Bangladesh: Bangladesh-India Electrical Grid Interconnection Project

Sovereign Project | 44192-013

Summary

The project will include (i) a 40 long kilometer 400kV double circuit transmission line from the Bangladesh India border to Bheramara, (ii) a 500mW back to back HVDC station at Bheramara; and (iii) a 230kV interconnection with the western grid of Bangladesh.

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Project Name Bangladesh-India Electrical Grid Interconnection Project
Project Number 44192-013
Country Bangladesh
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2661-BAN: Bangladesh-India Electrical Grid Interconnection Project
Asian Development Fund US$ 100.00 million
Loan 3031-BAN: SASEC Bangladesh-India Electrical Grid Interconnection Project (Additional Financing)
Asian Development Fund US$ 12.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector

Energy - Electricity transmission and distribution

Gender Equity and Mainstreaming Some gender elements
Description The project will include (i) a 40 long kilometer 400kV double circuit transmission line from the Bangladesh India border to Bheramara, (ii) a 500mW back to back HVDC station at Bheramara; and (iii) a 230kV interconnection with the western grid of Bangladesh.
Project Rationale and Linkage to Country/Regional Strategy

The Bangladesh-India Electrical Grid Interconnection Project (the Project) will establish a cross-border link between the western electrical grid of Bangladesh and the eastern electrical grid of India to facilitate the exchange of electric power between the two countries. In accordance with technical, operational, and economic considerations, the proposed interconnection will include 125 km. of 400 kV double circuit transmission line between the electrical substations at Baharampur in India and Bheramara in Bangladesh, a 400 kV switching station at Baharampur (India) and a 500 MW back to back high voltage direct current (HVDC) sub-station (400/230 kV) at Bheramara (Bangladesh) and associated infrastructure. The system will facilitate an initial power flow of 500MW into Bangladesh from the Indian grid starting 2012 to partly address the significant power shortages in Bangladesh, with a provision to enhance the power flow to 1,000 MW.

The Bangladesh economy has grown at about 6% per annum on average over the past five years, and the same level of economic growth is expected in the coming years. Despite its notable progress on the macroeconomic front, Bangladesh's electrification ratio is still very low, providing electricity to less than 50% of the population. Rapid economic growth in Bangladesh is causing electricity demand to increase sharply as the country continues to industrialize and raise the living standards of its large population. Furthermore, the country's current dependable power generating capacity is significantly less than the peak demand leading to deficit of nearly 1,500 MW with frequent power cuts and voltage fluctuations. In addition, the need for energy diversification is recognized with concerns over the long term availability of domestically produced natural gas that currently fuels about 90% of the power sector generation capacity in Bangladesh.

Against the backdrop of a growing power crisis in Bangladesh, connecting the two grids would provide a platform to demonstrate the substantial economic benefits of enhanced regional cooperation and address the prevailing energy gap, which hinders economic and social development in the region. Successful implementation of the Project would be an important first step in the process of optimal and sustainable harnessing of regional energy resources. This would support regional cooperation in South Asia and help towards achieving ADB's Regional Cooperation and Integration objectives under Strategy 2020. ADB has been supporting dialogue on South Asia regional energy cooperation through the SAARC Regional Energy Trade Study (SRETS) , concluded in 2010. ADB had also initiated consulting support to the utilities in Bangladesh and India for discussions on various interconnection aspects through a small scale technical assistance (SSTA) in 1997.

A Joint Technical Team from India and Bangladesh examined multiple options regarding the interconnection of the grid between the two countries before identifying the proposed Project. An asynchronous mode of interconnection between the Indian and Bangladeshi transmission grid was determined to be appropriate to allow each country to retain independent control and operation over its own national grid, ensure complete control on the power transfer between the two countries and to obviate the requirement for additional upstream investment to protect generation assets in either country from cross-border faults and surges

Impact Sustained inclusive economic growth in Bangladesh through optimal utilization of power generation capacity in the South Asian region.
Project Outcome
Description of Outcome Successful development and operation of a transmission link between Bangladesh and India.
Progress Toward Outcome --
Implementation Progress
Description of Project Outputs

Physical Investment

1. Bahrampur-Bheramara Power Transmission Link

Non-Physical Investment: (1) Capacity building and information sharing regarding planning, development, operation, maintenance and regulation of interconnection

(2) Development of interconnect and power exchange agreements between the two countries

Status of Implementation Progress (Outputs, Activities, and Issues)

A consultation mission was fielded on 4-5 October 2013. The mission met with officials from Ministry of Petroleum, Energy and Mineral Resources (MPEMR), Ministry of Finance, Power Grid Company of Bangladesh.

1. The contract for 500MW HVDC Back-to-Back Substation was signed in March 2011. Implementation period is estimated at 22 months. Land acquisition has been completed and land development completed.

2. The contract for 400kV Baharampur (India)- Bheramara double circuit (D/C) Overhead Transmission Line (Bangladesh Portion) and Line-In Line-Out (LILO) of 230kV Ishurdi-Khulna D/C Overhead Transmission Line at Bheramara was signed in Dec 2010. Implementation period is estimated at 18 months. Survey and soil test work has been completed. Plan and Profile approval completed.

Geographical Location A cross-border between Bangladesh and India.
Safeguard Categories
Environment B
Involuntary Resettlement A
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The environmental clearance from the Dept of Environment was issued on 11 July 2010 based on the Initial Environment Examinatione (IEE) and Environmental Impact Assessment (EIA) prepared in 2010. In case of land development for 400/230kV back to back station, dredging from Padma River was carried out. The Institute of Water Modeling assessed the impact on the water flow due to the considerable dredging of the river. Sample test of land filling riverbed materials (sand) was done by Bangladesh University of Engineering and Technology, Dhaka.
Involuntary Resettlement Most of the land for the HVDC back-to-back substation is owned by Bangladesh Railways. PGCB has indicated that land acquisition for the substation has been completed under the Draft National Policy on Involuntary Resettlement and Rehabilitation 2010, Acquisition and Requisition of Immmovable Property ordinance (amended in 1994) and Safeguard Policy (2009) in Char Mokarimpur, Bheramara under Kushtia district.
Indigenous Peoples A grievance redress committee was formed to address any grievances from affected people concerning resettlement, the water flow due to the considerable dredging of the river and other social issues related to the HVDC back-to-back station. The committee finalized the number of affected households and check payments were made within February to March 2011 in the presence of local Member of Parliament, local representatives and local Government officials.
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services Not required under the Project.
Procurement The Project will include (i) a 40 long kilometer 400kV double circuit transmission line from the Bangladesh India border to Bheramara, (ii) a 500 MW back to back HVDC station at Bheramara; and (iii) a 230kV interconnection with the western grid of Bangladesh.
Responsible ADB Officer Len V. George
Responsible ADB Department South Asia Department
Responsible ADB Division Energy Division, SARD
Executing Agencies
Power Grid Company of Bangladesh, Ltd. (PGCB)Md. Ruhul AminPGCB@CITECHCO.NET;_WEBSITE:WWW.PGCB.ORGInstitution of Engineers Bangladesh (IEB) Bhaban (New), 3rd & 4th Floor, Ramna, Dhaka-1000
Timetable
Concept Clearance 16 Apr 2010
Fact Finding 17 May 2010 to 25 May 2010
MRM 19 Aug 2010
Approval 31 Aug 2010
Last Review Mission -
PDS Creation Date 17 May 2010
Last PDS Update 25 Mar 2015

Loan 2661-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
31 Aug 2010 13 Oct 2010 08 Mar 2011 30 Jun 2013 30 Jun 2014 23 Jun 2015
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 158.60 Cumulative Contract Awards
ADB 100.00 31 Aug 2010 99.40 0.00 100%
Counterpart 58.60 Cumulative Disbursements
Cofinancing 0.00 31 Aug 2010 99.40 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - Satisfactory - -

Loan 3031-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
25 Sep 2013 23 Oct 2013 09 Dec 2013 31 Dec 2014 - 23 Jun 2015
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 40.40 Cumulative Contract Awards
ADB 12.00 25 Sep 2013 11.49 0.00 100%
Counterpart 28.40 Cumulative Disbursements
Cofinancing 0.00 25 Sep 2013 11.49 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - Satisfactory - -

Evaluation Documents

See also: Independent Evaluation

No documents found.


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