Bangladesh : Power System Expansion and Efficiency Improvement Investment Program (Facility Concept)
The proposed investment program includes three tranches encompassing generation expansion and associated transmission and distribution improvements. Tranche 1 mainly focuses on generation expansion. Tranche 2 focuses on transmission and distribution improvement. Tranche 3 also invests on generation expansion. Generation expansion in the MFF will be undertaken through supply side energy efficiency improvement so that about 50% power can be generated without burning additional gas. Given the acute gas shortages in Bangladesh, conversion of single cycle gas fired power plants to combined cycle technology is adopted as a means to increase generation capacity in the investment program. The sequencing of the tranches is well aligned with the sector needs and the government program.
Project Details
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Project Officer
Limbu, Tika R.
South Asia Department
Request for information -
Country/Economy
Bangladesh -
Modality
-
Sector
- Energy
Related Projects
| Project Name | Power System Expansion and Efficiency Improvement Investment Program (Facility Concept) | ||||||||||||
| Project Number | 42378-014 | ||||||||||||
| Country / Economy | Bangladesh |
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| Project Status | Active | ||||||||||||
| Project Type / Modality of Assistance | Grant Loan |
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| Source of Funding / Amount |
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| Strategic Agendas | Environmentally sustainable growth Inclusive economic growth |
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| Drivers of Change | Gender Equity and Mainstreaming Governance and capacity development |
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| Sector / Subsector | Energy / |
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| Gender | Some gender elements | ||||||||||||
| Description | The proposed investment program includes three tranches encompassing generation expansion and associated transmission and distribution improvements. Tranche 1 mainly focuses on generation expansion. Tranche 2 focuses on transmission and distribution improvement. Tranche 3 also invests on generation expansion. Generation expansion in the MFF will be undertaken through supply side energy efficiency improvement so that about 50% power can be generated without burning additional gas. Given the acute gas shortages in Bangladesh, conversion of single cycle gas fired power plants to combined cycle technology is adopted as a means to increase generation capacity in the investment program. The sequencing of the tranches is well aligned with the sector needs and the government program. The Tranche 1 of the proposed Power System Expansion and Efficiency Improvement Investment Program will address two key areas in the power sector aligning with the priorities identified in the CPS: improving energy use efficiency of thermal power plants; and improving the transmission network capacity. The project interventions will include: (i) adding 235 MW capacity by conversion of four single cycle gas fired power plants to combine cycle plants at Khulna, Baghabari, Sylhet and Shahjibazar; (ii) construction of 180 km 132 kV transmission lines and four 133/32 kV substations; and (iii) capacity building. The capacity building component includes training on investment planning, operations planning, energy auditing and monitoring, financial management and auditing, project preparation and appraisal, and operation and maintenance of solar irrigation pumps. In addition, the capacity building component will provide consultants for preparation of subsequent tranches and implementation support. |
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| Project Rationale and Linkage to Country/Regional Strategy | About 50% of the population has access to power and those who have access also faces severe power shortages; about 1875 MW (28% of demand) has not been met during the peak periods in 2011. The available power generating capacity in Bangladesh, by June 2011, was of 4890 MW, against the estimated unconstrained demand of 6765 MW, leaving a significant demand-supply gap. The government envisaged investing $9.5 billion for generation expansion during the then five year planning period (2010-2015) and matching investment of about $3 billion on transmission and distribution improvements together with a sound financing plan. Investments envisaged in the sixth five year plan (2010-2015) expected to increase electrification rate to 68% by 2015, eliminate the supply demand gap and resolve reliability and supply quality issues. The proposed MFF aims to support this government investment program by providing $1600 million worth investments mobilizing nearly 50% of the external financing through co- financing arrangements. | ||||||||||||
| Impact | Increased energy sector contribution to low-carbon economic growth in Bangladesh |
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| Project Outcome | |
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| Description of Outcome | Increased access to clean and reliable supply of electricity in Bangladesh |
| Progress Toward Outcome | Project implementation ongoing for Tranche 1 (Loan 2966) and Tranche 2 (Loan 3087). |
| Implementation Progress | |
| Description of Project Outputs | Improved efficiency in electricity generation, transmission, and distribution Increased renewable energy use Enhanced capacity of power sector agencies and farmer organizations Project management system in place |
| Status of Implementation Progress (Outputs, Activities, and Issues) | Loan 2966 (Tranche 1) Consulting service recruitment for Tranche 3 preparation initiated. Contract for transmission lines and substations (Part B) was signed in Sep 2014. Contract for conversion of Khulna power plant (Part A) was signed in Dec 2013. Loan 3087: Bid documents for 4 turnkey and 1 supply contracts issued in May-Jun 2014. |
| Geographical Location | |
| Summary of Environmental and Social Aspects | |
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| Environmental Aspects | |
| Involuntary Resettlement | |
| Indigenous Peoples | |
| Stakeholder Communication, Participation, and Consultation | |
| During Project Design | |
| During Project Implementation | |
| Responsible ADB Officer | Limbu, Tika R. |
| Responsible ADB Department | South Asia Department |
| Responsible ADB Division | Bangladesh Resident Mission (BRM) |
| Timetable | |
|---|---|
| Concept Clearance | 06 Aug 2012 |
| Fact Finding | 07 Aug 2012 to 14 Aug 2012 |
| MRM | 05 Sep 2012 |
| Approval | 28 Nov 2012 |
| Last Review Mission | - |
| Last PDS Update | 30 Sep 2014 |
MFF Facility Concept 0073-BAN
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 922.00 | Cumulative Contract Awards | |||
| ADB | 700.00 | - | 0.00 | 0.00 | % |
| Counterpart | 222.00 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | - | 0.00 | 0.00 | % |
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 |
|---|---|---|
| বিদ্যুৎ ব্যবস্থা সম্প্রসারণ এবং সক্ষমতা উন্নয়ন বিনিয়োগ কার্যক্রম : প্রকল্প তথ্যপত্র | Translated PDS | Jul 2014 |
| Power System Expansion and Efficiency Improvement Investment Program | Reports and Recommendations of the President | Nov 2012 |
| Power System Expansion and Efficiency Improvement Investment Program (Facility Concept): Framework Financing Agreement | Framework Financing Agreement | Oct 2012 |
| Power System Expansion and Efficiency Improvement Investment Program | Facility Administration Manual | Oct 2012 |
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.
| Title | Document Type | Document Date |
|---|---|---|
| Power System Expansion and Efficiency Improvement Investment Program: MFF Tranche 1 | Resettlement Plans | Sep 2012 |
| Power System Expansion and Efficiency Improvement Investment Program - MFF Tranche 1: Resettlement and Ethnic Minority Development Plan | Combined Resettlement Plan and Indigenous Peoples Plans | Sep 2012 |
| Power System Expansion and Efficiency Improvement Investment Program | Environmental Assessment and Review Framework | Sep 2012 |
| Power System Expansion and Energy Efficiency Improvement Investment Program Tranche 1 | Initial Environmental Examination | Sep 2012 |
| Power System Expansion and Efficiency Improvement Investment Program | Resettlement Frameworks | Sep 2012 |
Evaluation Documents See also: Independent Evaluation
None currently available.
Related Publications
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