Bangladesh : Bangladesh Power System Enhancement and Efficiency Improvement Project
The Bangladesh Power System Enhancement and Efficiency Improvement Project (the Project) to be prepared using the TA will enhance the coverage and improve the reliability and efficiency of the transmission and distribution network. This will facilitate better utilization of the country's growing power generation capacity to meet the growth in electricity demand across the country. It takes forward support to the transmission and distribution utilities provided under the Power System Expansion and Efficiency Improvement Investment Program, a multitranche financing facility (MFF) approved in 2012 of which the final tranche was approved in 2015.
Project Details
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Project Officer
George, Len V.
South Asia Department
Request for information -
Country/Economy
Bangladesh -
Modality
-
Sector
- Energy
Project Name | Bangladesh Power System Enhancement and Efficiency Improvement Project | ||||
Project Number | 49423-004 | ||||
Country / Economy | Bangladesh |
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Project Status | Closed | ||||
Project Type / Modality of Assistance | Technical Assistance |
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Source of Funding / Amount |
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Strategic Agendas | Environmentally sustainable growth Inclusive economic growth |
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Drivers of Change | Gender Equity and Mainstreaming Governance and capacity development |
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Sector / Subsector | Energy / Electricity transmission and distribution |
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Gender | Some gender elements | ||||
Description | The Bangladesh Power System Enhancement and Efficiency Improvement Project (the Project) to be prepared using the TA will enhance the coverage and improve the reliability and efficiency of the transmission and distribution network. This will facilitate better utilization of the country's growing power generation capacity to meet the growth in electricity demand across the country. It takes forward support to the transmission and distribution utilities provided under the Power System Expansion and Efficiency Improvement Investment Program, a multitranche financing facility (MFF) approved in 2012 of which the final tranche was approved in 2015. The Government of Bangladesh has requested ADB lending assistance of about $400 million in 2016 to finance the government's investment plan for transmission and distribution to be taken up by the Power Grid Company of Bangladesh Limited (PGCB), the Bangladesh Rural Electrification Board (BREB), the Dhaka Power Distribution Company Limited (DPDC), and the Dhaka Electric Supply Company Limited (DESCO). The project is expected to be approved in 2016. |
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Project Rationale and Linkage to Country/Regional Strategy | Energy shortages are a critical infrastructure constraint to Bangladesh's economic development. The government has set an ambitious target of achieving electricity for all by 2021 and initiated plans for significant investments across the electricity generation, transmission and distribution value chain to meet an expected demand of 19 gigawatt (GW) by 2021 and 34 GW by 2030. On the generation sub-sector, measures under implementation to increase capacity include rehabilitation and efficiency improvement of existing public sector gas-fueled power plants, setting up large imported fuel-based (coal and natural gas) power plants, the creation of inter-country grid interconnections to source power from the south Asia region, and investments in grid-connected solar power generation. There has been a notable improvement in the last five years with electricity generation capacity crossing 11 GW in 2015 (i.e. doubling of capacity since 2009), ending the rolling blackouts faced in major cities. However, significant investments are still needed to meet the 2021 targets including new diversified generation sources and improved operational efficiencies for existing plants. ADB, through technical assistance, is supporting the government on its diversification for improving energy security. Significant investment activities are ongoing, including from the private sector and bilateral support to develop power generation in Bangladesh. Investments in electricity transmission and distribution network, however, have not kept pace with the increase in generation capacity. The shortfall in investments, coupled with the increase in supply and demand, has increased the stress (overloading) on existing network assets that are expected to worsen over time. The government has identified the requirement for significant public sector investments to strengthen the grid, reduce losses, improve electricity access and improve quality of supply in the electricity transmission and distribution network to meet and prepare for the significant growth in electricity supply and demand. During the 7th Five Year Plan (2016-2020), a requirement for over 8,400 circuit kilometer (km) of transmission lines and over 90,000 circuit km of distribution lines is targeted. This would support the major rural electrification plan to increase the coverage from about 74% in 2015 to about 90% by 2021 and to enhance the capacity of existing but old rural distribution networks. The government has also set targets of reducing distribution system losses from about 12% to less than 10% in urban areas through construction of new electricity distribution lines, modernization of sub-stations and control centers, large-scale introduction of smart meters, and implementation of demand-side energy efficiency measures to improve the quality of electricity supply in urban areas including Dhaka, Chittagong, Khulna, and Rajshahi. In addition to investment requirements, implementation of the reform process in the electricity transmission and distribution sector would be reviewed with the government and other development partners to ensure that the utilities retain sufficient autonomy, and enhance institutional capabilities in a time-bound manner to improve their operational effectiveness. |
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Impact | Accessibility and sustainability of power supply in Bangladesh improved by 2030 (Power System Master Plan for 2030) |
Project Outcome | |
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Description of Outcome | A well-designed Bangladesh Power System Enhancement and Efficiency Improvement Project developed |
Progress Toward Outcome | |
Implementation Progress | |
Description of Project Outputs | Technical and sector due diligence reviews of components of the ensuing project undertaken |
Status of Implementation Progress (Outputs, Activities, and Issues) | |
Geographical Location | Nation-wide |
Summary of Environmental and Social Aspects | |
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Environmental Aspects | |
Involuntary Resettlement | |
Indigenous Peoples | |
Stakeholder Communication, Participation, and Consultation | |
During Project Design | |
During Project Implementation |
Business Opportunities | |
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Consulting Services | Individual consultants recruited by ADB for S-PPTA. |
Procurement | Not applicable. |
Responsible ADB Officer | George, Len V. |
Responsible ADB Department | South Asia Department |
Responsible ADB Division | Energy Division, SARD |
Executing Agencies |
Asian Development Bank Ministry of Power, Energy and Mineral Resources |
Timetable | |
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Concept Clearance | - |
Fact Finding | - |
MRM | - |
Approval | 09 Mar 2016 |
Last Review Mission | - |
Last PDS Update | 23 Mar 2018 |
TA 9083-BAN
Milestones | |||||
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Approval | Signing Date | Effectivity Date | Closing | ||
Original | Revised | Actual | |||
09 Mar 2016 | - | 09 Mar 2016 | 31 Oct 2016 | 31 Dec 2017 | 31 May 2018 |
Financing Plan/TA Utilization | Cumulative Disbursements | |||||||
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ADB | Cofinancing | Counterpart | Total | Date | Amount | |||
Gov | Beneficiaries | Project Sponsor | Others | |||||
225,000.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 225,000.00 | 17 Jun 2022 | 210,501.61 |
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
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Title | Document Type | Document Date |
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Bangladesh Power System Enhancement and Efficiency Improvement Project: Initial Poverty and Social Analysis | Initial Poverty and Social Analysis | Jun 2016 |
Bangladesh Power System Enhancement and Efficiency Improvement Project: Initial Poverty and Social Analysis | Initial Poverty and Social Analysis | Mar 2016 |
Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.
None currently available.
Evaluation Documents See also: Independent Evaluation
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Related Publications
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Tenders
Tender Title | Type | Status | Posting Date | Deadline |
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Procurement Specialist | Individual - Consulting | Closed |
Contracts Awarded
Procurement Plan
None currently available.