Bangladesh transmission system investment for upgrading lines and sub-stations

The government will invest a record amount of Tk 24.27 billion under a single scheme to upgrade the country’s power transmission system.

Power Division officials said they planned to invest the money to install hundreds of kilometres of new transmission lines and set up some sub-stations across the country.

“We are going to receive a big amount of money from the Japanese government. We have undertaken the largest transmission line project in Bangladesh and the money will be spent for implementation of the project,” a Power Division official said.

Of the total cost of Tk 24.27 billion to be spent for the “National power transmission network development project”, the Japan International Cooperation Agency (JICA) will provide Tk 17.67 billion (US$ 221 million) in the form of loan.

He said the state-owned Power Grid Company of Bangladesh (PGCB) Ltd would install nearly 284 kilometres of 230-kilovolt (kv) capacity power grid to supply electricity from the proposed 282 megawatt (mw) and 1320 mw capacity coal-fired power plants at Anwara and the 225mw capacity gas-fired plant at Sikolbaha in Chittagong.

The government has planned to set up the two coal-fired power plants at Anwara in Chittagong.

Besides, the PGCB will also upgrade the transmission grid in Chittagong city areas to ensure smooth electricity supply there.

The PGCB will also set up 11 sub-stations of 132/33kv capacity across the country.

The state-owned power grid company will complete the national grid upgradation by the fiscal year 2016-17.

A Power Division official said since the country’s overall power generation had been boosted over the last couple of years, the transmission and distribution capacity needed to be upgraded.

The overall power generation has increased by nearly 2,000 mw over the last couple of years, according to government statistics.

“Most of the power transmission grid was set up many years ago. Besides, the capacity of the most part of the grid is very poor compared to the increasing power supply from new plants,” the Power Division official said.

Under the 33rd official development assistance (ODA) package, the JICA will provide a total of $ 898 million (70,693 million Japanese yen) worth of assistance for three projects of Bangladesh, including US$ 221 million for setting up the largest transmission line.

Negotiations for the loan package were completed last month and the deal is expected to be signed by March next.