The ADB and the Government of Bangladesh today signed agreements at a ceremony held today at the ERD offices in Dhaka. Photo : ADB

DHAKA, Sept 29, 2025 (BSS) - The Asian Development Bank (ADB) and the Government of Bangladesh today signed agreements for a $150 million loan and $4 million grant to expand water supply services for unserved residents of Khulna city and address ground-source water salinity to ensure a sustainable piped water supply during the dry season. 

Md. Shahriar Kader Siddiky, Secretary, Economic Relations Division (ERD) and Hoe Yun Jeong, Country Director, ADB, signed the loan agreement on behalf of Bangladesh and ADB, respectively, at a ceremony held today at the ERD offices in Dhaka.

"This project advances Khulna city's transition to surface water by introducing climate-resilient and sustainable solutions," said Country Director Hoe Yun Jeong. 

"It will provide 1.78 million people with a reliable, continuous supply of drinking water, upgrade existing infrastructure and enhance the operations of the Khulna Water Supply and Sewerage Authority (KWASA)." he added.

The Khulna Water Supply Project (Phase 2) will expand piped water services to unserved communities through a scalable system designed to meet demand through 2050, said an ADB press release.

The project will introduce climate-resilient and sustainable solutions to combat source water salinity during the dry season. 

Key initiatives include the adoption of smart water supply management, expansion of supervisory control and data acquisition (SCADA) systems and extension of district metering areas to effectively reduce non-revenue water.

Additionally, the project will strengthen the institutional capacity and operational efficiency of the KWASA. 

Complementing these efforts, a $4 million technical assistance grant, provided by the Urban Resilience Trust Fund under the Urban Financing Partnership Facility, will support a comprehensive study on artificial recharge and groundwater management to further address source water salinity challenges in Khulna city.

ADB is a leading multilateral development bank supporting inclusive, resilient, and sustainable growth across Asia and the Pacific. 

Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet. Founded in 1966, ADB is owned by 69 members-50 from the region.