(BSS) - The Asian Development Bank (ADB) and the Government of Bangladesh today signed a US$200 million loan agreement to enhance quality, reliability, resilience, and efficiency of power supply system and promote renewable energy in Bangladesh.

Economic Relations Division (ERD) Secretary Md. Shahriar Kader Siddiky and ADB Country Director Hoe Yun Jeong signed the loan agreement on behalf of Bangladesh and ADB at a ceremony at ERD in the city, said a press release.

The Power Transmission Strengthening and Integration of Renewable Energy Project will improve power transmission grid in rural areas of the districts of Bogura, Chandpur, Gopalganj, Habiganj, Perojpur, and Satkhira in the Bangladesh Economic Corridor (BEC) region.

The project will also facilitate integration of renewable energy generation in the variable renewable energy (VRE) hub in the southern Chattogram division.

"Reliable access to electricity is essential for sustaining economic growth, reducing poverty, supporting business expansion, and generating employment opportunities - especially for poor and socially disadvantaged communities," said Country Director Hoe Yun Jeong.

"This project will directly contribute to generating jobs for residents of local communities, integrate renewable energy, improve the capacity of energy sector entities, and introduce new technologies," he added.

The successful implementation of the government`s economic reforms, advancement of sound macroeconomic policies, and promotion of social progress all depend on a clean, reliable, uninterrupted, and inclusive power supply.

Bangladesh`s heavy reliance on natural gas and its rapidly rising energy imports highlight the significant challenges in meeting the country`s fast-growing energy demand, while ensuring long-term energy security and sustainability.

Given Bangladesh`s high vulnerability to climate-related hazards, it is essential to invest in disaster-resilient power transmission infrastructure to safeguard development gains and ensure uninterrupted energy access.