Bangladesh: AIIB and NDB-funded waste-to-energy project faces opposition over potential pollution, health impact, and transparency issues; companies did not respond
A report by Mongabay on 15 September 2026 pointed out the potential pollution risks associated with the waste-to-energy project in Dhaka, Bangladesh, developed by China Machinery Engineering Corporation, with residents concerned that the project will affect public health once it begins full-scale operations. The project is expected to be completed by the end of 2028. According to the environmental impact assessment report, once operational, it will generate approximately 74.8 metric tons of fly ash daily and over 73,000 metric tons of solid waste annually; the incineration process is estimated to emit toxic substances such as heavy metals, dioxins, and furans. Since the project site is located near densely populated communities and schools, local residents fear that air pollution will worsen, increasing health risks such as respiratory and cardiovascular diseases, and are demanding that the project be canceled.
Separately, a report by The Climate Watch on 15 July 2026 noted that the project’s financing structure has raised issues regarding transparency and accountability, as the source of approximately $110 million in funding has not yet been publicly disclosed. The project has been criticized for failing to fully implement the information disclosure, grievance mechanisms, and public participation procedures required by the Asian Infrastructure Investment Bank.
BHRC reached out to China Machinery Engineering Corporation, Asian Infrastructure Investment Bank and New Development Bank for response. They did not respond.