The loan will be used to build 44 medium-voltage substations and 1,006km of distribution lines across Kayin state and the Ayeyarwady, east Bago, and Magway regions
ADB grants $171m loan to upgrade power supply network in Myanmar. (Credit: analogicus from Pixabay)
The Asian Development Bank (ADB) has granted a $171.27m loan to Myanmar to enhance the power supply network in the country.
The loan will be used to build 44 medium-voltage substations and 1,006km of distribution lines across Kayin state and the Ayeyarwady, east Bago, and Magway regions.
The Accelerated Rural Electrification Project will extend the electric grid and will enable the electrification of 400,300 households in about 2,815 villages. It will also establish the country’s first computerised distribution automation system.
According to ADB, the system will optimise power distribution through real-time monitoring and the management of network faults.
The project also includes a technical assistance grant of $1m which will help the Ministry of Electricity and Energy and the Electricity Supply Enterprise develop recruitment tools. This will help to boost employment of women in both the township and village levels.
ADB Principal Energy Economist Duy-Thanh Bui said: “The project will help the government provide stable and reliable electricity in rural areas, supporting inclusive economic growth, creating jobs, and contributing to Myanmar’s aspiration of achieving universal electricity access by 2030.
“The project will also lessen the economic and social impacts of the coronavirus disease (COVID-19) pandemic by improving people’s access to healthcare, education, and job opportunities.”
In November this year, ADB had agreed to provide a loan of $132.8m to enhance power quality and upgrade the power distribution network in Meghalaya, India.