ADB provides $175m financing for upgrading power distribution network in CHT

Asian Development Bank (ADB) has provided a $175 million concessional loan for expanding reliable access to energy resources in Bangladesh's Chattogram Hill Tracts (CHT) in order to promote economic prosperity and sustainable development in the area.

Sustainable Energy Development and Community Empowerment in the Chattogram Hill Tracts Project is aimed at upgrading distribution networks in 26 remote upazilas of Khagrachari, Rangamati, and Bandarban which will increase the number of beneficiaries by 88,000 households, among them 35,000 are from ethnic groups.

The project involves construction of 6 new 33/11 kilovolt substations that will have an increased capacity of 80 megavolt-amperes, construction of 5,032 kilometers of distribution lines and upgrading 1,874 kilometers of existing distribution lines as well as four substations, one switching station and a repair facility.

In accordance with ADB, the project will lower losses and operational costs, increase grid efficiency, prevent at least 19,300 tons of carbon dioxide equivalent emissions per year and enhance disaster resilience.

"Access to reliable electricity is one of the most powerful tools for job creation, business, education, health, and community resilience," stated Qingfeng Zhang, ADB Country Director for Bangladesh.

Around 1.84 million people live in the CHT and majority of them are representatives of small ethnic communities. Despite Bangladesh having achieved 99% national electrification, the share of electrified population in the area is much lower�"49% in Khagrachari, 43% in Rangamati and 41% in Bandarban.

Thanks to this project, by 2032, electrification rates in the area should reach 68% and the network will be prepared for renewables like solar and pico-hydropower stations.

Additionally, the project will create at least 30 solar-powered drinking water supply points and provide solar power backup facilities for 20 facilities providing water to small ethnic communities as well as livelihood training for at least 1,000 individuals and business incubation for more than 200 entrepreneurs.