AIIB investing up to $274 million in BD to help reach energy targets

The Asian Infrastructure Investment Bank (AIIB) is helping Bangladesh reach energy targets with up to $274 million in investments.

It has taken three projects, to this end, one of which is Distribution System Upgrade and Expansion Project being implemented in Savar.

Members of the AIIB’s Board of Directors recently visited there to meet with beneficiaries of that project, according to a statement of the multilateral bank received on Monday.

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 kilometres of overhead distribution lines to underground cables.

The installation of the service connections is now complete and roughly 12.5 million Bangladeshis are directly benefiting from it. Remaining work on the project is expected to be completed in 2019.

The Distribution System Upgrade and Expansion project is one of three ones approved by the AIIB’s Board of Directors, the statement noted.

Two other projects are Bhola Independent Power Producer and Natural Gas Infrastructure and Efficiency Improvement.

All of the three projects are aligned with fuelling continued economic growth in Bangladesh and with the government’s ambitious target to achieve affordable electricity for all by 2021.

Those also involve 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.”

Headquartered in Beijing, the AIIB began operations in January 2016 and has now grown to 87 approved members from around the world.