ADB is helping Bangladesh boost power supply by enhancing its transmission and distribution network. The second tranche of the program will enable increased energy transfer from Ghorasal to Tongi and improve transmission capacity to meet growing power demand in the capital Dhaka, Chittagong, and Sylhet areas. It will also expand the capacity of the north and south Dhaka distribution network.
|Project Name||Power System Expansion and Efficiency Improvement Investment Program - Tranche 2|
|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
|Gender Equity and Mainstreaming||Some gender elements|
|Description||The proposed Tranche 2 will contribute to the overall impact of the MFF on increased energy sector contribution to low-carbon economic growth in Bangladesh. The specific impact of the Tranche 2 will be increased access to reliable supply of electricity. The outcome of Tranche 2 is increased transmission and distribution capability in the power system. This will allow increased power transfer from Ghorasal to Tongi and to increased transmission capability to satisfy the increasing demand in Dhaka, Chittagong and Sylhet areas. Also the investments will allow improved distribution networks in the Dhaka region to supply increasing demand in the system to ensure no load-shedding due to network constraints by 2018.|
|Project Rationale and Linkage to Country/Regional Strategy||A framework financing agreement (FFA) for the Bangladesh Power System Expansion and Efficiency Improvement Investment Program (BPSEEIP, the facility ), has been signed by the Asian Development Bank (ADB) and the Government of Bangladesh (the Government) and ADB's Board of Directors approved this multi tranche financing facility (MFF) on 28 Nov 2012. This MFF funds power sector investments in generation, transmission and distribution systems in Bangladesh to improve efficiency in these systems and add capacity for increased and reliable energy access to the population. The MFF consisted of three tranches to undertake these investments in a staggered manner. The proposed tranche 2 meets the selection criteria set forth in the Schedule 4 of the FFA. It will undertake investments in transmission and distribution network strengthening. Thus the Tranche 2 helps achieving the outcome of the MFF, increased access to clean and reliable supply of electricity in Bangladesh.|
|Impact||Increased access to reliable supply of electricity|
|Description of Outcome||Increased Transmission and Distribution capability in the power system|
|Progress Toward Outcome||N/A|
|Description of Project Outputs||
Increased Transmission Capacity
Increased south Dhaka distribution network capacity
Increased north Dhaka distribution network capacity
Efficiently managed project
|Status of Implementation Progress (Outputs, Activities, and Issues)||
1. All contracts were awarded and implementation progress is 45%.
2. All contracts were awarded and 20% civil works for substation component completed and 60% of distribution network component completed.
3. All contracts have been awarded and materials delivered except Lot-3, Package C1 and Lot-6, Package C2.
4. Not yet due.
|Summary of Environmental and Social Aspects|
An environmental assessment and review framework (EARF) for the MFF was prepared in September 2012 to ensure that project components in succeeding tranches comply with SPS 2009. Tranche 2 is classified as Category B according to SPS 2009 requiring an initial environmental examination (IEE). Following SPS 2009 and EARF, an IEE was prepared and was publicly disclosed to ADB website in August 2013.
No major environmental issue, nonetheless EA submits environmental monitoring reports semi-annually.
Subproject selection for Tranche 2 was guided by the environmental criteria outlined in the EARF and Schedule 4 of the FFA. Components of Tranche 2 are not expected to cause significant adverse environmental impacts. Transmission line routes will traverse mainly agricultural lands and no forest, sanctuaries or protected areas will be affected. Environmental management plans have been prepared with adequate resources for implementation. PGCB, DPDC and DESCO will obtain all the required environmental clearances from the DOE prior to construction and copies submitted to ADB. A project brief in Bangla will be prepared by PGCB, DPDC, and DESCO and will be made available to the public at their field offices.
In line with ADB Safeguard Policy Statement 2009 (SPS 2009), Tranche 2 is classified as A for involuntary resettlement impacts. Three resettlement plans have been prepared for Part A, Part B and Part C respectively, in accordance with the resettlement framework based on national laws and policies and the Safeguard Policy Statement of ADB.
Private land acquisition of 22.0 acres for 3 subprojects of PGCB would potentially lead to permanent economic displacement of about 59 persons and temporary economic displacement for about 168 farmers. Land acquisition for 2 subprojects of DPDC will result in physical displacement of 15 households and 80 persons. One subproject of DESCO will result in economic displacement for 6 persons. The estimated total number of persons to be displaced by subprojects under Tranche 2 will be about 313.
Compensation rates for the loss of land and structures, shifting assistance, income restoration assistance, and additional support for vulnerable groups and indigenous groups are provided in the resettlement plans. The compensation entitlements are endorsed by the EA and adequate budget will be allocated. Meaningful consultation and information disclosure were undertaken with (i) project-displaced persons, (ii) the general public through the ADB website. If any changes or additional land requirements or involuntary resettlement impacts are identified, a new or updated resettlement plan will be prepared or modified according to the applicable laws referred to in the resettlement plan. ADB's approval will be obtained before further implementation of the subprojects. The EAs have set up PMUs which will be responsible for RP implementation, monitoring and reporting. The implementation of the resettlement plans will be monitored internally by the EA and externally by qualified and experienced external experts, who will undertake the overall monitoring of the safeguards and relevant social issues and submit semiannual monitoring reports to EA in turn to ADB.
No major resettlement issue, nonetheless EA submits resettlement monitoring reports semi-annually.
|Indigenous Peoples||Tranche 2 is classified as category C in accordance with the ADB's Safeguard Policy Statement (2009). None of the subprojects would impact communities of indigenous populations or interfere with the territories of the indigenous populations or ethnic minorities, their livelihood systems, customary properties or their natural or cultural resources. However, if there are any unanticipated impacts on indigenous people during project implementation an indigenous peoples plan will be prepared and submitted to ADB for review. EAs will obtain the approval of such a plan before award of related civil works contract and implemented before commencement of the civil works of the relevant subproject, as applicable.|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design||During project preparation the project team along with the consultants have conducted stakeholder meetings while finalising the intial environmental examinations and resettlement plans for the respective components.|
|During Project Implementation|
|Consulting Services||Implementation support consultant for DPDC $1,000,000 as per GOB's guidelines for Q4/2013, National and financed by GOB|
The following lists goods and works contracts for which procurement activity is either ongoing or expected to commence within the next 18 months.
Procurement Advertisement Comment
General Desciption Amount Method Bidders Date
Turnkey Contract for 132&230kV S/S and Lines-IDB 206.76 ICB N Q2/ 2014 Financed by IDB
Turnkey Contract for 132/230kV S/S and Lines-ADB 31.33 ICB N Q1/2014 Financed by ADB
Turnkey Contract of South Dhaka 132/33kV S/S
and Lines 93.36 ICB N Q1/2014 Financed by AfD and GOB
Turnkey Contract of South Dhaka 33/11 kV S/S - AfD 36.97 ICB N Q2/2014 Financed by AfD and GOB
Turnkey Contract of South Dhaka 33/11kV S/S -ADB 45.85 ICB N Q2/2014 Financed by ADB and GOB
Turnkey Contract of 11kV South Dhaka Distribution 47.28 ICB N Q2/2014 Financed by ADB and GOB
Turnkey Contract for 132/33/11 kV S/S 133.77 ICB N Q2/2014 Financed by ADB and GOB
Supply Contract of North Dhaka Distribution Equipment 79.85 ICB N Q1/2014 Financed by ADB
|Responsible ADB Officer||Ibrahim, Sherine|
|Responsible ADB Department||South Asia Department|
|Responsible ADB Division||Bangladesh Resident Mission|
Dhaka Electric Supply Company Ltd. (DESCO)
Biddut Bhaban, 1 Abdul Gani Road
Dhaka 1000, Bangladesh Dhaka Power Distribution Company Ltd. (DPDC)
SCADA Bhaban (2nd Floor)
Kataban, Sonargaon Road
Dhaka 1000 Power Grid Company of Bangladesh, Ltd. (PGCB)
IEB Bhaban (4th Floor)
|Approval||11 Dec 2013|
|Last Review Mission||-|
|Last PDS Update||23 Mar 2017|
|Approval||Signing Date||Effectivity Date||Closing|
|09 Dec 2013||11 Feb 2014||14 Mar 2014||30 Jun 2019||-||-|
|Financing Plan||Loan Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||530.00||Cumulative Contract Awards|
|ADB||310.00||09 Dec 2013||291.90||0.00||94%|
|Cofinancing||220.00||09 Dec 2013||131.02||0.00||42%|
|Status of Covenants|
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