Pro-Poor Sanitation Subsidies in Bangladesh

Bangladesh has nearly eliminated open defecation, but a new challenge has emerged. With 94% of the population relying on on-site sanitation and only 29% accessing safely managed services, the question is no longer if people have toilets, but whether they can afford to empty them safely.

The Problem

Formal fecal sludge management services remain too expensive for low-income households, who often turn to informal and unsafe alternatives. Cities have tried various subsidies, but evidence on what actually works is thin.

Two Cities, Two Approaches

URBAN WASH is studying contrasting models in Faridpur and Kushtia. In Faridpur, the municipality directly administers discounts of up to 42% for poor households through community-led cooperatives. In Kushtia, private contractors decide on a case-by-case basis who qualifies for reduced rates.

Both cities subsidize service providers through equipment and operational support. But who actually benefits from these investments? Are the poorest households being reached or falling through the cracks?

Why It Matters

This research will map where subsidies flow, assess whether they reach those who need them most, and identify best practices from a decade of experimentation. The findings could reshape how Bangladesh—and cities worldwide—approach affordable sanitation.

URBAN WASH (Advancing Urban Water Supply, Sanitation, and Hygiene Resilience Worldwide) was a USAID-funded applied research and technical assistance program led by Tetra Tech. The project focused on improving sustainable, resilient, and equitable WASH services in urban, peri-urban, and informal settlements in low- and middle-income countries. Designed and originally executed as a five-year program, URBAN WASH was terminated in February 2025 along with the vast majority of USAID’s overseas development assistance programs.