Project Name
Bangladesh Power System Enhancement and Efficiency Improvement Project
Project Number
49423-005
Country / Economy
  • Bangladesh
Project Status
Active
Project Type / Modality of Assistance
  • Grant
  • Loan
Source of Funding / Amount
Grant 9190-BAN: Translating Improvement in Electricity Supply to Better Livelihood in Rural Bangladesh
Source Amount
Japan Fund for Prosperous and Resilient Asia and the Pacific US$ 2.00 million
Loan 3522-BAN: Bangladesh Power System Enhancement and Efficiency Improvement Project
Source Amount
Ordinary capital resources US$ 600.00 million
Loan 3523-BAN: Bangladesh Power System Enhancement and Efficiency Improvement Project
Source Amount
Concessional ordinary capital resources lending US$ 16.00 million
Strategic Agendas
  • Environmentally sustainable growth
  • Inclusive economic growth
Drivers of Change
  • Gender Equity and Mainstreaming
  • Governance and capacity development
  • Partnerships
Sector / Subsector
  • Energy / Electricity transmission and distribution - Energy efficiency and conservation - Energy sector development and institutional reform - Renewable energy generation - solar - Renewable energy generation - wind

Gender
Effective gender mainstreaming
Description
The proposed project will enhance the coverage and improve the reliability and efficiency of the transmission and distribution network, to facilitate better utilization of the expanding power generation capacity to meet the growth in electricity demand across the country
Project Rationale and Linkage to Country/Regional Strategy
In 1971, when Bangladesh gained independence, only 3% of its population had access to electricity. By 2015, this had risen to about 72% with per capita electricity consumption reaching 371 kilowatt-hours per annum. The gross domestic product of Bangladesh has been growing at a rate of over 6% consistently during 20052015. Meeting the need for reliable and affordable electricity is a challenge for Bangladesh as it seeks to sustain economic growth and consolidate its transition to middle-income country status by 2021. To support inclusive growth and development as well as the creation of more and better jobs, the government has set a target of electricity for all by 2021, and is working across the electricity generation, transmission, and distribution value chain to enhance improved delivery of electricity and meet the expected demand of 19 gigawatts (GW) by 2021.
Impact

100% access to power by 2021 and power sector sustainability improved in Bangladesh by 2030

Project Outcome

Description of Outcome

Access to efficient and reliable electricity supply in Bangladesh improved

Progress Toward Outcome
Completed.

Implementation Progress

Description of Project Outputs

National transmission network in southern Bangladesh strengthened

Distribution network in DESCO service areas improved

Distribution network in rural areas of Bangladesh including the capacity of end-users improved

Capacity in power sector agencies enhanced

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

Output 1- There were four contracts under output 1. Construction of Aminbazar 400 kV substation was completed in 2021. This substaion plays a vital role in receving the power from the southern part of Bangladesh and distributing it to other part. Aminbazar Mowa Mongla 400 kV 179.5 km transmission line has been constructed. The line is capable to serve 2000 MW power from the southern part of Bangladesh

Output-2. Under output 2, SCADA system has been implemented for 69 substation of DESCO area.

Output 3. Output 3 is for BREB where around 9,50,000 consumers got new connection. 38,000 km 33 and 11 kV distribution lines and associated facilities have been rehabilitated. 12,000 km 33 and 11 kV distribution lines and associated facilities constructed.

Output 4. 2 studies completed for 4 solar and wind project development. GIS based mapping system implemented for NESCO.

Geographical Location
Nation-wide

Safeguard Categories

Environment
B
Involuntary Resettlement
B
Indigenous Peoples
C

Summary of Environmental and Social Aspects

Environmental Aspects
Potential environmental impacts are mostly temporary, predictable, and reversible; and can be mitigated through adherence to national and international standards, design criteria, and implementation of the environmental management plans (EMPs). The transmission towers across the Padma River will be constructed on platforms (associated facilities) provided by the Bangladesh Bridge Authority under an ongoing project and due diligence on the approved environmental impact assessment report found it to be in compliance with ADB's Safeguard Policy Statement (2009).
Involuntary Resettlement
A covenant is included to facilitate verification of the mitigation measures for the platforms. Due diligence has confirmed that the land required for receiving bays at the Aminbazar site is in the possession of PGCB, and no resettlement impacts are expected.
Indigenous Peoples
Based on social assessments, no indigenous peoples are expected to be affected by the project.

Stakeholder Communication, Participation, and Consultation

During Project Design
A series of consultations with key stakeholder groups and communities have been conducted during project preparation, and communities' inputs have been incorporated into the project design.
During Project Implementation

Consultation with stakeholders and communities will be continued throughout implementation of the project.

Business Opportunities

Consulting Services
DESCO has initiated tendering in 2016. Other EAs will initiate the tendering in 2017
Procurement
BREB has initiated tendering in 2016. Other EAs will initiate the tendering in 2017

Contact

Responsible ADB Officer
Nahar, Nazmun
Responsible ADB Department
South Asia Department
Responsible ADB Division
Bangladesh Resident Mission (BRM)
Executing Agencies
Bangladesh Rural Electrification Board
Dhaka Electric Supply Company Ltd. (DESCO)
Power Div-Min of Power, Energy & Mineral Resources
Power Grid Company of Bangladesh, Ltd. (PGCB)

Timetable

Concept Clearance
10 Jun 2016
Fact Finding
21 Jul 2016 to 28 Jul 2016
MRM
29 Sep 2016
Approval
29 Mar 2017
Last Review Mission
-
Last PDS Update
30 Nov 2023

Funding

Grant 9190-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
29 Mar 2017 29 May 2017 22 Jun 2017 31 Dec 2020 31 Dec 2021 06 Feb 2022
Financing Plan
  Total (Amount in US$ million)
Project Cost 2.00
ADB 0.00
Counterpart 0.00
Cofinancing 2.00
Grant Utilization
  Date ADB Others Net Percentage
Cumulative Contract Awards 06 Jun 2024 0.00 1.76 100%
Cumulative Disbursements 06 Jun 2024 0.00 1.76 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory Satisfactory Satisfactory - Satisfactory

Loan 3522-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
29 Mar 2017 29 May 2017 22 Jun 2017 31 Dec 2020 30 Jun 2023 06 Mar 2024
Financing Plan
  Total (Amount in US$ million)
Project Cost 1,040.70
ADB 600.00
Counterpart 440.70
Cofinancing 0.00
Loan Utilization
  Date ADB Others Net Percentage
Cumulative Contract Awards 06 Jun 2024 537.37 0.00 100%
Cumulative Disbursements 06 Jun 2024 537.37 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory Satisfactory Satisfactory - Satisfactory

Loan 3523-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
29 Mar 2017 29 May 2017 22 Jun 2017 31 Dec 2020 31 Mar 2024 -
Financing Plan
  Total (Amount in US$ million)
Project Cost 16.00
ADB 16.00
Counterpart 0.00
Cofinancing 0.00
Loan Utilization
  Date ADB Others Net Percentage
Cumulative Contract Awards 06 Jun 2024 15.67 0.00 100%
Cumulative Disbursements 06 Jun 2024 14.61 0.00 93%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory Satisfactory Satisfactory - Satisfactory
 
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Source URL: https://www.adb.org/projects/49423-005/main