Dhaka Power Grid Gets $200 Million ADB Boost as Distribution System Heads for Major Modernisation

September 24, 2026
1 min read
The Asian Development Bank approved $200 million

Bangladesh’s power distribution network around Dhaka is ready for an upgrade after the Asian Development Bank, known as ADB, approved a 200-million-dollar loan to modernise it. ADB’s project will make electricity more reliable, increase the amount of power that can be distributed, and help meet the rising energy needs of cities and factories.

What is the ADB‑funded power upgrade?

The ADB‑backed Power Distribution Network Enhancement Project will work to strengthen electricity infrastructure in 13 Palli Bidyut Samities around Dhaka. 

The program will upgrade substations, transformers, and distribution lines to make the network more powerful and reliable. The project will add 1,150 MVA of transformer capacity to 52 substations. 12 of the current substations will be upgraded too. Over 2,600 kilometres of distribution lines will be improved as part of the modernization program.

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Why the project matters?

Dhaka and the areas around Dhaka are facing increasing electricity demand from homes, companies and factories. 

Old systems, substations and technical losses can add more stress to the distribution system. The project will also bring 900 fault locator sets, which are meant to help find problems in the network faster and help restore electricity services quicker.

What comes next?

The investment supported by ADB is expected to make Bangladesh’s electricity distribution infrastructure stronger while helping meet the needs of growing cities and industrial areas around Dhaka. The modernisation programme will focus on making the network stronger, more reliable, and more able to handle challenges as electricity demand keeps rising.

Payel

Payel

Payel is a journalist and writer with a deep commitment to storytelling. Passionate about nature, the environment, and the human stories intertwined with them, she aims to highlight issues that shape our world and inspire meaningful change.

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