Bangladesh: Natural Gas Transmission and Distribution Development Investment Program

Sovereign Project | 45203-002

Summary

This project preparatory technical assistance (PPTA) is to prepare a holistic investment plan and conduct proper due diligence for the proposed multi-tranche financing facility (MFF).

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Project Name Natural Gas Transmission and Distribution Development Investment Program
Project Number 45203-002
Country Bangladesh
Project Status Approved
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 8474-BAN: Natural Gas Transmission and Distribution Development Investment Program
Technical Assistance Special Fund US$ 1.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Private sector development
Sector / Subsector

Energy - Conventional energy generation

Gender Equity and Mainstreaming No gender elements
Description This project preparatory technical assistance (PPTA) is to prepare a holistic investment plan and conduct proper due diligence for the proposed multi-tranche financing facility (MFF).
Project Rationale and Linkage to Country/Regional Strategy Bangladesh has made remarkable progress in achieving most of the millennium development goads (MDG). The poverty rate has been cut down by 60%. The decline in poverty in Bangladesh is largely attributed to strong economic growth over the past two decades. Notwithstanding the progress, the government recognizes that Bangladesh is still a country with substantial poverty. An estimated 47 million people are living below the poverty line with a significant proportion living in households which are female headed, in remote areas, and consisting of socially excluded and other vulnerable people. Gas and power provide key link between economic growth and poverty. The frequency of power and gas outages is threatening people's welfare and development prospects. The shortage of gas severely constrains the supply of electricity and also imperils Bangladesh's energy security. In recognition of the long-term development challenges, the government's 6th Five-Year Plan has set solid development targets for Bangladesh by the end of 2021. The core energy targets set in the 6th Five-Year Plan include to increase (i) energy efficiency by 10% by FY 2015; (ii) production of natural gas to about 4,500 mmcfd by December 2015; (iii) electricity generation from 5,803MW to 20,000 MW by 2021; (iv) electricity coverage from current 47% to 100% by 2021; and (v) access of the poor to primary and secondary energy sources through affordable pricing and targeted distribution. The Asian Development Bank's (ADB) Bangladesh Country Partnership Strategy (2011-2015) shares the government's objectives as major outcomes for gas and power sector which focuses ADB's engagements on enhancing access to power and gas, improving efficiency in gas use, promoting private sector participation, and supporting green growth through reducing carbon dioxide emissions.
Impact
Project Outcome
Description of Outcome
Progress Toward Outcome
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation The PPTA has been extended to 31 July 2015. ADB supported the government of Bangladesh to conduct gas sector assessment study. Four individual consultants have been recruited to undertake the assignment. Based on the findings of the study, ADB will decide the project scope and ensuing loan size.
Business Opportunities
Consulting Services A total of 55 person-months consulting services inputs will be required under this PPTA. A consulting firm will be engaged, consisting of 14 positions and 41 person-months, to conduct technical, economic, financial, and governance due diligence for the proposed MFF and the 1st tranche. International and national environmental and social development specialists, consisting of 4 positions and 14 positions, will be recruited on individual basis to conduct environmental and social due diligence.
Responsible ADB Officer Hongwei Zhang
Responsible ADB Department South Asia Department
Responsible ADB Division Energy Division, SARD
Executing Agencies
Bangladesh Oil, Gas & Minerals Corp (Petrobangla)3 Kawran Bazar
Commercial Area
Dhaka-1215
Ministry of Power, Energy and Mineral ResourcesWAPDA Building
Motijheel Commercial Area, Dhaka-1000
Bangladesh
Gas Transmission Company Ltd.House #39, Road #3
Sector #3, Uttara Model Town
Dhaka-1230
Titas Gas Transmission & Distribution Co. Ltd."Tita Gas Bhaban", 105, Kazi Nazrul
Islam Avenue, Kawran Bazar Commercial
Area, Dhaka-1215, Bangladesh
Timetable
Concept Clearance -
Fact Finding -
MRM -
Approval 04 Oct 2013
Last Review Mission -
Last PDS Update 29 Mar 2015

TA 8474-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
04 Oct 2013 29 Oct 2013 29 Oct 2013 31 Jul 2014 31 Dec 2016 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
1,000,000.00 0.00 0.00 0.00 0.00 0.00 1,000,000.00 04 Oct 2013 93,986.96

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