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BD to get $333m ADB loan for power, transportation sectors

Published: December 11, 2019 18:39:04 | Updated: December 12, 2019 10:01:10


The Asian Development Bank (ADB) will provide US$333.26 million loans for expansion of power transmission lines and designing the Dhaka Mass Rapid Transit (MRT) line.

In this regard, the government on Wednesday inked several agreements with ADB at a function at the National Economic Council (NEC) conference room in the city, said a press release.

Economic Relations Division (ERD) Secretary Monowar Ahmed and ADB Country Director Manmohan Parkash signed the agreements on behalf of their respective sides.

For expanding power transmission lines in greater Dhaka and the western zone of Bangladesh, the government signed agreement for €271.84 million ($300 million equivalent) loans.

Besides ADB’s loan, the Asian Infrastructure Investment Bank (AIIB) is considering $200 million in co-financing to finance transmission lines, substations and an enterprise resource planning system.

The assistance also comprises a $750,000 grant from the People’s Republic of China’s Poverty Reduction and Regional Cooperation Fund (PRC Fund).

Manmohan Parkash said upgrading and expanding the transmission network is crucial to improve power supply efficiency after significant improvement in power production in Bangladesh.

“The project will help achieve the government target of electricity for all by 2021 by improving the reliability and efficiency of the electricity supply in the greater Dhaka and western zone of Bangladesh,” he added.

The project builds on ADB’s previous work in Bangladesh’s power sector, including the Southwest Transmission Grid Expansion project approved in 2018 to address continuing deficiencies in the transmission system by providing more efficient, reliable power to consumers in the greater Dhaka and western zones.

The assistance for the Dhaka and Western Zone Transmission Grid Expansion Project will be utilized to construct 40 kilometers (km) of transmission lines and 4,450 megavolt-ampere (MVA) of substations in greater Dhaka, as well as 368 km of transmission lines, 3,070 MVA of substations, and 20 bay extensions in the western zone.

It will also establish an enterprise resource planning system, and a Drone Inspection Center to improve operation efficiency and enhance workspace safety in the executing agency, the Power Grid Company of Bangladesh Limited.

The new project will continue to fund high-level advanced conductors (high temperature low sag), that were used in the 2018 project, to allow more power transfer at lower energy losses.

With assistance from the PRC Fund, the project will introduce drone technology to Bangladesh as an innovative new technology to improve operational efficiency and safety.

In another agreement, ADB will provide $33.26 million loan for a project to design the Dhaka MRT line 5 (Southern Route) that will help ease the traffic and pollution burden in Dhaka city.

The assistance for financing project readiness will carry out detailed feasibility studies, engineering design and procurement documentation in preparation for the 17.4-kilometer (km) line, which will be constructed between Gabtoli and Dasherkandi in Dhaka.

Line 5 is one of three high-priority lines in the capital planned for completion by 2030. The planned MRT Line 5 will serve as one of the city’s few east-west corridors and provide connections with other MRT and bus rapid transit lines going north-south. Construction would require almost 13 km underground with 12 stations, while the remaining section will be elevated with 4 stations.

The project will also design measures for climate and natural disaster resilience and integrate features for women, children, the elderly, and people with disabilities into the design. The design will also include advanced technology such as automated ticketing and a fare collection system with an integrated database for operations management.

The actual Line 5 project is estimated to cost about $2.5 billion and will be considered for subsequent ADB financing, reports BSS.

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