China backs Tk 10,000cr housing plan for Dhaka-17 slum residents
China has agreed to support a proposed Tk 10,000 crore housing project for residents of Korail, Sat Tala and Bhashantek, with 20-storey buildings planned to provide rent-free flats. The announcement is part of a wider package of Chinese cooperation covering Dhaka's waste, sewage, solar and port infrastructure.
In a Nutshell:
- The proposed housing project would be implemented in phases through the Economic Relations Division and would place existing residents in small flats in 20-storey buildings.
- Residents would not pay monthly rent but would have to cover gas, water and electricity costs, while the government has started preparing a list of people currently living in the three settlements.
- China is also supporting the Aminbazar waste to energy project through CMEC, with electricity generation expected to reach the national grid by August or September 2028 and a tripartite agreement scheduled for September 2 in Beijing.
- China has assured financing through a loan or grant to complete sewer connections linked to the Dasherkandi treatment plant, with Gulshan, Baridhara and Banani among the areas targeted for connection.
- The wider discussions also covered rooftop solar, waste-to-energy at Dhaka South's landfill, Mongla Port and better connectivity between Mongla and Chattogram ports.
Context
The housing proposal follows an earlier attempt to rehabilitate Dhaka's slum residents through high-rise housing in Bhasantek. Launched in 1998, the project planned for 15,024 flats, including 9,024 for slum dwellers. However, it was found that the people displaced from the slums were not ending up in the apartments intended for them. Earlier Type A flats also required slum residents to make a refundable Tk 10,000 deposit and eventually pay for the apartments. The new proposal changes that model by promising existing residents rent-free flats, although they would still pay utility bills. China’s involvement in Dhaka’s urban infrastructure is also expanding beyond housing, with discussions covering waste-to-energy, rooftop solar, sewage and port development. Dasherkandi is already an example of this cooperation, as its sewage treatment plant was built with a concessional loan from the Chinese government, and Bangladesh is now seeking further Chinese financing to complete the sewer connections needed to serve more areas of Dhaka.
Why it matters
For families in Korail, Sat Tala and Bhashantek, rent-free housing could remove the biggest financial barrier faced by people who cannot afford to buy or pay instalments for formal apartments. The Bhashantek project showed what happens when rehabilitation is built around housing that intended beneficiaries cannot afford or cannot access, so the government's plan to identify current residents is important because those people need to remain at the centre of the allocation process.
What we think
This project can give slum residents something earlier rehabilitation schemes did not: a clear path from informal housing into permanent apartments without monthly rent. But that benefit depends on the government making the resident list and allocation rules transparent, protecting current residents during construction, and ensuring the flats do not simply end up with people outside the settlements.