Bangladesh: Rural Water, Sanitation and Hygiene for Human Capital Development Project (AIIB-000398)

  • Bangladesh
Where the impacts of the investment may be experienced.
Financial Institutions
  • Asian Infrastructure Investment Bank (AIIB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Bank Risk Rating
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Sep 1, 2020
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Government of Bangladesh
The holder of the loan, grant, or other investment.
  • Water and Sanitation
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 200.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 543.40 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ AIIB website

Updated in EWS Jun 29, 2020

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Project Description

According to the bank's documents, the proposed project's objective is "To improve access to a 'safely-managed' water supply and sanitation in selected areas of rural Bangladesh and to strengthen sector institutional capacity for water and sanitation."

The project will be co-financed with the World Bank and is expected to have the following six components:

Component 1: Investments in water supply.
(i) Investments in large piped water schemes to support 60 water scarce communities of 300-700 households; (ii) Investments in small piped water schemes to target 2,500 water scarce communities of 30-40 households; (iii) Household loans for water improvements to enable about 40,000 households to borrow from Micro-Finance Institutions (MFIs) for household water facility improvements; (iv) Provision of MFI loans to local water entrepreneurs; and (v) Feasibility studies in high climate risk regions to identify sources for drinking water and examine technological options and their financial viability in five districts in Southern Bangladesh.

Component 2: Investments in sanitation and hygiene.
(i) Investments in sanitation and hygiene facilities in high pedestrian traffic locations, community health clinics, and schools; (ii) Investments in sanitation and hygiene facilities for households such as two-pit latrines and hand-washing stations; (iii) Provision of MFI loans to local sanitation and hygiene entrepreneurs to expand their businesses and offer them training on proper installation and maintenance; (iv) Promotion of innovative water and sanitation technologies, especially in fecal sludge management; (v) Behavioral change communication (BCC) campaign to carry out activities to change water, sanitation and hygiene behaviors and raise awareness and willingness to pay.

Component 3: Institutional strengthening.
(i) Support for drafting policy documents that would be critical in implementing the newly drafted National Strategy for Water Supply and Sanitation; and (ii) Capacity building for targeted central and local government officials working in the sector.

Component 4: Project implementation and management.
(i) Support for key project management activities enabling the implementing agencies to coordinate and implement the proposed project.

Component 5: COVID-19 emergency response.
(i) Provision of quick, just-in-time water and sanitation services, where needed, to cope with the fast changing COVID-19 situation.

Component 6: Contingent emergency response.
(i) Provisional zero amount component to allow for rapid reallocation of loan proceeds from other project components during an emergency.

Investment Description
  • Asian Infrastructure Investment Bank (AIIB)

World Bank US$ 200 million
Government of Bangladesh US$ 143.4 million

Contact Information

Asian Infrastructure Investment Bank
Toshiaki Keicho, Senior Investment Operations Specialist

World Bank
Rokeya Ahmed, Water Supply and Sanitation Specialist

Md. Mahbubur Rahman Bhuiyan, Deputy Secretary, ERD, Ministry of Finance

Implementing Agency
Saifur Rahman, Chief Engineer, DPHE


The AIIB has established the Accountability Mechanism for Project-Affected People (PPM).  The PPM provides “an opportunity for an independent and impartial review of submissions from Project-affected people who believe they have been or are likely to be adversely affected by AIIB’s failure to implement the ESP in situations when their concerns cannot be addressed satisfactorily through Project level GRMs or AIIB Management processes.” Two or more project-affected people can file a complaint.  Under the current AIIB policy, when the bank co-finances a project with another development bank, it may apply the other bank's standards. You can refer to the Project Summary Information document to find out which standards apply.  You can learn more about the PPM and how to file a complaint at:

The complaint submission form can be accessed in Arabic, Bahasa Indonesia, Bengali, Chinese, English, Tagalog, Hindi, Nepali, Russian, Turkish, or Urdu. The submission form can be found at: