Bangladesh: Power System Expansion and Efficiency Improvement Investment Program - Tranche 3

Sovereign Project | 42378-017 Status: Proposed


Tranche 3 will cover investments in generation system expansion and efficiency improvement, transmission system enhancement, and demand side energy efficiency improvement.

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Project Name Power System Expansion and Efficiency Improvement Investment Program - Tranche 3
Project Number 42378-017
Country Bangladesh
Project Status Proposed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan: Power System Expansion and Efficiency Improvement Investment Program-Tranche 3
Ordinary capital resources US$ 205.00 million
Islamic Development Bank US$ 220.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Knowledge solutions
Sector / Subsector

Energy - Electricity transmission and distribution - Energy efficiency and conservation

Gender Equity and Mainstreaming No gender elements
Description Tranche 3 will cover investments in generation system expansion and efficiency improvement, transmission system enhancement, and demand side energy efficiency improvement.
Project Rationale and Linkage to Country/Regional Strategy Government''s "Vision 2021" and Power System Master Plan 2010, Bangladesh is focused on achieving universal access to grid connected electricity by 2021 with a total installed generation capacity of 20,000 MW by 2020. This is a challenging task in light of the electrification rate standing at 62% (2014) and the country still undergoing frequent power shortages. These ambitious targets require significant investments in the power sector infrastructure during the coming years. The MFF is contributing towards this target through its generation, transmission, distribution investments. Tranche 3 is specifically focused on enhancement of generation and transmission capacity to facilitate achieving the target.
Impact better access to reliable electricity supply in Bangladesh.
Outcome increased efficiency and capacity of the power system in Bangladesh.

Power generation system expanded and upgraded through replacement of an aging steam and gas turbine power plant of 220 megawatt (MW) capacity with a more efficient 400 MW gas-fired Combined Cycle Power Plant (CCPP) at Ashuganj Power Station complex

transmission system expanded and upgraded through upgrade or construction of 132kv transmission lines and substations in Chittagong Division

demand side energy efficiency improved through replacement of meters with approximately 700,000 pre-payment meters in Dhaka Division.

Geographical Location
Safeguard Categories
Environment A
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects Given the potential environmental impacts, e.g. cooling water discharge to the Meghna River and nitrogen oxides (NOx) emissions, Output 1 is classified as environmental category A. Even if Output 1 is classified as environmental category A, it is not expected to cause significant adverse environmental impacts. Output 1 focuses on generation efficiency improvement that will reduce pollutant intensity and offset pollution emission growth without consuming more natural gas by adopting more efficient power plant. Potential environmental impacts are mostly predictable and reversible. Sensitive ecosystems will not be impacted. The impacts such as NOx emissions and cooling water discharge to the Meghna River during operation will be mitigated through best available technology built-in to the power plant design that includes low NOx burners with NOx reduction system. Potential environmental impacts of Output 2 will occur in construction stage, which is temporary, predictable and reversible. There will be no impacts on forests, sanctuaries or protected areas, and historical and cultural monuments. Output 3 will have minimal environmental impacts. The replaced meters which are functional will be re-used in other locations. Any final disposal should occur at existing approved waste management facilities in Bangladesh.
Involuntary Resettlement The resettlement plan describes the extent of involuntary resettlement impact and spells out provisions of compensation and assistance to the affected persons. The resettlement plan adequately assesses the land acquisition and resettlement impacts of the proposed tranche and the measures developed to address identified impacts are adequate. The resettlement plan was endorsed by the executing agencies, and disclosed on the ADB website on 29 June 2015. Subproject of Output 1 locates inside APSCL s power station premises, and no land needs be acquired. No land acquisition is involved in subproject of Output 3. For Output 2 with PGCB as executing agency, land acquisition is needed for only one substation. The private land from 17 title holders of accumulated 2.02 hectares has been acquired by PGCB. There will be no physical displacement of people under any subproject of Tranche 3. Meaningful consultation and information disclosure were undertaken with (i) project stakeholders, and (ii) the general public through the ADB website. If any changes or additional land requirements or involuntary resettlement impacts are identified, an updated resettlement plan will be prepared. PMU of PGCB has experience of implementation of the resettlement plans from Tranche 1 and 2, and in previous ADB projects.
Indigenous Peoples 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.
Stakeholder Communication, Participation, and Consultation
During Project Design Public consultations were conducted with local communities including fishermen. The communities welcomed the project to improve reliability of power supply. Community concerns were identified in the EIA, and mitigation measures have been incorporated into the EMP. PMU of each executing agency has dedicated staff responsible for monitoring environmental issues and implementing the EMP.
During Project Implementation The project will be approved in November 2015. Grievance redress committee (GRC) will be set up by the executing agencies as soon as the project commences. The GRC will convene twice a month and will keep the record of the grievances, and provide the solution(s) within 30 days from the date of the complaint. All complaint related documentation such as minutes of the meeting and decisions will be summarized and become part of the semi-annual monitoring report submitted to ADB. If the grievance is not addressed, the complainant can seek legal redress of the grievance in the appropriate courts.
Business Opportunities
Consulting Services Turnkey package of Ashuganj 400MW CCPP (East); Turnkey package of 132 Kv transmission line and substations in Chittagong Division; Supply package of pre-payment meters in Dhaka Division.
Procurement Project Implementation Support Consultants for APSCL (Firm, QCBS 90:10)
Responsible ADB Officer Aziz Yusupov
Responsible ADB Department South Asia Department
Responsible ADB Division Energy Division, SARD
Executing Agencies
Ashuganj Power Station Company Ltd. (APSCL)
Ashuganj, B-Baria
3402, Bangladesh
Power Grid Company of Bangladesh, Ltd. (PGCB)
IEB Bhaban (4th Floor)
Ramna,Dhaka, Bangladesh
Bangladesh Rural Electrification Board(BREB)
Directorate of Procurement
Head Office Bldg.-7th Flr, Zoar Sahara,
Khilkhet, Dhaka-1229, Bangladesh
Concept Clearance -
Fact Finding -
MRM 05 Oct 2015
Approval 07 Dec 2015
Last Review Mission -
Last PDS Update 15 Sep 2015

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Evaluation Documents

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Related Publications

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