The Asian Development Bank (ADB) has approved a $175 million concessional loan to modernise power distribution networks in Bangladesh’s Chattogram Hill Tracts (CHT), aiming to expand electricity access, improve public services and create new livelihood opportunities in the remote region.
The project, titled Sustainable Energy Development and Community Empowerment in the CHG Project, will upgrade electricity infrastructure across 26 remote upazilas in Khagrachhari, Rangamati and Bandarban hill districts, ADB said on Tuesday.
The project is expected to provide reliable electricity access to at least 88,000 additional households, including around 35,000 households from small ethnic communities.
Under the project, six 33/11 kilovolt substations will be built with an additional capacity of 80 megavolt-amperes. It will also construct 5,032 kilometres of distribution lines using low-loss conductors and upgrade 1,874 kilometres of existing lines, four substations, a switching station and a zonal repair workshop.
ADB said the upgrades will reduce system losses, lower operating costs, improve grid efficiency and strengthen the power network’s resilience against disasters. The project is also expected to avoid at least 19,300 tonnes of carbon dioxide equivalent emissions annually.
“Reliable electricity is a powerful driver of jobs, enterprise, education, health care and community resilience,” ADB Country Director for Bangladesh Qingfeng Zhang said, adding that the project would help remote communities access safer and more dependable power while supporting livelihood opportunities and women’s participation.
The CHT, home to around 1.84 million people, has significantly lower grid connectivity compared with the national electrification rate of 99%. Grid access currently stands at 49% in Khagrachhari, 43% in Rangamati and 41% in Bandarban, according to ADB.
The project aims to raise grid access in the region to 68% by 2032 and prepare the electricity network for future renewable energy integration, including solar and pico-hydropower.
Beyond electricity infrastructure, the project includes several community-focused initiatives. It will establish at least 30 solar-powered drinking water facilities managed by community organisations, with women holding at least 30% of leadership positions.
It will also provide solar backup systems for at least 20 community facilities, including schools, hospitals, temples and clinics, to ensure access to clean energy during power outages.
The project will support income generation through livelihood training for at least 1,000 people, business incubation support for more than 200 entrepreneurs and energy-sector career orientation for 300 students.
In addition, three customer complaint centres and three childcare facilities with digital monitoring systems will be established. Staff of the Bangladesh Power Development Board, the implementing agency, will receive training on customer service, distribution operations, maintenance and disaster-resilient technologies.
Alongside the ADB loan, the project will receive a $2.72 million grant from the Japan Fund for Prosperous and Resilient Asia and the Pacific, financed by the Government of Japan through ADB.
The Government of Bangladesh will contribute $36.54 million, while BPDB will provide $45.65 million for the project.
