AIIB project hailed in rural Bangladesh

Expansion will increase electrical coverage, improve life for millions

DHAKA - A power sector project of the Asian Infrastructure Investment Bank has been hailed as a transformative milestone for rural Bangladesh, improving life for millions of people in areas who previously had no access to the national power grid.

The AIIB-financed $165-million Power Distribution System Upgrade and Expansion Project had already helped Bangladesh expand its electricity coverage by providing nearly 1 million new service connections in rural areas.

However, it plans to expand coverage by providing 2.5 million more connections in rural areas by upgrading grid substations and converting overhead distribution lines into underground cables in northern Dhaka.

Bangladesh Rural Electrification Board and Dhaka Electric Supply Company have been tasked with implementing three separate components of the project for which AIIB provided $165 million, the first batch of a loan to the country from the development bank.

Shafiqur Rahman, director for the project's $98.7 million BREB component, said: "We've already provided almost 1 million new service connections in rural areas across the country.

"Every month we have been providing some 300,000 new service connections."

The AIIB said in a website post that "the project, upon completion, is expected to benefit about 12.5 million people in rural areas".

According to the AIIB, the project will supplement other development partner efforts by providing additional financial resources to connect more rural and urban consumers, further reduce distribution losses and improve the quality and reliability of power supply in Bangladesh.

Work under way

DESCO Sub-Divisional Engineer Khandoker Istiaque Ahmad said work is under way to upgrade two substations and install 33kv distribution lines underground in urban areas.

"Agreements were signed in this connection with contractors last month," he said.

The capacity of both the substations will be augmented to 360 MVA each from the existing 150 MVA and 225 MVA.

Officials said implementation of all the components of the project will immensely benefit rural people and it will also improve the quality and reliability of the power supply by reducing distribution losses.

They said Bangladesh is now eyeing more AIIB funds for many more power sector initiatives.

"An AIIB delegation will visit Bangladesh soon to discuss its funding for more BREB projects," Rahman said.

The Bangladeshi government has already requested the China-initiated international financial institution to consider providing more financial support for other projects.

Officials said Bangladesh is looking to the AIIB as the country has already identified inadequate electricity supply as a major constraint on GDP growth, and its overall economic development is in dire need of more funds to develop mega infrastructure projects.

To address these challenges, Bangladesh has adopted a multipronged plan involving substantial sector investments, regional power trade and sector reforms.

Nasrul Hamid, state minister for power, energy and mineral resources, recently said the government is looking to China for help to build a major power hub at Payra, 200 kilometers south of capital Dhaka.

"We're thinking of generating at least 9,000 MW of power from the hub, investing $10-12 billion in this area. China can be one of the big investors to make finance of this construction and take the advantage of this huge infrastructure."

Xinhua

(China Daily 01/19/2018 page11)