BMDF and Water.org partner to redefine urban finance, paving the way for market-based infrastructure

The Bangladesh Municipal Development Fund (BMDF), in partnership with global nonprofit Water.org and knowledge partner Inspira Advisory & Consulting Limited, hosted a high-level workshop titled "Financing Pathways for ULB-Led Water and Sanitation Infrastructure Development" at Intercontinental Dhaka.

The event was attended by policymakers, financial regulators, and municipal administrators to explore sustainable financial structures for urban services and to address the $30 billion investment needed for Bangladesh's water and sanitation sector by 2030 amid the post-LDC graduation transition.

Chief guest Lutfey Siddiqi, Special Envoy on International Affairs to the Chief Adviser, highlighted the urgency of embracing market-based financing for infrastructure development. The welcome address noted Siddiqi's longstanding connection to BMDF, as his father served as the organization's first Chairman, underscoring a legacy of institutional commitment.

Md. Mahmudul Hasan, Additional Secretary of the Local Government Division, said, "The pipeline of concessional finance is drying up. If we are to meet our investment goals, we must stop seeing finance as a handout and immediately embrace market-based, debt-reliant models."

BMDF Managing Director Md. Khalilur Rahman emphasised that municipal finance is a social and economic investment driving public health and climate resilience, citing BMDF's track record of implementing 720 projects through a blended finance model.

Water.org's South Asia Executive Director Sajid Amit, highlighted how investing in water and sanitation contributes to multiple Sustainable Development Goals (SDGs) and accelerates social impact.

Additional remarks came from Mohammad Helal Uddin, Joint Secretary of the Financial Institutions Division, and Md. Amir Uddin, Executive Director of Bangladesh Bank, who discussed policy and regulatory frameworks for sustainable municipal finance.

The workshop also featured a Municipal Project Pitch Session, where representatives from Kushtia, Chandpur, and Jashore presented infrastructure projects for review by a panel of experts. In the subsequent panel discussion, representatives from IFC, the World Bank, CEGIS, Swisscontact, UNCDF, and City Bank PLC examined innovative financing tools such as municipal bonds, green bonds, and public-private partnerships.

Speakers unanimously agreed that strengthening institutions, enforcing financial discipline, and leveraging partnerships like that with Water.org will transform Bangladesh's municipalities into financially capable and citizen-focused service providers.

The event concluded with closing remarks from BMDF leadership followed by a networking lunch.

BMDF, Water.org, and Inspira Advisory reiterated their joint commitment to supporting Bangladesh's transition toward market-based financing and sustainable urban development, ensuring cities are better equipped to deliver essential water and sanitation services for all.