The Asian Development Bank is offering a USD100 million equivalent loan to support a cross-border power initiative between India and Bangladesh. The loan will be used to build a transmission line, high-voltage direct current substation and connecting loop to link the western electrical grid of Bangladesh with India’s eastern grid.
“Connecting the two grids will demonstrate the substantial economic benefits that come from enhanced regional cooperation and help to address energy gaps across the region,” said Sultan Hafeez Rahman, director general of ADB’s South Asia department.
The project, which will be implemented by the Power Grid Company of Bangladesh, is expected to be completed by December 2012.
The bank also intends to issue a clean energy bond to support green energy projects in Asia and the Pacific. The bond is expected to have four tranches, two of which are denominated in Brazilian real, one in Australian dollars and one in Turkish lira.
The bond will be issued in September. ADB will offer assistance to clean energy initiatives in an amount at least equal to that raised by the clean energy bond.
“Clean energy is a crucial element in the fight against poverty in Asia and the Pacific. To put the region on a path to sustainable and inclusive economic growth, we are committed to supporting clean energy projects in the region that avoid harming people or the environment,” ADB President Haruhiko Kuroda said in a statement.