Bangladesh secures $200m ADB loan for energy infrastructure and renewables
The Asian Development Bank (ADB) and the Government of Bangladesh today signed a $200 million loan agreement to enhance the quality, reliability, and resilience of the country's power supply system and promote the integration of renewable energy.
The agreement was signed at the Economic Relations Division (ERD) in Dhaka by Md Shahriar Kader Siddiky, Secretary of ERD, and Hoe Yun Jeong, ADB Country Director for Bangladesh.
The funding will support upgrades to the power transmission grid in rural areas of Bogura, Chandpur, Gopalganj, Habiganj, Pirojpur, and Satkhira, located within the Bangladesh Economic Corridor (BEC) region. The project will also enable the integration of variable renewable energy (VRE) generated in the southern Chattogram division, a key hub for renewable energy.
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"Reliable access to electricity is essential for sustaining economic growth, reducing poverty, and expanding business opportunities—particularly for poor and disadvantaged communities," said ADB's Country Director, Hoe Yun Jeong. "This project will generate jobs, integrate renewable energy, build the capacity of energy sector entities, and introduce new technologies."
The initiative will bolster the government's drive to secure clean, inclusive, and uninterrupted energy. As Bangladesh faces rising energy demand and increasing dependence on imported fuels, the project will support long-term energy security and sustainability.
With the country's high exposure to climate-related hazards, the investment will also help develop disaster-resilient transmission infrastructure, protecting energy access and development gains.
The project aligns with Bangladesh's broader energy sector goals, including the transition to low-carbon solutions, enhanced grid stability, and broader access to reliable electricity in underserved regions.
The ADB continues to play a pivotal role in advancing sustainable infrastructure and clean energy investments in Bangladesh and across the Asia-Pacific region. Established in 1966, ADB is owned by 69 member countries, 50 of which are from the area.
