The "Municipal Water Supply and Sanitation Project" will help about 600,000 people living in small towns to get safe water through piped water supply systems, Xinhua news agency reported on Saturday.
In the selected 30 municipalities that currently do not have piped water systems, the project will install water infrastructures, including water treatment facility, water storage, transmission and distribution pipe network, house connections including meters, and others, said the Washington-based lender in a statement.
In Bangladesh, about 87 per cent households have access to various improved water sources, but only 10 per cent have access to piped water supply.
"With Bangladesh's rapid urbanization, both small towns and big cities need to improve their infrastructures, including water and sanitation systems, to cater to the growing population," said Mercy Tembon, World Bank Country Director for Bangladesh and Bhutan.
"Water and sanitation systems are an integral part of a modern city. This project will contribute to the government's goal of expanding piped water coverage in municipal areas."
The project will also help the participating municipalities improve sanitation and drainage systems. This will include investments in septage management, public toilets, septage disposal, and critical drainage infrastructure.
The project will also provide equipment and training to cleaning workers for fecal sludge management.
( With inputs from IANS )