AIIB approves $120-mln loan for Bangladeshi power transmission project

Asian Infrastructure Investment Bank (AIIB) has approved a loan of 120 million U.S. dollars for a project that will upgrade and expand the power transmission system in Bangladesh's southeastern Chittagong region.

The goal of the project is to ensure adequate and reliable power supply in the region which is home to more than four million people.

"Ensuring a more stable source of electricity in Bangladesh's second largest economic center will encourage more businesses to invest in the region, creating jobs and other economic benefits," saidD.J. Pandian, the vice president and chief investment officer of AIIB.

According to the Bangladesh government, as of mid-2018, about 90 percent of the country's population had access to power, while World Bank estimated that poor power supply has shaved off the country's GDP by two to three percent annually.

The project will construct and upgrade more than 46 kilometers of double-circuit transmission lines and associated substations and line bays. It will also improve voltage stability and reduce voltage fluctuations and the need to spread the demand for electrical power, allowing more residences and businesses to connect to the regional grid.

"Addressing the power shortages will also remove the risk local businesses face when having to rely on an unstable power supply," Pandian added.

The project is estimated to cost about 176.60 million U.S. dollars and will be implemented over 45 months, beginning from April 1, 2019, through December 31, 2022. The project is not located in ecologically critical areas.

The Bangladesh Power System Upgrade and Expansion Project is one of four energy projects in Bangladesh that have received funding from AIIB. All four projects are aligned with the government of Bangladesh's target to achieve affordable electricity for all by 2021.

(CGTN)