A major power transmission project aimed at strengthening the electricity grid across greater Dhaka and the western region is running significantly behind schedule due to land disputes, procurement delays and contractor failures, according to a report by the Implementation Monitoring and Evaluation Division (IMED).
The “Dhaka and Western Zone Grid Transmission System Expansion Project”, implemented by the Power Grid Company of Bangladesh PLC (PGCB) under the Power Division, was originally scheduled for completion in June 2024.
The deadline has since been extended to December 2027, but the revised timeline remains challenging, the report said.
As of May 2026, the project recorded a 73.68% time overrun and completed 61.25% of physical work, while financial progress stood at 55.24%. The report said the progress was nearly 20 percentage points behind the revised work plan.
The project has an estimated cost of Tk5,950 crore and covers 21 districts and 41 upazilas across the Dhaka, Rajshahi, Rangpur, Khulna and Barishal divisions.
Project details and delays
Approved by the Executive Committee of the National Economic Council (ECNEC) on 26 November, 2019, the project is being financed through government funds, loans from the Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB), and PGCB’s own resources.
The project includes 10 turnkey packages for constructing 400kV, 230kV and 132kV transmission lines and substations, including facilities at Purbachal, Kaliganj, Rupsha, Bhola and Bagerhat.
Of the 10 packages, only one has been completed, while one has been dropped. Seven are ongoing, but turnkey package-8 remains stalled after the contractor failed to complete the work. Although the contract was cancelled and a fresh tender floated, a new contractor has not yet been appointed.
The report identified land acquisition problems, delays in tendering and contract signing, prolonged design approvals, adverse weather, supply disruptions and local objections as major reasons behind the delays.
It also pointed to weaknesses in the initial feasibility study, saying insufficient assessment of land, environmental, settlement and aviation-related constraints later forced changes to transmission routes and project scope.
Cost risks and quality concerns
The report warned that prolonged delays could increase project costs as loans from ADB and AIIB are denominated in US dollars.
Any depreciation of the taka could raise repayment costs and increase expenses for imported equipment.
Despite delays, IMED found construction quality at several substations — including Purbachal, Kaliganj, Meherpur, Rupsha, Phultala, Satkhira and Manirampur — to be satisfactory. Imported electrical equipment was also found to meet tender specifications after factory acceptance tests.
However, the report highlighted several weaknesses, including delayed compensation payments, staffing shortages, repeated scope changes and 14 unresolved audit objections.
Electro-mechanical works at some substations, including Kaliganj and Purbachal, are also behind schedule, potentially affecting commissioning.
IMED recommendations
IMED has recommended that PGCB prepare a realistic package-wise action plan with monthly targets to complete the project by December 2027.
It suggested resolving land disputes through phased land handovers, route adjustments and negotiated settlements where possible.
The agency also recommended establishing a dedicated monitoring cell to oversee equipment imports, customs clearance and factory tests, along with stricter monthly progress reviews to ensure timely completion.