Loan Nos. 2188/2189(SF)-BAN: Gas Transmission and Development Project

The People's Republic of Bangladesh has received a loan from the Asian Development Bank (ADB) towards the cost of the Gas Transmission and Development Project. The loan was approved on 27 October 2005.

The Project aims to further develop the main indigenous energy resource in Bangladesh to meet the increasing demand for primary commercial energy. It will increase the pace of economic development in less developed regions of the country by expanding the sustainable supply and use of natural gas to replace polluting fossil and biomass fuels.

Procurement
The Project will have three investment components - gas transmission (five sub-components), field appraisal, and gas distribution network - and one capacity-building component. The specific activities of the Project are as follows:

  1. Part A Gas transmission expansion and reinforcement. Five subcomponents will transmit gas to the consumption centers including less developed regions of the country.

    1. Part A-1 Ashuganj-Manohardi-Dhanua-Elenga-Jamuna Bridge east bank gas transmission pipeline (AJGTP). The subcomponent will involve the construction of a 30-inch-diameter, 51 km gas pipeline from Manohardi through the Narsingdi, Ghazipur, and Tangail districts to the east bank of the Jamuna bridge (excluding the 36 km Ashuganj-Manohardi section, which is under construction using Government funds and the existing 24-inch, 52 km Dhanua-Elenga section) and installation of compression facilities at Ashuganj (west) and Elenga with a throughput of 390 MMCFD.
    2. Part A-2 Hatikumrul-Ishwardi-Bheramara gas transmission pipeline (HBGTP). To expand the gas transmission network to the western region of the country, the subcomponent will involve the construction of a 24-inch-diameter, 87 km gas transmission pipeline from Hatikumrul about 14 km from the Jamuna Bridge west to Bheramara through the Sirajganj, Natore, Pabna, and Kushtia districts to transmit 235 MMCFD of gas.
    3. Part A-3 Bonpara-Rajshahi gas transmission pipeline (BRGTP). Construction of a 12-inch-diameter, 50 km gas transmission pipeline from Bonpara to Rajshahi for transmitting 25 MMCFD.
    4. Part A-4 Bheramara-Khulna gas transmission pipeline (BKGTP). Construction of a 20-inch-diameter, 165 km gas transmission pipeline from Bheramara to Khulna through Kushtia, Jessore, and Khulna districts, with a capacity of 75-125 MMCFD.
    5. Part A-5 North south system expansion (NSSE). Installation of compressors at Ashuganj South and Muchai with throughputs ranging from 370-890 MMCFD.

  2. Part B Field appraisal. Five producing gas fields will be appraised to upgrade the estimated gas in place and also to determine the exact location for future drilling activities. A three-dimensional (3-D) survey of the existing gas fields at Rashidpur, Kailastila, and Sylhet in the northeast (owned by the SGFL, and Titas and Bakhrabad gas fields (owned by the BGFCL) in the east will be undertaken. No new exploration activities will be involved.

  3. Part C Rajshahi gas distribution network. Construction of a gas distribution network about 200 km of 1- to 8-inch-diameter gas distribution pipelines in Rajshahi area. This network will subsequently be expanded to 350-400 km.

  4. Part D Capacity Building. Strengthen the policy-making and technical capabilities of EMRD and assist gas sector institutions to undertake reform and restructuring while ensuring efficient implementation of the Project. This component will support corporate governance, institutional strengthening, financial management, operational improvement, human resource development and technical expertise of gas companies to improve sector efficiency and performance. In particular, it will encourage private sector involvement in the gas sector though regulatory reforms. The gas system loss reduction plan will also be implemented in part D.

The proceeds of the loan are intended to be used for the procurement of the following:
  1. compressor stations
  2. city gas stations
  3. Line pipe
  4. pipeline construction
  5. pipeline materials and accessories
  6. data acquisition equipment
  7. SCADA
  8. Miscellaneous goods and consumables

ADB-financed goods and services will be procured in accordance with ADB's Guidelines for Procurement. Major contracts for equipment and materials will be tendered through international competitive bidding or international shopping, depending on the value of the contract.

The first batch of bidding documents for the above items is expected to be available on or about 1 December 2005 subject to a nominal charge.

Consulting Services

All consultants will be engaged by the EAs in accordance with ADB's Guidelines on the Use of Consultants and other arrangements satisfactory to ADB for engaging domestic consultants. The quality- and cost-based selection method will be used. Consultants will be engaged as a firm or on an individual basis, as necessary.

Consulting services will be required for
  1. project implementation support in the installation of compressors and the Supervisory Control and Data Acquisition (SCADA) system;
  2. support for 3-D seismic survey in part B; and
  3. capacity building and training of relevant gas sector entities in part D.
The Project will require a total of 262 person-months of international and 305 person-months of domestic consulting services.

Interested bidders from ADB's member countries who wish to obtain additional information may contact the following:
Part A :
Managing Director
Gas Transmission Co. Ltd. (GTCL)
House # 39, Road # 3,
Sector # 3, Uttara Model
Town, Dhaka - 1230
Tel. (880-2) 891 5426
Fax No. (880-2) 891 4780
Part B :
Managing Director
Bangladesh Gas Fields Co. Ltd. (BGFCL)
Brahmanbaria, Bangladesh
Tel. (88-0851) 52395/ (880-2) 882 0275
Fax No. (88-0851) 52429/
(880-2) 831 6267
Managing Director
Sylhet Gas Fields Limited (SGFCL)
Chiknagool, Shylhet - 3152
Tel. (880-2) 8152577/ 88-0821- 761736
Fax No. (880-2) 8119040
Part C:
Managing Director
Pashchimanchal Gas Co. Ltd. (PGCL)
Flat # 2B, House # 109,
Mashjid Road, Old D.O.H.S.,
Banani, Dhaka - 1206, Bangladesh
Tel. (880-2) 8754776
Fax No.(880-2) 875 4776
Part D:
Chairman
Bangladesh Oil, Gas, and Minerals Corporation (Petrobangla)
3 Kawran Bazar Commercial Area,
Dhaka - 1215, Bangladesh
Tel. (880-2) 8114972
Fax No. (880-2) 8111613

General Procurement Notice