AIIB offers $200m loan to improve electricity access in Bangladesh


March 05, 2020 – The Asian Infrastructure Investment Bank (AIIB) has agreed to provide a $200m loan to Bangladesh to upgrade the power supply network in its capital Dhaka and the country’s western zone.


The AIIB loan will support the Dhaka and Western Zone Transmission Grid Expansion Project, which is expected to be completed by 2025.


When completed, the project is expected to help in reducing the number of annual power outages from 60 to 15, bringing down the transmission loss to 2.5% from the present 2.76%. It is also expected to add 7,440 megavolt-amperes of power transmission capacity.


The project will include three components, where the first component will include the construction of substations with a total capacity of 4,450MVA and 40km of transmission lines in Greater Dhaka.


The second component will include the construction of substations with a capacity of 2,990MVA and 368km of transmission lines and 20 bay extensions in Western Zone.


The third component will involve strengthening the capacity of Power Grid Company of Bangladesh (PGCB).


Upon completion, the project will help reduce average annual carbon dioxide emissions by 455,785 tonnes.


Being co-financed by Asian Development Bank (ADB), the project is expected to support the country in achieving its target of providing electricity to all of its citizens by 2021 and supply uninterrupted electricity to industries this year.


AIIB vice president and chief investment officer DJ Pandian said: “AIIB’s investment gives much-needed financing to provide affordable, reliable and modern energy, especially in areas where people lack basic infrastructure.


“The project will also help the power sector tackle climate change impacts, making the grid more climate-resilient.”




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