Today, the government of Bangladesh and the Asian Development Bank (ADB) signed a $160 million loan deal to support the modernization, efficiency improvement, and expansion of Dhaka’s energy supply through the power distribution network.
At a ceremony held at the Economic Relations Division (ERD) in the capital, Md. Shahriar Kader Siddiky, Secretary of ERD, and Jiangbo Ning, Deputy Country Director, ADB, signed the loan agreement on behalf of Bangladesh and ADB, respectively.
The Dhaka Power System Expansion and Strengthening Project will construct eight substations and install over 100 kilometers of climate and disaster resilient underground cables and 150 kilometers of overhead lines, said a press release.
The project will help the Dhaka Electric Supply Company Limited (DESCO) improve its overall operations to meet the globally accepted standards, establish a safeguards unit covering environmental, social, and gender issues that will ensure internationally accepted standards for all future infrastructure projects.
The project will also help adopt environment-friendly technologies such as alternative insulating gases for future gas-insulated substations instead of sulfur hexafluoride following a detailed feasibility study on alternative insulating gases.
“The assistance will ensure reliable, efficient, and improved quality electricity supply to 200,000 new and 1.1 million existing residential, commercial, and industrial customers as well as the new airport terminal in Dhaka,” said Deputy Country Director Jiangbo Ning.
“It will also promote the climate agenda by helping to optimize power usage, reduce wastage, modernize aged and overloaded power infrastructure, and reduce at least 14,700 tons of carbon dioxide emissions every year.” added Ning.
The Dhaka Electric Supply Company Limited and related government agencies will have better knowledge and ability to manage public-private partnerships (PPPs) thanks to the technical assistance that is attached. This will be achieved through a capacity development program and policy recommendations that will strengthen PPP processing and implementation as well as the handling of future commercial financing.
ADB will manage the Republic of Korea e-Asia Knowledge Partnership Fund, which will provide the $750,000 technical support award.
While continuing its efforts to end extreme poverty, ADB is dedicated to creating a prosperous, inclusive, resilient, and sustainable Asia and the Pacific region. It was founded in 1966 and is owned by 68 people, 49 of whom are local.
