Bangladesh is receiving $120 million (£78m) to boost the capacity of its power link with India.
The fund, provided by the Asian Development Bank (ADB), will help increase the transmission capacity of the cross-border electricity link from 500mW to 1,000MW.
It will support power exchanges across South Asia and help Bangladesh meet its energy demand as the systems allows countries with surplus power to export it to others in need.
The country is also investing $63.2 million (£41.08m) in the project which is scheduled to be completed in June 2018.
Anthony Jude, Director, Energy Division, in ADB’s South Asia Department: “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.”
Bangladesh has set a goal of providing electricity for all by 2021.