ADB approves $200m loan to modernise Bangladesh power distribution network

By  News On Air   Sep 23, 2026

The Asian Development Bank (ADB) has approved a 200 million dollar loan to help Bangladesh modernize and strengthen its power distribution network in peri-urban areas surrounding Dhaka. Under the Power Distribution Network Enhancement Project, the Bangladesh Rural Electrification Board will upgrade electricity infrastructure across 13 Palli Bidyut Samities, serving rapidly growing industrial and urban areas.

The project will install 1,150 megavolt-amperes of new transformer capacity across 52 substations and upgrade 12 existing substations. It will also construct or upgrade more than 2,600 kilometres of distribution lines and introduce technologies for faster fault detection and service restoration.

ADB said the project will help address overloaded substations, aging infrastructure, power losses and increasing natural hazard risks, while improving the reliability and efficiency of electricity supply.The project also includes measures to strengthen the institutional capacity and financial sustainability of the power cooperatives.