TBM Report ||
The Asian Development Bank (ADB) has greenlit a $175 million concessional loan to modernize power distribution networks across Bangladesh’s Chattogram Hill Tracts (CHT). Announced on September 1, 2026, the initiative aims to supply reliable electricity to remote communities, expanding economic opportunities and essential public services in the country’s southeastern highlands.
Titled the Sustainable Energy Development and Community Empowerment in the CHT Project, the program targets 26 remote sub-districts across Khagrachari, Rangamati, and Bandarban. Once operational, the grid expansion will connect at least 88,000 households—including 35,000 families from indigenous small ethnic communities—to safe, affordable power.
Infrastructure upgrades include constructing six 33/11 kilovolt substations adding 80 megavolt-amperes of capacity, installing 5,032 kilometers of low-loss distribution lines, and rehabilitating 1,874 kilometers of aging grid lines. The project will also upgrade four substations, a switching station, and a zonal repair workshop. Beyond improving grid stability, these measures will avert nearly 19,300 tons of carbon dioxide equivalent emissions annually.
ADB Country Director for Bangladesh Qingfeng Zhang highlighted the socio-economic dimension of the initiative. “Dependable electricity serves as a core engine for local enterprises, health services, and community resilience,” Zhang stated, pointing out that expanding energy access directly accelerates inclusive development and gender-inclusive participation across hilly frontiers.
While Bangladesh maintains near-universal electricity access nationwide, grid coverage in the CHT lags severely—standing at 49 percent in Khagrachari, 43 percent in Rangamati, and 41 percent in Bandarban. The project aims to boost regional grid coverage to 68 percent by 2032 while readying local infrastructure to integrate future renewable sources like solar and pico-hydropower.
Beyond heavy infrastructure, the scheme introduces community-focused social measures. It will install 30 solar-powered drinking water facilities managed by local groups with mandatory 30 percent female leadership. Additionally, clean energy backup systems will support 20 critical public sites—including schools, clinics, and temples—during power outages.
To boost livelihoods, the initiative will provide skill development training to 1,000 local residents, business incubator support to 200 prospective entrepreneurs, and technical orientations to 300 students. The Bangladesh Power Development Board (BPDB), serving as the executing agency, will establish three customer service centers and digitized childcare units. Funding comprises ADB’s $175 million loan, a $2.72 million grant from the Japan Fund for Prosperous and Resilient Asia and the Pacific, $36.54 million from the Bangladesh government, and $45.65 million contributed by BPDB.
 has greenlit a $175 million concessional loan to modernize power distribution networks across Bangladesh's Chattogram Hill Tracts (CHT). Announced on September 1, 2026, the initiative aims to supply reliable electricity to remote communities, expanding economic opportunities and essential public services in the country’s southeastern highlands.){kind=link}