Bangladesh: Power System Expansion and Efficiency Improvement Investment Program - Tranche 2

Sovereign Project | 42378-016

Summary

The proposed Tranche 2 will contribute to the overall impact of the MFF on increased energy sector contribution to low-carbon economic growth in Bangladesh. The specific impact of the Tranche 2 will be increased access to reliable supply of electricity. The outcome of Tranche 2 is increased transmission and distribution capability in the power system. This will allow increased power transfer from Ghorasal to Tongi and to increased transmission capability to satisfy the increasing demand in Dhaka, Chittagong and Sylhet areas. Also the investments will allow improved distribution networks in the Dhaka region to supply increasing demand in the system to ensure no load-shedding due to network constraints by 2018.

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Procurement Notices

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Procurement Documents

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Project Name Power System Expansion and Efficiency Improvement Investment Program - Tranche 2
Project Number 42378-016
Country Bangladesh
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3087-BAN: Power System Expansion and Efficiency Improvement Investment Program - Tranche 2
Ordinary capital resources US$ 310.00 million
Loan: Power System Expansion and Efficiency Improvement Investment Program - Tranche 2
Islamic Development Bank US$ 220.00 million
Agence Francaise de Developpement US$ 125.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Partnerships
Sector / Subsector Energy - Electricity transmission and distribution
Gender Equity and Mainstreaming Some gender elements
Description The proposed Tranche 2 will contribute to the overall impact of the MFF on increased energy sector contribution to low-carbon economic growth in Bangladesh. The specific impact of the Tranche 2 will be increased access to reliable supply of electricity. The outcome of Tranche 2 is increased transmission and distribution capability in the power system. This will allow increased power transfer from Ghorasal to Tongi and to increased transmission capability to satisfy the increasing demand in Dhaka, Chittagong and Sylhet areas. Also the investments will allow improved distribution networks in the Dhaka region to supply increasing demand in the system to ensure no load-shedding due to network constraints by 2018.
Project Rationale and Linkage to Country/Regional Strategy A framework financing agreement (FFA) for the Bangladesh Power System Expansion and Efficiency Improvement Investment Program (BPSEEIP, the facility ), has been signed by the Asian Development Bank (ADB) and the Government of Bangladesh (the Government) and ADB's Board of Directors approved this multi tranche financing facility (MFF) on 28 Nov 2012. This MFF funds power sector investments in generation, transmission and distribution systems in Bangladesh to improve efficiency in these systems and add capacity for increased and reliable energy access to the population. The MFF consisted of three tranches to undertake these investments in a staggered manner. The proposed tranche 2 meets the selection criteria set forth in the Schedule 4 of the FFA. It will undertake investments in transmission and distribution network strengthening. Thus the Tranche 2 helps achieving the outcome of the MFF, increased access to clean and reliable supply of electricity in Bangladesh.
Impact Increased access to reliable supply of electricity
Project Outcome
Description of Outcome Increased Transmission and Distribution capability in the power system
Progress Toward Outcome

Loan effectiveness declared on 14 Mar 2014.

Inception Mission fielded on 26 Feb-4 Mar 2014. Action plans agreed with respective EAs to accelerate procurement progress.

Implementation Progress
Description of Project Outputs

Increased Transmission Capacity

Increased south Dhaka distribution network capacity

Increased north Dhaka distribution network capacity

Efficiently managed project

Status of Implementation Progress (Outputs, Activities, and Issues) Bid documents for 4 turnkey and 1 supply contracts issued in May-Jun 2014.
Geographical Location Dhaka
Safeguard Categories
Environment B
Involuntary Resettlement A
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects

An environmental assessment and review framework (EARF) for the MFF was prepared in September 2012 to ensure that project components in succeeding tranches comply with SPS 2009. Tranche 2 is classified as Category B according to SPS 2009 requiring an initial environmental examination (IEE). Following SPS 2009 and EARF, an IEE was prepared and was publicly disclosed to ADB website on xx August 2013.

Subproject selection for Tranche 2 was guided by the environmental criteria outlined in the EARF and Schedule 4 of the FFA. Components of Tranche 2 are not expected to cause significant adverse environmental impacts. Transmission line routes will traverse mainly agricultural lands and no forest, sanctuaries or protected areas will be affected. Environmental management plans have been prepared with adequate resources for implementation. PGCB, DPDC and DESCO will obtain all the required environmental clearances from the DOE prior to construction and copies submitted to ADB. A project brief in Bangla will be prepared by PGCB, DPDC, and DESCO and will be made available to the public at their field offices.

Involuntary Resettlement

In line with ADB Safeguard Policy Statement 2009 (SPS 2009), Tranche 2 is classified as A for involuntary resettlement impacts. Three resettlement plans have been prepared for Part A, Part B and Part C respectively, in accordance with the resettlement framework based on national laws and policies and the Safeguard Policy Statement of ADB.

Private land acquisition of 22.0 acres for 3 subprojects of PGCB would potentially lead to permanent economic displacement of about 59 persons and temporary economic displacement for about 168 farmers. Land acquisition for 2 subprojects of DPDC will result in physical displacement of 15 households and 80 persons. One subproject of DESCO will result in economic displacement for 6 persons. The estimated total number of persons to be displaced by subprojects under Tranche 2 will be about 313.

Compensation rates for the loss of land and structures, shifting assistance, income restoration assistance, and additional support for vulnerable groups and indigenous groups are provided in the resettlement plans. The compensation entitlements are endorsed by the EA and adequate budget will be allocated. Meaningful consultation and information disclosure were undertaken with (i) project-displaced persons, (ii) the general public through the ADB website. If any changes or additional land requirements or involuntary resettlement impacts are identified, a new or updated resettlement plan will be prepared or modified according to the applicable laws referred to in the resettlement plan. ADB's approval will be obtained before further implementation of the subprojects. The EAs have set up PMUs which will be responsible for RP implementation, monitoring and reporting. The implementation of the resettlement plans will be monitored internally by the EA and externally by qualified and experienced external experts, who will undertake the overall monitoring of the safeguards and relevant social issues and submit semiannual monitoring reports to EA in turn to ADB.

Indigenous Peoples Tranche 2 is classified as category C in accordance with the ADB s Safeguard Policy Statement (2009). None of the subprojects would impact communities of indigenous populations or interfere with the territories of the indigenous populations or ethnic minorities, their livelihood systems, customary properties or their natural or cultural resources. However, if there are any unanticipated impacts on indigenous people during project implementation an indigenous peoples plan will be prepared and submitted to ADB for review. EAs will obtain the approval of such a plan before award of related civil works contract and implemented before commencement of the civil works of the relevant subproject, as applicable.
Stakeholder Communication, Participation, and Consultation
During Project Design During project preparation the project team along with the consultants have conducted stakeholder meetings while finalising the intial environmental examinations and resettlement plans for the respective components.
During Project Implementation
Business Opportunities
Consulting Services Implementation support consultant for DPDC $1,000,000 as per GOB's guidelines for Q4/2013, National and financed by GOB
Procurement

The following lists goods and works contracts for which procurement activity is either ongoing or expected to commence within the next 18 months.

Procurement Advertisement Comment

General Desciption Amount Method Bidders Date

Turnkey Contract for 132&230kV S/S and Lines-IDB 206.76 ICB N Q2/ 2014 Financed by IDB

Turnkey Contract for 132/230kV S/S and Lines-ADB 31.33 ICB N Q1/2014 Financed by ADB

Turnkey Contract of South Dhaka 132/33kV S/S

and Lines 93.36 ICB N Q1/2014 Financed by AfD and GOB

Turnkey Contract of South Dhaka 33/11 kV S/S - AfD 36.97 ICB N Q2/2014 Financed by AfD and GOB

Turnkey Contract of South Dhaka 33/11kV S/S -ADB 45.85 ICB N Q2/2014 Financed by ADB and GOB

Turnkey Contract of 11kV South Dhaka Distribution 47.28 ICB N Q2/2014 Financed by ADB and GOB

Turnkey Contract for 132/33/11 kV S/S 133.77 ICB N Q2/2014 Financed by ADB and GOB

Supply Contract of North Dhaka Distribution Equipment 79.85 ICB N Q1/2014 Financed by ADB

Responsible ADB Officer Zhang Lei
Responsible ADB Department South Asia Department
Responsible ADB Division Energy Division, SARD
Executing Agencies
Dhaka Electric Supply Company Ltd. (DESCO)MDDESCO@BDCOM.COMBiddut Bhaban, 1 Abdul Gani Road
Dhaka 1000, Bangladesh
Power Grid Company of Bangladesh, Ltd. (PGCB)PGCB@CITECHCO.NET;_WEBSITE:WWW.PGCB.ORGIEB Bhaban (4th Floor)
Ramna,Dhaka, Bangladesh
Dhaka Power Distribution Company Ltd. (DPDC)SCADA Bhaban (2nd Floor)
Kataban, Sonargaon Road
Dhaka 1000
Timetable
Concept Clearance -
Fact Finding -
MRM -
Approval 11 Dec 2013
Last Review Mission -
Last PDS Update 31 Mar 2015

Loan

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 345.00 Cumulative Contract Awards
ADB 0.00 - 0.00 0.00 %
Counterpart 0.00 Cumulative Disbursements
Cofinancing 345.00 - 0.00 0.00 %

Loan 3087-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
09 Dec 2013 11 Feb 2014 14 Mar 2014 30 Jun 2019 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 530.00 Cumulative Contract Awards
ADB 310.00 09 Dec 2013 115.72 0.00 37%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 220.00 09 Dec 2013 8.10 0.00 3%

Evaluation Documents

See also: Independent Evaluation

No documents found.


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