ADB approves $357m loan for power transmission project in Bangladesh

2 August 2018 (Last Updated August 2nd, 2018 15:19)

The Asian Development Bank (ADB) has approved an assistance financial package of more than $357m to support the development of two power lines in Bangladesh.

ADB approves $357m loan for power transmission project in Bangladesh
A power transmission system in Bangladesh. Credit: Asian Development Bank.

The Asian Development Bank (ADB) has approved an assistance financial package of more than $357m to support the development of two power lines in Bangladesh.

The lines are being built as part of Southwest Transmission Grid Expansion Project, which supports the country’s target to provide electricity for all by 2021.

Under the project, a 126km-long 230kV transmission line from Barisal to Faridpur and a 104km-long 400kV transmission line from Bogra to Rohanpur will be built.

“The ADB project will make the power transmission system more efficient, reliable, and environmentally friendly.”

Additionally, the project will see the installation of new substations, transformers, and associated extensions and connections.

The transmission lines will introduce a new type of high-temperature conductor to allow more power transfer at lower energy losses.

ADB senior energy specialist Aiming Zhou said: “Bangladesh has been experiencing impressive economic growth over the last decade, but to maintain and even accelerate this, more investments are needed for the power transmission network to meet growing electricity demand.

“In support of this, the ADB project will make the power transmission system more efficient, reliable, and environmentally friendly.”

The financial package includes a $350m loan from ADP and $7m from Japan Fund for the Joint Crediting Mechanism (JFJCM) to partially finance new high-technology energy-efficient conductors.

A $500,000 grant will also be offered by the Republic of Korea e-Asia and Knowledge Partnership Fund (EAKPF) to promote socially inclusive growth with gender equality.

The total cost of the project amounts to $532m, of which the Government of Bangladesh has agreed to offer $174.5m. The project is slated for completion in June 2023.

ADB has been playing an active role in the Bangladesh power sector. The Rupsha 800MW combined cycle power plant was recently approved to address deficiencies in the transmission system.