Project Name Power System Expansion and Efficiency Improvement Investment Program - Tranche 3
Project Number 42378-017
Country / Economy Bangladesh
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3350-BAN: Power System Expansion and Efficiency Improvement Investment Program-Tranche 3
Ordinary capital resources US$ 205.00 million
Loan: Power System Expansion and Efficiency Improvement Investment Program-Tranche 3
Islamic Development Bank US$ 220.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Knowledge solutions
Sector / Subsector

Energy / Electricity transmission and distribution - Energy efficiency and conservation

Gender No gender elements

Tranche 3 will cover investments in generation system expansion and efficiency improvement, transmission system enhancement, and demand side energy efficiency improvement.

Project Rationale and Linkage to Country/Regional Strategy

Government''s '"Vision 2021" and Power System Master Plan 2010, Bangladesh is focused on achieving universal access to grid connected electricity by 2021 with a total installed generation capacity of 20,000 MW by 2020. This is a challenging task in light of the electrification rate standing at 62% (2014) and the country still undergoing frequent power shortages. These ambitious targets require significant investments in the power sector infrastructure during the coming years. The MFF is contributing towards this target through its generation, transmission, distribution investments. Tranche 3 is specifically focused on enhancement of generation and transmission capacity to facilitate achieving the target.


better access to reliable electricity supply in Bangladesh.

Project Outcome
Description of Outcome

increased efficiency and capacity of the power system in Bangladesh.

Progress Toward Outcome Efficiency in generation has been improved by installing new 400 MW new combined cycle power plant at Ashuganj Power Station. In transmission side, efficiency improved by replacing the old transmission by ACCC conductor to carry more current. On the other hand in distribution side, 1 million prepaid meters under BREB were replaced to convert prepaid meters.
Implementation Progress
Description of Project Outputs

Power generation system expanded and upgraded through replacement of an aging steam and gas turbine power plant of 220 megawatt (MW) capacity with a more efficient 400 MW gas-fired Combined Cycle Power Plant (CCPP) at Ashuganj Power Station complex

Transmission system expanded and upgraded through upgrade or construction of 132kv transmission lines and substations in Chittagong Division

demand side energy efficiency improved through replacement of meters with approximately 700,000 pre-payment meters in Dhaka Division.

Consultancy support provided for Aminbazar- Maowa- Mongla 400 kV double circuit transmission line and 400/230 kV substation at Aminbazar by December 2020.

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

Output 1 is construction of 400 MW Combined cycle power plant under APSCL. The EPC Contract was signed on 20 March 2018. The old power plant demolished in November 2018. Construction work for the new power plant started from February 2019, and commissioning work completed in 25 oct 2022. The power plant is now operational. Output 2 is for PGCB. 65km 132 kV overhead transmission line from Comilla to Chadpur was upgraded from ACSR cable to ACCC conductor under the project. The line was energized on 3 May 2019. One new AIS substation of 132/33 kV, 150 MVA at Kachua constructed and energized on 17 January 2021. One 132/33 kV substation at Madunaghat upgraded to GIS and energized on 28 December 2021. Upgradation at Comilla 132/33 kV GIS substation completed. The substation was energized in March 2022. Construction of new 132/33 kV GIS substation at Kalurghat completed. The substation was energized in April 2022. Construction work for 7.2 km of 132 kV underground transmission line from Madunaghat to Kalurghat completed. The line was charged in April 2022.

Output 3 is for BREB. Two contracts were signed on 19 June 2018 for supply of 1 million prepaid meters with related services. Installation of 988,000 single phase meters and 12,000 3 phase meters completed in 10 December 2019. All meters are functional.

Output 4 is consultancy service for Loan 3522. Under this output, contract was signed with GOPA- International for design, procurement and implementation support for the construction of 178.9 km 400 kV Amin bazar -Maowa Mongla transmission line. The consultant team was mobilized on early 2017. Line construction work 100% complete.

Geographical Location Nation-wide, Ashuganj City, Chandpur, Comilla, Dhaka Division, Kachua, Kalurghat
Safeguard Categories
Environment A
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects Given the potential environmental impacts, e.g. cooling water discharge to the Meghna River and nitrogen oxides (NOx) emissions, Output 1 is classified as environmental category A. Even if Output 1 is classified as environmental category A, it is not expected to cause significant adverse environmental impacts. Output 1 focuses on generation efficiency improvement that will reduce pollutant intensity and offset pollution emission growth without consuming more natural gas by adopting more efficient power plant. Potential environmental impacts are mostly predictable and reversible. Sensitive ecosystems will not be impacted. The impacts such as NOx emissions and cooling water discharge to the Meghna River during operation will be mitigated through best available technology built-in to the power plant design that includes low NOx burners with NOx reduction system. Potential environmental impacts of Output 2 will occur in construction stage, which is temporary, predictable and reversible. There will be no impacts on forests, sanctuaries or protected areas, and historical and cultural monuments. Output 3 will have minimal environmental impacts. The replaced meters which are functional will be re-used in other locations. Any final disposal should occur at existing approved waste management facilities in Bangladesh.
Involuntary Resettlement The project has avoided land acquisition for the Power Plant by establishing the plant inside an enclosed compound owned by Ashuganj Power Station Company Limited (APSCL). No land needs be acquired for Subprojects under Output 1 and Output 3. There has been no physical displacement of people under any subprojects of Tranche 3. However, 2.02 hectares of private land acquisition was required in Hajigong Pourashava for one out of four sub-stations of the project for output 2. A resettlement plan endorsed by the executing agency has been disclosed to the ADB website on 29 June 2015 for this section. The resettlement plan adequately assess the land acquisition and resettlement impacts of the proposed tranche and the measures developed to address identified impacts are adequate. The 17 owners of the land have already received compensation as per RP. The RP had an estimate of approximately 1235 additional HHs to be impacted on temporary basis during construction of tower and stringing of transmission lines. This number will be revised due to design change in transmission lines to be underground trough government land. Meaningful consultation has been undertaken with project stakeholders, and information disclosure is continued through updates on ADB website.
Indigenous Peoples 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.
Stakeholder Communication, Participation, and Consultation
During Project Design Public consultations were conducted with local communities including fishermen. The communities welcomed the project to improve reliability of power supply. Community concerns were identified in the EIA, and mitigation measures have been incorporated into the EMP. PMU of each executing agency has dedicated staff responsible for monitoring environmental issues and implementing the EMP.
During Project Implementation The project was approved in December 2015. Grievance redress committees (GRC) will be set up by the executing agencies as the project components commence. The GRC will convene twice a month and will keep the record of the grievances, and provide the solution(s) within 30 days from the date of the complaint. All complaint related documentation such as minutes of the meeting and decisions will be summarized and become part of the semi-annual monitoring report submitted to ADB. If the grievance is not addressed, the complainant can seek legal redress of the grievance in the appropriate courts.
Business Opportunities
Consulting Services Project Implementation Support Consultants for APSCL (Firm, QCBS 90:10)
Procurement Turnkey package of Ashuganj 400MW CCPP (East); Turnkey package of 132 Kv transmission line and substations in Chittagong Division; Supply package of pre-payment meters in Dhaka Division.
Responsible ADB Officer Nahar, Nazmun
Responsible ADB Department South Asia Department
Responsible ADB Division Bangladesh Resident Mission (BRM)
Executing Agencies
Ashuganj Power Station Company Ltd. (APSCL)
Bangladesh Rural Electrification Board
Power Grid Company of Bangladesh, Ltd. (PGCB)
Concept Clearance -
Fact Finding -
MRM 05 Oct 2015
Approval 08 Dec 2015
Last Review Mission -
Last PDS Update 15 Dec 2022

LoanĀ 3350-BAN

Approval Signing Date Effectivity Date Closing
Original Revised Actual
08 Dec 2015 22 Dec 2015 05 Jan 2016 30 Jun 2021 31 Oct 2022 05 Mar 2023
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 310.00 Cumulative Contract Awards
ADB 205.00 06 Nov 2023 173.29 0.00 100%
Counterpart 105.00 Cumulative Disbursements
Cofinancing 0.00 06 Nov 2023 173.29 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory - Satisfactory - Satisfactory
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