ADB finances Bangladesh-India power grid

This loan will be used to construct a 40km 400 KV transmission line and high-voltage substations connecting the power grids of western Bangladesh and eastern India. The project aims to supply approximately 500MW of electricity to Bangladesh by 2012 and more in the future.

The rapid growth of the Bangladeshi economy has led to electricity demand far exceeding existing supply, resulting in frequent power outages and erratic voltage fluctuations, causing a loss of approximately $1 billion in domestic output each year.

While the economy has grown at an average rate of 6% per year since 2005, less than half of this nation's 156 million people have access to electricity. The unreliable power supply has impacted industry and hampered efforts to provide economic development opportunities and social services to the poor.

ADB South Asia Managing Director Sultan Hafeez Rahman said the project will mark a new era of energy cooperation in South Asia, bridging the energy gap in the region, creating jobs and business opportunities through a stable power supply.