China to provide $276m loan for Rajshahi water treatment plant project

China will provide $276.25 million loan to Bangladesh to implement a water treatment plant in Rajshahi to increase the surface-level water supply by reducing dependence on groundwater.

Once the project is implemented, it will be possible for the authority concerned to supply 200 million litres of water per day. Water demand in the region would be met by 2035.

In this regard, the Economic Relations Division (ERD) and Exim Bank of China signed a loan agreement to implement the project, said a press release issued on Thursday.

Additional Secretary of ERD Md Shahriar Kader Siddiky and Deputy General Manager of Exim Bank of China Li Qinxi signed the financing agreement on behalf of their respective sides.

Bangladesh will get this financing at an interest rate of 2 per cent. The loan is repayable in 20 years, including 5-year grace period. The total cost of the project is estimated at Tk 4,062 crore.

The objective of this project is to construct a surface water treatment plant in Rajshahi to increase the water supply as well as population coverage and make a sustainable water supply system through 100 per cent water supply from surface water sources.

With the implementation of this project, Rajshahi WASA will strive to meet the water demand up to 2035 and increase population coverage of water supply to 100 per cent from 71 per cent.

The project will carry water through pipelines from the Padma River, purify it and supply it to city houses. The surface water-based plant with the capacity of treating 20 crore litres of water per day will be set up at Farhadpur in Godagari upazila, 26.5 kilometres west from the city centre.

Fresh drinking water will be supplied to all the 30 wards under Rajshahi City Corporation and its surrounding areas as well as 11 wards in Katakhali and Naohata municipal areas.

All old pipelines and hydrants in the city will also be repaired and renovated under the project.