The Asian Infrastructure Investment Bank (AIIB) has approved a loan of USD120 million for the Bangladesh Power System Upgrade and Expansion Project that will upgrade and expand the power transmission system in the Chattogram region.
AIIB President Jin Liqun gave the approval, marking the bank's first financing under its Accountability Framework that came into effect on January 1, 2019, according to a statement on the China-based bank's website.
An initiative of the Power Grid Company of Bangladesh (PGCD), the project will construct and upgrade more than 46 km of double-circuit transmission lines and associated substations and line bays, the statement says.
It will also improve voltage stability and reduce voltage fluctuations and the need to spread the demand for electrical power, allowing more residences and businesses to connect to the regional grid, the AIIB statement adds.
AIIB Vice President and Chief Investment Officer D J Pandian said, "Ensuring a more stable source of electricity in Bangladesh’s second largest economic center (Chattogram) will encourage more businesses to invest in the region, creating jobs and other economic benefits."
"Addressing the power shortages will also remove the risk local businesses face when having to rely on an unstable power supply."
The Bangladesh Power System Upgrade and Expansion Project is one of four energy projects in Bangladesh that have received funding from the multilateral bank. All four projects are aligned with the government of Bangladesh’s target to achieve affordable electricity for all by 2021.