The World Bank said in a statement that flooding in the capital demonstrated the need for investment in protective infrastructure, improved urban drainage systems and emergency response.
"The long-term vision of this project is to transform N'Djamena into a more resilient, green and sustainable city," said Clara De Sousa, World Bank country director for Chad.
In 2022, Chad's heaviest seasonal rainfall in over 30 years has left parts of the capital N'Djamena navigable only by boat and forced thousands to flee their flooded homes.
The central African country's President Mahamat Idriss Deby declared a state of emergency and put in place a response plan to provide shelter, food and sanitation.
The World Bank statement added the project aims to establish a long-term partnership between the government of Chad, the city of N'Djamena, the World Bank and other partners working on this issue.
Floods are not uncommon during the central African country's rainy season, which usually runs from May to October in its central and southern regions. But last year, the rains came early and were more abundant, quickly overwhelming drainage channels and ponds.