ADB approves loan for Bangladesh power transmission expansion project

8 November 2019 (Last Updated November 8th, 2019 11:16)

The Asian Development Bank (ADB) has approved a loan of €271.84m ($300m) for the Dhaka and Western Zone Transmission Grid Expansion project in Bangladesh.

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

The Asian Development Bank (ADB) has approved a loan of €271.84m ($300m) for the Dhaka and Western Zone Transmission Grid Expansion project in Bangladesh.

In addition to ADB’s loan, the Asian Infrastructure Investment Bank (AIIB) is also planning to support the project by co-financing $200m for the establishment of transmission lines, substations, and an enterprise resource planning (ERP) system.

The People’s Republic of China’s Poverty Reduction and Regional Cooperation Fund (PRC Fund) will also financially assist the project with a $750,000 grant.

Additionally, the Government of Bangladesh and the Power Grid Company of Bangladesh will contribute $249.25m towards the project.

The project is scheduled for completion by the end of June 2024.

ADB Principal Energy Specialist Aiming Zhou said: “As the Bangladesh economy grows and the power grid becomes more congested, upgrading and expanding the country’s transmission network is crucial to sustain growth and reduce poverty.

“The project will improve the reliability and efficiency of the electricity supply in the Greater Dhaka and western zone of Bangladesh, helping to bolster economic growth and achieve the government target of electricity for all by 2021.”

Dhaka and Western Zone Transmission Grid Expansion project will see the establishment of new electricity transmission infrastructure, including 40km of transmission lines and 4,450 megavolt-ampere (MVA) of substations in Greater Dhaka.

In the Western Zone, the project works include the establishment of a 368km of transmission line, 3,070 MVA of substations, and 20 bay extensions.

The project also aims to improve operational efficiency with the establishment of a drone inspection centre.

Last August, ADB 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.