ADB approves $200m for Dhaka power upgrade

The Asian Development Bank (ADB) has approved a $200 million loan to help Bangladesh modernise and strengthen its electricity distribution network in fast-growing industrial and urban areas around Dhaka.

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

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Under the Power Distribution Network Enhancement Project, the Bangladesh Rural Electrification Board (BREB) will upgrade distribution infrastructure across 13 Palli Bidyut Samities serving rapidly growing industrial and urban areas around the capital.

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

It will also construct or upgrade more than 2,600 kilometres of overhead and underground distribution lines and install insulated conductors to improve network reliability, efficiency and safety. Another 900 fault locator sets will be deployed to speed up fault detection and service restoration.

The project will also build river-crossing transmission structures and switching stations to modernise system operations.

“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.

The ADB loan is part of a broader financing package for the project. The government will provide about $108 million in cofinancing, while BREB will contribute about $141 million. The Republic of Korea’s e-Asia and Knowledge Partnership Fund will provide a $1 million technical assistance grant.