Equally important are the reforms to build institutional capacity and develop a market orientation. Modern management practices are being introduced and decentralization encouraged. New sector agencies are being created and the role of rural electric cooperatives expanded. The project will also prepare a training and management development institute in the Rural Electrification Board to train future managers and staff. Bangladeshis has access to electricity.
Inadequate supply is a major constraint to economic growth and social development.
The ongoing reform process aims to transform the power sector and make it efficient, competitive and self-sustaining so it can accelerate electrification and provide funding for expansion from its own resources rather than be a drain on the government's budget. ADB's assistance comprises two loans. This reflects a hardening of terms for the power sector, in support of its commercialization.