ADB signs $160 million loan agreement with Bangladesh to upgrade power network

(Reuters) – The Asian Development Bank (ADB) said on Tuesday it had signed a $160 million loan agreement with Bangladesh to help upgrade the power distribution network and enhance energy supply in Dhaka, the country’s capital.

Bangladesh, the world’s second-largest garments exporter behind China supplying global retailers including Walmart, H&M and Zara, was forced to cut power for 114 days in the first five months of 2023, a Reuters analysis of power grid data showed last year, as against 113 days in all of 2022.

The assistance from ADB will ensure reliable, efficient and better electricity supply to Dhaka, Deputy Country Director of the ADB, Jiangbo Ning was quoted as saying in the statement.

“It will also promote the climate agenda by helping to optimize power usage, reduce wastage, modernize aged and overloaded power infrastructure,” Ning said.

(Writing by Shilpa Jamkhandikar; editing by David Evans)