Bangladesh: Dhaka Clean Fuel Project

Sovereign Project | 35466-013

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Project Name Dhaka Clean Fuel Project
Project Number 35466-013
Country Bangladesh
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 1942-BAN: Dhaka Clean Fuel Project
Asian Development Fund US$ 42.40 million
Loan 1943-BAN: Dhaka Clean Fuel Project
Ordinary capital resources US$ 30.20 million
Loan: Dhaka Clean Fuel Project
Nordic Development Fund US$ 9.30 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Knowledge solutions
Sector / Subsector

Energy - Conventional energy generation

Gender Equity and Mainstreaming Some gender elements

The objectives of the Project are to (i) improve the ambient air quality in Dhaka; (ii) develop the use of domestic natural gas resources for the transport sector to substitute for imported liquid fuels, thereby improving the foreign exchange position of the country and (iii) establish a foundation for private sector participation in the future development of CNG-fueled transport.

The Project has six components:

Part A: Construction of a 60 km 20 inch natural gas transmission pipeline between Dhanua and Aminbazar, Savar ad two city gate stations (CGSs) at Ashulia and Savar.

Part B: Construction of 97 km of 16 inch extended natural gas distribution pipelines in Dhaka.

Part C: Establishment of 3 major compressed natural gas (CNG) filling stations just outside Dhaka, 3 major filling stations along the Dhaka-Chittagong highway for buses and trucks, and 20 minor filling stations in Dhaka for cars and auto rickshaws.

Part D: Purchase of 300 CNG-fueled buses, 2000 CNG-fueled four-stroke auto rickshaws, and CNG conversion kits for 10,000 petrol cars owned by governmental, semi-governmental, as well as private owners.

Pat E: Establishment of two new workshops for increasing the capacity of conversion of petrol-fueled cars to CNG fuel, repairs, maintenance as well as to act as referral workshops for those workshops to be established by the private sector.

Part F: Capacity building in the following areas (i) technology development and training for the workshops; (ii) implementation of new safety codes, standards, and regulations related to conversion and the use of CNG equipment for the transport sector; (iii) public consultation and awareness campaign for public safety and benefits of using CNG; and (iv) environmental management.

Project Rationale and Linkage to Country/Regional Strategy Technical Aspects, Policy Aspects, Institutional Aspects, Social Aspects, Financial Aspects, Economic Aspects, and Environmental Aspects.
Project Outcome
Description of Outcome
Progress Toward Outcome
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Dhanua, Aminbazar Ashulia, Savar, Dhaka, Sherpur, Netrokona, Jamalpur, Madhupur, Chatak, Sylhet
Safeguard Categories
Environment B
Involuntary Resettlement
Indigenous Peoples
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services

GTCL: The first sevices required for Part A of the Project covers engineering design and the second part, the Consultant will supervise GTCL during the construction of the gas transmission pipelines and the city gate stations.

RPGCL: The work generally covers agency capacity building of RPGCL and in implementation of security codes and standards for equipment in preparation for a broader introduction of CNG as a substitute fuel for the transport sector in the country. It comprises of the following segment areas: (i) implementation of safety codes; (ii) standards for conversion equipment and filling stations to be approved equipment; (iii) repair and maintenance standards and regulations related to conversion and the use of CNG equipment for the transport sector; and (iv) monitoring and supervision of resettlement and social issues. The consultants will be selected in accordance with ADB's Guidelines on the Use of Consultants expected to take place in March 2003.


Procurement of pipes, regulating and meter stations, city gate stations, CNG conversion kits, 4-stroke three wheeled vehicles, CNG buses, CNG filling stations, workshops for conversion and maintenance with diagnostic equipment.

Procurement will be made in accordance with the ADB's Guidelines for Procurement of ADB-financed packages.

Responsible ADB Officer Ali Kausar Muhammad Firoz
Responsible ADB Department South Asia Department
Responsible ADB Division Bangladesh Resident Mission
Executing Agencies
Rupantarita Prakritik Gas Company Ltd.
Mr. Shafiqur Rahman
Plot 27, Nikunja 2, Joar Shahara, Dhaka-1229
Titas Gas Transmission & Distribution Co. Ltd.
Mr. C.M.Faruque
"Tita Gas Bhaban", 105, Kazi Nazrul
Islam Avenue, Kawran Bazar Commercial
Area, Dhaka-1215, Bangladesh
Gas Transmission Company Ltd.
Mr. Sanwar Hossain Chowdhury
Red Crescent-Borak Tower (Level-4-6); 71-72, Old Elephant Road (Eskaton), Dhaka-1213, Bangladesh
Concept Clearance 08 Mar 2002
Fact Finding 28 Jan 2002 to 31 Jan 2002
MRM 21 Jun 2002
Approval 26 Nov 2002
Last Review Mission -
PDS Creation Date 01 Feb 2007
Last PDS Update 15 Jul 2010

Loan 1942-BAN

Approval Signing Date Effectivity Date Closing
Original Revised Actual
26 Nov 2002 03 Feb 2003 17 Dec 2003 30 Jun 2007 31 Dec 2009 21 Jun 2010
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 51.70 Cumulative Contract Awards
ADB 42.40 26 Nov 2002 15.58 0.00 99%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 9.30 26 Nov 2002 15.81 0.00 100%

Loan 1943-BAN

Approval Signing Date Effectivity Date Closing
Original Revised Actual
26 Nov 2002 03 Feb 2003 17 Dec 2003 30 Jun 2007 30 Jun 2008 14 Jun 2010
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 30.20 Cumulative Contract Awards
ADB 30.20 26 Nov 2002 27.48 0.00 92%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 26 Nov 2002 29.98 0.00 100%
Title Document Type Document Date
Dhaka Clean Fuel Project Project/Program Completion Reports Apr 2011
Dhaka Clean Fuel Project Reports and Recommendations of the President Oct 2002

Evaluation Documents

See also: Independent Evaluation
Title Document Type Document Date
Bangladesh: Dhaka Clean Fuel Project Validations of Project Completion Reports Dec 2013

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  • 10 Mar 2008 | Project Result / Case Study

    A Clean Fuel to Boost Incomes

    Compressed Natural Gas has been around since the 1980s. Through an ADF-supported project, it has finally taken off in Dhaka. Dhaka - As with other big cities in Asia, Dhaka suffers from high levels of pollution, much of it caused by vehicular traffic. This teeming city of more than 10 million people has roads that are noisy and busy, filled with buses, cars, "auto rickshaws," cycle rickshaws, and trucks.