German firm Siemens and Spain’s Cobra have been awarded a $116.4m contract to install a power transmission grid across Bangladesh and India by next year.

Cobra has received a $9.4m contract to lay a 30km-long, 400kv transmission line from Bheramara of Bangladesh to Bangram on the India-Bangladesh border.

Siemens received a $107m contract to develop a substation at Bheramara in Kulna to convert 400kv of high-voltage power for inserting into Bangladesh’s existing 230kv transmission line.

According to the terms accepted by both the countries, a 100km-long 400kv transmission line will be set up from Bheramara to Baharampur in India.

The $149m transmission grid project is being delivered by the Bangladeshi Government, for which the Asian Development Bank has extended $100m in credit.

Bangladesh had signed a 35-year power transmission agreement with India in 2010 to import 250MW of electricity from India in the first year, starting from late 2012, and 500MW subsequently, reports the Financial Express.