ADB grants $ 100 million loan to build cross-border power grid

The Asian Development Bank has agreed to grant a loan of US$ 100 million to construct a cross-border power grid between Bangladesh and India, so as to facilitate electricity trading. The project is estimated to cost $ 197 million, of which the Bangladesh portion is expected to cost $ 159 million. The 400 kilovite (kv) grid interconnection project will connect Bheramara with Baharampur on the Indian side and is aimed at exporting electricity to Bangladesh as it is experiencing a significant demand-supply mismatch. The proposed lending by the ADB would include financing of the transmission and substation components of the project to be implemented by Power Grid Company of Bangladesh Ltd. (PGCB) and Power Grid Corporation of India Ltd. (PGCIL). Bangladesh expects to import electricity from India by 2012.