The Asian Development Bank (ADB) and the Bangladesh government on Tuesday signed a $160 million loan agreement to help upgrade Dhaka’s power distribution network, enhance its efficiency, and increase energy supply.
Md Shahriar Kader Siddiky, secretary, Economic Relations Division (ERD), and Jiangbo Ning, deputy country director, ADB, on behalf of Bangladesh and ADB, respectively signed the loan agreement at a ceremony at ERD in the capital.
The ‘Dhaka Power System Expansion and Strengthening Project’ will construct eight substations and install more than 100 kilometers of climate and disaster-resilient underground cables and 150 kilometers of overhead lines.
The project will help the Dhaka Electric Supply Company Limited (Desco) improve the overall operations, aligning it with global standards.
The project aims to establish a safeguards unit that covers environmental, social, and gender issues, ensuring compliance with internationally accepted standards for all future infrastructure projects.
Moreover, the initiative will adopt environmentally friendly technologies, such as alternative insulating gases for future gas-insulated substations, based on a comprehensive feasibility study.
Deputy Country Director Jiangbo Ning said, “The project is expected to provide reliable, efficient, and high-quality electricity to 200,000 new and 1.1 million existing residential, commercial, and industrial customers, including the new airport terminal in Dhaka”.
“It will also promote the climate agenda by helping to optimize power usage, reduce wastage, modernize aged and overloaded power infrastructure, and reduce at least 14,700 tons of carbon dioxide emissions every year.”
Through an attached technical assistance, the knowledge and capacity of the Dhaka Electric Supply Company Limited and related government agencies to handle public–private partnerships (PPPs) will be enhanced through a capacity development program and policy recommendations to strengthen PPP processing and implementation and the handling of future commercial financing.
The $750,000 technical assistance grant will be funded by the Republic of Korea e-Asia Knowledge Partnership Fund, administered by ADB.