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Project Details Project Rationale
Project Rationale
A ADB-financed TA carried out a project formulation work for the current undertaking i.e. Dhaka Water Supply Sector Development Project (DWSSDP). The detailed study examined different areas of DWASA’s technical, operational and management aspects. Among others, it clearly identified the spectrum of current urban growth trend, demand for water supply services, the umbrella of such service recipients, doables of DWASA to address the pertinent needs, especially in the face of Dhaka’s frighteningly rapid population growth, reform imperatives spanning technical, managerial and financial fronts inclusive of the all important capacity development needs to help DWASA do its job better in the foreseeable future. In addition, GoB’s adoption of the SDP for water supply and sanitation sector that provides the road map for investment outlay for the future and prioritization of immediately addressable areas also provide the ground for the GoB and donors to invest in the stated project.

Narrowing in on the stated aspects, the TA and successive ADB missions identified the development components under the umbrella of the project that essentially includes rehabilitation, optimization and strengthening of the pipelines and complete new metering and provisions of service connections to all of current service recipients, with consequent reduction of leakages and thereby conserve water, broad-based capacity development of DWASA, importantly focusing on financial aspects – all to help DWASA deliver its services better and meet the future challenges.
The project also exhibits a EIRR of 16.7% and a FIRR of 3.99% which make it feasible for investment and subsequent implementation.
The above depicted scenario provides justification/rationale for GoB and ADB to join hands to launch the stated DWSSDP which stands to be consistent with GoB’s development strategy and plans and down the road, strengthen DWASA to provide better service to its clientele and as well, earn a firm commercial and institutional footing for itself.
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