Bangladesh secures $175m ADB loan for power access

Project will benefit 88,000 additional households.

The Asian Development Bank (ADB) has approved a $175m concessional loan to expand electricity access in Bangladesh’s Chattogram Hill Tracts.

The project will upgrade power distribution networks across 26 remote upazilas in Khagrachari, Rangamati and Bandarban, providing electricity to at least 88,000 additional households, including 35,000 from small ethnic communities.

It will build six 33/11 kilovolt substations, add 80 megavolt-amperes of capacity, install 5,032 kilometres of distribution lines and upgrade 1,874 kilometres of existing lines. Four substations, a switching station and a zonal repair workshop will also be upgraded.

The improvements are expected to reduce system losses and operating costs, improve grid efficiency, cut at least 19,300 tonnes of carbon dioxide equivalent emissions annually and strengthen disaster resilience.

Grid access in the region is currently 49% in Khagrachari, 43% in Rangamati and 41% in Bandarban, compared with 99% nationally. The project aims to raise regional grid access to 68% by 2032 and prepare the network for renewable energy, including solar and pico-hydropower.

The project will also install at least 30 solar-powered drinking water facilities and provide solar backup systems to 20 schools, hospitals, temples and clinics.

It will train at least 1,000 people, support more than 200 entrepreneurs and provide energy-sector career training to 300 students. Three customer complaint centres and three childcare facilities will also be established.

The project will receive an additional $2.72m grant from the Japan Fund for Prosperous and Resilient Asia and the Pacific.

Bangladesh will contribute $36.54m, whilst the Bangladesh Power Development Board will provide $45.65m.