Bangladesh is expected to use the loan to double the capacity from current 500MW of the existing cross-border interconnection system between India and Bangladesh.
Commissioned in 2013, the $193m cross-border power transmission link, which is designed to connect the power grid of western Bangladesh at Bheramara and the grid of eastern India at Bharampur, was also funded by ADB earlier.
The link features 125km of 400kV double circuit (D/C) transmission line between the electrical substations at Baharampur and Bheramara, a 400kV switching station at Baharampur and a 500MW back to back high voltage direct current (HVDC) sub-station (400/230kV) at Bheramara and associated infrastructure.
ADB South Asia Department energy division director Anthony Jude said: "There are power surpluses and shortfalls across the region and this project assistance will help these two countries move forward to better utilize their energy generation capacities and to support the broader goal of South Asian regional energy cooperation."
The new funding is a part of the country’s effort to provide electricity for all by 2021.
India, on the other hand, is planning to boost its power generating capacity through various sources including renewable to meet its power demands.
India also has transmission links with Bhutan and Nepal and engages in bilateral electricity trades.
The cross border transmission link upgrade project, which will also secure $63.2m funding from the Bangladesh Government, is planned to be completed in June 2018.
The interconnection project is part the South Asia Subregional Economic Cooperation (SASEC) Program, which aims to improve economic opportunities in Bangladesh, Bhutan, India, the Maldives, Nepal, and Sri Lanka, through strengthened cross-border links in trade, power, road and rail networks.
Image: The Indian-Bangladesh cross border transmission link upgrade project is planned to be completed in June 2018. Photo: Asian Development Bank.
