Bangladesh : Power Distribution Network Enhancement Project

Sovereign Project | 57231-001

Bangladesh, with a population of 174 million, is the second-largest economy in South Asia and the 25th largest in the world by purchasing power parity. Its economy has achieved robust Gross Domestic Product (GDP) growth averaging 7.3% per annum during fiscal year (FY) 20162019. Poverty levels have fallen consistently over the past decades, declining from 49.0% in FY2000 to 18.7% in FY2022. Post coronavirus disease (COVID-19) pandemic, Bangladesh is one of the fastest growing economies in the world with annual GDP growth at 3.4% in FY2020, 6.9% in FY2021, and 7.1% in FY2022. Bangladesh's Eighth Five-Year Plan (FY2021FY2025) targets attaining an annual 8.5% GDP growth, further reducing poverty, and raising living standards of people of Bangladesh with the long-term aim of becoming an upper-middle-income country by 2031 and a high-income country by 2041.

Project Details

Project Name
Power Distribution Network Enhancement Project
Project Number
57231-001
Country / Economy
  • Bangladesh
Project Status
Proposed
Project Type / Modality of Assistance
  • Loan
Source of Funding / Amount
Loan: Power Distribution Network Enhancement Project
Source Amount
Ordinary capital resources US$ 200.00 million
Operational Priorities
  • OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
Sector / Subsector
  • Energy /

Gender
Effective gender mainstreaming
Description
Bangladesh, with a population of 174 million, is the second-largest economy in South Asia and the 25th largest in the world by purchasing power parity. Its economy has achieved robust Gross Domestic Product (GDP) growth averaging 7.3% per annum during fiscal year (FY) 20162019. Poverty levels have fallen consistently over the past decades, declining from 49.0% in FY2000 to 18.7% in FY2022. Post coronavirus disease (COVID-19) pandemic, Bangladesh is one of the fastest growing economies in the world with annual GDP growth at 3.4% in FY2020, 6.9% in FY2021, and 7.1% in FY2022. Bangladesh's Eighth Five-Year Plan (FY2021FY2025) targets attaining an annual 8.5% GDP growth, further reducing poverty, and raising living standards of people of Bangladesh with the long-term aim of becoming an upper-middle-income country by 2031 and a high-income country by 2041.
Project Rationale and Linkage to Country/Regional Strategy
The objective of the proposed project is to support the government in upgrading and enhancing the capacity of electrical distribution network in rural areas for (i) meeting up increased power demand, (ii) supplying efficient and reliable power, (iii) reducing distribution system loss, and (iv) increasing climate resilience of power supply infrastructure to withstand future climate risks. This is in line with government's vision of supplying an uninterruptible, reliable, affordable, and efficient power supply in line with its NDC commitment by enhancement, up gradation, and modernization of the power distribution network.
Impact

Uninterrupted power supply for rural areas of Bangladesh is achieved. (Eighth Five-Year Plan of Bangladesh, July 2020June 2025)

Outcome

Reliability and efficiency of electricity supply in project area improved.

Outputs

Climate-resilient power distribution infrastructure enhanced in rural 13 PBS of BREB supply area.

Distribution network system modernized and digitalized.

Gender-inclusive institutional capacity of BREB improved.

Geographical Location
Nation-wide

Safeguard Categories

Environment
B
Involuntary Resettlement
B
Indigenous Peoples
C

Summary of Environmental and Social Aspects

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples

Stakeholder Communication, Participation, and Consultation

During Project Design
During Project Implementation

Contact

Responsible ADB Officer
Jung, Choon Sik
Responsible ADB Department
Sectors Group
Responsible ADB Division
Energy Sector Office (SG-ENE)
Executing Agencies
Bangladesh Rural Electrification Board

Timetable

Concept Clearance
11 Apr 2024
Fact Finding
26 Aug 2024 to 30 Aug 2024
MRM
-
Approval
-
Last Review Mission
-
Last PDS Update
12 Apr 2024

Funding

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Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

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Evaluation Documents See also: Independent Evaluation

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Related Publications

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Tenders

No tenders for this project were found.

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.