ADB Backs Bangladesh’s Power Upgrade With $200M for Growing Dhaka Communities

The Government of Bangladesh will contribute $107.95 million in cofinancing, with BREB providing another $141.39 million to complement ADB’s loan.

The Asian Development Bank (ADB) has approved a $200 million loan to strengthen electricity distribution around Dhaka, where expanding industries and growing neighbourhoods are putting pressure on the networks that serve businesses and households. The Power Distribution Network Enhancement Project will support the Bangladesh Rural Electrification Board (BREB) in upgrading infrastructure across 13 Palli Bidyut Samities (PBSs), the electric cooperatives serving these fast-growing areas. The investment addresses overloaded substations, ageing equipment, electricity losses and exposure to natural hazards, with more reliable, efficient and resilient supply at the centre of the work.

More Capacity for Dhaka's Growing Communities

Bangladesh achieved universal electrification in 2022, a milestone that brought electricity access nationwide, but rising demand from urbanisation and industrial growth has made the quality and dependability of that supply an increasingly pressing concern. For a business running machinery or a household relying on electricity for everyday needs, a connection depends on a distribution network capable of carrying the load. The project forms part of ADB's Integrated Growth Network Development initiative and supports Bangladesh's broader plans for economic growth, lower-carbon development and infrastructure that can better withstand natural hazards.

The construction programme will add 1,150 megavolt-amperes of transformer capacity across 52 substations and expand capacity at 12 existing substations by another 115 megavolt-amperes, giving the network more room to handle growing electricity use. More than 2,600 kilometres of overhead and underground distribution lines will be built or upgraded, with insulated conductors installed to improve safety, efficiency and reliability. River-crossing transmission structures and switching stations are included in the work, alongside 900 fault locator sets that will help operators identify faults more quickly and restore service after disruptions.

Stronger Infrastructure With Lower Electricity Losses

ADB has allocated $146.52 million of its loan to dedicated resilience financing, supporting measures that strengthen the network against natural hazards and introduce technologies such as environment-friendly gas-insulated switchgear. Improved distribution efficiency and reduced technical losses are expected to cut annual greenhouse gas emissions by about 203,751 tonnes of carbon dioxide equivalent. Reducing the electricity lost as power moves through the network means more of the supply can reach customers, connecting the project's environmental benefits directly to the practical task of delivering electricity more efficiently.

ADB Country Director for Bangladesh Qingfeng Zhang described modern distribution networks as essential to sustaining growth, creating jobs and attracting investment as the country pursues a more prosperous, resilient and globally competitive economy. He said the project would help prepare key growth corridors around Dhaka for future needs through advanced technologies, stronger infrastructure and enhanced resilience measures. For the communities and businesses served by the 13 cooperatives, the investment is intended to provide a more dependable foundation for daily life and economic activity.

Training, Women's Participation and Shared Funding

The project includes training for BREB and PBS staff in digital system integration, cybersecurity, natural hazard-resilient operations, environmental and social safeguards, and financial management, building the skills needed to run and maintain the upgraded system. Work on the cooperatives' financial sustainability is expected to help attract greater private sector participation and investment. Measures responsive to the needs of women and girls will support greater participation by women in the power sector and better workplace conditions, making institutional development part of the investment alongside physical infrastructure.

The Government of Bangladesh will contribute $107.95 million in cofinancing, with BREB providing another $141.39 million to complement ADB's loan. A separate $1 million technical assistance grant from the Republic of Korea e-Asia and Knowledge Partnership Fund, administered by ADB, will support institutional development, financial sustainability planning and the introduction of innovative technologies. These resources will help pair the expansion of the network with the operational and financial capabilities needed to keep it serving the region's growing demand.