewage treatment and pilot measures for hard-to-reach areas in the Pagla catchment, one of the most densely populated areas of the city.

About 1.5 million residents in Dhaka will benefit from the improved sanitation services, the AIIB said.

"This project is expected to directly contribute to the achievement of Sustainable Development Goal (SDG) 6, which is to ensure access to water and sanitation for all," said AIIB Vice President, Investment Operations, D.J. Pandian.

The funds will be used to reconstruct two trunk mains, build a new secondary and tertiary network and a wastewater treatment plant. Other key components of the investment include strengthening the capacity of the Dhaka water supply and sewerage authority and testing the feasibility of locally adapted collection and sewage treatment solutions, the AIIB said.

This marks the AIIB's eighth investment in Bangladesh and brings the bank's total commitment in the country to 1.068 billion U.S. dollars.