Summary
ADB is helping Bangladesh boost its power supply to reduce the outages and shortages that are crippling the economy. The first tranche of the program will add 235 megawatts to the system by converting four single cycle, gas-fired power plants into more efficient combined cycle plants at Khulna, Baghabari, Sylhet, and Shahjibazar. It will also build transmission lines and substations.
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| Project Name |
Power System Expansion and Efficiency Improvement Investment Program - Tranche 1 |
| Project Number |
42378-015 |
| Country |
Bangladesh |
| Project Status |
Active |
| Project Type / Modality of Assistance |
Loan
|
| Source of Funding / Amount |
| Grant 0320-BAN: Power System Expansion & Efficiency Improvement Investment Program - Tranche 1 |
|---|
| European Investment Bank |
US$ 7.00
million
|
| Loan 2966-BAN: Power System Expansion & Efficiency Improvement Investment Program - Tranche 1 |
|---|
| Ordinary capital resources |
US$ 185.00
million
|
| Loan: Power System Expansion & Efficiency Improvement Investment Program - Tranche 1 |
|---|
| Islamic Development Bank |
US$ 85.00
million
|
| European Investment Bank |
US$ 91.00
million
|
| Loan: Power System Expansion and Efficiency Improvement Investment Program - Tranche 1 |
|---|
| European Investment Bank |
US$ 21.00
million
|
|
| Strategic Agendas |
Environmentally sustainable growth
Inclusive economic growth
|
| Drivers of Change |
Partnerships
|
| Sector / Subsector |
Energy
- Electricity transmission and distribution
- Energy efficiency and conservation |
| Gender Equity and Mainstreaming |
No 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 together with a pilot solar irrigation component. 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 plants the technology adopted in the investment program is the best way to expand the generation capacity. 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. |
| 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 envisages investing $9.5 billion for generation expansion during the five year planning period 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 are 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 access to clean and reliable electricity supply in Bangladesh |
Project Outcome
| Description of Outcome |
Improved efficiency in electricity generation, and transmission in Bangladesh |
| Progress Toward Outcome |
Project implementation ongoing. Outcomes will be achieved after project's physical completion Review mission fielded in November 2015. |
| Implementation Progress |
|---|
| Description of Project Outputs |
1. Increased generation capacity 2. Increased transmission capacity 3. Enhanced capacity of power sector agencies 4. Project management system in place |
| Status of Implementation Progress (Outputs, Activities, and Issues) |
All procurement contracts have been awarded and construction is ongoing. All consulting service contracts awarded except for the project implementation support for PGCB on National Grid 3 Project (NG3). |
| Geographical Location |
|
Safeguard Categories
| Environment |
B |
| Involuntary Resettlement |
B |
| Indigenous Peoples |
C |
Summary of Environmental and Social Aspects
| Environmental Aspects |
|
| Involuntary Resettlement |
|
| Indigenous Peoples |
|
| Stakeholder Communication, Participation, and Consultation |
|---|
| During Project Design |
|
| During Project Implementation |
|
Responsible Staff
| Responsible ADB Officer |
Sherine Taher Ibrahim |
| Responsible ADB Department |
South Asia Department |
| Responsible ADB Division |
Bangladesh Resident Mission |
| Executing Agencies |
Power Grid Company of Bangladesh, Ltd. (PGCB)
[email protected];_WEBSITE:WWW.PGCB.ORG
IEB Bhaban (4th Floor)
Ramna,Dhaka, Bangladesh
North-West Power Generation Co. Ltd.(NWPGCL)
Bidyut Bhaban, 1 Abdul Gani Road
Dhaka-1000, Bangladesh
Power Div-Min of Power, Energy & Mineral Resources
Bangladesh Secretariat
Dhaka
Bangladesh
|
Timetable
| Concept Clearance |
-
|
| Fact Finding |
-
|
| MRM |
-
|
| Approval |
12 Dec 2012 |
| Last Review Mission |
-
|
| Last PDS Update |
11 Mar 2016 |
Grant 0320-BAN
| Milestones |
|---|
| Approval |
Signing Date |
Effectivity Date |
Closing |
| Original |
Revised |
Actual |
| 28 Nov 2012 |
-
|
-
|
31 Dec 2018 |
-
|
-
|
| Financing Plan |
Grant Utilization
|
|
Total (Amount in US$ million) |
Date |
ADB |
Others |
Net Percentage |
| Project Cost |
7.00 |
Cumulative Contract Awards |
| ADB |
0.00 |
28 Nov 2012 |
0.00
|
0.00 |
0% |
| Counterpart |
0.00 |
Cumulative Disbursements |
| Cofinancing |
7.00 |
28 Nov 2012 |
0.00
|
0.00 |
0% |
Loan 2966-BAN
| Milestones |
|---|
| Approval |
Signing Date |
Effectivity Date |
Closing |
| Original |
Revised |
Actual |
| 12 Dec 2012 |
03 Apr 2013 |
25 Jun 2013 |
31 Dec 2018 |
-
|
-
|
| Financing Plan |
Loan Utilization
|
|
Total (Amount in US$ million) |
Date |
ADB |
Others |
Net Percentage |
| Project Cost |
393.00 |
Cumulative Contract Awards |
| ADB |
185.00 |
12 Dec 2012 |
177.26 |
0.00
|
96% |
| Counterpart |
32.00 |
Cumulative Disbursements |
| Cofinancing |
176.00 |
12 Dec 2012 |
115.62 |
0.00
|
62% |
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.
Related Publications
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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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