The Asian Development Bank (ADB) has approved a $200mn loan to help Bangladesh upgrade its electricity distribution network in fast-growing peri-urban areas around Dhaka, the bank said in a press release.

The Power Distribution Network Enhancement Project will support the Bangladesh Rural Electrification Board (BREB) in modernising distribution infrastructure across 13 Palli Bidyut Samities (PBSs), or rural electricity cooperatives, serving expanding industrial and urban centres surrounding the capital.

The project is part of ADB’s Integrated Growth Network Development initiative and will address overloaded substations, ageing infrastructure, electricity losses and increasing exposure to natural hazards that are affecting power supply in the region.

The project will add 1,150 megavolt-amperes (MVA) of transformer capacity across 52 substations and increase the capacity of 12 existing substations by a further 115 MVA.

More than 2,600km of overhead and underground distribution lines will be constructed or upgraded, while insulated conductors will be installed to improve network reliability, efficiency and safety.

The project will also include river-crossing transmission structures and switching stations, as well as 900 fault locator sets to enable faster detection of faults and restoration of electricity services.

Bangladesh achieved universal electricity access in 2022, but rapid urbanisation and industrial expansion have continued to drive electricity demand and place pressure on the distribution network.

ADB said the project will strengthen the network’s capacity to meet rising demand while supporting Bangladesh’s climate-resilience and low-carbon development objectives.

Of the financing, $146.52mn will be dedicated to resilience measures, including the deployment of environment-friendly gas-insulated switchgear technology. Improved distribution efficiency and lower technical losses are expected to reduce annual greenhouse gas emissions by about 203,751 tonnes of carbon dioxide equivalent.

The project will also strengthen BREB and PBS institutional capacity through training in digital system integration, cybersecurity, natural hazard-resilient operations, environmental and social safeguards and financial management.