Modernization of power network in CHTs, ADB provides Tk 2,148 crore loan
Asian Development Bank provides Bangladesh Tk2,148 crore in credit to modernise power network in the Chittagong Hill Tracts. Collected photo.
The Asian Development Bank (ADB) has approved a loan of $170.5 million, equivalent to approximately Tk 2,148 crore, for modernizing the electricity network in the Chattogram Hill Tracts. This information was shared in a press release sent from the organization's Dhaka office on Tuesday. The funds will be utilized for modernizing the power network in the Chattogram Hill Tracts, as well as for increasing employment opportunities and improving electricity services.
According to the press release, the loan will be used to expand reliable and affordable electricity access in the remote Chattogram Hill Tracts, thereby enhancing people's livelihoods, improving essential services, and accelerating inclusive development. The funds will be spent under the project titled "Sustainable Energy Development and Community Empowerment in the Chattogram Hill Tracts." Through this project, the power distribution network will be expanded and modernized across 26 remote sub-districts (upazilas) in the three hill districts—Khagrachhari, Rangamati, and Bandarban. As a result, at least 88,000 additional households, including 35,000 families from small ethnic groups, will directly benefit.
Under this project, six new 33/11 kV substations with a capacity of 80 MVA will be established. A total of 5,032 kilometers of distribution lines will be constructed, while 1,874 kilometers of old distribution lines, four substations, one switching station, and one regional repair workshop will be renovated. These developmental steps will reduce system losses and operational costs, enhance grid efficiency, and make it possible to avoid at least 19,300 tons of carbon dioxide emissions annually. Additionally, the resilience of the power system against disasters will be strengthened.
ADB Country Director for Bangladesh, Qingfeng Zhang, said, "Reliable electricity is a powerful driving force for creating employment, enterprise, education, healthcare, and social resilience. This project will help provide safe and reliable electricity access to remote communities in the Chattogram Hill Tracts. Moreover, it will increase livelihood opportunities, accelerate women's participation, and advance Bangladesh's transition toward a sustainable, low-carbon future."
By 2032, the project aims to increase grid access in the hill tracts to 68 percent and prepare the system for the future integration of renewable energy, including solar and pico-hydropower.
As part of social development, the project will establish at least 30 solar-powered safe water supply facilities, which will be managed by local community organizations with at least 30 percent women's participation in leadership roles. Additionally, solar backup systems will be installed in at least 20 institutions—including schools, hospitals, temples, and clinics—in areas inhabited by small ethnic groups to ensure uninterrupted supply during power outages.
The ADB stated that the project will work towards increasing people's income. It will provide livelihood training to at least 1,000 individuals, business incubation support to over 200 entrepreneurs, and orientation to 300 students on careers in the energy sector and disaster-resilient energy systems. To strengthen service delivery, it will establish three customer complaint centers and three daycare centers equipped with digital monitoring facilities. Furthermore, employees of the Bangladesh Power Development Board (BPDB)—which will serve as the executing and implementing agency—will receive training on customer service, distribution management and maintenance, safety protocols, and resilient technologies.
In addition to the ADB's financing, a grant of $2.72 million will be provided from the "Japan Fund for Prosperous and Resilient Asia and the Pacific," administered by the ADB through the Government of Japan. For the implementation of the project, the Government of Bangladesh will contribute $36.54 million, while the Bangladesh Power Development Board (BPDB) will contribute $45.65 million.
