Bangladesh: Rural Water, Sanitation and Hygiene for Human Capital Development Project


Category B


USD200 million


May 2020
October 16, 2020
January 2023


The Project’s objectives are (i) to improve access to ‘safely-managed’ water supply and sanitation in selected areas of rural Bangladesh; and (ii) to strengthen sector institutional capacity for water and sanitation.


The Project will be co-financed with the World Bank (WB) and has the following six components:

  • Component 1: Investments in water supply. (i) Investments in large piped water schemes to support water scarce communities of 300-700 households; (ii) Investments in small piped water schemes to support water scarce communities of 30-40 households; (iii) Household water facility improvements through household loans from Micro-Finance Institutions (MFIs); (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 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 other public spaces; (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. Support for key project management activities enabling the implementing agencies to coordinate and implement the proposed Project.
  • Component 5: COVID-19 emergency response. 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. Provisional zero amount component to allow for rapid reallocation of loan proceeds from other project components during an emergency.



The Project will be co-financed with the WB as lead co-financier, and its environmental and social (ES) risks and impacts have been assessed in accordance with the WB’s Environmental and Social Framework (ESF). To ensure a harmonized approach to addressing the ES risks and impacts of the Project, and as permitted under AIIB’s ESP, the WB’s ESF will apply to the Project in lieu of AIIB’s ESP. AIIB has reviewed the WB’s ESF and is satisfied that: (a) it is consistent with AIIB’s Articles of Agreement and materially consistent with the provisions of AIIB’s ESP, including the ES Exclusion List and the relevant ES Standards; and (b) the monitoring procedures that are in place are appropriate for the Project.

In general, the Project interventions are small-scale in nature, so they are not expected to have any significant or unmitigable ES impacts. The WB has categorized the ES risks of the Project as “Moderate” (which is equivalent to Category B if AIIB’s ESP were applicable). Specific sites are yet to be determined, thus an Environmental and Social Management Framework (ESMF) has been prepared. The ESMF includes policy, procedures and directives on the assessment of specific ES risks applicable to the Project and provides guidance to mitigate them. In line with the requirement of the WB’s ESF, a Stakeholder Engagement Plan, Labor Management Procedure, and Environmental and Social Commitment Plan have been developed.

Stakeholder identification and engagement, consultation and communication were carried out. ES instruments and the Bengali summaries of ES instruments were disclosed in-country and on the WB’s website. Hard copies of the documents will also be made available in all field offices during implementation. AIIB’s website has included links to the documentation on the WB’s website.

A Project-level Grievance Redress Mechanism (GRM) will be set up before Project implementation to address grievances and receive feedback from all stakeholders in a timely manner, and will include channels where physical presence is not required to lodge a complaint, given the COVID-19 situation in the country. A basic GRM has been outlined for the workers to report any issues related to workplace safety and other concerns. The GRM will be cognizant of and follow required levels of discretion, and cultural appropriateness, especially when dealing with cases of sexual harassment and Gender-Based Violence.


Asian Infrastructure Investment Bank

Ankur Agrawal

Investment Operations Specialist - Urban


World Bank

Ms. Rokeya Ahmed

Water Supply and Sanitation Specialist



Md. Shahriar Kader Siddiky

Joint Secretary, ERD, Ministry of Finance



Mr. Saifur Rahman

Chief Engineer, DPHE


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