42378-016: Power System Expansion and Efficiency Improvement Investment Program - Tranche 2 | Asian Development Bank

Bangladesh: Power System Expansion and Efficiency Improvement Investment Program - Tranche 2

Sovereign (Public) Project | 42378-016 Status: Active

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 Number 42378-016
Country Bangladesh
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3087-BAN: Power System Expansion and Efficiency Improvement Investment Program - Tranche 2
Ordinary capital resources US$ 310.00 million
Loan: Power System Expansion and Efficiency Improvement Investment Program - Tranche 2
Islamic Development Bank US$ 220.00 million
Agence Francaise de Developpement US$ 125.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
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
Project Outcome
Description of Outcome Increased Transmission and Distribution capability in the power system
Progress Toward Outcome

Part A2: To increase the transmission capability, two substations are being constructed.

Part B and C: To increase distribution capacity, several new substations are being constructed, old substations are being renovated and lines are under construction.

Implementation Progress
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)

Part A2:.

Construction work of control room buildings are in progress. Transformers are already installed. 80% goods are delivered at site. Physical progress of the work is 70%.

Part B2 and B3: Earth filling and foundation work for substations of DPDC component have been completed. Construction work of substation building is ongoing. For distribution network 97% materials are already arrived at site.

Part C1 & C2: All contracts have been awarded except Lot-6, C2. All materials under supply contract were delivered at store. Site survey and land filling for 132/33kV substations is ongoing.

EAs submit the annual reports timely.

Geographical Location Ashuganj, Bhaluka, Chandpur, Chandpur District, Chittagong, Chittagong, Chittagong District, Comilla, Dhaka Division, Dhamrai, Fenchuganj, Gazipur District, Gazipur S., Gazipura, Ghorasal, Hathazari, Jamalpur District, Kachua, Kaliakair, Kalurghat, Madan Ghat, Meghnaghat, Mirzapur, Narayanganj, Narsingdi District, Paschim Haripur, Rampur, Rupsi, Sholashahar, Sirajganj, Sirajganj District, Sitakunda, Sreepur, Sylhet, Sylhet District, Tangail, Tangail District, Tongi
Safeguard Categories
Environment B
Involuntary Resettlement A
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental 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.

Sub-project 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.

Involuntary Resettlement

The project is a Category A for its land acquisition impacts. There will be no impacts for the DESCO (C1-C2) or DPDC (B2-B3) components.

For construction of two substations; component A-2 under PGCB, 4.5 acres of land has been acquired. Three Resettlement Plans have been prepared and disclosed in the website in 2013. There has been 2 acres of land acquisition for the Shyampur 230/132 KV GIS and 2.5 acres of land acquisition for the Dhamrai 132/33 KV GIS. No land acquisition has been required for six kilo-meters transmission line. The affected people have been compensated for their loss of crops and trees as per ADB policy.

The semi-annual monitoring reports have been submitted by EA on a regular basis. So far, no grievances have been reported under the project.

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 During project implementation stakeholders consultation is being carried out as and will continue if required.
Business Opportunities
Consulting Services Implementation support consultant for DPDC $1,000,000 as per GOB's guidelines for Q4/2013, National and financed by GOB
Procurement

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
Executing Agencies
Dhaka Electric Supply Company Ltd. (DESCO)
[email protected]
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)
[email protected];_WEBSITE:WWW.PGCB.ORG
IEB Bhaban (4th Floor)
Ramna,Dhaka, Bangladesh
Timetable
Concept Clearance -
Fact Finding -
MRM -
Approval 11 Dec 2013
Last Review Mission -
Last PDS Update 27 Sep 2017

Loan 3087-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
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 263.21 0.00 85%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 220.00 09 Dec 2013 155.63 0.00 50%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory - Satisfactory - -

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.

The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Title Document Type Document Date
PSEEIIP - Tranche 2: Dhaka Electric Supply Company Limited (DESCO) Audited Project Financial Statements (July 2015-June 2016) Audited Project Financial Statements Dec 2016
PSEEIIP - Tranche 2: Construction of New Substations (DPDC) Audited Project Financial Statements (July 2015-June 2016) Audited Project Financial Statements Dec 2016
PSEEIIP - Tranche 2: 400/230/132 kV Grid Network Development (PGCB Component) Audited Project Financial Statements (July 2015-30 June 2016) Audited Project Financial Statements Dec 2016
PSEEIIP - Tranche 2: North and South Zones Distribution Network under DPDC Audited Project Financial Statements (July 2014-June 2015) Audited Project Financial Statements Dec 2015
PSEEIIP - Tranche 2: 400/230/132 kV Grid Network Development PGCB Component Audited Project Financial Statements (July 2014-June 2015) Audited Project Financial Statements Dec 2015
PSEEIIP - Tranche 2: Dhaka Electric Supply Company Limited (DESCO) Audited Project Financial Statements (July 2014-June 2015) Audited Project Financial Statements Dec 2015
Loan Agreement for Power System Expansion and Efficiency Improvement Investment Program - Tranche 2 Loan Agreement (Ordinary Resources) Feb 2014
Project Agreement for Power System Expansion and Efficiency Improvement Investment Program - Tranche 2 Project/Program Agreements Feb 2014
Power System Expansion and Efficiency Improvement Investment Program - Tranche 2 Project/Program Administration Manual Nov 2013

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 - Tranche 2: Social Monitoring Report (January-June 2017) Environmental and Social Monitoring Reports Sep 2017
PSEEIIP - Tranche 2: Part B - Increased South Dhaka Distribution Network Environmental Monitoring Report (January-June 2017) Environmental and Social Monitoring Reports Jul 2017
PSEEIIP - Tranche 2 : Part C - Increased North Dhaka Distribution Network Environmental Monitoring Report (January-June 2017) Environmental Monitoring Reports Jun 2017
Power System Expansion and Efficiency Improvement Investment Program - Tranche 2: Social Monitoring Report (July-December 2016) Environmental and Social Monitoring Reports Feb 2017
Power System Expansion and Efficiency Improvement Investment Program - Tranche 2: Social Monitoring Report (January-June 2016) Social Monitoring Reports Oct 2016
Power System Expansion and Efficiency Improvement Investment Program - Tranche 2: Environmental Monitoring Report (January-June 2016) Environmental Monitoring Reports Oct 2016
Power System Expansion and Energy Efficiency Improvement Investment Program - Tranche 2 Initial Environmental Examination Oct 2013
Power System Expansion and Efficiency Improvement Investment Program (Tranche 2) Initial Environmental Examination Aug 2013
MFF-Power System Expansion and Efficiency Improvement Investment Program (Tranche 2) Resettlement Frameworks Aug 2013
MFF-Power System Expansion and Efficiency Improvement Investment Program (Tranche 2) Indigenous Peoples Planning Frameworks/Indigenous Peoples Development Frameworks Aug 2013
Power System Expansion and Efficiency Improvement Investment Program (Tranche 2): Dhaka Power Distribution Company (DPDC) Resettlement Plans Jul 2013
Power System Expansion and Efficiency Improvement Investment Program (Tranche 2): Power Grid Company of Bangladesh (PGCB) Resettlement Plans Jul 2013
Power System Expansion and Efficiency Improvement Investment Program (Tranche 2): Dhaka Electricity Supply Company Ltd (DESCO) Resettlement Plans Jul 2013

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


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.

Requests for information may also be directed to the InfoUnit.

Tenders

No tenders for this project were found.

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
Design, Supply, Installation & Commissioning of 33/11Kv Substations on Turnkey Basis Loan 3087 25 May 2017 Siemens Ltd India in cons w/ Siemens Ltd Ban 130, Pandurang Budhkar Marg, Worli, Mumbai-18, India Power Grid Company of Bangladesh, Ltd. (PGCB) Turnkey 43933336 43933336

Procurement Plan

None currently available.