ADB Commits $160 Million to Enhance Dhaka’s Energy Infrastructure and Distribution System

The Asian Development Bank (ADB) has inked a pivotal $160 million loan agreement with the Bangladesh government to bolster Dhaka’s power distribution network, aiming to amplify its efficiency and augment energy supply. Md Shahriar Kader Siddiky, representing the Economic Relations Division (ERD), and Jiangbo Ning, ADB’s deputy country director, formalized the agreement in the capital. The Dhaka Power System Expansion and Strengthening Project will focus on constructing eight substations, laying over 100 kilometers of climate-resilient underground cables, and installing 150 kilometers of overhead lines. This initiative empowers the Dhaka Electric Supply Company Limited (Desco) to elevate its operational standards, establish a comprehensive safeguards unit, and incorporate eco-friendly technologies like alternative insulating gases, minimizing environmental impact. Deputy Country Director Jiangbo Ning highlighted the project’s transformative impact, facilitating reliable electricity for residential, commercial, industrial users, and the new Dhaka airport terminal. Additionally, the initiative aligns with climate objectives, optimizing power consumption, modernizing infrastructure, and curbing approximately 14,700 tons of carbon dioxide emissions annually. Moreover, through a $750,000 technical assistance grant funded by the Republic of Korea e-Asia Knowledge Partnership Fund, ADB aims to fortify Dhaka Electric Supply Company Limited’s proficiency in managing public-private partnerships and commercial financing, ensuring sustainable energy development.