Bangladeshi Government and the Asian Development Bank (ADB) have signed a $160 million loan agreement.
The loan will be used to support the modernization, efficiency improvement and expansion of Dhaka's energy supply through the power distribution network.
According to a press release, the Dhaka Power System Expansion and Strengthening Project would add 150 kilometres of overhead wires, eight substations, and more than 100 kilometres of climate and disaster-resilient subterranean cables.
Following a thorough feasibility study, the project will assist the DESCO in adopting environmentally friendly technologies — such as alternative insulating gases for future gas-insulated substations in place of sulphur hexafluoride.
The project will also help DESCO to improve its overall operations to meet internationally accepted standards, as well as establish a safeguards unit covering environmental, social, and gender issues to ensure internationally accepted standards are met for all future infrastructure projects.
The Deputy Country Director of the Asian Development Bank, Jiangbo Ning stated to the media that "the assistance will ensure reliable, efficient, and improved quality electricity supply to 200,000 new and 1.1 million existing residential, commercial, and industrial customers as well as the new airport terminal in Dhaka”.