AIIB to Lend $881 Million for Modernising BREB's Power Supply Networks

The Asian Infrastructure Investment Bank (AIIB) is set to provide a loan of US$881 million to modernise electricity distribution networks in four divisions under the Bangladesh Rural Electrification Board (BREB). The funding will enhance the reliability and efficiency of power supply for nearly 18 million consumers.

The project, proposed by the Power Division, involves constructing and modernising around 49,500 kilometres of distribution lines, as well as upgrading substations with a total capacity of 3,447 megavolt-amperes (MVA). The initiatives aim to integrate Supervisory Control and Data Acquisition (SCADA) systems and other modernisation measures in Rajshahi, Rangpur, Chattogram, and Sylhet divisions.

Out of the total project cost of Tk 152.26 billion, AIIB will contribute 66.47% (Tk 101.21 billion), with the remainder funded by domestic sources, including government funds. The goal is to reduce system loss from 9.65% to 7.9% and improve power supply reliability.

Additionally, the project seeks to increase electricity capacity to meet the demand by 2035. It includes plans to build 84 new substations, upgrade 12,800 km of distribution lines, and install 4,990 fault locators across the network. The project is expected to be completed by December 2030.