ADB Approves Tk 21.48 Billion for Power Network Expansion in Hill Tracts

Economic Reporter

The Asian Development Bank (ADB) has approved a $175 million loan, equivalent to Tk 2,148 crore, to modernise power networks, create employment and improve essential services in the Chittagong Hill Tracts. According to a press release from ADB’s Dhaka office on Tuesday, the project, titled “Sustainable Energy Development and Community Empowerment in the Chittagong Hill Tracts”, will expand and modernise electricity distribution networks in 26 remote upazilas across Khagrachhari, Rangamati and Bandarban.

The project is expected to provide reliable and affordable electricity to at least 88,000 additional households, including 35,000 households from small ethnic communities. It will build six new 33/11 kV substations with a total capacity of 80 megavolt-amperes, 5,032 kilometres of distribution lines and renovate 1,874 kilometres of existing lines. Four substations, a switching station and a regional repair workshop will also be developed.

The project is expected to reduce system losses and operating costs, improve grid efficiency, avoid at least 19,300 tonnes of carbon dioxide equivalent emissions annually and strengthen the power system against disasters. “This project will help provide safe and reliable electricity to remote communities in the Chittagong Hill Tracts region, while also increasing livelihood opportunities, women’s participation, and leading to a transition to a sustainable and low-carbon future,” said Qingfeng Zhang, ADB Country Director for Bangladesh.

Although Bangladesh has achieved nationwide electricity coverage, grid connection rates remain low in the hill districts, at 49 percent in Khagrachhari, 43 percent in Rangamati and 41 percent in Bandarban. The project aims to raise the regional connection rate to 68 percent by 2032 and promote renewable energy, including solar and pico-hydropower. The project will also install at least 30 solar-powered drinking water facilities and solar backup systems in at least 20 schools, hospitals, temples and clinics in small ethnic community areas.

ADB said the project will provide livelihood training to at least 1,000 people, business incubation support to more than 200 entrepreneurs and energy-sector career orientation to 300 students. The Japanese government will provide a $2.72 million grant. The Bangladesh government will contribute $36.54 million and the Power Development Board $45.65 million.