37113-013: Power System Efficiency Improvement Project | Asian Development Bank

Bangladesh: Power System Efficiency Improvement Project

Sovereign (Public) Project | 37113-013 Status: Active

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 Details

Project Officer
Ibrahim, Sherine South Asia Department Request for information
Country
  • Bangladesh
Modality
  • Loan
Sector
  • Energy
 
Project Name Power System Efficiency Improvement Project
Project Number 37113-013
Country Bangladesh
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2769-BAN: Power System Efficiency Improvement Project
Ordinary capital resources US$ 300.00 million
Loan: Power System Efficiency Improvement Project
Islamic Development Bank US$ 200.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Partnerships
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
Project Outcome
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.

Implementation 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
Safeguard Categories
Environment A
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental 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.
Indigenous Peoples

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.
Business Opportunities
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
Executing Agencies
Ashuganj Power Station Company Ltd. (APSCL)
[email protected]
Ashuganj, B-Baria
3402, Bangladesh
Bangladesh Power Development Board (BPDB)
WAPDA Building, 9th Floor
Motijhel C/A
Dhaka-1000,Bangladesh
Bangladesh Rural Electrification Board (BREB)
Implementing Agency
Directorate of Procurement
Head Office Bldg.-7th Flr, Zoar Sahara,
Khilkhet, Dhaka-1229, Bangladesh
Power Div-Min of Power, Energy & Mineral Resources
Bangladesh Secretariat
Dhaka
Bangladesh
Timetable
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

Loan 2769-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
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%
Counterpart 81.20 Cumulative Disbursements
Cofinancing 200.00 11 Aug 2011 195.65 0.00 65%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - - - Satisfactory

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.

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.

Title Document Type Document Date
Power System Efficiency Improvement Project: Part A - Ashuganj 450 MW (North) Combined Cycle Power Plant Environmental Monitoring Report (January-June 2017) Environmental and Social Monitoring Reports Jul 2017
Power System Efficiency Improvement Project: Part B-3 Solar PV-Powered LED Street Lighting Program Safeguards Due Diligence Report Safeguards Due Diligence Reports Jun 2017
Power System Efficiency Improvement Project: Part B - 7.4 MWp Kaptai Solar PV Grid-Connected Power Plant Safeguards Due Diligence Report Safeguards Due Diligence Reports Jun 2017
Power System Efficiency Improvement Project: Part A - Ashuganj 450 MW (North) Combined Cycle Power Plant Environmental Monitoring Report (July-December 2016) Environmental Monitoring Reports Jan 2017
Power System Efficiency Improvement Project: Part A - Ashuganj 450 MW (North) Combined Cycle Power Plant Environmental Monitoring Report (January-June 2016) Environmental Monitoring Reports Oct 2016
Power System Efficiency Improvement Project: Part A - Ashuganj 450 MW (North) Combined Cycle Power Plant Environmental Monitoring Report (July-December 2015) Environmental Monitoring Reports Jan 2016
Power System Efficiency Improvement Project: Social Monitoring Report Social Monitoring Reports Dec 2015
Power System Efficiency Improvement Project: Environmental Monitoring Report (January-June 2015) Environmental Monitoring Reports Jun 2015
Power System Efficiency Improvement Project: Environment and Social Safeguards Report Environment and Social Compliance Audit Reports Dec 2014
Power System Efficiency Improvement Project Environmental Impact Assessments Dec 2011
Power System Efficiency Improvement Project: Environmental Assessment Report (as of Board approval) Environmental Impact Assessments Jul 2011
Power System Efficiency Improvement Project Environmental Impact Assessments Jul 2011
Power System Efficiency Improvement Project: Subproject 2 - Solar LED Street Lighting in the Six Bangladesh City Corporations Resettlement Plans Apr 2011
Power System Efficiency Improvement Project: Hatiya Wind-Solar-Diesel System (as of Board approval) Resettlement Plans Apr 2011
Power System Efficiency Improvement Project: Solar-LED Streetlights (as of Board approval) Resettlement Plans Apr 2011
Power System Efficiency Improvement Project: Subproject 1 - Ashuganj 450 MW Combined Cycle Power Plant and Associated Transmission Line Interconnection Resettlement Plans Apr 2011
Power System Efficiency Improvement Project: Subproject 4 - Hatiya Island Solar and Wind Power Generation System Resettlement Plans Apr 2011
Power System Efficiency Improvement Project: Ashuganj Combined Cycle Power Plant (as of Board approval) Resettlement Plans Apr 2011
Power System Efficiency Improvement Project: Subproject 1 - Ashuganj 450 MW Combined Cycle Power Plant and Associated Transmission Line Interconnection Resettlement Plans Mar 2011
Power System Efficiency Improvement Project: Due Diligence Report for the Subproject 1 - Ashuganj 450 MW Cycle Power Plant Safeguards Due Diligence Reports Mar 2011

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications


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.

Tenders

No tenders for this project were found.

Contracts Awarded

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

Procurement Plan