World Bank approves $500m to help Bangladesh expand power supply system

The World Bank today approved $500 million to help Bangladesh expand, modernise and sustainably transforming the country's electricity distribution system.

With the fund, improved electricity services would be delivered to about 40 million people in Dhaka and Mymensingh divisions under the "Electricity Distribution Modernisation Programme", the World Bank said in a press release.

It will upgrade and construct more than 31,000 km of distribution lines, 157 distribution substations, and related infrastructure, and incorporate measures to increase climate resilience of network infrastructure in 25 rural electric cooperatives (Palli Bidyut Samities) in the Bangladesh Rural Electrification Board (BREB), it said.

Network investment will be paired with new and advanced technologies to help modernise and transform the electricity system, according to the statement.

"In the last decade, Bangladesh achieved a more than fourfold increase in electricity generation capacity and delivered electricity connections to more than 99 per cent of its population. But the electricity distribution network could not keep pace with the remarkable increase in electricity generation," said Dandan Chen, World Bank's acting country director for Bangladesh.

This programme will help transform and ensure the climate resilience of the distribution network, which is the backbone of a secure and reliable power system, Chen said.

The programme will introduce a modern grid system that can support the two-way flow of electricity and information, minimising and recovering quickly from climate and cyber risks, including natural disasters and extreme weather events, the WB said.

It will also introduce state-of-the-art technologies such as supervisory control and data acquisition system and install advanced metering infrastructure, and support the decarbonisation of the power sector by facilitating the integration of renewable energy and battery energy storage systems in the electricity distribution network.

All these will lead to a sustainable transformation of the electricity system, it said.

Since 2009, BREB has implemented one of the largest rural electrification programmes in the world, delivering access to more than 90 million people, said Bipul Singh, World Bank's senior energy specialist and task team leader of the programme.

"With the access agenda nearing completion, this programme will strengthen BREB's ability to deliver reliable electricity supply and support the energy transition in Bangladesh."

The credit came from the World Bank's International Development Association, which provides concessional financing.

It has a 30-year term, including a five-year grace period. In addition, the programme also includes a $15 million grant from the Clean Technology Fund.