The Asian Development Bank (ADB) has agreed to provide a €271.84m ($300m) loan for a project to expand transmission lines in Greater Dhaka and the western zone of Bangladesh.

Besides ADB, the Asian Infrastructure Investment Bank (AIIB) is also considering to provide $200m in co-financing to finance transmission lines, substations, and an enterprise resource planning system for the project.

The assistance also includes a $750,000 grant from China’s Poverty Reduction and Regional Cooperation Fund (PRC Fund).

The Dhaka and Western Zone Transmission Grid Expansion Project is expected to cost nearly $750m and the Bangladeshi Government will also contribute $249.25m for the project.  It is due 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.”

The project will include 4,450MVA substations in Greater Dhaka

The project will include the construction of 40km of transmission lines and 4,450 megavolt-ampere (MVA) of substations in Greater Dhaka, as well as 368km of transmission lines, 3,070 MVA of substations and 20 bay extensions in the western zone.

Under the project, an enterprise resource planning system and a Drone Inspection Center will be established. The Drone Inspection Center is expected to help improve operational efficiency and enhance workspace safety in the executing agency, the Power Grid Company of Bangladesh.

ADB stated: “The Dhaka and Western Zone Transmission Grid Expansion Project builds on ADB’s previous work in Bangladesh’s power sector, including the Southwest Transmission Grid Expansion project approved in 2018 to address continuing deficiencies in the transmission system by providing more efficient, reliable power to consumers in the Greater Dhaka and western zones.”