Project Name Power System Expansion and Efficiency Improvement Investment Program - Tranche 2
Project Number 42378-016
Country / Economy Bangladesh
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3087-BAN: Power System Expansion and Efficiency Improvement Investment Program - Tranche 2
Ordinary capital resources US$ 310.00 million
Loan: Power System Expansion and Efficiency Improvement Investment Program - Tranche 2
Islamic Development Bank US$ 220.00 million
Agence Francaise de Developpement US$ 125.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Sector / Subsector

Energy / Electricity transmission and distribution

Gender Some gender elements
Description The proposed Tranche 2 will contribute to the overall impact of the MFF on increased energy sector contribution to low-carbon economic growth in Bangladesh. The specific impact of the Tranche 2 will be increased access to reliable supply of electricity. The outcome of Tranche 2 is increased transmission and distribution capability in the power system. This will allow increased power transfer from Ghorasal to Tongi and to increased transmission capability to satisfy the increasing demand in Dhaka, Chittagong and Sylhet areas. Also the investments will allow improved distribution networks in the Dhaka region to supply increasing demand in the system to ensure no load-shedding due to network constraints by 2018.
Project Rationale and Linkage to Country/Regional Strategy A framework financing agreement (FFA) for the Bangladesh Power System Expansion and Efficiency Improvement Investment Program (BPSEEIP, the facility ), has been signed by the Asian Development Bank (ADB) and the Government of Bangladesh (the Government) and ADB's Board of Directors approved this multi tranche financing facility (MFF) on 28 Nov 2012. This MFF funds power sector investments in generation, transmission and distribution systems in Bangladesh to improve efficiency in these systems and add capacity for increased and reliable energy access to the population. The MFF consisted of three tranches to undertake these investments in a staggered manner. The proposed tranche 2 meets the selection criteria set forth in the Schedule 4 of the FFA. It will undertake investments in transmission and distribution network strengthening. Thus the Tranche 2 helps achieving the outcome of the MFF, increased access to clean and reliable supply of electricity in Bangladesh.

Increased access to reliable supply of electricity

Project Outcome
Description of Outcome

Increased Transmission and Distribution capability in the power system

Progress Toward Outcome Transmission capacity has been increased by adding new substations and transmission lines under PGCB. Similarly, distribution network has been enhanced by adding new substations and new distribution line. Consumers number has been significantly improved with low transmission and distribution loss.
Implementation Progress
Description of Project Outputs

Increased Transmission Capacity

Increased south Dhaka distribution network capacity

Increased north Dhaka distribution network capacity

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

Out of eight nos. 33/11 KV GIS substations, seven are already energized under DPDC, total 490 MVA capacity. One substation of 70 MVA is waiting for energization.

1700 nos. 11/0.4 kV distribution transformer installed capacity 425 MVA.

479 km 11/0.4 kV overhead distribution line constructed.

Four nos. of 132/33 kV substations have been already energized out of seven substations . Remaining three are almost 99% completed, waiting to get source connection.

Six nos. 33/11 kV substations are already energized out of seven substations.

196 km associated underground transmission line and 2km overhead transmission line already completed.

Completed. Two substations at Dhamrai and Shampur and 6 km of 230kV and 132kV transmission lines have been constructed under the project, capacity 750 MVA.

Out of 5 new 132/33/11 KV substations in Dhaka area, 2 substations at Uttara and Aftabnagar are already energized, capacity 480 MVA. Remaining three are ready to energized, waiting for the source connection of 132kV line. These are expected to be energized by June 2021.

Out of 25.65 km underground cable. 23.12 km completed so far.

Out of 24 x 33/11kV substations, 23 substations are already completed (16 new, 5 augmented (capacity enhanced) and 2 rehabilitated (renovated old SS), capacity 1652 MVA. Remaining one substations is ready for energization. Expected energization date 5 May 2021.

500 km overhead distribution line and 181.05 circuit km underground line (33 kV and 11 kV) has been completed.

200,000 smart prepaid meters installation and commissioning completed.

Geographical Location Ashuganj, Bhaluka, Chandpur, Chandpur District, Chittagong, Chittagong, Chittagong District, Comilla, Dhaka Division, Dhamrai, Fenchuganj, Gazipur District, Gazipur S., Gazipura, Ghorasal, Hathazari, Jamalpur District, Kachua, Kaliakair, Kalurghat, Madan Ghat, Meghnaghat, Mirzapur, Narayanganj, Narsingdi District, Paschim Haripur, Rampur, Rupsi, Sholashahar, Sirajganj, Sirajganj District, Sitakunda, Sreepur, Sylhet, Sylhet District, Tangail, Tangail District, Tongi
Safeguard Categories
Environment B
Involuntary Resettlement A
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects

An environmental assessment and review framework (EARF) for the MFF was prepared in September 2012 to ensure that project components in succeeding tranches comply with SPS 2009. Tranche 2 is classified as Category B according to SPS 2009 requiring an initial environmental examination (IEE). Following SPS 2009 and EARF, an IEE was prepared and was publicly disclosed to ADB website in August 2013.

No major environmental issue, nonetheless EA submits environmental monitoring reports semi-annually.

Sub-project selection for Tranche 2 was guided by the environmental criteria outlined in the EARF and Schedule 4 of the FFA. Components of Tranche 2 are not expected to cause significant adverse environmental impacts. Transmission line routes will traverse mainly agricultural lands and no forest, sanctuaries or protected areas will be affected. Environmental management plans have been prepared with adequate resources for implementation. PGCB, DPDC and DESCO will obtain all the required environmental clearances from the DOE prior to construction and copies submitted to ADB. A project brief in Bangla will be prepared by PGCB, DPDC, and DESCO and will be made available to the public at their field offices.

Involuntary Resettlement

The project is a Category A for its land acquisition impacts. There will be no impacts for the DESCO (C1-C2) or DPDC (B2-B3) components.

For construction of two substations; component A-2 under PGCB, 4.5 acres of land has been acquired. Three Resettlement Plans have been prepared and disclosed in the website in 2013. There has been 2 acres of land acquisition for the Shyampur 230/132 KV GIS and 2.5 acres of land acquisition for the Dhamrai 132/33 KV GIS. No land acquisition has been required for six kilo-meters transmission line. The affected people have been compensated for their loss of crops and trees as per ADB policy.

The semi-annual monitoring reports have been submitted by EA on a regular basis. So far, no grievances have been reported under the project.

Indigenous Peoples Tranche 2 is classified as category C in accordance with the ADBs Safeguard Policy Statement (2009). None of the subprojects would impact communities of indigenous populations or interfere with the territories of the indigenous populations or ethnic minorities, their livelihood systems, customary properties or their natural or cultural resources. However, if there are any unanticipated impacts on indigenous people during project implementation an indigenous peoples plan will be prepared and submitted to ADB for review. EAs will obtain the approval of such a plan before award of related civil works contract and implemented before commencement of the civil works of the relevant subproject, as applicable.
Stakeholder Communication, Participation, and Consultation
During Project Design During project preparation the project team along with the consultants have conducted stakeholder meetings while finalising the intial environmental examinations and resettlement plans for the respective components.
During Project Implementation During project implementation stakeholders consultation is being carried out as and will continue if required.
Business Opportunities
Consulting Services Implementation support consultant for DPDC$1,000,000 as per GOB's guidelines for Q4/2013, National and financed by GOB

The following lists goods and works contracts for which procurement activity is either ongoing or expected to commence within the next 18 months.

Supply Contract of North Dhaka Distribution Equipment (Prepaid Meters) 20.4ICB NQ1/2018 Financed by ADB

Responsible ADB Officer Nahar, Nazmun
Responsible ADB Department South Asia Department
Responsible ADB Division Bangladesh Resident Mission (BRM)
Executing Agencies
Dhaka Electric Supply Company Ltd. (DESCO)
Dhaka Power Distribution Company Ltd. (DPDC)
Power Grid Company of Bangladesh, Ltd. (PGCB)
Concept Clearance -
Fact Finding -
Approval 11 Dec 2013
Last Review Mission -
Last PDS Update 28 Sep 2021

Loan 3087-BAN

Approval Signing Date Effectivity Date Closing
Original Revised Actual
09 Dec 2013 11 Feb 2014 14 Mar 2014 30 Jun 2019 30 Jun 2021 31 Dec 2021
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 310.00 Cumulative Contract Awards
ADB 310.00 18 Jan 2023 267.83 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 18 Jan 2023 267.83 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory Satisfactory Satisfactory - Satisfactory
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