Bangladesh: Bangladesh-India Electrical Grid Interconnection Project

Sovereign Project | 44203-012

Summary

The current climate and recent agreements between the Governments of Bangladesh and India present a window of opportunity for cooperation between the two countries and potentially across the wider South Asia region. 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. This key initiative would support regional cooperation in South Asia.

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Project Name Bangladesh-India Electrical Grid Interconnection Project
Project Number 44203-012
Country Bangladesh
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 7542-BAN: Bangladesh-India Electrical Grid Interconnection Project
Technical Assistance Special Fund US$ 225,000.00
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Governance and capacity development
Sector / Subsector Energy - Electricity transmission and distribution
Gender Equity and Mainstreaming Some gender elements
Description The current climate and recent agreements between the Governments of Bangladesh and India present a window of opportunity for cooperation between the two countries and potentially across the wider South Asia region. 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. This key initiative would support regional cooperation in South Asia.
Project Rationale and Linkage to Country/Regional Strategy The proposed project has been identified under the 2010 SAARC Regional Energy Trade Study. ADB would be providing concessional ADF funds of 100 million USD to Bangladesh towards the development of this project. The SSTA would support the successful and timely implementation of the project and facilitate development of the required agreements for power transfer between the two countries.
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 operation of a long term power transmission link between Bangladesh and India
Progress Toward Outcome Implementation ongoing
Implementation Progress
Description of Project Outputs

1. Development of interconnection, operation and power purchase agreements between Bangladesh and India.

2. Selection of supplier of upto 250 MW of power on competitive basis from India.

3. Capacity development regarding planning, development, operation, maintenance and regulation of interconnection and power trading.

4. ADB Loan Project in accordance with ADB Safeguards Policy

Status of Implementation Progress (Outputs, Activities, and Issues) 3 consultants have been recruited and fielded. Support for the second PPA tendering process is ongoing and has been advertised.
Geographical Location
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design Consultation was undertaken with the Energy Advisor to the Prime Minister of Bangladesh, the Secretary of the Power Division, management of PGCB and BPDB. All stakeholders expressed the requirement for support on finalization of the interconnection agreements.
During Project Implementation

BPDB has undertaken an options analysis for procurement and has completed the bid process to procure additional power (an additional 250 MW) on a short term basis from 2013-2016 with support from the TA. The power flow commenced in 2013. Long term procurement process for 250 MW starting 2016 will commence shortly.

In addition, environmental safeguards specialist and resettlement safeguards specialist are monitoring the implementation of the Environmental Management and Monitoring Plan and the Resettlement Plan. Additional stakeholders would be consulted at an appropriate time.

Business Opportunities
Consulting Services The SSTA will require the services of two international and two national consultants: one Interconnection Agreement Specialist (international, 2 person-months on intermittent basis over a 6-month period), one Electricity Trading Specialist (international, 3 person-months on intermittent basis over a 12-month period), one Environmental Safeguards Specialist (national, 2 person-months on an intermittent basis over a 12-month period), and one Resettlement Safeguards Specialist (national, 2 person-months on an intermittent basis over a 12-month period).
Responsible ADB Officer Len V. George
Responsible ADB Department South Asia Department
Responsible ADB Division Energy Division, SARD
Executing Agencies
Power Div-Min of Power, Energy & Mineral ResourcesBangladesh Secretariat
Dhaka
Bangladesh
Timetable
Concept Clearance 16 Apr 2010
Fact Finding 17 May 2010 to 25 May 2010
MRM -
Approval 01 Jun 2010
Last Review Mission -
Last PDS Update 25 Mar 2015

TA 7542-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
01 Jun 2010 - 01 Jun 2010 30 Apr 2012 31 Dec 2014 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
225,000.00 0.00 60,000.00 0.00 0.00 0.00 285,000.00 01 Jun 2010 152,772.38

No documents found.

Safeguard Documents

See also: Safeguards

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Evaluation Documents

See also: Independent Evaluation

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