The draft power sector master plan update 2010 identifies the need to add 11 CCPPs each with 450 MW capacity in 2010 2016. The proposed Ashuganj 450 MW plant (part A) can be considered one of these CCPPs. Further, the government has identified the proposed plant as a priority project in its expansion plan. The economic cost of electricity supply from the Ashuganj CCPP is similar to or lower than those of a coal-fired power plant (based on the costs taken from the master plan), confirming that the proposed plant is among the least-cost options for generating new capacity. CCPP design will use the latest commercially available technology to harness the maximum benefit of energy efficiency. Part B of the project will demonstrate renewable energy technologies and their application for long-term large-scale penetration into the Bangladesh power system. The subcomponents in part B use solar photovoltaic, wind power, and LEDs, which are commercially proven technologies.
|Project Name||Power System Efficiency Improvement Project|
|Project Type / Modality of Assistance||Loan
|Source of Funding / Amount||
|Strategic Agendas||Environmentally sustainable growth
Inclusive economic growth
|Drivers of Change||Gender Equity and Mainstreaming
|Sector / Subsector||
Energy / Energy efficiency and conservation - Renewable energy generation - solar
|Gender Equity and Mainstreaming||Effective gender mainstreaming|
|Description||The draft power sector master plan update 2010 identifies the need to add 11 CCPPs each with 450 MW capacity in 2010 2016. The proposed Ashuganj 450 MW plant (part A) can be considered one of these CCPPs. Further, the government has identified the proposed plant as a priority project in its expansion plan. The economic cost of electricity supply from the Ashuganj CCPP is similar to or lower than those of a coal-fired power plant (based on the costs taken from the master plan), confirming that the proposed plant is among the least-cost options for generating new capacity. CCPP design will use the latest commercially available technology to harness the maximum benefit of energy efficiency. Part B of the project will demonstrate renewable energy technologies and their application for long-term large-scale penetration into the Bangladesh power system. The subcomponents in part B use solar photovoltaic, wind power, and LEDs, which are commercially proven technologies.|
|Project Rationale and Linkage to Country/Regional Strategy||
Energy shortage is considered the most critical infrastructure constraint to Bangladesh's economic growth. The present maximum demand for electricity is about 5000 MW (Megawatt) and it is expected to rise to 7,000 MW in two years. But the maximum available generation is about 3,800 MW leaving a significant supply gap. The main causes for the supply shortage, among others, are (i) poor operational efficiency of thermal power plants (ii) inadequate supply of natural gas which forms the main source of primary energy for electricity generation (80 % of generation capacity is based on natural gas) (iii) slow progress on cross-border energy cooperation; and (iv) lack of diversification in energy supply. To address shortages, the power plants meant for peaking load operation are being used for base-load generation making their operation extremely energy inefficient. These issues have also been highlighted in the ADB's 2009 Bangladesh energy sector assistance program evaluation (SAPE) . In the absence of lack of private sector interest in recent times and considering the critical requirement of base-load power generation SAPE has recommended public sector investment in base-load power plants.
Government of Bangladesh (GOB) has declared its vision for power sector to make the country free from load shedding beyond 2010 and to make electricity available for all by the year 2020. In order to fulfill the vision, additional 9000 MW electricity generation will have to be installed within the next 5 years. Of this 5400 MW would be constructed by the private sector. In this regard GOB expects to increase the available generation capacity to 7000MW by 2015. Adequate transmission and distribution facilities would also be developed to complement generation development to increase access to electricity. Since the declaration of this policy, 586 MW of generation capacity has been added to the system while a number of approvals have been granted for new power plants. Also initiatives have been taken to diversify the energy sources including development of coal resources and renewable energy.
In line with the government policy, ADB country partnership strategy for Bangladesh (CPS) addresses the main issues in the energy sector. It emphasizes on (i) continuation of the policy, legal and regulatory reforms to create enabling business environment for the private sector; (ii) implementation of power transmission interconnections with India; (iii) investment in new power generation facilities and rehabilitation of old power plants for improved efficiency (iv) increased investment in clean energy such as wind and solar power through public private partnerships; and (v) transmission network strengthening for expected generation capacity additions.
The most important development in 2010 is the signing of the memorandum of understanding on energy cooperation between India and Bangladesh. Specific areas of cooperation include (i) India s agreement to supply on a fast track basis at least 250 MW of power to Bangladesh; (ii) joint development of thermal power generation facilities in Bangladesh. Facilitating this process ADB has approved a loan to construct the 500MW Bangladesh-India electricity transmission interconnection in the western border of Bangladesh.
The proposed loan will address three key areas in the electricity supply sector. They are, improving operational efficiency of thermal power plants, expanding the renewable energy base and improving the transmission network capacity. A project preparatory technical assistance (PPTA) has been undertaken to prepare the project for ADB financing. The project interventions will include: (i) replacing some of the old power plants at Ashuganj power station (260MW, consisting of one old combined cycle plant and two steam turbine plants) with a more efficient combined cycle power plant (450MW); (ii) conversion of less efficient peaking plants at Siddhirganj (2x120MW) to a combined cycle power plant (318MW); (iii) installation of a 5MW solar photovoltaic (PV) at Kaptai hydropower plant premises; (iv) installation of wind-solar hybrid systems in St Martin (0.75 MW) and Hatiya (1 MW) islands; and (v) construction of 400kV Aminbazar-Maowa-Mongla (192km), 230kV Mongla-Khulna South (40km) and 132kV Mymenshing-Bhaluka-Tangail (100km) transmission lines and accompanying facilities. Capacity development in the executing agencies in the form of implementation support and training related to operation and maintenance and gender mainstreaming will be provided. Capacity development of beneficiary communities on operation and maintenance of off-grid systems will also be undertaken.
|Impact||Increased provision of better access to electricity|
|Description of Outcome||Increased electricity generating capacity|
|Progress Toward Outcome||
To increase Electricity generation, a combined cycle power plant at Ashugonj has been constructed and a 7.4 MW Solar PV power plant is under construction at Kaptai, Chittagong.
To improve efficiency, solar Street LED lighting component is under implantation phase.
Additionally, solar irrigation component is added as a project component and implementation work is in progress.
|Description of Project Outputs||
Improved energy efficiency
Increased renewable energy use
Capacity developed in the EAs and surrounding communities
|Status of Implementation Progress (Outputs, Activities, and Issues)||
Part A: Construction of Ashugong 450 MW combined cycle power Plant completed on June 2017.
Part B(i): Kaptai 7.4 MW Solar PV Power Plant: To carry out civil work, contract was signed on 7 Feb 2017. EPC contract was signed for Solar PV Power Plant on 9 July 2017. Implementation is on track.
Part b (iii): Solar Street Lighting
Contract signed on 26 April 2017.Implementation is on track.
Part B(iv) Solar irrigation Component: New component. Additional Financing has been added to this component. Procurement will be started next year.
|Geographical Location||Ashuganj, Barisal, Chittagong, Dhaka, Hatiya, Kaptai, Khulna, Rajshahi, Sylhet|
|Summary of Environmental and Social Aspects|
The project is classified under environmental category A due to the installation of the 450 MW Ashuganj combined cycle power plant (CCPP). The government also classified this component as category A, and an environmental impact assessment has been preapred in May 2009 based on the Environmental Conservation Rules of 1997. The environmental impact assessment was approved by the Department of Environment on 5 May 2010 and revised to conform with ADB's Safeguard Policy Statement (2009).
The Ashuganj CCPP will be located within the existing Ashuganj power station complex. The project will use natural gas as fuel and meet the cooling water requirements of 6.4 cubic meters cubic meters per second, or 52,000 cubic meters per gigawatt-hour, using water from the Meghna River, which will be released back to the river after 3% 5% loss, or 1,500 2,600 cubic meters per gigawatt-hour. CCPP technology has high thermal efficiency, and a burner will be used that limits the formation of nitrogen oxide. A pond will temporarily hold cooling water discharges, and the discharge channel will have adequate turbulence to dissipate heat before its final discharge back into the Meghna River. The plan for abandoning the replaced power plant units will be prepared by APSC. ADB will review the plan prior to any decommissioning works.
The other subprojects in part B are classified as environmental category B. Initial environmental examination reports have been prepared in compliance with ADB's Safeguard Policy Statement. Part B will utilize clean energy technologies to reduce greenhouse gas emissions by 25,460 tons per year. The subprojects have been assessed for their risk and vulnerability to climate change impacts, and design measures have been integrated to ensure that these risks are minimized. The environmental impact assessment and initial environmental examination reports were publicly disclosed through the ADB website on 25 March 2011. The EAs are committed to implementing the environmental management plan and submitting semiannual environmental monitoring reports to ADB. EA submits the Semi-annual report timely. No issue was reported.
|Involuntary Resettlement||The project is classified as category B for involuntary resettlement impacts. Land Acquisition was only involved for component B (ii) in Hatiya, which has been dropped from the project. Remaining components, part A, part B(i) and part B(iii)'s construction and installments have been done within existing compound. Therefore, no land acquisition or resettlement was involved in the project.|
The project is classified under indigenous peoples category C. No indigenous groups have been identified as potentially affected by the project. Additionally, where worker migration is required, the project will minimize the risk of HIV/AIDS through information dissemination campaigns at project areas per the provisions in the project administration manual.
No issue was reported.
|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||During project implementation stakeholders' consultation is being carried out as and will continue if required.|
|Consulting Services||All the consulting firms will be recruited by using the quality and cost-based selection method in accordance with ADB's Guidelines on the Use of Consultants (2010, as amended from time to time). The outline terms of reference (TOR) for the consulting services are in Section D. APSCL will recruit one consulting firm to support the implementation of Ashuganj 450MW CCGT Power Plant Project, about 26 person-months (PM) of international consultants and 60 PM of national consultants will be required. BPDP will recruit one consulting firm for each component of Part B to (i) prepare technical specifications and bidding documents; (ii) support the tendering process and bid evaluation; (iii) supervise construction from the owner's perspective; (iv) supervise the testing and commissioning of the power plant from the owner's perspective; and (v) hand over the plants including issuance of provisional acceptance certificates and final acceptance certificates. For Kaptai 5MW on-grid solar PV project, about 7 PM of international consultants and 22 PM of national consultants will be needed. For Hatiya demonstrate wind-solar-diesel off-grid plant project and Solar-LED street lighting project, respectively, about 27 PM of international and 68 PM of national consultants, 9 PM of international and 24 PM of national consultants, will be required.|
|Procurement||All procurement of goods and works will be undertaken in accordance with ADB's Procurement Guidelines. For procurement under Part A, an expanded list of eligible countries to allow participation by firms and entities from countries eligible under ADB Procurement Guidelines and IsDB Procurement Guidelines. International competitive bidding procedures will be followed for all the procurement.|
|Responsible ADB Officer||Ibrahim, Sherine|
|Responsible ADB Department||South Asia Department|
|Responsible ADB Division||Bangladesh Resident Mission|
Ashuganj Power Station Company Ltd. (APSCL)
3402, Bangladesh Bangladesh Power Development Board (BPDB)
WAPDA Building, 9th Floor
Dhaka-1000,Bangladesh Bangladesh Rural Electrification Board (BREB)
Directorate of Procurement
Head Office Bldg.-7th Flr, Zoar Sahara,
Khilkhet, Dhaka-1229, Bangladesh Power Div-Min of Power, Energy & Mineral Resources
|Concept Clearance||08 Feb 2011|
|Fact Finding||09 Feb 2011 to 17 Feb 2011|
|MRM||28 Apr 2011|
|Approval||11 Aug 2011|
|Last Review Mission||-|
|Last PDS Update||27 Sep 2017|
|Approval||Signing Date||Effectivity Date||Closing|
|11 Aug 2011||04 Jan 2012||03 Oct 2012||31 Dec 2017||31 Dec 2019||-|
|Financing Plan||Loan Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||581.20||Cumulative Contract Awards|
|ADB||300.00||11 Aug 2011||221.42||0.00||74%|
|Cofinancing||200.00||11 Aug 2011||195.65||0.00||65%|
|Status of Covenants|
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.
|Title||Document Type||Document Date|
|Power System Efficiency Improvement Project: Procurement Plan||Procurement Plans||Jun 2016|
|বিদ্যুৎ ব্যবস্থার দক্ষতা উন্নয়ন প্রকল্প : প্রকল্প তথ্যপত্র||Translated PDS||Jul 2014|
|Loan Agreement for Power System Efficiency Improvement Project between People's Republic of Bangladesh and Asian Development Bank dated 4 January 2012||Loan Agreement (Ordinary Resources)||Jan 2012|
|Project Agreement for Power System Efficiency Improvement Project between Asian Development Bank and Ashuganj Power Station Company Limited and Bangladesh Power Development Board dated 4 January 2012||Project/Program Agreements||Jan 2012|
|Power System Efficiency Improvement Project||Project/Program Administration Manual||Aug 2011|
|Power System Efficiency Improvement Project||Reports and Recommendations of the President||Jul 2011|
|Power System Efficiency Improvement Project||Summary Poverty Reduction and Social Strategies||Jul 2011|
|Power System Efficiency Improvement Project||Gender Action Plans||Jul 2011|
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.
|Title||Document Type||Document Date|
|Maximizing Access to Energy for the Poor in Developing Asia||Brochures and Flyers||Dec 2013|
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.
No tenders for this project were found.
|Contract Title||Approval Number||Contract Date||Contractor||Contractor Address||Executing Agency||Contract Description||Total Contract Amount (US$)||Contract Amount Financed by ADB (US$)|
|PROCUREMENT OF DESIGN,SUPPLY AND INSTALLATION OF 7 .4 MWP(EQUAL/HIGHER)SOLAR PHOTOVOLTARIC (PV) GRID CONNECTED POWER GENERATION PLANT AT KAPTAI||Loan 2769||01 Aug 2017||VARIOUS||VARIOUS FIJI, REPUBLIC OF||The University of the South Pacific||TURNKEY||8691056||8684148|
|Design, Supply, Installation & Commissioning of Solar Pv Led Street Lighting Systems in 8 City Corporations, Lot-8||Loan 2769||11 May 2017||Zmec-Lat (JV), China||Jinqian Bldg,111 Jiefang Road, Hangzhou 310009, China, People's Rep. of||Ashuganj Power Station Company Ltd. (APSCL)||Turnkey||1079191||1078965|
|Design, Supply, Installation & Commissioning of Solar Pv Led Street Lighting Systemsin 8 City Corporations, Lot-4||Loan 2769||11 May 2017||Gloria - JCEGCL Consortium||Kunlun Road, High-Tech Industrial Development Zone, Xuzhou, Jiansu, China, People's Rep. of||Ashuganj Power Station Company Ltd. (APSCL)||Turnkey||1826800||1826595|
|Design,Supply, Installation & Commissioning of Solar Pv Led Street Lighting Systems in 8 City Corporations, Lot-7||Loan 2769||11 May 2017||ZMEC-LAT (JV), China||Jinqian Bldg,111 Jiefang Road, Hangzhou 310009, China, People's Rep. of||Ashuganj Power Station Company Ltd. (APSCL)||Turnkey||1835522||1835127|
|Design,Supply, Installation & Commissioning of Solar Pv Led Street Lighting Systems in 8 City Corporation, Lot-6||Loan 2769||11 May 2017||ZMEC-LAT (JV), China||Jinqian Bldg,111 Jiefang Road, Hangzhou 310009, China, People's Rep. of||Ashuganj Power Station Company Ltd. (APSCL)||Turnkey||2163627||2163158|
|Design,Supply Installation & Commissioining of Solar Pv Led Street Lighting Systems in 8 City Corporation,Lot-5||Loan 2769||11 May 2017||Gloria - JCEGCL Consortium||Kunlun Road,High Tech Indutrial Development Zone,Xuzhou,Jiansu ,China, People's Rep. of||Ashuganj Power Station Company Ltd. (APSCL)||Turnkey||2941390||2941168|
|Design, Supply, Installation & Commissioning of Solar Pv Led Street Lighting Systems in 8 City Corporations, Lot-3||Loan 2769||08 May 2017||Gloria - JCEGCL Consortium||Kunlun Road, High-Tech Industrial Development Zone, Xuzhou, Jiangsu, China, People's Rep. of||Ashuganj Power Station Company Ltd. (APSCL)||Turnkey||3101699||3101699|
|Design, Supply, Installation & Commissioning of Solar Pv Led Street Lighting Systems in 8 City Corporations, Lot-2||Loan 2769||03 May 2017||Gloria - JCEGCL Consortium||Kunlun Road, Highh-Tech Industrial Development Zone. Xuzhou, Jiangsu, China, People's Rep. of||Ashuganj Power Station Company Ltd. (APSCL)||Turnkey||1771091||1771091|
|Design, Supply, Installation & Commissioning of Solar Pv Led Street Lighting Systems in 8 City Corporations, Lot-1||Loan 2769||03 May 2017||Gloria - JCEGCL Consortium||Kunlun Road, High-Tech Industrial Development Zone, Xuzhou, Jiangsu, China, People's Rep. of||Ashuganj Power Station Company Ltd. (APSCL)||Turnkey||2562742||2562742|
|Construction of Boundary Wall, Approach Road, Surf Ace Drain, Mosque and Land Filling at Kaptai PV Power Plant||Loan 2769||27 Feb 2017||M/S. Sunrise Enterprise||National Scout Bhaban (10Th Floor), 70/1 Inner Circular Road, Kakrail, Dhaka 1000 Bangladesh||Ashuganj Power Station Company Ltd. (APSCL)||Construction||1670628.29||1669260.908|
|Title||Document Type||Document Date|
|Power System Efficiency Improvement Project: Procurement Plan||Procurement Plans||Jun 2016|