ADB Proposes $259.91 Million Project To Expand Solar And Low-Carbon Power In Bangladesh’s CHT

The Asian Development Bank (ADB) has proposed a $259.91 million project to expand low-carbon power infrastructure and promote economic development in Bangladesh’s Chattogram Hill Tracts (CHT). The initiative, known as the Sustainable Energy Development and Community Empowerment in the Chattogram Hill Tracts Project, is designed to improve electricity access, strengthen climate resilience, and create new livelihood opportunities in the region.

The project will be financed through a $175 million concessional loan from ADB, a $2.72 million grant from the Japan Fund for Prosperous and Resilient Asia and the Pacific, $36.54 million from the Government of Bangladesh, and $45.65 million from the Bangladesh Power Development Board (BPDB).

The CHT region includes Khagrachari, Rangamati, and Bandarban and covers around 9% of Bangladesh’s land area. It has a population of approximately 1.84 million people, with more than half belonging to 11 small ethnic communities. Rural poverty in the region is extremely high, reaching nearly 69% in some areas. Electricity access is also limited, ranging from 41% to 49%, compared with 99.3% nationally.

Implemented by BPDB, the project aims to increase electricity access in the CHT from 49% to 68% by 2032 and connect at least 88,000 additional households, including 35,000 households from small ethnic communities.

A major component of the initiative will be the modernization and expansion of the region’s electricity distribution network. Six new 33/11-kV distribution substations will be constructed, adding 80 MVA of capacity. The project will also develop 5,032 kilometers of distribution lines using climate-resilient infrastructure and low-loss conductors. Four existing substations, one switching station, and 1,874 kilometers of distribution lines will also be upgraded.

These improvements are expected to reduce distribution losses from 13.48% to 9% and avoid at least 19,300 tonnes of carbon dioxide equivalent emissions each year, supporting Bangladesh’s broader low-carbon energy transition.

Solar energy will play an important role in strengthening local resilience under the project. At least 30 solar photovoltaic-powered pipeline drinking water systems will be installed and managed by community committees. These committees will include at least 30% women in leadership positions, helping strengthen community participation and gender inclusion.

The project will also provide solar-powered backup systems to 20 community facilities, including clinics, schools, and temples. These systems are expected to improve the reliability of essential services during power interruptions and natural disasters such as floods, cyclones, and landslides.

In addition to energy infrastructure, the initiative will establish three digital customer complaint centers and three childcare facilities. It will train local staff in digital complaint management and electricity distribution operations.

The project will also support sustainable livelihoods by introducing 10 culturally and gender-responsive business models, training 1,000 electricity users in energy-based livelihood activities, and providing business incubation support to 200 entrepreneurs, with priority given to women and members of small ethnic communities.

The project is scheduled for implementation from September 2026 to June 2031 and is expected to contribute to Bangladesh’s long-term development, climate adaptation, clean energy, and inclusive economic growth objectives.