Bangladesh: Sustainable Power Sector Development Program (Project)

Overview
Project Data Sheet
Documents

Summary

Building on the first power sector development program approved in 2003, the policy loan aims to provide further support and incentives to the Government for power sector reform activities through financial stabilization of sector entities and their improved governance. The investment loan will be linked to the ongoing power sector reforms and will expand power supply capacity, enhance transmission network reliability, and improved quality of supply in Dhaka and surrounding areas. The entire exercise of the Sustainable Power Sector Development Program is to support economic growth of the country and gradually relieve the Government of financially supporting the power sector.

Latest Project Documents

Title	Date
Sustainable Power Sector Development Program: Program Completion Report	Sep 2016
Sustainable Power Sector Development Project	Nov 2012
Sustainable Power Sector Development Program	Aug 2007

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Project Name

Sustainable Power Sector Development Program (Project)

Project Number

36107-013

Country

Bangladesh

Project Status

Closed

Project Type / Modality of Assistance

Loan

Source of Funding / Amount

Loan 2332-BAN: Sustainable Power Sector Development Program (Project)
Ordinary capital resources	US$ 400.00 million
Loan 2333-BAN: Sustainable Power Sector Development Program (Project)
Asian Development Fund	US$ 5.00 million

Strategic Agendas

Inclusive economic growth

Drivers of Change

Governance and capacity development

Sector / Subsector

Energy - Conventional energy generation - Electricity transmission and distribution - Energy efficiency and conservation - Energy sector development and institutional reform

Gender Equity and Mainstreaming

No gender elements

Description

Project Rationale and Linkage to Country/Regional Strategy

ADB has developed its strategy for the power sector in consultation with the Government and other key development partners involved in the sector. In parallel with its continued support for expanding and upgrading power supply systems in Bangladesh as part of a least-cost expansion plan, the strategy consists of (i) changes in the business environment through continued corporatization and commercialization of sector entities as well as increasing private sector participation, (ii) institutional improvements in power sector entities, (iii) creation of new power sector companies to serve as role models for the sector, (iv) enlarging the scope of PBSs, (v) strengthening the long-term planning and regulatory processes, and (vi) promotion of good governance at the sector and corporate levels. The proposed program addresses items (i), (ii) (iii), (v), and (vi) of this strategy. Item (iv) has been addressed through ADB's earlier projects and World Bank's ongoing project for rural electrification.

The program was included in 2007 Country Operations and Business Plan for Bangladesh.

Impact

Increased capacity and reliable power supply for sustained economic growth.

Project Outcome

Implementation Progress
Description of Outcome	Reforms: 1. Improved power sector sustainability through financial and organizational restructuring Clean Energy Power Supply Capacity Expansion and Efficiency Improvements: 2. Expanded peak generation capacity and reduction of load shedding 3. Improved power transmission capacity and reduction of transmission system losses 4. Dhaka area distribution system efficiency improvements Institutional capacity development
Progress Toward Outcome	As of 30 September 2013, the project has added transmission and distribution capacity by 238 MVA and 1,555 MVA respectively, and reduced line losses from 3.4% to 3.1% under PGCB, from 16.7% to 11.29% under DESCO and from 30% to 13.47% under DPDC. The project has also added 157 km 132kV transmission line in the report period.
Description of Project Outputs	Construction of clean natural gas-fired power plants Construction and augmentation of transmission systems Distribution system upgraded in DESCO Area Distribution system upgraded in DPDC Area Institutional Capacity Development Fully functional legal and regulatory framework Financial restructuring of power sector entities with increased public-private partnership
Status of Implementation Progress (Outputs, Activities, and Issues)	Contract signed on 12 May 2011. Implementation progress: 98% completed a) ADB concurred with EAs request for inclusion of the dual system in scope on 4 May 2009. ADB concurred price evaluation on 14 June 2010. Contract signed on 12 October 2010. Implementation progress: 100% of work completed. EA submited re-evaluation report on price evaluation. ADB gave approval on 3 March 2011. Contract was signed on 20 June 2011. Implementation progress:89% completed Contract was awarded on 31 March 2011, site works has commenced with pile works ongoing. 89% of physical work complted Contract signed for Aminbazar - Old Airport . transmission line. Works ongoing Due to design change, the target was revised to 157 km.Completed. 238 MVA substation capacity added. Contract signed on 12 Jul 2009. 770 MVA capacity added. Works completed. However, these new substations would not be operational until underground cable connection under KfW financing is provided. This is expected by 31 Dec 2013. Completed. 560 MVA distribution capacity added. Completed and commissioned on 21 March 2011. 225 MVA distribution capacity added. Completed Key trainings and capacity development initiatives started from December 2012. Prior to this, Power Division has started organizing local training programs using own funds. EA reports that expertise has been developing among the officials. Key trainings and capacity development initiatives started from December 2012. Prior to this, Power Division has started organizing local training programs using own funds. EA reports that expertise has been developing among the officials. Key trainings and capacity development initiatives started from December 2012. Prior to this, Power Division has started organizing local training programs using own funds. EA reports that expertise has been developing among the officials. Key trainings and capacity development initiatives started from December 2012. Prior to this, Power Division has started organizing local training programs using own funds. EA reports that expertise has been developing among the officials. The plan has been prepared using funds from other DPs. Key trainings and capacity development initiatives started from December 2012. Prior to this, Power Division has started organizing local training programs using own funds. EA reports that expertise has been developing among the officials. Key trainings and capacity development initiatives started from December 2012. Prior to this, Power Division has started organizing local training programs using own funds. EA reports that expertise has been developing among the officials. Key trainings and capacity development initiatives started from December 2012. Prior to this, Power Division has started organizing local training programs using own funds. EA reports that expertise has been developing among the officials. Chairman and all Members were appointed and staffs partly recruited. Complied in 2008 under the program loan. Complied in 2007 under the program loan . Complied in 2007 under the program loan. Complied in 2007 under the program loan.
Geographical Location	Dhaka, Western and Northern part of the country

Safeguard Categories

Environment	B
Involuntary Resettlement	A
Indigenous Peoples	C

Summary of Environmental and Social Aspects

Stakeholder Communication, Participation, and Consultation
Environmental Aspects	No major issues have been identified. All necessary environmental clearances have been obtained.
Involuntary Resettlement
Indigenous Peoples
During Project Design
During Project Implementation

Business Opportunities

Consulting Services	Consultants will be recruited in accordance with ADB's Guidelines on the Use of Consultants, and other arrangements satisfactory to ADB for the engagement of consultants.
Procurement	Good and services financed by ADB will be procured following ADB's Guidelines for Procurement. For such procurement, bid specifications will be prepared so as to ensure maximum competition under international competitive bidding.

Responsible Staff

Responsible ADB Officer	Mohammed Zulyaminayn
Responsible ADB Department	South Asia Department
Responsible ADB Division	Bangladesh Resident Mission
Executing Agencies	Dhaka Electric Supply Company Ltd. (DESCO) Mr. Saleh Ahmed Biddut Bhaban, 1 Abdul Gani Road Dhaka 1000, Bangladesh Dhaka Power Distribution Company Ltd. (DPDC) Mr. A F M Faridul Haque SCADA Bhaban (2nd Floor) Kataban, Sonargaon Road Dhaka 1000 Ministry of Power, Energy and Mineral Resources Mr. Md. Abul Kalam Azad WAPDA Building Motijheel Commercial Area, Dhaka-1000 Bangladesh Bangladesh Power Development Board (BPDB) A S M Alamgir Kabir WAPDA Building, 9th Floor Motijhel C/A Dhaka-1000,Bangladesh Power Grid Company of Bangladesh, Ltd. (PGCB) Mr. Md. Ruhul Amin [email protected];_WEBSITE:WWW.PGCB.ORG IEB Bhaban (4th Floor) Ramna,Dhaka, Bangladesh

Timetable

Concept Clearance	31 Oct 2005
Fact Finding	10 Apr 2006 to 27 Apr 2006
MRM	29 Jun 2006
Approval	26 Jun 2007
Last Review Mission	-
PDS Creation Date	08 Mar 2006
Last PDS Update	29 Sep 2014

Loan 2332-BAN

Milestones
Approval	Signing Date	Effectivity Date	Closing
Approval	Signing Date	Effectivity Date	Original	Revised	Actual
26 Jun 2007	28 Jun 2007	24 Sep 2007	30 Jun 2010	30 Jun 2014	22 Oct 2014

Financing Plan		Loan Utilization
	Total (Amount in US$ million)	Date	ADB	Others	Net Percentage
Project Cost	674.90	Cumulative Contract Awards
ADB	400.00	26 Jun 2007	369.02	0.00	100%
Counterpart	274.90	Cumulative Disbursements
Cofinancing	0.00	26 Jun 2007	369.02	0.00	100%

Loan 2333-BAN

Milestones
Approval	Signing Date	Effectivity Date	Closing
Approval	Signing Date	Effectivity Date	Original	Revised	Actual
26 Jun 2007	28 Jun 2007	24 Sep 2007	30 Jun 2010	31 Dec 2013	15 Apr 2014

Financing Plan		Loan Utilization
	Total (Amount in US$ million)	Date	ADB	Others	Net Percentage
Project Cost	5.00	Cumulative Contract Awards
ADB	5.00	26 Jun 2007	3.62	0.00	100%
Counterpart	0.00	Cumulative Disbursements
Cofinancing	0.00	26 Jun 2007	3.62	0.00	100%

Title	Document Type	Document Date
Sustainable Power Sector Development Program: Program Completion Report	Project/Program Completion Reports	Sep 2016
Sustainable Power Sector Development Project	Procurement Plans	Nov 2012
Sustainable Power Sector Development Program	Project/Program Administration Manual	Aug 2007
Sustainable Power Sector Development Project	Design and Monitoring Frameworks	Jun 2007
Sustainable Power Sector Development Program	Reports and Recommendations of the President	Jun 2007
Project Agreement Sustainable Power Sector Development Project between Asian Development Bank and Dhaka Power Distribution Company Limited dated 28 June 2007	Project/Program Agreement	Jun 2007
Project Agreement Sustainable Power Sector Development Project between Asian Development Bank and Dhaka Electric Supply Company Limited dated 28 June 2007	Project/Program Agreement	Jun 2007
Project Agreement Sustainable Power Sector Development Project between Asian Development Bank and Power Grid Company of Bangladesh Limited dated 28 June 2007	Project/Program Agreement	Jun 2007
Loan Agreement for Sustainable Power Sector Development Project between People's Republic of Bangladesh and Asian Development Bank dated 28 June 2007	Loan Agreement (Ordinary Resources)	Jun 2007
Loan Agreement for Sustainable Power Sector Development Project between People's Republic of Bangladesh and Asian Development Bank dated 28 June 2007	Loan Agreement (Special Operations)	Jun 2007
Project Agreement for Sustainable Power Sector Development Project between Asian Development Bank and Bangladesh Power Development Board (Northwest Power Generation Company Limited) dated 28 June 2007	Project/Program Agreement	Jun 2007
Sustainable Power Sector Development Program	Design and Monitoring Frameworks	Jul 2006

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

None currently available.

Related Publications

None currently available.

The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

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