ADB okays $175 million loan to modernise CHT power networks

 
The Asian Development Bank (ADB) has approved a $175 million concessional loan to expand access to reliable and affordable electricity in Bangladesh’s Chattogram Hill Tracts, helping boost livelihoods, improve essential services, and support inclusive development in one of the country’s most remote regions.

The Sustainable Energy Development and Community Empowerment in the Chattogram Hill Tracts Project will extend and modernize power distribution networks across 26 remote upazilas in Khagrachari, Rangamati, and Bandarban hill districts, benefiting at least 88,000 additional households, including 35,000 from small ethnic communities.

The project will construct six 33/11 kilovolt substations, adding 80 megavolt-amperes of capacity; build 5,032 kilometers of distribution lines using low-loss conductors; and upgrade 1,874 kilometers of aging distribution lines, four substations, a switching station, and a zonal repair workshop. 

These improvements will reduce system loss and operating cost, enhance grid efficiency, avoid at least 19,300 tons of carbon dioxide equivalent emissions annually, and strengthen the power system’s resilience to disasters, said an ADB press release.

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

“This project helps remote communities in the Chattogram Hill Tracts access safer and more dependable power, while expanding livelihood opportunities, supporting women’s participation, and advancing Bangladesh’s transition to a more resilient and low-carbon future.”

Chattogram Hill Tracts is home to about 1.84 million people, more than half of whom belong to small ethnic communities. 

Although Bangladesh has achieved 99% national electrification, grid access remains much lower in the region: 49% in Khagrachari, 43% in Rangamati, and 41% in Bandarban.