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Bangladesh signs for $120 loan for power connectivity with India

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Staff writer ▼ | November 20, 2015
The Asian Development Bank (ADB) and the Bangladeshi government have signed an agreement for $120 million in loans to help finance increased transmission capacity of a cross-border electricity link between India and Bangladesh.
Bangladesh electricity
Energy   The loan to Bangladesh
The interconnection project is part of efforts under the South Asia Sub-regional Economic Cooperation (SASEC) Program to promote regional prosperity and improve economic opportunities through strengthened cross-border links in trade, power, road and rail networks. Its members are Bangladesh, Bhutan, India, the Maldives, Nepal and Sri Lanka.

Along with ADB's loan assistance, the government of Bangladesh will provide financing of $63.2 million. The project is expected to be completed in June 2018.

The ADB's loan to Bangladesh, approved in ADB headquarters in Manila on Thursday, will double the capacity of the existing interconnection system which links the power grid of western Bangladesh at Bheramara and the grid of eastern India at Bharampur, said the Manila-based lender in a statement.