The Asian Development Bank has approved a US$160 million loan to Bangladesh to help upgrade Dhaka’s power distribution network, enhancing its efficiency and increasing energy supply.

Amid rapid urbanization, energy demand in the capital city is projected to grow 10% annually until 2042, according to ADB. A new and bigger Dhaka International Airport terminal and several mass rapid rail lines are being built, which will require more and efficient power supply. The national government aims to double the country’s energy generation capacity by 2030.

“ADB supports the government in providing reliable electricity supply to its rapidly expanding capital city while achieving its climate goals," says ADB principal energy specialist Roka Sanda. "Improved energy efficiency of its existing power supply is part of Bangladesh’s nationally determined contributions under the Paris agreement.”

By modernizing aged and overloaded power infrastructure with climate-resilient features, the project will optimize power usage, reduce wastage, and mitigate greenhouse gas emissions. Increasing energy efficiency through this project is expected to cut at least 14,700 tonnes of carbon dioxide emissions every year. 

The project will construct eight substations and install more than 100 kilometres of climate- and disaster-resilient underground cables and 150km of overhead lines.

The new infrastructure will provide reliable energy to 1.3 million new and existing users and the new airport terminal, as well as protect the power network from weather-related hazards such as floods.