ADB Allocates $91 Million to Upgrade Power Distribution in Northwest Bangladesh

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Dhaka: The Asian Development Bank (ADB) and the Government of Bangladesh have entered into a $91 million agreement aimed at improving the power distribution network in the Rajshahi and Rangpur divisions of northwest Bangladesh. This agreement seeks to enhance the quality, efficiency, reliability, and resilience of the power supply in these regions.



According to Bangladesh Sangbad Sangstha, the agreement was signed by Md. Shahriar Kader Siddiky, Secretary of the Economic Relations Division (ERD), and Hoe Yun Jeong, ADB Country Director, at a ceremony held at the ERD offices in Dhaka. The initiative is anticipated to drive sustainable and digital transformation by integrating advanced smart technologies into the power distribution network, benefiting the local population.



The project, named the Northwest Distribution Network Modernization Project, is set to establish a disaster recovery center and expand the existing data center. It aims to reinforce climate-resilient infrastructure, boost disaster preparedness, and create electricity-based livelihood opportunities for vulnerable communities, with a focus on women and marginalized groups. These efforts are directed toward addressing regional disparities and empowering the underserved northwest region.



As part of the project, the installation of intelligent electronic devices with advanced fault detection systems will occur, alongside the upgrading of four transformer repair workshops to improve health, safety, and hazardous waste management standards. Additionally, the project will involve constructing new substations, building switching stations, and modernizing existing substations with gender-inclusive design features.



The project will also deploy rooftop solar systems with battery storage at critical power control centers for emergency backup power and install solar photovoltaic nano-grid systems at flood shelters on riverine islands. Further financial support includes a $2 million grant from ADB’s Japan Fund for Prosperous and Resilient Asia and Pacific (JFPR), funded by the Government of Japan, to enhance disaster preparedness and support income-generating activities in flood-prone communities.



ADB, a leading multilateral development bank, continues to support inclusive, resilient, and sustainable growth across Asia and the Pacific by working with its members and partners to tackle complex challenges and build quality infrastructure. Founded in 1966, ADB is owned by 69 members, with 50 from the region.