Project Name Power System Expansion and Efficiency Improvement Investment Program (Facility Concept)
Project Number 42378-014
Country Bangladesh
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
MFF Facility Concept 0320-BAN: Power System Expansion and Efficiency Improvement Investment Program (Facility Concept)
European Investment Bank US$ 7.00 million
MFF Facility Concept 0073-BAN: Power System Expansion and Efficiency Improvement Investment Program (Facility Concept)
Ordinary capital resources US$ 700.00 million
MFF Facility Concept: Power System Expansion and Efficiency Improvement Investment Program (Facility Concept)
Islamic Development Bank US$ 380.00 million
Agence Francaise de Developpement US$ 100.00 million
European Investment Bank US$ 191.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector

Energy - Energy efficiency and conservation

Gender Equity and Mainstreaming Some gender elements

The proposed investment program includes three tranches encompassing generation expansion and associated transmission and distribution improvements. Tranche 1 mainly focuses on generation expansion. Tranche 2 focuses on transmission and distribution improvement together with a pilot solar irrigation component. Tranche 3 also invests on generation expansion. Generation expansion in the MFF will be undertaken through supply side energy efficiency improvement so that about 50% power can be generated without burning additional gas. Given the acute gas shortages in Bangladesh, conversion of single cycle gas fired power plants to combined cycle plants the technology adopted in the investment program is the best way to expand the generation capacity. The sequencing of the tranches is well aligned with the sector needs and the government program.

The Tranche 1 of the proposed Power System Expansion and Efficiency Improvement Investment Program will address two key areas in the power sector aligning with the priorities identified in the CPS: improving energy use efficiency of thermal power plants; and improving the transmission network capacity. The project interventions will include: (i) adding 235 MW capacity by conversion of four single cycle gas fired power plants to combine cycle plants at Khulna, Baghabari, Sylhet and Shahjibazar; (ii) construction of 180 km 132 kV transmission lines and four 133/32 kV substations; and (iii) capacity building. The capacity building component includes training on investment planning, operations planning, energy auditing and monitoring, financial management and auditing, project preparation and appraisal, and operation and maintenance of solar irrigation pumps. In addition, the capacity building component will provide consultants for preparation of subsequent tranches and implementation support.

Project Rationale and Linkage to Country/Regional Strategy About 50% of the population has access to power and those who have access also faces severe power shortages; about 1875 MW (28% of demand) has not been met during the peak periods in 2011. The available power generating capacity in Bangladesh, by June 2011, was of 4890 MW, against the estimated unconstrained demand of 6765 MW, leaving a significant demand-supply gap. The government envisages investing $9.5 billion for generation expansion during the five year planning period and matching investment of about $3 billion on transmission and distribution improvements together with a sound financing plan. Investments envisaged in the sixth five year plan are expected to increase electrification rate to 68% by 2015, eliminate the supply demand gap and resolve reliability and supply quality issues. The proposed MFF aims to support this government investment program by providing $1600 million worth investments mobilizing nearly 50% of the external financing through co- financing arrangements.
Impact Increased energy sector contribution to low-carbon economic growth in Bangladesh

Project Outcome

Description of Outcome Increased access to clean and reliable supply of electricity in Bangladesh
Progress Toward Outcome Project implementation ongoing for Tranche 1 (Loan 2966) and Tranche 2 (Loan 3087).
Implementation Progress
Description of Project Outputs

Improved efficiency in electricity generation, transmission, and distribution

Increased renewable energy use

Enhanced capacity of power sector agencies and farmer organizations

Project management system in place

Status of Implementation Progress (Outputs, Activities, and Issues)

Loan 2966 (Tranche 1)

Consulting service recruitment for Tranche 3 preparation initiated.

Contract for transmission lines and substations (Part B) was signed in Sep 2014.

Contract for conversion of Khulna power plant (Part A) was signed in Dec 2013.

Loan 3087:

Bid documents for 4 turnkey and 1 supply contracts issued in May-Jun 2014.

Geographical Location

Summary of Environmental and Social Aspects

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation

Responsible Staff

Responsible ADB Officer Aziz Yusupov
Responsible ADB Department South Asia Department
Responsible ADB Division Energy Division, SARD
Executing Agencies
North-West Power Generation Co. Ltd.(NWPGCL)
Bidyut Bhaban, 1 Abdul Gani Road
Dhaka-1000, Bangladesh
Power Cell of the Min of Pwer,Energy&Mineral Rsrce
BTMC Bhaban, 7-9 Kawran Bazar,
Dhaka 1215
Bangladesh Rural Electrification Board (BREB)
Directorate of Procurement
Head Office Bldg.-7th Flr, Zoar Sahara,
Khilkhet, Dhaka-1229, Bangladesh
Power Grid Company of Bangladesh, Ltd. (PGCB)
IEB Bhaban (4th Floor)
Ramna,Dhaka, Bangladesh
Dhaka Electric Supply Company Ltd. (DESCO)
Biddut Bhaban, 1 Abdul Gani Road
Dhaka 1000, Bangladesh
Bangladesh Power Development Board (BPDB)
WAPDA Building, 9th Floor
Motijhel C/A
Dhaka Power Distribution Company Ltd. (DPDC)
SCADA Bhaban (2nd Floor)
Kataban, Sonargaon Road
Dhaka 1000


Concept Clearance -
Fact Finding 07 Aug 2012 to 14 Aug 2012
MRM 05 Sep 2012
Approval 28 Nov 2012
Last Review Mission -
Last PDS Update 30 Sep 2014

MFF Facility ConceptĀ 0320-BAN

Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 7.00 Cumulative Contract Awards
ADB 0.00 - 0.00 0.00 %
Counterpart 0.00 Cumulative Disbursements
Cofinancing 7.00 - 0.00 0.00 %

MFF Facility ConceptĀ 0073-BAN

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 1,402.00 Cumulative Contract Awards
ADB 700.00 - 0.00 0.00 %
Counterpart 222.00 Cumulative Disbursements
Cofinancing 480.00 - 0.00 0.00 %

This page was generated from on 28 June 2016