ADB approves $175m loan for Chattogram Hill Tracts power upgrade

The Asian Development Bank (ADB) has approved a $175 million concessional loan to expand reliable and affordable electricity access in Bangladesh's Chattogram Hill Tracts.

The Sustainable Energy Development and Community Empowerment in the Chattogram Hill Tracts Project will modernise power distribution networks across 26 upazilas in Khagrachari, Rangamati, and Bandarban, according to a statement from ADB today.

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The project will construct six 33/11 kilovolt substations, adding 80 megavolt-amperes of capacity, build 5,032 kilometres of distribution lines, and upgrade 1,874 kilometres of ageing lines.

It is expected to benefit at least 88,000 additional households, including 35,000 from small ethnic communities, while avoiding at least 19,300 tonnes of carbon dioxide equivalent emissions annually.

Although Bangladesh has achieved 99 percent national electrification, grid access remains significantly lower in the hill region, with 49 percent in Khagrachari, 43 percent in Rangamati, and 41 percent in Bandarban. 
ADB said the project aims to raise grid access across the region to 68 percent by 2032.

"Reliable electricity is a powerful driver of jobs, enterprise, education, health care, and community resilience," said ADB Country Director for Bangladesh Qingfeng Zhang.

The project also includes a $2.72 million grant from the Japan Fund for Prosperous and Resilient Asia and the Pacific. The government is contributing $36.54 million to the initiative, while the Bangladesh Power Development Board (BPDB) is providing $45.65 million.