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World Bank offers $450m loan to Bangladesh to improve electricity transmission

CTBR Staff Writer Published 13 April 2018

World Bank has agreed to support Bangladesh by providing it with $450m to strengthen its electricity transmission network.

The project, known as Enhancement and Strengthening of Power Transmission Network in Eastern Region Project will improve reliability of electricity supply and reduce load shedding in the eastern region. It will covering greater Cumilla and Noakhali and part of greater Chittagong.

Besides, about 275,000 households and 16,000 agricultural consumers are expected to receive new electricity connections.

Under the project, 13 new substations will be built while an existing one will be rehabilitated in the country’s eastern part. These new substations will also help to integrate renewable energy and new energy generations to the grid.

As per the project, one 230 kV transmission line through greater Cumilla and four short distance 132 kV lines in Cumilla and Noakhali areas will be built.

World Bank Bangladesh, Bhutan, and Nepal country director Qimiao Fan said: “In recent years, Bangladesh has significantly increased power generation. That significantly increased power generation requires improvement and expansion of the transmission and distribution system to get to consumers.

“By supplying uninterrupted power to the Mirsharai Economic Zone, port, airport or other key economic facilities, the project will help unlock private sector and job growth.”

Recently, Bangladesh also secured $55m from the World Bank to expand the use of clean and renewable energy in rural areas where grid electricity cannot reach easily.

This is an additional financing to the Second Rural Electrification and Renewable Energy Development (RERED II) Project. As part of the project, 1000 solar irrigation pumps, 30 solar mini-grids, and about 4 million improved cookstoves in rural areas will be installed.

The project is expected to provide 10 million people living in villages, shoals, and islands to access electricity and use energy efficient cookstoves.  

Under the project, 10 solar mini-grids have already been built in remote areas, including islands and shoals to provide grid quality electricity.


Image: Bangladesh to strengthen electricity transmission through World Bank loan. Photo: Courtesy of Jon Trusler/FreeImages.com.