The Asian Development Bank (ADB) will provide $120 million loan to upgrade the India-Bangladesh electricity network which will allow Bangladesh to meet its increasing power demand and support power exchanges across South Asia. The loan will be used to double the capacity of the existing inter-grid connectivity which links the power grid of western Bangladesh at Berhamara with the power grid of eastern India at Baharampur.
The two electricity networks were first connected in December 2013 under a previous ADB project under which India exports 500 MW power to Bangladesh. In a statement the Manila-based lending agency’s Director of Energy Division of the South Asia Department, Anthony Jude said the interconnectivity project is a step in the direction of a South Asia Regional Electricity Grid which will facilitate power exchanges between countries of the region.
The project which is expected to be completed by June is part of efforts under the South Asia Subregional Economic Co-operation (SASEC) Programme aimed at improving economic opportunities through cross-border links in trade, power, road and rail networks.