Bangladesh Gets $175 Million ADB Loan to Expand Electricity Access

en.Wedoany.com Reported - The Asian Development Bank (ADB) has approved a $175 million concessional loan to expand electricity supply in Bangladesh's Chattogram Hill Tracts, a project expected to benefit at least 88,000 new households.

The project will upgrade the power distribution network in 26 remote upazilas across the three districts of Khagrachari, Rangamati, and Bandarban, providing electricity access to at least 88,000 households, including 35,000 households from small ethnic communities.

In terms of works, it will construct six new 33/11 kV substations, adding 80 MVA of capacity, install 5,032 km of distribution lines, and upgrade 1,874 km of existing lines; it will also upgrade four substations, one switching station, and one area maintenance workshop. These improvements are expected to reduce system losses and operating costs, enhance grid efficiency, cut at least 19,300 tons of CO2 equivalent emissions annually, and strengthen the resilience of the regional power grid.

Currently, grid access in the region is significantly below the national average: 49% in Khagrachari, 43% in Rangamati, and 41% in Bandarban, compared to a national grid access rate of 99%. The project aims to raise grid access in the region to 68% by 2032 and prepare the grid in advance for the integration of renewable energy sources such as solar power and pico-hydropower.

The project will also install at least 30 solar-powered drinking water facilities and equip 20 schools, hospitals, temples, and clinics with solar backup power systems. In terms of human resources and community support, it will train at least 1,000 people, support over 200 entrepreneurs, provide vocational training in the energy sector to 300 students, and establish 3 customer complaint centers and 3 childcare facilities.

In terms of financing, the project will receive an additional grant of $2.72 million from the Japan Fund for Prosperous and Resilient Asia and the Pacific. The Government of Bangladesh will contribute $36.54 million, and the Bangladesh Power Development Board will contribute $45.65 million.