ADB pledges $120 million loan to finance India, Bangladesh electricity link under SASEC Programme

The Asian Development Bank (ADB) has pledged to provide 120 million dollar loan in order to finance cross-border electricity link between Bangladesh and India under SASEC Programme.
In this regard, loan agreement was signed by ADB Country Director Kazuhiko Higuchi and Mohammad Mejbahuddin, Senior Secretary of Bangladesh Finance Ministry.
The loan fund would be used for Second Bangladesh-India Grid Inter connectivity project under the ambitious South Asia Sub-regional Economic Co-operation (SASEC) Programme.
The projects under SASEC Programme aim to promote regional prosperity through improved cross-border links in trade, power, road and rail links between India and Bangladesh.
The second project under will double the existing capacity from 500 MW to 1000 MW of the inter-connectivity link connecting power grid at Bheramara in western Bangladesh and the grid of eastern India at Bahrampur (Odisha).
It should be noted that the networks under the first project were connected in 2013 and was financed by ADB under the SASEC Programme.

About South Asia Subregional Economic Cooperation (SASEC) Program

Set up in 2001 to bring together Bangladesh, Bhutan, India, Maldives, Nepal and Sri Lanka in a project-based partnership.
This sub-regional partnership aims to

• Strengthening regional economic cooperation
• Boosting trade among member countries.
• Promote regional prosperity by improving cross-border connectivity.
• Build a better quality of life for the people of the subregion.

Since its establishment, SASEC member countries have implemented over 37 regional projects worth more than 6.75 billion dollars in the energy, trade facilitation, transport and ICT sectors. Manila (Philippines) based Asian Development Bank (ADB) serves SASEC Secretariat for the member countries.

Month: Current Affairs - November, 2015