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The Asian Development Bank (ADB) has approved a $175 million concessional loan to expand reliable and affordable electricity access in Bangladesh’s Chittagong Hill Tracts (CHT), with the project expected to benefit at least 88,000 additional households.
The Sustainable Energy Development and Community Empowerment in the CHT Project will modernise power distribution networks across 26 remote upazilas in Khagrachari, Rangamati and Bandarban. Around 35,000 beneficiary households belong to small ethnic communities.
The project will build six 33/11kV substations, add 80 megavolt-amperes of capacity and install 5,032km of distribution lines. It will also upgrade 1,874km of ageing lines, four substations, a switching station and a zonal repair workshop.
The upgrades are expected to reduce system losses and operating costs, improve grid efficiency and strengthen resilience to disasters, while avoiding at least 19,300 tonnes of carbon dioxide equivalent emissions annually.
Although Bangladesh’s national electrification rate stands at 99%, grid access remains much lower in the three hill districts—49% in Khagrachari, 43% in Rangamati and 41% in Bandarban. The project aims to raise regional grid access to 68% by 2032 and prepare the network for renewable energy such as solar and pico-hydropower.
The project will also install at least 30 solar-powered drinking-water facilities, provide solar backup systems to 20 community facilities, train 1,000 people in livelihoods and support more than 200 entrepreneurs through business incubation.
ADB will provide an additional $2.72 million grant, while the Bangladesh government will contribute $36.54 million and the Bangladesh Power Development Board will provide $45.65 million.