The proposed project - Power System Efficiency Improvement II - will address three key areas in the electricity supply sector. They are: improving energy use efficiency of thermal power plants, improving the transmission network capacity, and expanding the renewable energy base. The project interventions will include: (i) conversion of power plants at Siddhirganj, Baghabari, and Khulna to combine cycle power plants; (ii) construction of 180 km 132 kV transmission lines and four 133/32 kV substations; (ii) installation of solar irrigation water pumps; and (iii) capacity development for solar powered irrigation and power plant management.
|Project Name||Power System Efficiency Improvement Project II|
|Project Type / Modality of Assistance||Technical Assistance
|Source of Funding / Amount||
|Strategic Agendas||Environmentally sustainable growth
Inclusive economic growth
|Drivers of Change|
|Sector / Subsector||
Energy - Electricity transmission and distribution - Energy efficiency and conservation - Renewable energy generation - solar
|Gender Equity and Mainstreaming||Some gender elements|
|Description||The proposed project - Power System Efficiency Improvement II - will address three key areas in the electricity supply sector. They are: improving energy use efficiency of thermal power plants, improving the transmission network capacity, and expanding the renewable energy base. The project interventions will include: (i) conversion of power plants at Siddhirganj, Baghabari, and Khulna to combine cycle power plants; (ii) construction of 180 km 132 kV transmission lines and four 133/32 kV substations; (ii) installation of solar irrigation water pumps; and (iii) capacity development for solar powered irrigation and power plant management.|
|Project Rationale and Linkage to Country/Regional Strategy||
Energy shortage is considered as one of the most critical infrastructure constraints on Bangladeshs economic development. In 2011, the maximum demand for electricity is 6,000 megawatt (MW), which is expected to rise to 7,000 MW by 2013. But the maximum available generation is 4,5004,750 MW (from an installed capacity of 5,719 MW), leaving a significant supply gap. The main causes for the supply shortage are (i) the poor operational efficiency of thermal power plants and inefficient use of energy; (ii) inadequate supplies of natural gas, which is the primary source of energy for electricity generation (about 80% of generation capacity is based on natural gas); (iii) slow progress on cross-border energy cooperation and trade; and (iv) lack of diversification in energy supply, including inadequate development of renewable.
The Government of Bangladesh's (the government) declared vision for the power sector in 2010 is to eliminate load shedding at the earliest possible and to make electricity available to all by 2021. The government estimated that realizing this vision would require an additional 9,000 MW of generating capacity installed by the end of 2015. Of this, 5,400 MW of generation capacity is expected to be added by the private sector. Since the declaration of this policy, 586 MW of generating capacity has been added to the system and additional approvals have been granted for new power plants. Other initiatives aim to diversify energy sources include development of coal resources, renewable energy, and cross-border cooperation for energy trade. Adequate transmission and distribution facilities would also be developed to compliment power generation expansion to increase access to electricity.
ADBs country partnership strategy (CPS) for Bangladesh addresses mainly the issues in the energy sector aligning with the above described government policy. It emphasizes on the (i) continuation of the policy, legal and regulatory reforms to create enabling business environment for the private sector; (ii) implementation of power transmission interconnections with India; (iii) investment in new power generation facilities and rehabilitation of old power plants for improved efficiency (iv) increased investment in clean energy such as wind and solar power through public private partnership; and (v) transmission and distribution network strengthening parallel to the expected generation capacity additions. ADB approved $581 million project for Bangladesh - Power System Efficiency Improvement Project - on August, 2011 to address some of these issues.
|Description of Outcome||TBD|
|Progress Toward Outcome|
|Description of Project Outputs||TBD|
|Status of Implementation Progress (Outputs, Activities, and Issues)|
|Summary of Environmental and Social Aspects|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design|
|During Project Implementation|
|Consulting Services||A total of 45 person-months of consultancy services will be engaged as individual consultants to prepare the project. The consultants will be recruited directly or through a firm.|
|Responsible ADB Officer||Gunatilake, Herath|
|Responsible ADB Department||South Asia Department|
|Responsible ADB Division||Energy Division, SARD|
Ministry of Power, Energy and Mineral Resources
Motijheel Commercial Area, Dhaka-1000
|Concept Clearance||17 Oct 2011|
|Approval||17 Oct 2011|
|Last Review Mission||-|
|Last PDS Update||30 Sep 2014|
|Approval||Signing Date||Effectivity Date||Closing|
|17 Oct 2011||11 Nov 2011||11 Nov 2011||31 Dec 2012||31 Dec 2013||-|
|Financing Plan/TA Utilization||Cumulative Disbursements|
|700,000.00||0.00||0.00||0.00||0.00||0.00||700,000.00||17 Oct 2011||666,740.86|
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.
The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.
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In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
|Title||Document Type||Document Date|
|বিদ্যুৎ ব্যবস্থার দক্ষতা উন্নয়ন প্রকল্প-২ : প্রকল্প তথ্যপত্র||Translated PDS||Sep 2013|
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
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