Dhaka 23 September, 2026

ADB Approves USD 175m Loan to Expand Electricity in Chattogram Hill Tracts

Rtv News

Publish : 01 Sep 2026, 02:19 PM
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The Asian Development Bank (ADB) has sanctioned a USD 175 million concessional credit to broaden access to dependable and economical electricity within Bangladesh's Chattogram Hill Tracts, aiding in boosting incomes, enhancing vital services and fostering inclusive growth in one of the nation's most isolated zones.

The Sustainable Energy Development and Community Empowerment in the Chattogram Hill Tracts Project will expand and modernize power distribution grids across 26 isolated upazilas within the Khagrachari, Rangamati, and Bandarban hill districts, providing advantages to a minimum of 88,000 extra households, encompassing 35,000 from minor ethnic groups, a formal press statement disclosed.

The venture will erect six 33/11 kilovolt substations, contributing 80 megavolt-amperes of capacity; construct 5,032 kilometers of transmission lines utilizing low-loss conductors; and modernize 1,874 kilometers of deteriorating distribution lines, four substations, a switching station, along with a regional repair facility.

Such enhancements will diminish network loss and operational expenses, optimize grid performance, prevent a minimum of 19,300 metric tons of carbon dioxide equivalent discharges yearly, and fortify the power infrastructure's durability against calamities.

The Chattogram Hill Tracts region accommodates roughly 1.84 million residents, exceeding half of whom appertain to minor ethnic populations.

Although Bangladesh has attained 99% nationwide electrification, grid connectivity stays significantly deficient locally: 49% in Khagrachari, 43% in Rangamati, and 41% in Bandarban.

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By the year 2032, the initiative is projected to elevate the area's grid connection to 68% and ready the electrical network for upcoming green energy utilization, incorporating solar and pico-hydropower.

The undertaking will back societal advancement by instituting a minimum of 30 solar-powered potable water units, overseen by grassroots associations featuring at least 30% women in supervisory positions.

It will additionally supply solar backup networks to furnish clean power during electrical outages for at least 20 institutions assisting minor ethnic communities, comprising schools, medical facilities, temples, and clinics.

The project will elevate revenue prospects by furnishing economic training to a minimum of 1,000 individuals, commercial incubation assistance to upwards of 200 business owners, and instruction regarding energy-sector professions alongside disaster-resistant energy systems to 300 pupils.

It will reinforce service provision by setting up three consumer grievance hubs and three infant-care facilities outfitted with digital oversight frameworks, whilst instructing Bangladesh Power Development Board (BPDB) personnel in client assistance, grid operation and upkeep, safeguards, and resilient technologies.

ADB Country Director for Bangladesh Qingfeng Zhang remarked that electricity functions as a potent catalyst for employment, commerce, instruction, medical treatment, and societal resilience.

"This project helps remote communities in the Chattogram Hill Tracts access safer and more dependable power, while expanding livelihood opportunities, supporting women’s participation, and advancing Bangladesh’s transition to a more resilient and low-carbon future."

Aside from the ADB funding, the venture will secure a USD 2.72 million allocation from the Japan Fund for Prosperous and Resilient Asia and the Pacific, funded by the Japanese administration through the ADB.

The Bangladeshi administration will supply USD 36.54 million, whereas the BPDB—functioning as the administering and executing entity—will allocate USD 45.65 million.

With Inputs from UNB

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