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.
| Project Name | Sustainable Power Sector Development Program (Project) | ||||||||
| Project Number | 36107-013 | ||||||||
| Country | Bangladesh | ||||||||
| Project Status | Closed | ||||||||
| Project Type / Modality of Assistance | Loan |
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| Source of Funding / Amount |
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| Strategic Agendas | Inclusive economic growth |
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| Drivers of Change | Governance and capacity development |
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| Sector / Subsector | Energy - Conventional energy generation - Electricity transmission and distribution - Energy efficiency and conservation - Energy sector development and institutional reform |
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| Gender Equity and Mainstreaming | No gender elements | ||||||||
| Description | 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. | ||||||||
| 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. |
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| Impact | Increased capacity and reliable power supply for sustained economic growth. | ||||||||
Project Outcome
| 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. |
| Implementation Progress | |
|---|---|
| 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
| Environmental Aspects | No major issues have been identified. All necessary environmental clearances have been obtained. |
| Involuntary Resettlement | |
| Indigenous Peoples | |
| Stakeholder Communication, Participation, and Consultation | |
|---|---|
| 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 | Zulyaminayn, Mohammed |
| Responsible ADB Department | South Asia Department |
| Responsible ADB Division | Bangladesh Resident Mission |
| Executing Agencies |
Bangladesh Power Development Board (BPDB) A S M Alamgir Kabir WAPDA Building, 9th Floor Motijhel C/A Dhaka-1000,Bangladesh 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 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 | ||
| 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 | 354.16 | 0.00 | 96% |
| 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 | ||
| 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% |
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
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Evaluation Documents See also: Independent Evaluation
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Related Publications
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