Dhaka, Jan 31 - Malaysia will give Bangladesh $35 million for a state Water and Sewerage Authority (WASA) project that will generate an additional 150 million litres of water in the capital city of Dhaka, where running water is an acute problem in many areas.

A Memorandum of Understanding (MoU) was signed between the two governments Monday in this regard, Xinhua quoted an official press release as saying Monday.

The project will help generate water in Dhaka's Mirpur residential district.

The agreement was signed in presence of a high-level Malaysian delegation led by special envoy of Malaysia Dato Seri Samy Vellu and Bangladeshi State Minister for Local Government, Rural Development and Cooperatives(LGRD) Jahangir Kabir Nanak.

WASA presently produces 2,100 million litres of water everyday for nearly 12.5 million people in the capital, according to the Dhaka WASA officials. (IANS)