ADB approves $200m loan for Dhaka power distribution upgrade

The Asian Development Bank (ADB) has approved a $200 million loan to help Bangladesh modernise and strengthen its power distribution network in the fast-growing areas on the outskirts of Dhaka.

The project aims to improve the reliability, efficiency, and resilience of electricity supply for businesses and households, according to an ADB statement today.

Tap here to add The Daily Star as a trusted source

Under the initiative, the Power Distribution Network Enhancement Project will support the Bangladesh Rural Electrification Board (BREB) in upgrading distribution infrastructure across 13 Palli Bidyut Samities serving industrial and expanding urban zones around the capital.

The project will install 1,150 megavolt-amperes (MVA) of new transformer capacity across 52 substations and raise capacity at 12 existing substations by 115 MVA. 

It will also build or upgrade more than 2,600 kilometres of distribution lines and deploy 900 fault locator sets for faster service restoration.

"This project will help future-proof the power system in key growth corridors around Dhaka through advanced technologies, stronger infrastructure, and enhanced resilience measures," said ADB Country Director for Bangladesh Qingfeng Zhang,

Of the total project cost, ADB's financing accounts for $146.5 million. 

The assistance is complemented by $108 million in cofinancing from the government, $141 million from BREB, and a $1 million technical assistance grant from the Republic of Korea e-Asia and Knowledge Partnership Fund.