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.
|Project Name||Power System Expansion and Efficiency Improvement Investment Program - Tranche 1|
|Project Type / Modality of Assistance||Loan
|Source of Funding / Amount||
|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|
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|
|Description of Outcome||Improved efficiency in electricity generation, and transmission in Bangladesh|
|Progress Toward Outcome||Upgradation of Khulna 225 MW Combined Cycle Power Plant completed and started commercial operation on 28 June 2016. Construction of approximately 293km of 132KV transmission lines and construction/renovation of 10 number of 132/33KV substations have been completed and energized.|
|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)||
Commissioning of Khulna 225 MW Combined Cycle Power Plant completed and commercial operation was started on 28 June 2016.The progress of Transmission line component are as bellow:
Section A (Khagrachori - Rangamati - Chandraghona) transmission line (80 km) was energized on 4 April 2018.
Section B (Tangail - Mymensingh) transmission line (93.45 km) was energized on 8 June 2017.
Section C (Brahmanbaria- Narshingdi) transmission line (57.55 km) was energized on 20 Oct 2018.
Section D1 (Chattak -Sunamgonj) transmission line (32 km) was energized on 24 April 2018.
Section D2 (Beanibazar - Sylhet) transmission line (30 km) was energized on 9 Jun 2018. Overall physical progress of substations part is as bellow:
Tangail Substation was energized on 31 May 2017.
Mymensingh Substation was energized on 9 Jun 2017.
Chattak Substation energization date was 3 Nov 2017.
Brahmanbaria Substation was energized on 2 Feb 2018.
Narshingdi Substation was energized on 9 Mar 2018.
Chandraghona Substation was energized on 19 Mar 2018.
Khagrachori Substation was energized on 13 Apr 2018.
Sunamgonj Substation was energized on 3 May 2018.
Beanibazar Substation was energized on 12 Jun 2018.
In Rangamati Substation, Transformer-1 (25/41 MVA) was energized on 8 Oct 2018 and Transformer-2 was energized on 22 Oct 2018. LILO Chandraghona-2, Khagrachori-2 energized on 12 Jan 2019.
|Geographical Location||Bangabari, Khulna, Shahaji Bazar, Sylhet|
|Summary of Environmental and Social Aspects|
|Environmental Aspects||No issue has been reported|
|Involuntary Resettlement||No issue has been reported|
|Indigenous Peoples||No issue has been reported|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design||During project preparation, all EAs undertook consultations with local officials and village leaders that raised the level of awareness, gained local support, and enabled affected people to voice opinions and suggestions for project design and implementation|
|During Project Implementation||During project implementation stakeholders' consultation is being carried out as and will continue if required.|
|Responsible ADB Officer||Nahar, Nazmun|
|Responsible ADB Department||South Asia Department|
|Responsible ADB Division||Energy Division, SARD|
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 Power Grid Company of Bangladesh, Ltd. (PGCB)
PGCB Head Office
A/2 Jahurul Islam Avenue
Aftabnagar, Badda, Dhaka-1212, Bangladesh
|Approval||12 Dec 2012|
|Last Review Mission||-|
|Last PDS Update||27 Mar 2019|
|Approval||Signing Date||Effectivity Date||Closing|
|12 Dec 2012||03 Apr 2013||25 Jun 2013||31 Dec 2018||-||23 Dec 2019|
|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||179.61||0.00||100%|
|Cofinancing||176.00||12 Dec 2012||179.61||0.00||100%|
|Status of Covenants|
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|Title||Document Type||Document Date|
|Bangladesh: Power System Expansion and Efficiency Improvement Investment Program (Tranche 1)||Validations of Project Completion Reports||Dec 2020|
None currently available.
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No tenders for this project were found.
No contracts awarded for this project were found
|Title||Document Type||Document Date|
|Power System Expansion and Efficiency Improvement Investment Program - Tranche 1||Procurement Plans||Aug 2012|