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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- 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.
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
Improved the generation capacity of Khulna Power Plant from 150 MW to 225 MW.
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)
1. Increased power generation capacity from 150MW to 225MW. Commissioning completed and commercial operation was started on 28 June 2016.
2. Progress of substation work is on track and within the completion schedule. The progress of transmission line component is moderate due to changing the route alignment of Section-A. EA, consultant and contractor have been advised to expedite the progress and to complete the work within the schedule.
3. Not yet completed
Summary of Environmental and Social Aspects
No issue has been reported
No issue has been reported
No issue has been reported
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Responsible ADB Officer
Responsible ADB Department
South Asia Department
Responsible ADB Division
Bangladesh Resident Mission
North-West Power Generation Co. Ltd.(NWPGCL) Bidyut Bhaban, 1 Abdul Gani Road Dhaka-1000, BangladeshPower Div-Min of Power, Energy & Mineral Resources Bangladesh Secretariat Dhaka BangladeshPower Grid Company of Bangladesh, Ltd. (PGCB) [email protected];_WEBSITE:WWW.PGCB.ORG IEB Bhaban (4th Floor) Ramna,Dhaka, Bangladesh