ADB is providing a $200 million loan to Bangladesh.

Bangla Press Desk: The Asian Development Bank (ADB) has approved a $200 million loan to modernize and strengthen the electricity distribution network in the suburbs surrounding Dhaka. This initiative aims to enhance the reliability, efficiency, and stability of power supplies for both business and residential customers.
In a press release issued on Wednesday (September 23), the ADB announced that under the "Power Distribution Network Enhancement Project," electricity distribution infrastructure will be upgraded across 13 Rural Electric Cooperatives (RECs) under the Bangladesh Rural Electrification Board (BREB). These cooperatives supply electricity to the rapidly growing industrial and urban areas surrounding Dhaka.
Implemented under the ADB’s "Integrated Growth Network Development" initiative, the project will address issues such as overloaded substations, aging infrastructure, power transmission and distribution losses, and the rising risks posed by natural disasters.
"As Bangladesh moves towards a more prosperous, resilient, and globally competitive economy, a modern electricity distribution network will become crucial for sustaining economic growth, creating jobs, and attracting investment," said ADB Country Director for Bangladesh, Edimon Ginting.
He added, "Through advanced technology, robust infrastructure, and measures to enhance stability, this project will equip the power systems in key economic corridors around Dhaka to meet future demands, ensuring reliable electricity for businesses and the public."
Under the project, a total of 1,150 megavolt-ampere (MVA) of new transformer capacity will be installed across 52 substations. Additionally, the capacity of 12 existing substations will be increased by 115 MVA.
Furthermore, over 2,600 kilometers of overhead and underground electricity distribution lines will be constructed or modernized. Insulated conductors will be installed to improve network reliability, efficiency, and safety.
To modernize the operation of the power system, power transmission infrastructure and switching stations will be constructed for river crossings. Nine hundred fault locator sets will also be installed to rapidly detect faults and restore power supply.
Although Bangladesh achieved universal electrification in 2022, the demand for electricity continues to rise due to rapid urbanization and industrialization. This project aims to meet this growing demand by enhancing the capacity of the power distribution system, while also addressing natural disasters and promoting low-carbon development.
ADB is providing $146.52 million in financing to enhance resilience under this project. These funds will be utilized for various adaptation technologies, including eco-friendly gas-insulated switchgear. The project targets an annual reduction of greenhouse gas emissions—equivalent to approximately 203,751 tons of carbon dioxide—by improving distribution efficiency and reducing technical losses.
The project will also strengthen the institutional capacity of the Bangladesh Rural Electrification Board (BREB) and the Rural Electric Cooperatives (Palli Bidyut Samitis). To this end, training will be provided in areas such as digital system integration, cybersecurity, disaster resilience, environmental and social safeguards, and financial management.
Enhancing the financial stability of the Rural Electric Cooperatives will pave the way for private sector participation and investment. Additionally, initiatives will be undertaken to increase the participation of women and girls in the power sector and to improve workplace environments.
In addition to the ADB loan, the project will be funded by $107.95 million from the Government of Bangladesh and $141.39 million from BREB. Furthermore, $1 million in technical assistance will be provided through the ADB via the Korean government's e-Asia and Knowledge Partnership Fund. These funds will be used for institutional development, financial sustainability planning, and the implementation of modern technologies

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