The Asian Development Bank (ADB) has approved a $175 million concessional loan to expand and modernise electricity networks in the Chattogram Hill Tracts (CHT), aiming to improve power access, create livelihood opportunities and strengthen essential services in one of Bangladesh’s most remote regions.
The project will cover 26 remote upazilas in Khagrachari, Rangamati and Bandarban, benefiting at least 88,000 additional households, including around 35,000 households from small ethnic communities, according to an ADB press release.
Despite Bangladesh achieving 99 percent national electrification, access to the national grid remains significantly lower in the three hill districts.
Grid access currently stands at 49 percent in Khagrachari, 43 percent in Rangamati and 41 percent in Bandarban, where difficult terrain and scattered settlements have made the expansion of electricity infrastructure challenging.
The Sustainable Energy Development and Community Empowerment in the Chattogram Hill Tracts Project is expected to raise grid access across the region to 68 percent by 2032.
The CHT is home to around 1.84 million people, more than half of whom belong to small ethnic communities.
Under the project, six new 33/11 kilovolt substations with a combined capacity of 80 megavolt-amperes will be constructed.
More than 5,000 kilometres of new distribution lines using low-loss conductors will also be built, while 1,874 kilometres of ageing distribution lines will be upgraded.
The project will further modernise four existing substations, a switching station and a zonal repair workshop.
According to ADB, the investments are expected to reduce system losses and operating costs, improve grid efficiency and make the power network more resilient to disasters.
The project is also expected to avoid at least 19,300 tonnes of carbon dioxide equivalent emissions annually and prepare the regional grid for greater use of renewable energy, including solar and pico-hydropower.
“Reliable electricity is a powerful driver of jobs, enterprise, education, health care, and community resilience,” ADB Country Director for Bangladesh Qingfeng Zhang said.
“This project helps remote communities in the Chattogram Hill Tracts access safer and more dependable power, while expanding livelihood opportunities, supporting women’s participation, and advancing Bangladesh’s transition to a more resilient and low-carbon future,” he said.
Beyond electricity infrastructure, the project will support community services and income-generating activities.
At least 30 solar-powered drinking water facilities will be established and managed by community organisations, with women expected to hold at least 30 per cent of leadership positions.
Solar backup systems will also be installed at at least 20 facilities serving small ethnic communities, including schools, hospitals, temples and clinics, to ensure access to clean energy during power outages.
The project will provide livelihood training to at least 1,000 people and business incubation support to more than 200 entrepreneurs.
Some 300 students will receive orientation on career opportunities in the energy sector and disaster-resilient energy systems.
It will also establish three customer complaint centres and three childcare facilities equipped with digital monitoring systems, while Bangladesh Power Development Board (BPDB) personnel will receive training in customer service, distribution operation and maintenance, safeguards and resilient technologies.
In addition to 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 Japanese government through ADB.
The Bangladesh government will contribute $36.54 million to the project, while the BPDB, which will serve as the executing and implementing agency, will provide $45.65 million.
The combined financing will bring the total project cost to nearly $260 million.