Ecnec approves Tk1,818cr project to modernise 25 BREB power substations

The Executive Committee of the National Economic Council (Ecnec) today (17 August) approved a Tk1,818 crore project to modernise 25 power substations under the Bangladesh Rural Electrification Board (BREB), aiming to provide reliable and quality electricity to industrial areas. 

The approval came during an Ecnec meeting chaired by Chief Adviser Muhammad Yunus at the NEC Conference Room.

The project will upgrade 33/11KV substations in Cumilla under the Chattogram division and in Gazipur, Manikganj, Munshiganj, Narayanganj, Narsingdi, Tangail, and Gopalganj districts under the Dhaka division by June 2029.

Muhammad Fouzul Kabir Khan, adviser to the Ministry of Power, Energy and Mineral Resources, told The Business Standard, "Industries under BREB face frequent fluctuations in voltage and frequency, which often disrupt machines and halt production. 

"We found that exporters are dissatisfied with the quality and reliability of BREB's power. To address this and ensure consistent, high-quality electricity for industrial areas, we launched this project."

The project will be funded with Tk479.98 crore from the government, Tk1,080.67 crore from development partners, and Tk257.35 crore from BREB's own fund. Alongside upgrading substations, BREB will lay new transmission lines and upgrade 625 km of power lines.

According to Planning Commission documents, the project is expected to enhance BREB's power distribution capacity by 418 megavolt-amperes, reduce system losses from 6.62% to 5.82%, and cut the System Average Interruption Duration Index from 332 minutes to 300 minutes.

Fouzul Kabir added, "While earlier the focus was on electricity access, today the emphasis is on quality. 

"We are facing problems in supplying electricity to the Dhaka Export Processing Zone (DEPZ) after gas supply to a United Group power plant was cut off over unpaid bills. We tried to supply power to DEPZ from BREB, but exporters were not happy with the quality of electricity. This project will help ensure reliable power to industries."

In the same meeting, Ecnec approved 10 other projects, including the establishment of Rabindra University (Tk519.15 crore), burn and plastic surgery units at five medical colleges (Tk360.11 crore), and the construction of flats for government employees in Dhaka (Tk774.59 crore), reports UNB.

The total cost of the 11 approved projects is Tk9,361.92 crore. Among them, five are new, three are revised, and three received time extensions without any increase in cost.

Planning Adviser Wahiduddin Mahmud said the total project costs will be shared by the government (Tk6,677 crore), project assistance (Tk2,428.04 crore), and implementing agencies' own funds (Tk256.89 crore).