Bangladesh: Power System Efficiency Improvement Project II

Sovereign Project | 42378-012

Summary

The proposed project - Power System Efficiency Improvement II - will address three key areas in the electricity supply sector. They are: improving energy use efficiency of thermal power plants, improving the transmission network capacity, and expanding the renewable energy base. The project interventions will include: (i) conversion of power plants at Siddhirganj, Baghabari, and Khulna to combine cycle power plants; (ii) construction of 180 km 132 kV transmission lines and four 133/32 kV substations; (ii) installation of solar irrigation water pumps; and (iii) capacity development for solar powered irrigation and power plant management.

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Project Name Power System Efficiency Improvement Project II
Project Number 42378-012
Country Bangladesh
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 7889-BAN: Power System Efficiency Improvement Project II
Technical Assistance Special Fund US$ 700,000.00
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change
Sector / Subsector

Energy - Electricity transmission and distribution - Energy efficiency and conservation - Renewable energy generation - solar

Gender Equity and Mainstreaming Some gender elements
Description The proposed project - Power System Efficiency Improvement II - will address three key areas in the electricity supply sector. They are: improving energy use efficiency of thermal power plants, improving the transmission network capacity, and expanding the renewable energy base. The project interventions will include: (i) conversion of power plants at Siddhirganj, Baghabari, and Khulna to combine cycle power plants; (ii) construction of 180 km 132 kV transmission lines and four 133/32 kV substations; (ii) installation of solar irrigation water pumps; and (iii) capacity development for solar powered irrigation and power plant management.
Project Rationale and Linkage to Country/Regional Strategy

Energy shortage is considered as one of the most critical infrastructure constraints on Bangladeshs economic development. In 2011, the maximum demand for electricity is 6,000 megawatt (MW), which is expected to rise to 7,000 MW by 2013. But the maximum available generation is 4,5004,750 MW (from an installed capacity of 5,719 MW), leaving a significant supply gap. The main causes for the supply shortage are (i) the poor operational efficiency of thermal power plants and inefficient use of energy; (ii) inadequate supplies of natural gas, which is the primary source of energy for electricity generation (about 80% of generation capacity is based on natural gas); (iii) slow progress on cross-border energy cooperation and trade; and (iv) lack of diversification in energy supply, including inadequate development of renewable.

The Government of Bangladesh's (the government) declared vision for the power sector in 2010 is to eliminate load shedding at the earliest possible and to make electricity available to all by 2021. The government estimated that realizing this vision would require an additional 9,000 MW of generating capacity installed by the end of 2015. Of this, 5,400 MW of generation capacity is expected to be added by the private sector. Since the declaration of this policy, 586 MW of generating capacity has been added to the system and additional approvals have been granted for new power plants. Other initiatives aim to diversify energy sources include development of coal resources, renewable energy, and cross-border cooperation for energy trade. Adequate transmission and distribution facilities would also be developed to compliment power generation expansion to increase access to electricity.

ADBs country partnership strategy (CPS) for Bangladesh addresses mainly the issues in the energy sector aligning with the above described government policy. It emphasizes on the (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 partnership; and (v) transmission and distribution network strengthening parallel to the expected generation capacity additions. ADB approved $581 million project for Bangladesh - Power System Efficiency Improvement Project - on August, 2011 to address some of these issues.

Impact TBD
Project Outcome
Description of Outcome TBD
Progress Toward Outcome
Implementation Progress
Description of Project Outputs TBD
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location
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 A total of 45 person-months of consultancy services will be engaged as individual consultants to prepare the project. The consultants will be recruited directly or through a firm.
Responsible ADB Officer Herath M. Gunatilake
Responsible ADB Department South Asia Department
Responsible ADB Division Energy Division, SARD
Executing Agencies
Ministry of Power, Energy and Mineral ResourcesWAPDA Building
Motijheel Commercial Area, Dhaka-1000
Bangladesh
Timetable
Concept Clearance 17 Oct 2011
Fact Finding -
MRM -
Approval 17 Oct 2011
Last Review Mission -
Last PDS Update 30 Sep 2014

TA 7889-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
17 Oct 2011 11 Nov 2011 11 Nov 2011 31 Dec 2012 31 Dec 2013 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
700,000.00 0.00 0.00 0.00 0.00 0.00 700,000.00 17 Oct 2011 666,740.86

Safeguard Documents

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Evaluation Documents

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