ADB giving $200 million loan to Bangladesh for modernizing power distribution system

The Asian Development Bank (ADB) is giving a $200 million loan to Bangladesh to modernize and strengthen the power distribution system in the rapidly growing industrial and urban areas of Dhaka and its surroundings. With this money the capacity of the power distribution infrastructure will be increased as well as the reliability, efficiency and stability of the supply system will be improved.

ADB has informed in a circular published that this financing is being done under the ‘Power Distribution Network Enhancement Project’ on Wednesday (September 23). The project will be implemented by 13 rural electricity societies under the Bangladesh Rural Electrification Board (BREB).

The infrastructural capacity of the power distribution network of the concerned societies will be increased under the project. The demand for electricity is increasing due to the rapid industrialization and urbanization in Dhaka and its surrounding areas. Strengthening the distribution system by keeping consistency with that demand is one of the main targets of the project.

New transformers will be installed at 52 substations under the project. Due to this a total of 1,150 megavolt-ampere (MVA) new transformer capacity will be added.

Besides, the capacity of the existing 12 substations will be increased by a further 115 MVA. Due to this the total capacity of the power distribution network in the concerned areas will increase and the distribution system will become stronger to deal with the additional demand.

More than 2,600 kilometres of overhead and underground power distribution lines will be constructed or modernized under the project.

Insulated conductors will be installed on these lines. As a result the security of the power distribution network will increase as well as the reliability and efficiency of the supply system will be improved.

It has been said in the circular of ADB that both the business establishments and residential categories of consumers will get the facility of more reliable and stable power supply due to the modernization of the power distribution system.

Especially the capacity of the distribution network will be increased by keeping pace with the increase in the demand for electricity in the industrial areas and the rapidly expanding urban areas of Dhaka and its surroundings. Due to this the pressure on the power supply system will be reduced as well as the infrastructural preparation will increase to deal with the future demand.

This $200 million loan of ADB will mainly be spent on the capacity and quality improvement of the distribution infrastructure instead of increasing power generation. Through this an initiative is being taken to ensure more reliable power supply at the consumer level by strengthening the coordination between generation and distribution.