Asian Infrastructure Investment Bank (AIIB) President Jin Liqun has approved a loan of USD120 million for a project that will upgrade and expand the power transmission system in the Chittagong region of Bangladesh, home to more than 4 million people.

The Bangladesh Power System Upgrade and Expansion Project marks the first AIIB financing approved under the Bank’s Accountability Framework. This framework, which came into effect on Jan. 1, 2019, delegates authority to the President to approve those projects that meet the predetermined criteria agreed with the Board.

“This vital investment marks the first project approved under AIIB’s Accountability Framework, which clearly demarcate the roles and responsibilities of the Board of Directors and the President in respect of financing operations of the Bank,” said AIIB President Jin Liqun. “Through the Accountability Framework we sought to establish a new model of governance for AIIB with an effective, strategic Board of Directors that directs and oversees the work of an efficient, accountable management, together creating a Bank able to serve its clients’ needs effectively and efficiently.”

The project will construct and upgrade more than 46 km of double-circuit transmission lines and associated substations and line bays. The project will also improve voltage stability and reduce voltage fluctuations and the need to spread the demand for electrical power, allowing more residences and businesses to connect to the regional grid.

The Bangladesh Power System Upgrade and Expansion Project is one of four energy projects in Bangladesh that have received funding from AIIB. All four projects are aligned with the Government of Bangladesh’s target to achieve affordable electricity for all by 2021. This approach will enhance distribution capacity, increase the number of rural and urban electricity consumers, improve efficiency in gas production, expand gas transmission pipeline capacity and increase power generation capabilities in Bangladesh.

“Ensuring a more stable source of electricity in Bangladesh’s second largest economic center will encourage more businesses to invest in the region, creating jobs and other economic benefits,” said AIIB Vice President and Chief Investment Officer D.J. Pandian. “Addressing the power shortages will also remove the risk local businesses face when having to rely on an unstable power supply.”

Additional information about the project can be found here.

About AIIB

The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank with a mission to improve social and economic outcomes in Asia. Headquartered in Beijing, we began operations in January 2016 and have now grown to 93 approved members worldwide. By investing in sustainable infrastructure and other productive sectors in Asia and beyond, we will better connect people, services and markets that over time will impact the lives of billions and build a better future.