<div><h4>Impact</h4><p><p>Sustainable and improved disaster- and climate-resilient infrastructure developed</p></p></div>

Northwest Distribution Network Modernization Project

Bangladesh: northwest distribution networkmodernization projectproject name northwest distribution network modernization projectproject number 57258-001country economy bangladeshproject status proposedproject type modality ofassistanceloansource of funding amountloan: northwest distribution network modernization projectordinary capital resources us 195.00 millionoperational prioritiesop2: accelerating progress in gender equalityop3: tackling climate change, building climate and disaster resilience, and enhancingenvironmental sustainabilityop4: making cities more livableop6: strengthening governance and institutional capacitysector subsector energy electricity transmission and distributiongender some gender elementsdescriptionproject rationale andlinkage tocountryregional strategygrowth and development inequality in bangladesh. bangladesh demonstrated strongeconomic growth with an average annual gross domestic product growth of 7.6 betweenfiscal year fy 2016 and fy2019. despite the economic shocks of the coronavirus diseasepandemic, the country has shown resilience by rebounding from a growth rate of 3.4 infy2020 to 6.9 and 7.1 in fy2021 and fy2022, respectively. however, the post-pandemicrecovery was disrupted in fy2023 with a decline in gross domestic product growth of 6.0due to rising inflation, lower industrial activities, and fiscal constraints. despite that robusteconomic growth has contributed to a significant decline in poverty from 48.9 in fy2 to18.7 in fy2022, the benefits of economic success have not been evenly distributed, andpoverty reduction has been uneven across the country. the northwest region of bangladeshrajshahi and rangpur divisions faces significant economic vulnerability due to inadequateinfrastructure and slow progress in industrialization. in particular, rangpur division has thehighest urban poverty rate with dense population, and it is also vulnerable to frequentnatural hazards and extreme weather. the eighth five-year plan aims to achieve regionalbalance in development through distribution of industrial activities, enhancing farmproductivity, and generating additional income opportunities. a reliable power supply isessential to achieve this goal through economic advancement in this region.rapid increase in electricity demand. the northern electricity supply company nescopublic limited company plc commenced its operation in october 2016 with a mandate todistribute and supply electricity in the northwest region. since then, the demand forelectricity in the nesco area has increased at a compound annual growth rate cagr of12.6 from 439 megawatts mw in fy2017 to 896 mw in fy2023, and the total number ofconsumers has increased at a cagr of 6.9 from 1.29 million to 1.92 million during thesame period. it is projected that the demand for electricity will continue to increase at a highgrowth rate with a cagr of 12.5, reaching 2,037 mw by 2030, which calls for urgentexpansion of the power distribution network in the northwest region. the high demand in thefuture is mainly from industrial consumers, which currently account for only 1.36 of thetotal load in the region as of fy2021 28.4 in national average, which has a substantialpotential to grow in the future.low reliability of power distribution network. bangladesh including the nesco operationalarea has achieved remarkable progress in expanding access to electricity and increasingpower generation capacity. the national electricity access rate, which was one of the lowestin the world at 55 in 2010, had risen to 100 in 2022. during this period, the powergeneration capacity surged, increasing more than fourfold from 5,271 megawatts mw to22,482 mw. however, the transmission and distribution systems are not commensurate withthe expansion of power generation capacity. while the number of electricity consumers inthe northwest region has grown steadily, the distribution network in the region is aged andoverloaded, resulting in poor reliability of power supply with frequent load-shedding, powercuts, and voltage drops. the aged distribution network is also highly vulnerable to theft,fires, floods, and fatal accidents caused by contact with tree branches and other objects. it is,therefore, crucial to modernize the power distribution network in the region to improve thereliability, quality, safety, and efficiency of power supply.urgent need to enhance climate resilience of power distribution network. the acceleration ofclimate change impacts poses additional challenges to safety and reliability of power supply.more frequent and severe extreme weather events lead to increased disruptions in the gridsystem. bangladesh is recognized as one of the worst affected countries when it comes tothe impacts of climate change. the northwest region is highly prone to natural hazards suchas cyclones, floods, landslides, thunderstorms, and earthquakes. in particular, two majorcities rajshahi and rangpur in the region have experienced significant damages to itsexisting power distribution network due to cyclones, causing distribution poles or transformerto fall, overhead lines to break, and conductors to snap. consequently, climate change hasplaced increased pressure on the structural stability of aging grid infrastructure in the region.since critical infrastructures such as telecommunications, transportation, energy supply, andhealthcare rely on a reliable power supply, a widespread and prolonged power blackout couldlead to significant disruptions, economic losses, and public safety risks. therefore, it isimperative to build climate-resilient distribution infrastructure and improve the adaptativecapacity to quickly respond to natural disasters. given the country's exposure to theincreased adverse impacts of climate change, investing in a safe and resilient power supplysystem is beneficial for the more vulnerable sections of society.low-carbon energy transition. under its updated nationally determined contributions ndcin the paris agreement article 4, paragraph 2, bangladesh has set a target to implement4.1 giga-watts gw of renewable energy projects by 2030. amid the escalating energyprices and increasing climate change risk, the government has committed to developingrenewable energy sources while canceling plans to construct coal-based power plants. infebruary 2023, the government also approved the mujib climate prosperity plan, whichcommits to renewable targets to 40 by 2041. the plan also highlights the importance ofenergy storage infrastructure and calls for the development of an energy storage roadmap.however, the transition to green energy requires a fundamental transformation of powersystems with significant investment. the aged distribution network in bangladesh cansupport no more than 10 renewable energy. thus, electricity distribution networktransformation with digital technologies is essential for decarbonizing the electricity system.impact sustainable and improved disaster- and climate-resilient infrastructure developedoutcomeoutcome: quality, efficiency, reliability, and sustainability of electricity supply in northwestregion improved.outputsoutput 1: distribution grid modernized and digitalized and readiness to integrate renewableenergy resources increased.output 2. climate resilience and adaptive capacity to respond to natural hazards enhanced.output 3. institutional capacity for disaster preparedness and gender mainstreamingincreased.geographical location nation-widesafeguard categoriesenvironment binvoluntary resettlement bindigenous peoples csummary of environmental and social aspectsenvironmental aspectsinvoluntary resettlementindigenous peoplesstakeholder communication, participation, and consultationduring project designduring project implementationresponsible adb officer son, jongmiresponsible adb department sectors groupresponsible adb division energy sector office sg-eneexecuting agencies northern electricity supply company ltd.timetableconcept clearance 14 feb 2024fact finding 15 jul 2024 to 15 jul 2024mrm 09 oct 2023approval -last review mission -last pds update 22 feb 2024project page https:.adb.orgprojects57258-001mainrequest forinformationhttp:.adb.orgformsrequest-information-formsubject=57258-001date generated 16 april 2024adb provides the information contained in this project data sheet pds solely as a resourcefor its users without any form of assurance. whilst adb tries to provide high quality content,the information are provided as is without warranty of any kind, either express or implied,including without limitation warranties of merchantability, fitness for a particular purpose,and non-infringement. adb specifically does not make any warranties or representations asto the accuracy or completeness of any such information.source url: https:.adb.orgprojects57258-001main

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