Questions and allegations of irregularities have emerged over the agreement between Dhaka WASA and Drinkwell (WIST Bangladesh Limited), the operation of the Water ATM project, and a possible renewal of the company’s contract. According to sources familiar with the project, Drinkwell has been allowed to operate the project for years without adequate compliance with open tendering procedures and government procurement regulations. Concerns have also been raised over reported efforts to renew the company’s contract for another five years.

Minhaz Chowdhury, co-founder and Chief Executive Officer (CEO) of Drinkwell, has also come under scrutiny over his alleged political and business connections. According to several sources, he maintained close contacts with influential figures associated with the ruling Awami League during its tenure in government. Similar allegations have been raised regarding Imtiaz Mohammad Mohsin, a director of Drinkwell, who is also alleged to have political links with the Awami League. However, these allegations require independent and thorough verification.

It has been alleged that Drinkwell obtained the Water ATM project by leveraging political influence during the Awami League government’s tenure. Despite the political transition on August 5, 2024, the agreement between Dhaka WASA and the company has reportedly remained in effect. Sources further claim that efforts are currently underway to renew the contract for another five years.

Questions have consequently been raised as to whether the proposed renewal process is being conducted in accordance with Open Tendering Method (OTM) procedures and the applicable Public-Private Partnership (PPP) guidelines.

According to project-related information, 294 Water ATM booths have been installed across Dhaka under the initiative of Dhaka WASA. While WASA has made substantial investments in the infrastructure and construction of the booths, concerns have persisted over the distribution of revenue generated from water sales.

Those raising the allegations claim that Drinkwell has earned a significant amount of money from the project over the past nine years, while Dhaka WASA has borne substantial costs for developing the project’s infrastructure.

Questions have also been raised over the office space reportedly used by Drinkwell at the Dhaka WASA headquarters. It has been claimed that the monthly market-rate rent for the space could be around Tk 500,000. If accurate, the issue could represent a significant potential loss of revenue for WASA over the years and warrants examination.

The project was initially structured under a PPP model. Under the agreement, WASA was responsible for constructing the physical infrastructure of the booths, while Drinkwell was tasked with automation, filtration technology, smart-card systems and overall operation of the facilities. Revenue generated from water sales was to be shared between the two parties according to an agreed formula.

However, questions have reportedly been raised within WASA itself regarding the project’s financial viability and revenue performance. Officials and stakeholders have also questioned whether the principles of transparency, competitive procurement and market assessment required under government PPP and procurement policies were adequately followed when Drinkwell was awarded the project.

Meanwhile, allegations have surfaced that efforts are underway to provide Drinkwell with further opportunities through a new Water ATM model. Under the proposed model, Dhaka WASA would reportedly bear the entire cost of constructing the booths. This has raised concerns about whether the financial burden on the public agency could increase while the private operator continues to benefit from the project.

There are also allegations that several Dhaka WASA officials have been receiving regular financial benefits or gifts from Drinkwell. These claims, however, have not been independently established and would require investigation and documentary evidence before any conclusion can be drawn.

Concerns have additionally been raised over the payment of salaries and allowances to Drinkwell employees. According to reports, employees held a demonstration outside the Dhaka WASA headquarters ahead of Eid, demanding payment of their salaries and bonuses.

Attempts were made to obtain a response from Drinkwell CEO Minhaz Chowdhury regarding the allegations. However, his mobile phone was found switched off at the time of contact. His response will be incorporated into the report if and when it becomes available.

Stakeholders have called for an independent review of the project, including examination of the agreement, procurement process, financial records, revenue-sharing arrangements and the cost of infrastructure development. They also urged Dhaka WASA and the relevant authorities to ensure full transparency and compliance with applicable procurement and PPP regulations in any future contract or renewal.