Bangladesh gets $500m in World Bank loans to modernise power supply system

The World Bank has approved $500 million in loans to help Bangladesh expand and modernise its electricity distribution system and support it sustainable transformation.

News Deskbdnews24.com
Published : 22 Dec 2021, 02:54 PM
Updated : 13 Feb 2022, 04:35 AM

The 'Electricity Distribution Modernisation Program' will deliver improved electricity services to about 40 million people in Dhaka and Mymensingh divisions, the global lender said in a statement on Wednesday.

It will upgrade and construct more than 31,000 km of distribution lines, 157 distribution substations, and related infrastructure, and incorporate measures to increase climate resilience of network infrastructure in 25 rural electric cooperatives in the Bangladesh Rural Electrification Board.

Network investment will be paired with new and advanced technologies to help modernising and transforming the electricity system.

“In the last decade, Bangladesh achieved a more than fourfold increase in electricity generation capacity and delivered electricity connections to more than 99 percent of its population. But the electricity distribution network could not keep pace with the remarkable increase in electricity generation,” said Dandan Chen, World Bank acting country director for Bangladesh.

“This programme will help modernise and ensure climate resilience of the distribution network, which is the backbone of a secure and reliable power system.”

The programme will introduce a modern grid system that can support the two-way flow of electricity and information, minimising and recovering quickly from climate and cyber risks, including natural disasters and extreme weather events.

It will introduce state-of-art technologies such as Supervisory Control and Data Acquisition System and install Advanced Metering Infrastructure.

It will support the decarbonisation of the power sector by facilitating the integration of renewable energy and Battery Energy Storage Systems in the electricity distribution network. All these will lead to a sustainable transformation of the electricity system.

“Since 2009, Bangladesh Rural Electrification Board has implemented one of the largest rural electrification programmes in the World, delivering access to more than 90 million people,” said Bipul Singh, World Bank senior energy specialist and task team leader of the programme.

“With the access agenda nearing completion, this programme will strengthen BREB’s ability to deliver reliable electricity supply and support the energy transition in Bangladesh.”

The credit is from the World Bank’s International Development Association, which provides concessional financing, has a 30-year term, including a five-year grace period. In addition, the programme also includes a $15 million grant from the Clean Technology Fund