UPDATE 1-Bangladesh gets loans for water, pollution projects

(Adds fresh statement)

DHAKA, Aug 11 (Reuters) - Bangladesh will receive a $149 million loan from the World Bank for a project to improve water supply and another loan for a project to fight air pollution.

The total cost of the water supply project is estimated at $165.7 million and the government will cover the rest of the cost, the World Bank said in a statement on Monday.

It will install storm water pumping stations and rehabilitate canals to drain out waste water and minimise urban flooding.

The project will also carry out rehabilitation, repair and expansion of priority investments in Dhaka's sewerage network and treatment plant to improve the environment in urban areas, especially in the slums.

The proposed project has been developed in coordination with five development partners -- the Asian Development Bank, the World Bank, the Danish International Development Assistance, the government of Japan, and the government of the Republic of Korea.

The World Bank's concessionary arm, International Development Association (IDA) will provide the loan with 40 years to maturity, including a 10-year grace period.

It will carry an annual service charge of three quarters of a percent, the statement said.

The World Bank said separately on Monday it would also finance the bulk of a project to combat air pollution, which was a leading cause of mortality and morbidity.