Dhaka: The Asian Development Bank (ADB) and the Government of Bangladesh have entered into a US$200 million loan agreement aimed at enhancing the quality, reliability, resilience, and efficiency of the power supply system, as well as promoting renewable energy in the country. Economic Relations Division (ERD) Secretary Md. Shahriar Kader Siddiky and ADB Country Director Hoe Yun Jeong signed the agreement in a ceremony held at ERD.
According to Bangladesh Sangbad Sangstha, the Power Transmission Strengthening and Integration of Renewable Energy Project will enhance the power transmission grid in rural areas across the districts of Bogura, Chandpur, Gopalganj, Habiganj, Perojpur, and Satkhira, located within the Bangladesh Economic Corridor (BEC) region. The project also aims to integrate renewable energy generation within the variable renewable energy (VRE) hub in the southern Chattogram division.
ADB Country Director Hoe Yun Jeong emphasized the importance of reliable electricity access, stating it is cruci
al for sustaining economic growth, reducing poverty, supporting business expansion, and generating employment opportunities, particularly for poor and socially disadvantaged communities. He noted that the project will contribute to job creation in local communities, enhance energy sector capacity, and introduce new technologies.
The initiative’s success is seen as pivotal for the government’s economic reforms, sound macroeconomic policy advancement, and the promotion of social progress, all of which rely on a clean, reliable, uninterrupted, and inclusive power supply. Bangladesh faces significant challenges in meeting its fast-growing energy demand due to its heavy reliance on natural gas and rising energy imports, which underscores the need for long-term energy security and sustainability.
Given Bangladesh’s vulnerability to climate-related hazards, investing in disaster-resilient power transmission infrastructure is essential to protect development gains and ensure continuous energy access.