The Phase II project aims at improving the water supply of Dhaka through the provision of a new water treatment plant at Saidabad, which would increase the present capacity with 225000 m 3 /day, and supplement a similar plant. The plant will treat and supply additional 22.5 crore liters of water per day to Dhaka city dwellers. With the supply of water from Saidabad, Phase-II, the total supply capacity of Dhaka WASA has been increased by 242 crore liters per day, which surpasses the current demand of water per day around 225 crores on average.

The second phase has been constructed at around Tk. 1,140 crores with the financial support of the Danish government. In the meeting, the Danish Ambassador announced giving US$100 million soft loan for the third phase of the project.

According to ASTM C-150 type-V, Seven Rings Cement supplied sulfate resistance cement to the entire project. Dutch company MT Hojgaard was the contractor of that project.