Govt, ADB to sign $616m loan deal today for power sector

United News of Bangladesh . Dhaka | Published: 22:10, May 28,2017

 
 

The Asian Development Bank will provide $616 million to Bangladesh to implement a project for enhancing the coverage and reliability of its power system and improving the efficiency of the distribution network.
A loan agreement to this end will be signed today afternoon at the NEC-II Conference Room at the Economic Relations Division in the city’s Sher-e-Bangla Nagar area.
ERD secretary Kazi Shofiqul Azam and ADB country Director Kazuhiko Higuchi will sign the agreement on behalf of their respective sides, said an official at the ERD.
The proposed project titled ‘Bangladesh Power System Enhancement and Efficiency Improvement Project’ will boost the coverage and improve the reliability and efficiency of the transmission and distribution network to facilitate better utilisation of the expanding power generation capacity to meet the growth in electricity demand across the country.
The ADB assistance, which will fund the Bangladesh Power System Enhancement and Efficiency Improvement Project, is comprised of a concessional loan of $16 million and a market-based loan of $600 million. A $2 million grant from the Japan Fund for Poverty Reduction, financed by the Government of Japan, is part of the project.
Apart from addressing infrastructure constraints and improving the country’s transmission and distribution networks, the project will support productive energy usage in rural areas, enhanced safety for customers, improvements in rural distribution management and interventions to support women employees in the power sector.
The ERD official said the project activities include the construction of a 174-km high-voltage 400 kV transmission link between southern Bangladesh and Dhaka, design and installation of control and automation systems to improve the distribution network in areas serviced by the Dhaka Electricity Supply Company, rehabilitation and expansion of over 50,000-km rural distribution network across the country, and support on project design, investment planning, and regulatory compliance in the power sector agencies.
The project will contribute to the government’s goal of giving people 100 per cent access to power by 2021 with about 8,75,000 households benefiting from the distribution investments by 2020.
The total cost of the project is $1.059 billion, with the government contributing $441 million in counterpart funding.

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