Govt moves to boost DESCO power supply and cut inherent losses

The government is set to approve a plan to boost power supply in Dhaka North, Gazipur and Purbachal areas by raising distribution capacity and reducing systems losses under a Tk 22.72 billion project to ensure a stable supply.

Residents of buildings next to Ideal School and College in Dhaka's Banasree are at risk due to the power lines and electric transformers that are right next to the building and can cause accidents. Photo: Mahmud Zaman Ovi

The Asian Development Bank will provide Tk 12.31 billion in loans for the project. Dhaka Electric Supply Company Ltd or DESCO will finance Tk 5.94 billion from its own fund, while the government will provide Tk 4.46 billion. The authorities aim to complete the project by December 2025.

The “Dhaka Power System Expansion and Strengthening Project in DESCO Areas” will be tabled at a meeting of the Executive Committee of the National Economic Council or ECNEC on Tuesday, said AKM Fazlul Haque, a member of the Planning Commission.

"Bangladesh is providing electricity to all citizens, so the power distribution system has to be developed. Incorporating modern technology in distribution will increase capacity and reduce systems losses,” he said.

In fiscal 2020-21, inherent losses in DESCO’s regional distribution stood at 5.58 percent. Systems losses in distribution and operational losses were 11.11 percent on average.

Once implemented, the project will reduce the losses by 0.33 percent by developing infrastructure in areas under DESCO, including DNCC, the airport area, Bashundhara, Mirpur, Ceramics, Rupnagar Residential Area, Baridhara and Uttara Rupayan City, Gazipur's Tongi and Narayanganj’s Purbachal.

The demand for electricity in these densely populated areas is soaring, putting a lot of pressure on the substations and distribution lines. This is causing issues involving low voltage. The successful implementation of the project will settle these issues while ensuring a "sustainable, reliable and uninterrupted" power supply.