The Asian Infrastructure Investment Bank (AIIB) is to loan Bangladesh $200m to increase and improve electricity access in the west of the country, including the capital, Dhaka.
The AIIB’s Dhaka and Western Zone Transmission Grid Expansion Project aims to reduce power outages from 15 a year from 60, reduce transmission loss and add 408km of transmission lines
At present, 22% of Bangladesh’s population cannot access grid electricity, and the AIIB estimates that a poor power supply cuts the country’s GDP by 3%. The project is in line with Bangladesh’s target of providing electricity for all by 2021, and supplying electricity to industries by 2020.
DJ Pandian, AIIB’s vice president, said: "AIIB’s investment gives much-needed financing to provide affordable, reliable and modern energy, especially in areas where people lack basic infrastructure.
"The project will also help the power sector tackle climate change impacts, making the grid more climate-resilient."
Image: Dhaka (G. Hameed/CC BY-SA 4.0)