Economy
Bangladesh, ADB Ink $160M Deal to Boost Dhaka’s Power System
The Asian Development Bank (ADB) and the government of Bangladesh have officially inked a $160 million loan agreement to support the enhancement of Dhaka’s power distribution network. The loan aims to improve the efficiency of the system and boost overall energy supply. The agreement was signed by Md. Shahriar Kader Siddiky, Secretary of Economic Relations Division (ERD), representing Bangladesh, and Jiangbo Ning, Deputy Country Director at ADB, during a ceremony held at ERD in the capital.
The “Dhaka Power System Expansion and Strengthening Project” is set to implement the construction of eight substations, install more than 100 kilometers of climate and disaster-resilient underground cables, and lay 150 kilometers of overhead lines, as detailed in a press release. The initiative is expected to enhance the operations of Dhaka Electric Supply Company Limited (DESCO), aligning it with global standards, and establish a safeguards unit focusing on environmental, social, and gender issues for future infrastructure projects.
The project also emphasizes the adoption of environmentally friendly technologies, exploring alternative insulating gases for upcoming gas-insulated substations, with a feasibility study guiding the choice of insulating gases beyond sulfur hexafluoride.
Deputy Country Director Jiangbo Ning highlighted that the assistance aims to ensure a reliable, efficient, and improved quality electricity supply to residential, commercial, and industrial customers, including the new airport terminal in Dhaka. He noted that the initiative aligns with climate goals, optimizing power usage, modernizing infrastructure, and aiming to reduce approximately 14,700 tons of carbon dioxide emissions annually.
Additionally, a technical assistance grant of $750,000, funded by the Republic of Korea e-Asia Knowledge Partnership Fund through ADB, will contribute to enhancing the knowledge and capacity of Dhaka Electric Supply Company Limited and relevant government agencies. The focus will be on handling public-private partnerships, with a capacity development program and policy recommendations to strengthen PPP processing and implementation, as well as the management of future commercial financing.
ADB, founded in 1966 and owned by 68 members, is committed to fostering prosperity, inclusivity, resilience, and sustainability across Asia and the Pacific while persisting in efforts to eradicate extreme poverty.
Expatriate Bangladeshis sent approximately US$ 2.11 billion in remittances during the first 28 days of September in the fiscal year 2024-25, according to data released by Bangladesh Bank on 29 September.
Of this total, state-owned and specialised banks handled $679.10 million, while private banks received $1.43 billion in remittances.
Chief Adviser to Bangladesh’s interim government, Professor Muhammad Yunus, has vowed to expedite reforms and hold elections swiftly. Yunus, who recently assumed the role after the collapse of Prime Minister Sheikh Hasina’s 15-year administration, expressed his commitment during an interview with Tokyo-based news outlet NHK WORLD in New York on Sunday. He was attending the United Nations General Assembly at the time.
Following mass student-led protests that ended Hasina’s long-standing rule in August, Yunus stepped in as the leader of the caretaker government. Known for founding Grameen Bank, an institution providing microloans to the underprivileged, Yunus, along with the bank, earned the Nobel Peace Prize in 2006 for his efforts in poverty alleviation.
During the interview, Yunus emphasized that the interim government’s primary mission is to implement reforms promptly and ensure elections are held as soon as the groundwork is complete. He underscored the importance of success, stating, “Failure is not something that we can accept.”
Addressing the pivotal role of students in the ousting of the Hasina administration, Yunus acknowledged the sacrifices made by young people, referring to their involvement as part of a “revolution.” He highlighted his intention to engage the younger generation in shaping policy.
Furthermore, Yunus called for continued support from Japan, Bangladesh’s largest donor, during this crucial transition period. He stressed that Japan’s assistance is vital to stabilizing Bangladesh’s economy and fostering a democratic foundation in the nation.
Syeda Rizwana Hasan, the Adviser for Environment, Forests, and Climate Change, announced today that steps will be taken to restrict the use of polythene shopping bags to safeguard future generations.
Starting from October 1, polythene bags will be banned in shopping malls, followed by a ban in kitchen markets from November 1.
“Everyone must take responsibility and stop using polythene voluntarily. Action against polythene producers will begin from November 1,” Rizwana Hasan stated during a seminar.
The Department of Environment (DoE) organized the seminar to raise public awareness about alternatives to banned polythene bags.
Rizwana Hasan highlighted that the restriction on polythene will be executed in phases according to legal provisions, and discussions with shopping centers and store owners are ongoing to ensure a smooth transition.
She also announced plans to make the government secretariat a plastic-free zone by December.
Other speakers at the seminar included Environment Secretary Dr. Farhina Ahmed, DoE Director General Dr. Abdul Hamid, Director Rajinara Begum, President of the Shop Owners Association Muhammad Helal Uddin, and Md. Arifur Rahman Bhuiyan, Assistant Professor of Environmental Science at BUP. They discussed the harmful effects of polythene and the need for alternative products.
Earlier, Rizwana Hasan inaugurated a fair showcasing eco-friendly alternatives to polythene bags and visited 24 stalls. The fair featured products from government and private entrepreneurs, including reusable bags, jute bags, paper bags, and items made from bamboo and cane.
