The Asian Development Bank (ADB) today signed a $160 million loan agreement with Bangladesh to help upgrade Dhaka's power distribution network, enhance its efficiency and increase energy supply.

The Dhaka Power System Expansion and Strengthening Project will construct eight substations and install more than 100 kilometres of climate- and disaster-resilient underground cables and 150 kilometres of overhead lines.

The project will help the Dhaka Electric Supply Company Limited (Desco) improve its overall operations to meet the globally accepted standards and establish a safeguards unit covering environmental, social and gender issues.

The project will ensure internationally-accepted standards are met for all future infrastructure projects and adopt environment-friendly technologies such as alternative insulating gases for future gas-insulated substations instead of sulfur hexafluoride following a detailed feasibility study on alternative insulating gases.

Md Shahriar Kader Siddiky, secretary to the Economic Relations Division (ERD), and Jiangbo Ning, deputy country director of the ADB, signed the loan agreement at a ceremony at the ERD in Dhaka today.

"The assistance will ensure reliable, efficient, and improved quality electricity supply to 200,000 new and 1.1 million existing residential, commercial, and industrial customers as well as the new airport terminal in Dhaka," the ADB deputy country director said.

"It will also promote the climate agenda by helping to optimise power usage, reduce wastage, modernise aged and overloaded power infrastructure, and reduce at least 14,700 tonnes of carbon dioxide emissions every year."