Project Name
Smart Metering Energy Efficiency Improvement Project
Project Number
56004-001
Country / Economy
  • Bangladesh
Project Status
Active
Project Type / Modality of Assistance
  • Loan
  • Technical Assistance
Source of Funding / Amount
Loan 4386-BAN: Smart Metering Energy Efficiency Improvement Project
Source Amount
Ordinary capital resources US$ 200.00 million
TA 10187-BAN: Promoting Energy Transition, Safety and Energy Efficiency in the Energy Sector Project
Source Amount
Technical Assistance Special Fund US$ 1.00 million
Republic of Korea e-Asia and Knowledge Partnership Fund US$ 750,000.00
Operational Priorities
  • OP1: Addressing remaining poverty and reducing inequalities
  • OP2: Accelerating progress in gender equality
  • OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
  • OP4: Making cities more livable
  • OP6: Strengthening governance and institutional capacity
Sector / Subsector
  • Energy / Energy efficiency and conservation - Energy utility services

Gender
Effective gender mainstreaming
Description
The proposed program will contribute to the government's program to improve demand-side management and energy conservation by installing prepaid gas meters for all domestic customers by December 2023 and improve operational performance of the gas distribution companies, focusing on the government's priority areas of Greater Dhaka and Chittagong. Installation of prepaid gas meters is expected to (i) reduce system losses through saving of gas by preventing gas wastage, (ii) build up awareness among customers to use gas more efficiently, (iii) improve financial health of gas distribution companies by earning revenues in advance and reducing billing, collection, and monitoring cost, (iv) improve management efficiency and enhance customer service of gas distribution companies, (v) prevent accident due to gas leakage in internal pipelines, and (vi) help meet the national climate target by reducing carbon emissions by gas savings.
Project Rationale and Linkage to Country/Regional Strategy

Fast economic growth in Bangladesh has been accompanied by a rapid increase in energy consumption, as well as rising carbon dioxide (CO2) emissions. In 2010, the total primary energy supply in Bangladesh reached 1.25 million tera-joule (TJ), while the corresponding CO2 emissions were 49 million tons (MtCO2). By 2019, these two indicators soared to 1.81 million TJ and 88 MtCO2 (rising by 45% and 80%), respectively. This has translated into a fast domestic energy supply deficit, a situation that net energy imports tripled from 180 TJ to 533 TJ during the period.[1]

Waste of natural gas is prevalent among domestic customers who consume about 13% of national gas production. While all other customer categories are provided with gas meters, most domestic customers use non-metered gas. Domestic customers now pay a fixed amount of Taka 975 per month for each double burner regardless of the quantity of gas they use. Since they do not pay for every unit of gas, they tend to use gas inappropriately often using gas for drying clothes, keeping rooms warm in winter, and even saving the expenses of match sticks, nor do they consider using more efficient gas appliances. Some domestic customers do not report gas leakage in internal pipelines because it doesn't affect their bills, which leads to increased system losses and potential accident.

Of nearly 4.3 million domestic gas customers nationwide, only about 350,000 have come under prepaid metering coverage as of November 2021. Following the government's program to install 2 million prepaid gas meters by December 2022 and 100% domestic customers under prepaid gas metering coverage by December 2023, each of six gas distribution companies are making the move to procure and install prepaid gas meters for the remaining domestic customers in accordance with the government's standard technical specifications. A feasibility study conducted by the government estimated that the amount of actual gas saving by a prepaid gas meter could be 44.69 cubic meters a month. If all domestic customers are under prepaid gas metering coverage nationwide, the amount of gas saving could reach 43 BCF or Tk.16 billion a year.

Impact

(i) Energy intensity lowered (Energy Efficiency and Conservation Master Plan up to 2030)

(ii) Greenhouse gas emissions reduced (Updated Nationally Determined Contribution)

Project Outcome

Description of Outcome

Efficiency, safety, and sustainability of gas distribution improved

Progress Toward Outcome

Implementation Progress

Description of Project Outputs

Demand-side measures for efficiency improvement and safe gas use implemented.

Low-carbon energy transition promoted.

Customer services-oriented management enhanced.

Institutional capacity and operational management strengthened.

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location
Nation-wide

Safeguard Categories

Environment
C
Involuntary Resettlement
C
Indigenous Peoples
C

Summary of Environmental and Social Aspects

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples

Stakeholder Communication, Participation, and Consultation

During Project Design
During Project Implementation

Contact

Responsible ADB Officer
Zhang, Hongwei
Responsible ADB Department
Sectors Group
Responsible ADB Division
Energy Sector Office (SG-ENE)
Executing Agencies
Energy & Mineral Resources Division, MOPEMR

Timetable

Concept Clearance
04 Jan 2023
Fact Finding
28 May 2023 to 11 Jun 2023
MRM
18 Sep 2023
Approval
21 Nov 2023
Last Review Mission
-
Last PDS Update
21 Nov 2023

Funding

Loan 4386-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
21 Nov 2023 28 Nov 2023 28 Feb 2024 30 Jul 2029 - -
Financing Plan
  Total (Amount in US$ million)
Project Cost 264.19
ADB 200.00
Counterpart 64.19
Cofinancing 0.00
Loan Utilization
  Date ADB Others Net Percentage
Cumulative Contract Awards 06 Jun 2024 0.00 0.00 0%
Cumulative Disbursements 06 Jun 2024 0.05 0.00 0%

TA 10187-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
21 Nov 2023 28 Dec 2023 28 Dec 2023 31 Dec 2026 - -
Financing Plan/TA Utilization
ADB Cofinancing Counterpart Total
Gov Beneficiaries Project Sponsor Others
1,000,000.00 750,000.00 0.00 0.00 0.00 0.00 1,750,000.00
Cumulative Disbursements
Date Amount
06 Jun 2024 0.00
 
This page was generated from /projects/56004-001/main on 06 June 2024

Source URL: https://www.adb.org/projects/56004-001/main