The government on Thursday approved a Tk 286.02 crore project to build 18 new substations, aiming to strengthen and modernise electricity distribution in Dhaka and Mymensingh divisions.
The approval came at a meeting of the Cabinet Committee on Government Purchase at the Secretariat, chaired by Finance Minister Aamir Khosru Mahmud Chowdhury.
The project will be implemented by the Bangladesh Rural Electrification Board as part of its ongoing programme to upgrade the distribution network.
The initiative, cleared by Ecnec in June 2022, is scheduled to run through June 2027.
Officials said three procurement proposals were approved, covering design, construction, equipment supply, installation, testing and commissioning of the substations, along with associated land development works.
Under one package, eight 33/11 kV substations will be constructed at a cost of Tk 117.66 crore by a consortium of EEL and FHL. The selected bid was nearly 6.9 percent lower than the official estimate.
Another six substations will be built at a cost of Tk 90.74 crore by Reverie Power and Automation Engineering Limited, with the approved bid about 3.9 percent below the estimate.
The same firm secured a third package to construct four substations at Tk 77.61 crore, with the bid coming in 13.5 percent lower than the official estimate.
The project is being financed through government funds, support from the World Bank, and the implementing agency’s own resources.
Officials expect the new substations to enhance supply reliability, cut system losses and help meet growing electricity demand in the two divisions.