Bangladesh: Power Sector Development Program (Project Loan)

Sovereign (Public) Project | 36205-013 Status: Archived

Project Results



    kilometers of distribution lines installed or upgraded



    TWh equivalent per year in energy saved



    MW installed energy generation capacity using conventional and renewable energy sources



    tCO2 equivalent per year in greenhouse gas emission reduction



    new households connected to electricity

The results data reported above are limited to ADB's core sectors, as defined under Strategy 2020 and tracked through indicators in the ADB Results Framework. For definitions of results indicators, please see the ADB Results Framework Indicators Definition.

Project Details

Project Officer
Rahman, Md. Saidur South Asia Department Request for information
  • Bangladesh
  • Energy
Project Name Power Sector Development Program (Project Loan)
Project Number 36205-013
Country Bangladesh
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2039-BAN: Power Sector Development Program (Project Loan)
Ordinary capital resources US$ 179.64 million
Loan: Power Sector Development Program (Project Loan)
Nordic Development Fund US$ 9.60 million
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector

Energy - Electricity transmission and distribution

Gender Equity and Mainstreaming No gender elements
Description The objectives are: (i) construction of 2X100MW peak load power generation capacity close to Dhaka, (ii) establishment of National Load Dispatch Center to be located in the outskirts of Dhaka, (iii) upgrading and expansion of the distribution grid in the northwest region of Bangladesh, which will improve losses and extension of electricity supply to urban as well as rural households and the commercial sector.
Project Rationale and Linkage to Country/Regional Strategy The combined intervention of the proposed investments and the program componets are strongly linked and will further enhance the Government's ongoing reform program and strengthening of the power sector's financial and economic viability over the next 5 years, and improve sector oversight and governance, thereby providing an assurance of sustained growth of the sector and gradually relieve the Government of financial support for the sector.
Impact To achieve economic development and alleviate poverty through improved governance, and financial and operational performance of the power sector.
Project Outcome
Description of Outcome

1. Reform the power sector through financially restructuring two major companies (PGCB and DESCO) and prepare the sector for long-term sustainability and gradually relieve it of the Government's support of the sector.

2. Improved customer service and quality of supply

Progress Toward Outcome Partially achieved. Highlights are: DESCO's system loss has reduced consistently over 2001-2002 to 2011-12 time period from 26.66% to 8.79%. However,Load shedding exists due to shortage of power supply. BERC in place.
Implementation Progress
Description of Project Outputs

Peak Load Power Plant

National Load Dispatch Center (NLDC)

Upgraded distribution network in northwest zone of Bangladesh.

Northwest Power Distribution Company

New Siddhirganj Power Station Company

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

Physical Output Progress:

2x120 power generation capacity was added in November 2011.

National Load Dispatch Center (NLDC) was commissioned on 18 April 2010.

980.78 km of distribution netwrk added/upgraded in northwest zone of Bangladesh.


2x120 MW Power Plant was transferred back from EGCB to BPDB on 17 Jan 2011.

Geographical Location Rajshahi, Sirajgonj, Bogra, Pabna, Rangpur, Dinajpur, Joypurhat, Thakurgaon, Nilphamari and Gaibanda.
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects

Environmental - The Borrower shall ensure that the environmental mitigation measures identified in the initial environmental examination (IEE) are incorporated and followed during construction, operation, and maintenance of program facilities.

Social Issues - The Borrower will require contracts for all civil works contractors to provide information at worksites on the risks of sexually transmitted diseases and HIV/AIDS as part of the health and safety measures of those employed during construction.

The Borrower shall ensure that all program-related activities are carried out in complaince with all applicable labor laws and regulations, including equal pay for equal work, and that no child labor is employed in any program-related work.

Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services Consultants will support PGCB, BPDB, and the new generation and distribution companies, for their respective parts of the Project and will be recruited in accordance with ADB's Guidelines on the Use of Consultants. Consultants will essentially provide design review, quality assurance services and training.
Procurement Goods 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. Advanced Procurement has been allowed.
Responsible ADB Officer Rahman, Md. Saidur
Responsible ADB Department South Asia Department
Responsible ADB Division Bangladesh Resident Mission
Executing Agencies
Bangladesh Power Development Board (BPDB)
Mr. ASM Alamgir Kabir
WAPDA Building, 9th Floor
Motijhel C/A
Electricity Generation of Bangladesh Limited
Mr. AMM Mortoza Ali
BTMC Bhaban (8th Floor)
7-9 Kawran Bazar C/A,
Dhaka-1215, Bangladesh
Power Grid Company of Bangladesh, Ltd. (PGCB)
Mr. Md. Ruhul Amin
IEB Bhaban (4th Floor)
Ramna,Dhaka, Bangladesh
Concept Clearance 02 Apr 2003
Fact Finding 16 Apr 2003 to 27 Apr 2003
MRM 07 Aug 2003
Approval 10 Dec 2003
Last Review Mission -
PDS Creation Date 04 Feb 2007
Last PDS Update 29 Sep 2014

Loan 2039-BAN

Approval Signing Date Effectivity Date Closing
Original Revised Actual
10 Dec 2003 18 Dec 2003 02 Aug 2004 30 Jun 2008 31 Dec 2011 09 Apr 2012
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 287.94 Cumulative Contract Awards
ADB 179.64 10 Dec 2003 172.24 0.00 96%
Counterpart 98.70 Cumulative Disbursements
Cofinancing 9.60 10 Dec 2003 179.64 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory Satisfactory Satisfactory - Satisfactory

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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Title Document Type Document Date
Power Sector Development Program (Project Loan) Project/Program Completion Reports Aug 2013
Power Sector Development Program Reports and Recommendations of the President Nov 2003

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.

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