ADB provides $357.5m for Bangladesh power transmission project

The Asian Development Bank has signed deals with Bangladesh to provide $357 million in loans and $7.5 million in grants for power infrastructure.

Two power lines will be built with the funds, the ADB said in a statement on Monday.

Bangladesh Economic Relations Division Secretary Kazi Shofiqul Azam and ADB’s Country Director Manmohan Parkash signed the agreements in Dhaka.

The Japan Fund for the Joint Crediting Mechanism is providing $7 million of the grant for new high-tech energy efficient conductors, while $500,000 from South Korea’s eAsia and Knowledge Partnership Gund will promote socially inclusive growth with gender equality.

“Bangladesh’s power sector has rapidly grown in recent years, but more investments are needed to meet the rising electricity demand in a fast-growing economy,” said Parkash.

“ADB assistance aims to underpin the current impressive pace of growth and development by making power generation, transmission and distribution systems more efficient, reliable, and environmentally friendly.”

 “The project will promote business expansion, and create employment opportunities for local communities, including poor and socially disadvantaged people in southern and western zones of Bangladesh,” he added.

The ADB previously helped build power infrastructure in Bangladesh, including the 800MW power plant in Khulna.

The new Southwest Transmission Grid Expansion Project consists of a 126km transmission line from Barisal to Faridpur; and a 104km transmission line from Bogra to Rohanpur, along with substations and transformers.

The new lines will make use of an advanced high temperature conductor that allows more power to be transferred with less loss of energy. These conductors will also help reduce carbon dioxide emissions.