Bangladesh: Natural Gas Access Improvement Project (formerly Clean Fuel Development Project)

Sovereign Project | 38164-013 Status: Active


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Procurement Documents

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Project Name Natural Gas Access Improvement Project (formerly Clean Fuel Development Project)
Project Number 38164-013
Country Bangladesh
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2622-BAN: Natural Gas Access Improvement Project (formerly Clean Fuel Development Project)
Ordinary capital resources US$ 261.00 million
Loan 2623-BAN: Natural Gas Access Improvement Project (formerly Clean Fuel Development Project)
Asian Development Fund US$ 5.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change
Sector / Subsector

Energy - Conventional energy generation - Energy efficiency and conservation - Energy sector development and institutional reform - Oil and gas transmission and distribution

Gender Equity and Mainstreaming Some gender elements
Project Rationale and Linkage to Country/Regional Strategy

Project Outcome

Description of Outcome
Progress Toward Outcome Transmission capacity has already been expanded as all transmission lines construction under this project were completed. Drilling works for natural gas production is ongoing and expected to be completed within the project period. For gas distribution part is ongoing.
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)


Installation of4 out of 6 compressors completed and remaining ongoing.

Construction is ongoing in Titas Gas Field and expected to be completed within the project period.

Pipeline works yet not to be started although all procurement completed in 2015.


Yet to conduct.

The recruitment of international training firm is in full progress. TGTDCL completed training for 22 personnel in September 2015 and for BGFCL, ADB approved submission 4 on 6 Mar 2016. SGCL submitted Submission 2 and for GTCL, under financial evaluation. Remaining package are expected to award by Q2, 2016.

Geographical Location Ashugani, Bakhrabad, Elenga, eastern and southwest region of Bangladesh.

Safeguard Categories

Environment B
Involuntary Resettlement A
Indigenous Peoples C

Summary of Environmental and Social Aspects

Environmental Aspects

The government, through the executing agencies, will ensure that the design, construction and operation of all project facilities comply with the environmental laws and regulations of Bangladesh and ADB's environmental policies and regulations, specifically ADB's Environment Policy (2002) and environmental mitigating measures and the environmental management plans described in the IEEs and in the summary IEE conducted for the project.

The EAs have prepared initial environmental examination (IEEs) for all components of the Project. The IEEs will be updated and approved to be in line with the summary IEE (SIEE) that was initially prepared for the Project. The Project does not require a full environmental impact assessment (EIA); however before the commencement of construction, the IEEs with the environmental management plans (EMPs) for each component will be detailed in the project-specific context and included in construction contracts. GTCL submitted an IEE for its component (Part A2) in 2011, which needs to be updated. BGFCL has recently drafted an IEE including the EMPs for its component (Part B). It is recommended that SGCL and GTCL will prepare/update the IEEs with EMPs for their components (Part A and C) before the commencement of civil works and associated activities.

For Part B, BGFCL has submitted an IEE report to ADB. BGFCL has planned to carry out drilling of 4 wells in Titas gas field and installation of two gas process plants. The major anticipated environmental impacts of the works includes emission of greenhouse gases from combustion of fossil fuel, contamination of surface water, erosion and sedimentation during trenching, noise pollution during construction and drilling of gas wells, impacts on local biodiversity and wildlife due to noise and vibration, damages of crops due to drilling and earthwork, etc. There are also possibilities of health hazards during handling of equipment and fuel. As a part of IEE, EMP is also proposed and adequate mitigation measures will be in place to address the major environmental impacts of the project components. For safety of the workers and community, adequate occupational health and safety measures will be in place.

Involuntary Resettlement

Under part A, a full resettlement plan (RP) was prepared to mitigate the resettlement impact for the construction and installation of the 61 km of gas transmission pipeline from Ashuganj to Bakhrabad. This component required permanent acquisition of 50.65 hectares (ha) of land affecting 1,992 households and the temporary acquisition of 105.76 ha of land affecting 10,956 people. This part is being financed by the Government and GTCL ensures that civil works are completed during the dry season to avoid disrupting crops on the temporarily acquired land and the Government is committed to undertake efforts to minimize adverse impacts.

No issue of IR has been reported yet.

Under part B, initially two sites were identified at well no. 17 and 18 for drilling of four appraisal-cum-development wells in Titas gas field and RP was prepared for acquisition of 7.086 ha of agricultural land, affecting 178 households. These sites were found less feasible based on the 3-D seismic survey, and two new sites were selected at (i) Chhatian, Jangilsar, Malihata & Suhilpur mauzas under Sadar upazila (well no. 25, 26), and (ii) Sarail mauza under Sarail Upazila (Well no 23, 24). Both sites are under Brahmanbaria district. The Socio- Economic Survey (SES) of the project affected peoples (PAPs) for the new sites has already been conducted by a local consulting firm (Enviro Consultants Ltd), who is preparing the new RP for this component. The SES identified requirement of 15 acres of agricultural land, affecting 66 households with 322 persons only. The draft RP submitted by the consultant covers all mitigative measures related to Involuntary Resettlement (IR) safeguards, to compensate losses of (i) agricultural land, (ii) access by tenants/sharecroppers to agricultural land for crops production, (iii) income and livelihood, (iv) standing crops, (v) crop or access to agricultural land due to gas seepage, (vi) vulnerable groups, and (vii) unforeseen impact.

Under part C, the Project sites were selected and the components were designed to minimize impacts by avoiding involuntary land acquisition and displacement and by confining the Project to land already available to the government or the GTCL. The short RP prepared for part C, in consultation with affected people and communities, identified only nine households (five in Khulna and four in Jessore) comprising 52 people (mainly squatters), with temporary effect of income loss for maximum 1 week. SGCL is not aware of the RP, whereas a new requirement of acquiring 4.958 acres of land evolved for construction of 12 metering stations (DRS) and 5 office buildings. Although the PIU has started the land acquisition (LA) procedures through the office of the Deputy Commissioners, these LA items associated with the displaced persons from those lands must be incorporated in the revised RP. There is no DPP provision for IR, which requires to be incorporated in the revised DPP, for smooth implementation of the RP.

All revised RPs require to be posted in the ADB website and the summary to be disclosed in local language among the PAPs, for ensuring transparency of the social safeguards measures. The Mission advised EAs to comply with the requirements at the earliest.

Indigenous Peoples As 100% of the affected people were surveyed and no indigenous households was affected by the project, the project was classified category C, and no indigenous peoples development plan is required.
Stakeholder Communication, Participation, and Consultation
During Project Design To ensure proper community participation, various stakeholders representatives of vulnerable groups, local leaders, and mayors were consulted during the project preparation. The gas companies undertook consultations with local officials and village leaders in the project area. These consultations played a vital role in raising awareness, gaining local support, and enabling affected people to voice their opinions and suggestions on project design and implementation. The poor and women have been carefully considered in conducting participatory activities. As part of the social assessment, stakeholders' consultations were carried out in the project areas with the broad objective of ensuring the extensive participation of all stakeholders. The participatory approach will be continued during implementation.
During Project Implementation During project implementation stakeholders' consultation will be carried out as and when will require.

Business Opportunities

Consulting Services For project components under Parts A and B, consulting services to technically assist EAs to implement the Project will be required. Consulting services for the project component under Part C will not be required. Part D will need consulting services for the subproject on developing a portfolio of projects on energy efficiency improvement. EAs will select and engage consulting firms in accordance with the ADB's Guidelines on the Use of Consultants using the quality and cost based selection method and full technical proposal. Individual experts may also be recruited based on bio-date submitted in response to specific terms of reference for assignments.
Procurement All procurement to be financed under the ADB loan will be carried out in accordance with ADB's Guidelines on Procurement 2007 (as amended from time to time).

Responsible Staff

Responsible ADB Officer Ali Firoz
Responsible ADB Department South Asia Department
Responsible ADB Division Bangladesh Resident Mission
Executing Agencies
Sundarban Gas Company Limited (SGCL)
*A.B.M. Nazmul Hasan
Petrocenter, 13th Floor, 3, Kawran Bazar Commercial Area, Dhaka - 1215, Bangladesh
Titas Gas Transmission & Distribution Co. Ltd.
*Mr. Md. Abdul Aziz Khan,
105, Kazi Nazrul Islam Avenue, Kawran Bazar Commerical Area, Dhaka - 1215, Bangladesh
Bangladesh Gas Fields Company Ltd.
*Mr. Md. Nurul Islam,
Birashar, Brahmanbaria - 3400, Bangladesh
Gas Transmission Company Ltd.
*Mr. Md. Aminur Rahman,
Red Crescent-Borak Tower, Level 6, 71-72, Old Elephant Road (Eskaton), Dhaka - 1213, Bangladesh


Concept Clearance 06 May 2009
Fact Finding 11 May 2009 to 20 May 2009
MRM 08 Dec 2009
Approval -
Last Review Mission -
PDS Creation Date 18 Jan 2010
Last PDS Update 30 Mar 2016

Loan 2622-BAN

Approval Signing Date Effectivity Date Closing
Original Revised Actual
26 Mar 2010 03 Jun 2010 16 Mar 2011 30 Sep 2015 30 Sep 2017 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 537.00 Cumulative Contract Awards
ADB 261.00 26 Mar 2010 221.96 0.00 85%
Counterpart 276.00 Cumulative Disbursements
Cofinancing 0.00 26 Mar 2010 163.31 0.00 63%

Loan 2623-BAN

Approval Signing Date Effectivity Date Closing
Original Revised Actual
26 Mar 2010 03 Jun 2010 16 Mar 2011 30 Sep 2015 - -
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 Mar 2010 1.54 0.00 97%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 26 Mar 2010 1.41 0.00 89%

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

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