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The Khulna Water Supply Project is jointly financed by the Asian Development Bank (“ADB”), the Japan International Cooperation Agency (“JICA”), and the Government of the People’s Republic of Bangladesh. The Project is estimated to cost $364 million.

ADB provided a loan in various currencies equivalent to SDR 46,927,000 (equivalent to $75.00 million) from ADB’s Special Funds resources to support finance the Project. The loan will have a 32-year term including a grace period of 8 years, an interest charge of 1.0% per annum during the grace period and 1.5% per annum thereafter, and such other terms and conditions set forth in the loan agreement. The Borrower is to relend the proceeds of the Loan together with other funds required for the Project to Khulna Water Supply and Sewerage Authority (“KWASA”) under the Subsidiary Loan Agreement upon terms and conditions satisfactory to ADB. The ADB loan of $75.00 million equivalent or 21% of the Project cost will be used to finance civil works (56% of the gross-tax claim), equipment and vehicles (100% of the net-tax claim), and consulting services (100% of the net-tax claim). JICA will provide 15,729million yen ($184 million equivalent) to finance civil works and consultants. The Government will provide $105 million, to finance the cost for land acquisition and taxes, and part of civil works and equipment.