Project Name BAN: MEGHNAGHAT POWER PROJECT
Project Number 31909-014
Borrower/Company MEGHNAGHAT POWER LIMITED
Country Bangladesh
Location Meghnaghat, Southeast of Dhaka
Approval Number 7165/39, 7165/1793
Type or Modality of Assistance
7165/39 Complementary Financing Scheme US$ 20.00 million Approved
Strategic Agendas
Drivers of Change
Sector / Subsector Energy - Conventional energy generation
Gender Equity and Mainstreaming
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Infrastructure Finance Division 1
Responsible ADB Officer Juliette N. Leusink
Project Sponsor(s) Pendekar Energy (L) Ltd
Description Located in southeast of Dhaka, on the northern bank of Meghna river, the Project entails the construction and operation of a 450 MW, combined-cycle, gas-fired power station. Meghnaghat Power Limited (MPL) will build, own, and operate the power plant in accordance with an Implementation Agreement between the Government and MPL, and a Power Purchase Agreement (PPA) with Bangladesh Power Development Board (BPDB). The PPA is for 22 years and BPDB will take or pay for all electricity generated up to a plant load factor of 85 percent. At this level of production, MPL will recover its full capacity and variable costs and generate a return on equity. The Project was conceptualized and developed by ADB as part of ADB's assistance to the sector.
Objectives and Scope The Project is part of the least-cost expansion program and will provide additional base-load capacity to mitigate the current and forecast power shortage in Bangladesh. The Project will provide reliable power supply to domestic consumers as well as to agriculture and industry. The primary beneficiaries are domestic consumers that use approximately 40% of the total electricity consumption and who are subjected to daily power outages due to load shedding. The project also provides increased capacity to improve the supply and availability to poor households. The benefits of electrification to the poor include savings, improved quality of life, improved status of women and children, and more reliable irrigation systems.
Linkage to Country/Regional Strategy The overall objective of ADB's operational strategy for Bangladesh is to reduce poverty by promoting faster economic growth, creating better development opportunities for the poor, improving human development, and protecting the environment. The Project is one of the key components of the Government's efforts to promote foreign investment, and is in line with the country operational strategy and the Partnership Agreement on Poverty Reduction between ADB and the Government. The project is in compliance with ADB's strategy for the energy sector and private sector operations in Bangladesh.
Material Changes The Meghnaghat power plant has gone through several changes of ownership since the inception of the project. The project is currently majority owned by the Powertek Energy Group, which in turn is wholly owned by 1Malaysia Development Berhad, a Malaysian government-owned strategic development company.
Safeguard Categories
Environment A
Involuntary Resettlement
Indigenous Peoples
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
Timetable for assistance design, processing and implementation
Concept Clearance 02 May 1997
Due Diligence 19 May 1999
Credit Committee Meeting 21 Jul 1999
Approval 05 Dec 2000
PDS Creation Date 28 Aug 2006
Last PDS Update 30 Sep 2014

This project data sheet was generated from http://www.adb.org/projects/31909-014/main on 02 September 2015