Bangladesh: Gas Transmission and Development Project

Sovereign Project | 35242-013 Status: Approved

Summary

The objectives are to: (i) improve the governance of the gas sector through its restructuring and increased private sector participation by developing an enabling regulatory framework; (ii) ensure the long-term financial viability of the sector by reducing technical and non-technical system losses and improving management of sector entities; and (iii) increase the pace of economic development in less-developed regions of the country by expanding the sustainable use and supply of natural gas. The Project will also improve air quality, reduce deforestation, and lessen respiratory diseases.

Latest Project Documents

Consulting Notices

See also: CMS

No notices are currently available for this project.

Procurement Notices

See also: Operational Procurement

No notices are currently available for this project.

Procurement Documents

None currently available.


Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

 
Project Name Gas Transmission and Development Project
Project Number 35242-013
Country Bangladesh
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2188-BAN: Gas Transmission and Development Project
Ordinary capital resources US$ 225.00 million
Loan 2189-BAN: Gas Transmission and Development Project
Asian Development Fund US$ 5.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change
Sector / Subsector

Energy - Energy sector development and institutional reform - Oil and gas transmission and distribution

Gender Equity and Mainstreaming No gender elements
Description The objectives are to: (i) improve the governance of the gas sector through its restructuring and increased private sector participation by developing an enabling regulatory framework; (ii) ensure the long-term financial viability of the sector by reducing technical and non-technical system losses and improving management of sector entities; and (iii) increase the pace of economic development in less-developed regions of the country by expanding the sustainable use and supply of natural gas. The Project will also improve air quality, reduce deforestation, and lessen respiratory diseases.
Project Rationale and Linkage to Country/Regional Strategy

ADB's strategy for developing the gas sector covers three main areas. The first is improved commercialization including PSP, continuous progress in sector reforms, and unbundling of sector activities.

The Project is included in ADB's Country Strategy and Program.

Impact Increased pace of economic development.
Project Outcome
Description of Outcome Enhanced use of natural gas by consumers, industry, and commercial users.
Progress Toward Outcome The overall progress of the project is satisfactory although there is significant delay in project implementation. TBER was approved by ADB on 22 September 2015 and FBER has been approved on 25 October 2015. BRM is following up closely with EMRD and Petrobangla, to expedite the contract on the loan period.
Implementation Progress
Description of Project Outputs

1. Improved and expanded gas transmission and distribution network system in project areas

2.Field appraisal of gas fields to update estimated gas reserves and determine exact location for future drilling activities.

3.Enhanced financial performance, governance and efficiency indicators of the gas sector utilities through capacity building and implementation of the GSRR to attract private sector investments

4.Improved ambient and indoor air quality through provision of cleaner fuel.

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

Construction of 345.97 km of new transmission lines completed.

Procurement process cancelled. Compressor Stations at Ashuganj and Elenga are included under Natural Gas Access Improvement Project.

Construction of 270 km distribution network completed.

Completed

Debt service coverage ratio was 4.42 as of 30 June 2012. Debt equity ratio to capital was 38:62 as of 30 June 2014.

Govt is committed to introduce policies and regulations to streamline processes and attract private sector investment

Govt is committed to implement GSRR.

System Loss reduced to 4.1% in 2007, 2.56% in 2008, 0.72% in 2009,1% in 2010 , 1% in 2011 & 2012 and continued to be 1% in 2014 and 2015

Air quality improved over the years.

Geographical Location Western Part of Bangladesh
Safeguard Categories
Environment B
Involuntary Resettlement A
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The project will have minimal negative environmental impacts.
Involuntary Resettlement Resettlement Plan submitted in November 2005. No issue of resettlement plan exists.
Indigenous Peoples N/A
Stakeholder Communication, Participation, and Consultation
During Project Design During project preparation, all EAs undertook consultations with local officials and village leaders that raised the level of awareness, gained local support, and enabled affected people to voice opinions and suggestions for project design and implementation.
During Project Implementation The EAs particularly recognize the importance of the participatory approach for the resettlement issues, to reduce the risk of grievance by affected persons and therefore work with local organizations and NGOs to assure a correct communication stream with all the stakeholders.
Business Opportunities
Consulting Services To ensure timely implementation of the Project, consulting services are required for assisting GTCL and BAPEX in various implementation activities including design, engineering, procurement, and construction and training. Consulting services are required for the capacity building of EMR, Petrobangla, GTCL, and other state gas companies. The consultants are being engaged by the Executing Agencies in accordance with ADB's Guidelines on the Use of Consultants and other arrangements satisfactory to ADB for the engagement of domestic consultants. The consultants are being engaged as a firm or on individual basis. The project requires a total of 232 person-months of international and 195 person-months of domestic consulting services.
Procurement Procurement of necessary equipment and materials and civil works for the proposed project are being undertaken in accordance wit the ADB's Guidelines for Procurement using ADB's standard bidding documents.
Responsible ADB Officer Ali Firoz
Responsible ADB Department South Asia Department
Responsible ADB Division Bangladesh Resident Mission
Executing Agencies
Gas Transmission Company Ltd.
Mr. Md. Aminur Rahman
House #39, Road #3
Sector #3, Uttara Model Town
Dhaka-1230
Pashchimanchal Gas Company Ltd.
Mr. Abdus Sattar
Flat #2B, House # 109
Mashid Road, Old D.O.H.S
Banani, Dhaka - 1206
Bangladesh Gas Fields Company Ltd.
Mr. Nurul Islam
47, Bijoy Nagar
Dhaka
Bangladesh
Sylhet Gas Fields Limited
Mr. Shamsul Haque
Chikanagool,
Shylet - 3152
Bangladesh Oil, Gas & Minerals Corp (Petrobangla)
Mr. Mollah Md. Robiul Hossain
3 Kawran Bazar
Commercial Area
Dhaka-1215
Timetable
Concept Clearance 07 Mar 2004
Fact Finding 26 Feb 2005 to 10 Mar 2005
MRM 11 Apr 2005
Approval 27 Oct 2005
Last Review Mission -
PDS Creation Date 29 Nov 2006
Last PDS Update 28 Oct 2015

Grant 0019-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
27 Oct 2005 11 Oct 2006 11 Oct 2006 11 Oct 2011 10 Oct 2013 13 Feb 2014
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 0.00 Cumulative Contract Awards
ADB 0.00 27 Oct 2005 0.00 3.57 92%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 27 Oct 2005 0.00 3.57 92%

Loan 2188-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
27 Oct 2005 18 Jun 2006 28 Nov 2006 31 Dec 2010 31 Dec 2016 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 403.00 Cumulative Contract Awards
ADB 225.00 27 Oct 2005 166.20 0.00 84%
Counterpart 178.00 Cumulative Disbursements
Cofinancing 0.00 27 Oct 2005 170.37 0.00 86%

Loan 2189-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
27 Oct 2005 18 Jun 2006 28 Nov 2006 31 Dec 2010 31 Dec 2012 04 Jun 2013
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 5.00 Cumulative Contract Awards
ADB 5.00 27 Oct 2005 2.46 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 27 Oct 2005 2.46 0.00 100%

Safeguard Documents

See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Evaluation Documents

See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.