NEW DELHI, Aug 17: The Asian Development Bank (ADB) has appointed WM Lewis and Associates Inc as the technical assistance (TA) consultants for the Indo-Bangladesh power exchange project.

The major role of the consultants appointed by ADB, the funding agency for the project, will be to examine the commercial aspects of the power exchange project between the two countries.

Moreover, the consultant will also moderate the discussions between the executing agencies (EAs) from the two countries and assist them in arriving at a fair and equitable settlement based on international commercial practices for sale and purchase of power between the two utilities.

The EAs from India and Bangaldesh will be Power Grid Corporation of India Ltd (PGCIL) and Bangladesh Power Development Board (BPDB) respectively. Official sources told The Financial Express that after a series of meetings between the representatives of ADB and the officials from the ministries of economic affairs, external affiars and power, it was decided that a consultant should be appointed by the bank for assisting in the discussions between Powergrid and BPDB.

"Although both Powergrid and BPDB have sufficient technical expertise to plan, design and execute this project without any third party assistance, it was felt by both the governments that there needs to be external assistance for speeding up of the commercial discussions and for ensuring transparency and equity in the agreements reached so that these are acceptable to all concerned", added sources. The consultants will also identify significant issues for the sale and purchase of power after consultations with the government's of the two countries and with Powergrid and BPDB.

In addition to this, the consultants have also been entrusted with the task of providing insights and references on addressing various concerns, arising during discussions, vis-a-vis similar situations in other countries. The consultants will also prepare and provide a checklist of commercial aspects that should be covered in a power sale between the entities in the two countries, sources disclosed. "After an agreement is reached between Powergrid and BPDB, the consultants will review the final draft of the proposed agreement so as to ensure consistency between its technical and commercial aspects", the sources added.

It may be noted here that talks are still on between the two countries on the actual inter-tie points to connect Eastern region of India with western Bangladesh. Whereas, Powergrid has offered as many as five transmission links as options, focus is likely to be on two 132 KV DC lines.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.