The Rural Electricity Transmission and Distribution Project (T&D) will help 25 million rural people get electricity.
The Bangladesh Rural Electrification Board and the Power Grid Company of Bangladesh will implement the project, which includes construction of new lines and new substations.
Plans also include upgrading the current substations in the rural areas of Chittagong, Dhaka, and Sylhet divisions.
The bank said the project will reduce technical losses in the rural grid electricity system and increase energy availability to consumers.
World Bank Bangladesh acting head Christine Kimes said only 42% of the rural population currently has access to electricity in Bangladesh, leaving about 13 million rural households without electricity.
"Access to energy promotes economic growth and prosperity and has a positive impact on income, expenditure and education," Kimes added.
"By improving efficiency of the system so that more electricity can reach rural areas, the project will contribute towards increasing economic activity and reducing poverty in the rural areas of Bangladesh."
The loan, which will be given by the International Development Association, the World Bank Group’s soft loan arm, has a 40-year maturity time, including a grace period of 10 years, and carries a 0.75% service charge.
Image: The Rural Electricity Transmission and Distribution Project (T&D) includes construction of new lines and new substations. Photo: Courtesy of twobee/FreeDigitalPhotos.net.
