Project Information Document (Concept Stage) - Bangladesh: Rural Electricity Transmission and Distribution Project - P129920

The average systems losses in the PBSs are in the range of 14% with potential for reducing them to a comparable rate of the other corporatized distribution utilities through investments in rehabilitation and augmentation. [...] Since 1981, the Bank has been supporting the REB/PBS program with the most recent project supporting area rationalization program of GOB by transferring pocket/peri-urban areas from the Bangladesh Power Development Board (BPDB) to the PBSs, in addition to supporting grid expansion. [...] Despite the successes and achievements of the rural grid however, the institutional capacity of REB/ PBSs have not kept pace with the rapid acceleration in grid expansion. [...] Realizing the need for strengthening the REB/PBS program to meet the challenges of universal access by 2021, a reform action plan has been developed by REB with proposals for strengthening REB Board with professionals, delegation of authority to the PBSs, and establishing zonal offices of REB to better interface with the PBSs. [...] To aggravate the situation, the increase in BST are not passed on to the consumers in time, causing financial burdens on the distribution utilities, especially the PBSs.