Bangladesh: Support for Climate Change Mitigation and Renewable Energy Development

Sovereign Project | 44305-012

Summary

Given its geophysical location, low deltaic flood plain, and erratic monsoon rainfall Bangladesh is vulnerable to the impact of climate change. Since 1990, the country has experienced a rise in sea level, intensified precipitation, and runoff variability causing massive floods in the rainy season and severe drought in the dry season. Further, the country's large population with low gross domestic product per capita ($641 in 2010) makes Bangladesh's economy highly vulnerable to the impacts of climate change.

As of 2005, the energy sector was the largest contributor of carbon dioxide emissions at 36,071 gigagrams or 56% of the total. As projected by the Asia Least-Cost Greenhouse Gas Abatement Strategy study3 using 1990 as the base year, the energy sector's greenhouse gas emissions will increase sevenfold and its percentage contribution to total emissions will increase over time up to 2020. This trend implies that the impact of climate change caused by the energy sector will intensify.

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Project Name Support for Climate Change Mitigation and Renewable Energy Development
Project Number 44305-012
Country Bangladesh
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 7826-BAN: Support for Climate Change Mitigation and Renewable Energy Development
Technical Assistance Special Fund US$ 500,000.00
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector

Energy - Energy sector development and institutional reform - Renewable energy generation - solar - Renewable energy generation - wind

Gender Equity and Mainstreaming
Description

Given its geophysical location, low deltaic flood plain, and erratic monsoon rainfall Bangladesh is vulnerable to the impact of climate change. Since 1990, the country has experienced a rise in sea level, intensified precipitation, and runoff variability causing massive floods in the rainy season and severe drought in the dry season. Further, the country's large population with low gross domestic product per capita ($641 in 2010) makes Bangladesh's economy highly vulnerable to the impacts of climate change.

As of 2005, the energy sector was the largest contributor of carbon dioxide emissions at 36,071 gigagrams or 56% of the total. As projected by the Asia Least-Cost Greenhouse Gas Abatement Strategy study3 using 1990 as the base year, the energy sector's greenhouse gas emissions will increase sevenfold and its percentage contribution to total emissions will increase over time up to 2020. This trend implies that the impact of climate change caused by the energy sector will intensify.

Project Rationale and Linkage to Country/Regional Strategy To address the power supply shortage problem as well as to abate greenhouse gas emission, the National Energy Policy, 2004 is focusing on (i) providing a sustainable and balanced energy supply, (ii) promoting rational use of energy, (iii) improving sector management and performance, and (iv) increasing private sector participation and investment. Further, the government enacted the Renewable Energy Policy of Bangladesh in 2008. Accordingly, the Sustainable Energy Development Authority (SEDA), is being established as a focal point for sustainable energy development and promotion, with support from German development cooperation through GIZ and the World Bank. Through the Sustainable Energy for Development Project, GIZ is supporting the preparation of a SEDA act as well as its organizational formation and management mechanism. The World Bank, through its umbrella TA support for Power Sector Development, is assisting the development of SEDA's strategy.
Impact Established capability of SEDA to effectively promote renewable energy development
Project Outcome
Description of Outcome SEDA's readiness and capability to fulfill its mandates
Progress Toward Outcome The SEDA Act is expected to be approved by Parlament shortly. As requested by the Sustainable Renewable Energy Development Authority (SREDA), ADB will further support the project by drafting the "Renewable Energy Regulations, under SREDA" (additional output 5).
Implementation Progress
Description of Project Outputs

1. Renewable energy development road map

2. Wind potential mapping in selected coastal area

3. One concentrated solar power project and one wind power plant project identified

4. Selected SEDA staff retained on CDM

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

Output 1 is under preparation.

Output 2 modified and under preparation: Synthetic wind potential assessment in Hatiya Island.

Output 3 cancelled and replaced by: Identification and rapid development of Hatiya mini-grid hybrid-project study.

Output 4: Finalized.

Output 5 added and under development: Proposal of a regulatory framework structure for renewable energy

Geographical Location
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design

Close coordination will be maintained with the executing agency, government agencies, and donors during implementation.

Consultants will be required to maintain close working relations with the executing agency and ADB.

One workshop has been held to train TA beneficiaries.

During Project Implementation Inception mission was conducted on January 2012.
Business Opportunities
Consulting Services

The Power Division under the MPEMR will be the executing agency. The TA will require 14.5 person-months (12.5 person months international and 2 person-months national consultants) of expert services. The international consultants will include (i) a renewable energy specialist, (ii) renewable power system simulation specialist; (iii) electrical power battery specialist; and (iv) financial specialist (power).

The national consultants will include (i) a local support professional. A consulting firm, joint venture, or consortium will be selected by ADB through fixed budget selection. Procurement of consultancy services will be undertaken in accordance with ADB's Guidelines on the Use of Consultants (2013, as amended from time to time). Goods and works will be procured in accordance with ADB's Procurement Guidelines (2013, as amended from time to time). The expected duration of consultancy services will be from May to September 2014 (5 months).

Responsible ADB Officer Paul Hattle
Responsible ADB Department South Asia Department
Responsible ADB Division Bangladesh Resident Mission
Executing Agencies
Ministry of Power, Energy and Mineral ResourcesWAPDA Building
Motijheel Commercial Area, Dhaka-1000
Bangladesh
Timetable
Concept Clearance 14 Apr 2011
Fact Finding 03 Apr 2011 to 06 Apr 2011
MRM -
Approval 21 Jun 2011
Last Review Mission -
Last PDS Update 29 Sep 2014

TA 7826-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
21 Jun 2011 02 Oct 2011 02 Oct 2011 31 Aug 2013 31 Dec 2015 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
500,000.00 0.00 100,000.00 0.00 0.00 0.00 600,000.00 21 Jun 2011 499,208.77

Safeguard Documents

See also: Safeguards

No documents found.

Evaluation Documents

See also: Independent Evaluation

No documents found.


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