Dhaka: The Asian Development Bank (ADB) has approved a $175 million concessional loan to expand access to reliable and affordable electricity in Bangladesh’s Chattogram Hill Tracts, which is expected to boost livelihoods, enhance essential services, and support inclusive development in one of the country’s most remote regions.
According to United News of Bangladesh, the Sustainable Energy Development and Community Empowerment in the Chattogram Hill Tracts Project will extend and modernize power distribution networks across 26 remote upazilas in the Khagrachari, Rangamati, and Bandarban hill districts. This initiative is anticipated to benefit at least 88,000 additional households, including 35,000 from small ethnic communities.
The project will involve the construction of six 33/11 kilovolt substations, adding 80 megavolt-amperes of capacity; the building of 5,032 kilometers of distribution lines using low-loss conductors; and the upgrading of 1,874 kilometers of aging distribution lines, four substations, a switching station, and a zonal repair workshop. These improvements aim to reduce system loss and operating costs, enhance grid efficiency, avoid at least 19,300 tons of carbon dioxide equivalent emissions annually, and strengthen the power system’s resilience to disasters.
Chattogram Hill Tracts, home to approximately 1.84 million people, has a significant portion of its population belonging to small ethnic communities. Despite Bangladesh achieving 99% national electrification, grid access in this region remains much lower, with only 49% in Khagrachari, 43% in Rangamati, and 41% in Bandarban. By 2032, the project aims to increase the region’s grid access to 68% and prepare the grid for future renewable energy use, including solar and pico-hydropower.
The project will also support social development by establishing at least 30 solar-powered drinking water facilities managed by community organizations, with at least 30% women in leadership roles. In addition, it will provide solar backup systems to supply clean energy during power outages for at least 20 facilities serving small ethnic communities, such as schools, hospitals, temples, and clinics.
To boost income opportunities, the project will provide livelihood training to at least 1,000 people, business incubation support to more than 200 entrepreneurs, and orientation on energy-sector careers and disaster-resilient energy systems to 300 students. It will also strengthen service delivery by establishing three customer complaint centers and three childcare facilities with digital monitoring systems, while training Bangladesh Power Development Board (BPDB) staff in customer service, distribution operation and maintenance, safeguards, and resilient technologies.
ADB Country Director for Bangladesh Qingfeng Zhang stated that reliable electricity is a powerful driver of jobs, enterprise, education, health care, and community resilience. ‘This project helps remote communities in the Chattogram Hill Tracts access safer and more dependable power, while expanding livelihood opportunities, supporting women’s participation, and advancing Bangladesh’s transition to a more resilient and low-carbon future.’
In addition to the ADB financing, the project will receive a $2.72 million grant from the Japan Fund for Prosperous and Resilient Asia and the Pacific, financed by the Government of Japan through ADB. The Government of Bangladesh will contribute $36.54 million, and the BPDB, serving as the executing and implementing agency, will provide $45.65 million.