The Asian Development Bank (ADB) has agreed to provide €271.84m ($300m) in financing for the Dhaka and Western Zone Transmission Grid Expansion project in Bangladesh.
The project involves the establishment of new electricity transmission infrastructure, including 40km of transmission lines and 4,450 megavolt-ampere (MVA) of substations in Greater Dhaka.
The expansion project will receive co-financing of $200m from the Asian Infrastructure Investment Bank (AIIB) for the establishment of transmission lines, substations, and an enterprise resource planning (ERP) system.
The People’s Republic of China’s Poverty Reduction and Regional Cooperation Fund (PRC Fund) will also provide a $750,000 grant for the project, which is scheduled 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.”
Backed by a $249.25m loan from the Government of Bangladesh and the Power Grid Company of Bangladesh, the project aims to improve operational efficiency with the establishment of a drone inspection centre, and enhance workspace safety in the executing agency, the Power Grid Company of Bangladesh.
In the Western Zone, the work under the project includes the establishment of a 368km of transmission line, 3,070MVA of substations, and 20 bay extensions.
ADB said that the Dhaka and Western Zone Transmission Grid Expansion project aims to provide more efficient, reliable power to consumers in the Greater Dhaka and western zones, while addressing deficiencies in the transmission system.
Recently, ADB has approved a $451m loan to improve the power connectivity in the Indian state of Tamil Nadu