AIIB approved a loan of $165 million for the Distribution System Upgrade and Expansion Project in Bangladesh.
The project consists of two components:
(1) provision of about 2.5 million service connections to rural consumers;
(2) upgrading two grid substations and conversion of 85 km overhead distribution lines into underground cables in north Dhaka.
The Bangladesh Rural Electrification Board and Dhaka Electric Supply Company Limited are the project implementation agencies.
The Project implementation period is from July 2016 to June 2019, and upon completion, is expected to benefit an estimated 12.5 million people, in both urban and rural areas. The Loan Closing Date will be December 31, 2019.
AIIB loan: $165 million, with a 25-year term, including a grace period of 5 years, at the Bank’s standard interest rate for sovereign-backed loans with this weighted average maturity.
ACCOUNTABILITY MECHANISM OF AIIB
In addition, the AIIB has a Project-affected People’s Mechanism. According to AIIB's policies, "people who believe they have been or are likely to be adversely affected by a failure of the Bank to implement the ESP may also submit complaints to the Bank's oversight mechanism in accordance with the policies and procedures to be established by the Bank for such mechanism." However, at the time of writing, the exact scope and function of its Project-affected People’s Mechanism are yet to be finalized.