AIIB Helps Bangladesh Reach Energy Targets With up to USD274 in Investments

DHAKA, Sept. 3 (NsNewsWire) — Members of the Asian Infrastructure Investment Bank’s (AIIB) Board of Directors visited Savar to meet with beneficiaries of AIIB’s investment in the Distribution System Upgrade and Expansion Project.

The project is part of a national plan to provide about 2.5 million service connections to rural consumers, upgrade two grid substations and convert 85 kilometers of overhead distribution lines to underground cables. The installation of the 2.5 million service connections is now complete and approximately 12.5 million Bangladeshis are directly benefiting from the project. Remaining work on the project is expected to be completed in 2019.

This is one of three energy projects approved by AIIB’s Board of Directors, totalling up to USD274 million in funding. These projects are aligned with fueling continued economic growth in Bangladesh and with the government’s ambitious target to achieve affordable electricity for all by 2021. They are also aligned with the country’s need for USD40 billion in investments in generation, transmission and distribution by 2030 to address current needs and constraints.

“Our Board is here to learn more about the local investment climate and what Bangladesh needs to maintain economic growth and reach its full potential,” said AIIB Head of Communications and Development Laurel Ostfield. “We look forward to continuing to work with the Government of Bangladesh and other partners to develop solutions that will address the infrastructure gap and improve the livelihood of millions.” The Bhola IPP project is one example of how AIIB is mobilizing funds for vital energy infrastructure in Bangladesh. AIIB is also considering investing in liquefied natural gas infrastructure and utility-scale solar power projects.

Approved AIIB Projects in Bangladesh Bangladesh Bhola IPP:

Bangladesh must deal with power supply shortages for its economic growth to continue. AIIB is investing up to USD49 million to help fund the estimated USD270-million project and help increase power generation by around 1,300 gigawatt-hours annually. Distribution System Upgrade and Expansion Project:

Despite recent successes in rural electrification, Bangladesh still has about 13 million rural households without access to electricity, and the country’s rural electrification rate is only about 65 percent. Upon completion in 2019, the project is expected to benefit about 12.5 million Bangladeshis. AIIB approved a USD165-million loan for this project in 2016. Natural Gas Infrastructure and Efficiency Improvement Project:

Despite its importance, growth in the country’s gas supply has not kept up with the demand required for power generation and fertilizer production. AIIB is investing USD60 million to help fund the estimated USD453-million project that will improve gas production efficiency and expand gas transmission pipeline capacity. In addition to these projects, AIIB is considering investing in the Bangladesh Municipal Water Supply and Sanitation Project that would improve access to piped water and sanitation services for pourashavas (municipalities) that are impacted by poor water quality. For more information on AIIB’s approved projects, visit: https://www.aiib.org/en/projects/approved/

About AIIB: The Asian Infrastructure Investment Bank is a multilateral development bank with a mission to improve social and economic outcomes in Asia and beyond. Headquartered in Beijing, we began operations in January 2016 and have now grown to 87 approved members from around the world. By investing in sustainable infrastructure and other productive sectors today, we will better connect people, services and markets that over time will impact the lives of billions and build a better future. press release