Bangladesh: Sustainable Power Sector Development Program (Project)

Sovereign Project | 36107-013

Summary

Building on the first power sector development program approved in 2003, the policy loan aims to provide further support and incentives to the Government for power sector reform activities through financial stabilization of sector entities and their improved governance. The investment loan will be linked to the ongoing power sector reforms and will expand power supply capacity, enhance transmission network reliability, and improved quality of supply in Dhaka and surrounding areas. The entire exercise of the Sustainable Power Sector Development Program is to support economic growth of the country and gradually relieve the Government of financially supporting the power sector.

Latest Project Documents


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Project Name Sustainable Power Sector Development Program (Project)
Project Number 36107-013
Country Bangladesh
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2332-BAN: Sustainable Power Sector Development Program (Project)
Ordinary capital resources US$ 400.00 million
Loan 2333-BAN: Sustainable Power Sector Development Program (Project)
Asian Development Fund US$ 5.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector Energy - Conventional energy generation - Electricity transmission and distribution - Energy efficiency and conservation - Energy sector development and institutional reform
Gender Equity and Mainstreaming No gender elements
Description Building on the first power sector development program approved in 2003, the policy loan aims to provide further support and incentives to the Government for power sector reform activities through financial stabilization of sector entities and their improved governance. The investment loan will be linked to the ongoing power sector reforms and will expand power supply capacity, enhance transmission network reliability, and improved quality of supply in Dhaka and surrounding areas. The entire exercise of the Sustainable Power Sector Development Program is to support economic growth of the country and gradually relieve the Government of financially supporting the power sector.
Project Rationale and Linkage to Country/Regional Strategy

ADB has developed its strategy for the power sector in consultation with the Government and other key development partners involved in the sector. In parallel with its continued support for expanding and upgrading power supply systems in Bangladesh as part of a least-cost expansion plan, the strategy consists of (i) changes in the business environment through continued corporatization and commercialization of sector entities as well as increasing private sector participation, (ii) institutional improvements in power sector entities, (iii) creation of new power sector companies to serve as role models for the sector, (iv) enlarging the scope of PBSs, (v) strengthening the long-term planning and regulatory processes, and (vi) promotion of good governance at the sector and corporate levels. The proposed program addresses items (i), (ii) (iii), (v), and (vi) of this strategy. Item (iv) has been addressed through ADB's earlier projects and World Bank's ongoing project for rural electrification.

The program was included in 2007 Country Operations and Business Plan for Bangladesh.

Impact Increased capacity and reliable power supply for sustained economic growth.
Project Outcome
Description of Outcome

Reforms:

1. Improved power sector sustainability through financial and organizational restructuring

Clean Energy Power Supply Capacity Expansion and Efficiency Improvements:

2. Expanded peak generation capacity and reduction of load shedding

3. Improved power transmission capacity and reduction of transmission system losses

4. Dhaka area distribution system efficiency improvements

Institutional capacity development

Progress Toward Outcome As of 30 September 2013, the project has added transmission and distribution capacity by 238 MVA and 1,555 MVA respectively, and reduced line losses from 3.4% to 3.1% under PGCB, from 16.7% to 11.29% under DESCO and from 30% to 13.47% under DPDC. The project has also added 157 km 132kV transmission line in the report period.
Implementation Progress
Description of Project Outputs

Construction of clean natural gas-fired power plants

Construction and augmentation of transmission systems

Distribution system upgraded in DESCO Area

Distribution system upgraded in DPDC Area

Institutional Capacity Development

Fully functional legal and regulatory framework

Financial restructuring of power sector entities with increased public-private partnership

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

Contract signed on 12 May 2011. Implementation progress: 98% completed

a) ADB concurred with EAs request for inclusion of the dual system in scope on 4 May 2009. ADB concurred price evaluation on 14 June 2010. Contract signed on 12 October 2010.

Implementation progress: 100% of work completed.

EA submited re-evaluation report on price evaluation. ADB gave approval on 3 March 2011.

Contract was signed on 20 June 2011. Implementation progress:89% completed

Contract was awarded on 31 March 2011, site works has commenced with pile works ongoing. 89% of physical work complted

Contract signed for Aminbazar - Old Airport . transmission line. Works ongoing

Due to design change, the target was revised to 157 km.Completed. 238 MVA substation capacity added.

Contract signed on 12 Jul 2009. 770 MVA capacity added.

Works completed. However, these new substations would not be operational until underground cable connection under KfW financing is provided. This is expected by 31 Dec 2013.

Completed. 560 MVA distribution capacity added.

Completed and commissioned on 21 March 2011. 225 MVA distribution capacity added.

Completed

Key trainings and capacity development initiatives started from December 2012. Prior to this, Power Division has started organizing local training programs using own funds. EA reports that expertise has been developing among the officials.

Key trainings and capacity development initiatives started from December 2012. Prior to this, Power Division has started organizing local training programs using own funds. EA reports that expertise has been developing among the officials.

Key trainings and capacity development initiatives started from December 2012. Prior to this, Power Division has started organizing local training programs using own funds. EA reports that expertise has been developing among the officials.

Key trainings and capacity development initiatives started from December 2012. Prior to this, Power Division has started organizing local training programs using own funds. EA reports that expertise has been developing among the officials.

The plan has been prepared using funds from other DPs.

Key trainings and capacity development initiatives started from December 2012. Prior to this, Power Division has started organizing local training programs using own funds. EA reports that expertise has been developing among the officials.

Key trainings and capacity development initiatives started from December 2012. Prior to this, Power Division has started organizing local training programs using own funds. EA reports that expertise has been developing among the officials.

Key trainings and capacity development initiatives started from December 2012. Prior to this, Power Division has started organizing local training programs using own funds. EA reports that expertise has been developing among the officials.

Chairman and all Members were appointed and staffs partly recruited.

Complied in 2008 under the program loan.

Complied in 2007 under the program loan .

Complied in 2007 under the program loan.

Complied in 2007 under the program loan.

Geographical Location Dhaka, Western and Northern part of the country
Safeguard Categories
Environment B
Involuntary Resettlement A
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects No major issues have been identified. All necessary environmental clearances have been obtained.
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services Consultants will be recruited in accordance with ADB's Guidelines on the Use of Consultants, and other arrangements satisfactory to ADB for the engagement of consultants.
Procurement Good and services financed by ADB will be procured following ADB's Guidelines for Procurement. For such procurement, bid specifications will be prepared so as to ensure maximum competition under international competitive bidding.
Responsible ADB Officer Md. Saidur Rahman
Responsible ADB Department South Asia Department
Responsible ADB Division Bangladesh Resident Mission
Executing Agencies
Dhaka Electric Supply Company Ltd. (DESCO)Mr. Saleh AhmedBiddut Bhaban, 1 Abdul Gani Road
Dhaka 1000, Bangladesh
Dhaka Power Distribution Company Ltd. (DPDC)Mr. A F M Faridul HaqueSCADA Bhaban (2nd Floor)
Kataban, Sonargaon Road
Dhaka 1000
Power Grid Company of Bangladesh, Ltd. (PGCB)Mr. Md. Ruhul AminPGCB@CITECHCO.NET;_WEBSITE:WWW.PGCB.ORGIEB Bhaban (4th Floor)
Ramna,Dhaka, Bangladesh
Ministry of Power, Energy and Mineral ResourcesMr. Md. Abul Kalam AzadWAPDA Building
Motijheel Commercial Area, Dhaka-1000
Bangladesh
Bangladesh Power Development Board (BPDB)A S M Alamgir KabirWAPDA Building, 9th Floor
Motijhel C/A
Dhaka-1000,Bangladesh
Timetable
Concept Clearance 31 Oct 2005
Fact Finding 10 Apr 2006 to 27 Apr 2006
MRM 29 Jun 2006
Approval 26 Jun 2007
Last Review Mission -
PDS Creation Date 08 Mar 2006
Last PDS Update 29 Sep 2014

Loan 2332-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
26 Jun 2007 28 Jun 2007 24 Sep 2007 30 Jun 2010 30 Jun 2014 22 Oct 2014
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 674.90 Cumulative Contract Awards
ADB 400.00 26 Jun 2007 369.02 0.00 100%
Counterpart 274.90 Cumulative Disbursements
Cofinancing 0.00 26 Jun 2007 369.02 0.00 100%

Loan 2333-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
26 Jun 2007 28 Jun 2007 24 Sep 2007 30 Jun 2010 31 Dec 2013 15 Apr 2014
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 5.00 Cumulative Contract Awards
ADB 5.00 26 Jun 2007 3.62 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 26 Jun 2007 3.62 0.00 100%
Title Document Type Document Date
Sustainable Power Sector Development Project Procurement Plans Nov 2012
Sustainable Power Sector Development Program Project/Program Administration Manual Aug 2007
Sustainable Power Sector Development Project Design and Monitoring Frameworks Jun 2007
Sustainable Power Sector Development Program Reports and Recommendations of the President Jun 2007
Loan Agreement for Sustainable Power Sector Development Project between People's Republic of Bangladesh and Asian Development Bank dated 28 June 2007 Loan Agreement (Ordinary Resources) Jun 2007
Loan Agreement for Sustainable Power Sector Development Project between People's Republic of Bangladesh and Asian Development Bank dated 28 June 2007 Loan Agreement (Special Operations) Jun 2007
Project Agreement for Sustainable Power Sector Development Project between Asian Development Bank and Bangladesh Power Development Board (Northwest Power Generation Company Limited) dated 28 June 2007 Project/Program Agreement Jun 2007
Project Agreement Sustainable Power Sector Development Project between Asian Development Bank and Dhaka Power Distribution Company Limited dated 28 June 2007 Project/Program Agreement Jun 2007
Project Agreement Sustainable Power Sector Development Project between Asian Development Bank and Dhaka Electric Supply Company Limited dated 28 June 2007 Project/Program Agreement Jun 2007
Project Agreement Sustainable Power Sector Development Project between Asian Development Bank and Power Grid Company of Bangladesh Limited dated 28 June 2007 Project/Program Agreement Jun 2007
Sustainable Power Sector Development Program Design and Monitoring Frameworks Jul 2006

Safeguard Documents

See also: Safeguards

No documents found.

Evaluation Documents

See also: Independent Evaluation

No documents found.


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