The Asian Development Bank (ADB) has agreed to provide $616m to Bangladesh to improve the coverage and reliability of the country's power systems.

The ADB’s funding will support the Bangladesh Power System Enhancement and Efficiency Improvement Project. It will offered in the form of a concessional loan of $16m and a market-based loan of $600m.

The $1bn project is expected to address infrastructure constraints and to strengthen the country’s transmission and distribution network.

ADB's loan will be used by Bangladesh for the construction of 174km high voltage, 400kV transmission link, connecting southern part of the nation with Dhaka, its capital.

The project also includes design and installation of control and automation systems to improve the Dhaka Electricity Supply Company's distribution network.

Besides, expansion of rural distribution network across the country by over an 50,000km is planned under the project, which  

The project is expected to contribute to the Bangladesh government’s aim of bringing electricity to 100% of the population by 2021. 

ADB's energy specialist Len George said: “With Bangladesh’s continuous growth and development, the demand for power is also growing at a rapid pace. There is a need not only to increase energy generation but also to invest in the transmission and distribution network to deliver reliable power effectively to customers across the country.

“The project will contribute significantly to this effort and help Bangladesh achieve its growth potential in a sustainable and inclusive way.”

Image: ADB to offer $616m to Bangladesh to strengthen electricity network. Photo: Courtesy of ADB.