The Asian Infrastructure Investment Bank (AIIB) is set to provide US$881 million to help modernise electricity distribution networks in four divisions, aiming to enhance the reliability and efficiency of power supply for nearly 18 million consumers under the Bangladesh Rural Electrification Board (BREB).
To this effect, the Power Division has proposed two projects with a combined cost of Tk 152.26 billion to construct and modernise around 49,500-kilometre distribution lines, along with the installation and augmentation of substations, having a total capacity of 3,447 megavolt-amperes (MVA).
The initiatives aim to introduce Supervisory Control and Data Acquisition (SCADA) systems and other modernisation measures across BREB networks in Rajshahi, Rangpur, Chattogram and Sylhet divisions, officials at the Planning Commission (PC) and the Economic Relations Division (ERD) confirmed.
Of the total project cost, Tk 101.21 billion or about 66.47 per cent will be available as AIIB loans, while the remaining Tk 32.09 billion will be mobilised from domestic sources, including government funds and the implementing agency's own resources, the officials added.
Along with the system modernisation, the proposed projects also aim to increase electricity capacity aligning with projected electricity demand by 2035, according to the project documents.
The move aims to reduce system loss in the project areas to 7.9 per cent from the existing 9.65 per cent and bring down the System Average Interruption Duration Index (SAIDI) to 947 minutes from 1,048 minutes, the documents reveal.
The Industry and Energy Division under the Planning Commission has convened a meeting of the Project Evaluation Committee (PEC) next Tuesday to assess the project titled "Electricity Distribution Modernization (Rajshahi-Rangpur Divisions)," with an estimated cost of Tk 61.96 billion.
The meeting, to be chaired by Dr Md Mokhles ur Rahman, Member (Senior Secretary) of the division, is expected to seek justification for the proposed allocation of Tk 59.59 billion-about 96.16 per cent of the total project cost-for the procurement of machinery and equipment, according to the working paper prepared for the meeting.
Under the project, some 84 new 33/11 kilovolt (kV) substations with a combined capacity of 1,176 MVA will be built, alongside construction and upgradation of around 12,800-kilometre distribution lines.
The line works include 6,566-kilometre new or upgraded 33 kV and lower-voltage lines, conversion of 3,700-kilometre low-tension lines into high-tension lines, and upgradation of 2,220-kilometre single-phase high-tension lines to three-phase systems.
The project is scheduled to be implemented by December 2030 in 21 Palli Bidyut Samities (PBSs) covering 16 districts of the region.
Under the project, there is a plan to construct three sets of river-crossing towers, install a SCADA system with control units at 10 substations under Rangpur PBS-1, and deploy 4,990 fault locators across the 33 kV network and 11 kV backbone lines.
Another project titled "Electricity Distribution Modernization (Chattogram and Sylhet Divisions)" worth around Tk 90.30 billion is under scrutiny of the Planning commission, aiming to strengthen 19 PBSs.
The proposed project is to install and augment at substations with a capacity of 2,062 MVA and construct and modernise distribution lines of 30,000 km, reveals the proposal.
The documents reveal that Bangladesh achieved universal electricity access in 2022.
But, power sector officials say the distribution network, particularly in rural and semi-urban areas, has struggled to keep pace with rapid socio-economic growth, industrial expansion and rising household consumption.
Ageing substations, overloaded feeders, long distribution lines and limited automation have resulted in network congestion, higher system losses and supply disruptions, especially during peak demand periods, according to them.
The ERD officials said the AIIB earlier consented to providing lending support to the project.
However, the final negotiations to determine terms and conditions of the proposed loans will be conducted following final approval of these projects, officials said.
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