AIIB agrees $304m loan for Assam electricity upgrade project
The Asian Infrastructure Investment Bank has signed a $304 million loan agreement to fund the Assam Intra-State Transmission System Enhancement Project, in India.
The project aims to strengthen the state’s electricity transmission system by constructing ten transmission substations and laying transmission lines with the associated infrastructure as well as upgrading 15 existing substations, transmission lines. Additionally, the project will involve upgrading existing ground wire to optical power ground wire.
The total estimated cost of the project is $365 million, of which $304 million will be financed by AIIB, while the Assam government will provide counterpart funding of $61 million. The loan comes with a five-year grace period and a maturity of 24 years.
