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.
