ADB, Bangladesh sign $91m deal to modernise northwest power grid
The Asian Development Bank (ADB) and the Government of Bangladesh have signed a US$91 million agreement to modernise the power distribution network in the Rajshahi and Rangpur divisions, aiming to deliver more reliable, efficient and climate-resilient electricity to local communities.
Md Shahriar Kader Siddiky, Secretary of the Economic Relations Division (ERD), and Hoe Yun Jeong, Country Director of ADB, signed the agreement on behalf of Bangladesh and ADB at the ERD offices in Dhaka.
'This project will deliver sustainable, resilient and digital power by integrating smart technologies, directly benefiting people in the Rajshahi and Rangpur regions,' said ADB Country Director Hoe Yun Jeong.
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He highlighted that the initiative will strengthen infrastructure against climate risks, provide solar-based emergency power to critical sites, and offer new electricity-based livelihoods for vulnerable groups, especially women and marginalised people on remote riverine islands.
The Northwest Distribution Network Modernisation Project will establish a disaster recovery centre (a backup facility to restore operations after emergencies) and expand the existing data centre (a location for housing computer systems and data storage). It will upgrade transformer repair workshops (facilities where transformers are maintained) to improve safety and waste management standards. The project will construct six new 33/11 kilovolt substations (units that step down high-voltage electricity), seven new switching stations (sites for routing power flow), and modernise 10 existing substations with gender-inclusive design features. Intelligent electronic devices with advanced fault detection (devices that quickly identify electrical faults) will be installed.
In addition, project teams will deploy rooftop solar systems with battery storage (devices that store solar energy for later use) at power control centres to provide emergency backup, and install solar photovoltaic nano-grid systems (small-scale solar power systems that serve a localised area) at flood shelters on riverine islands.
Grant financing of US$2 million from ADB's Japan Fund for a Prosperous and Resilient Asia and the Pacific (JFPR), funded by the Government of Japan, will support disaster preparedness, income generation and poverty reduction in flood-prone communities.
Founded in 1966, ADB is owned by 69 members, including 50 from Asia and the Pacific, and works to support inclusive, resilient and sustainable growth across the region.
