Bangladesh: Power System Expansion and Efficiency Improvement Investment Program - Tranche 3

Sovereign Project | 42378-017

Project Name Power System Expansion and Efficiency Improvement Investment Program - Tranche 3
Project Number 42378-017
Country Bangladesh
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3350-BAN: Power System Expansion and Efficiency Improvement Investment Program-Tranche 3
Ordinary capital resources US$ 205.00 million
Loan: Power System Expansion and Efficiency Improvement Investment Program-Tranche 3
Islamic Development Bank US$ 220.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Knowledge solutions
Partnerships
Sector / Subsector

Energy / Electricity transmission and distribution - Energy efficiency and conservation

Gender Equity and Mainstreaming No gender elements
Description Tranche 3 will cover investments in generation system expansion and efficiency improvement, transmission system enhancement, and demand side energy efficiency improvement.
Project Rationale and Linkage to Country/Regional Strategy Government''s _"Vision 2021"_ and Power System Master Plan 2010, Bangladesh is focused on achieving universal access to grid connected electricity by 2021 with a total installed generation capacity of 20,000 MW by 2020. This is a challenging task in light of the electrification rate standing at 62% (2014) and the country still undergoing frequent power shortages. These ambitious targets require significant investments in the power sector infrastructure during the coming years. The MFF is contributing towards this target through its generation, transmission, distribution investments. Tranche 3 is specifically focused on enhancement of generation and transmission capacity to facilitate achieving the target.
Impact better access to reliable electricity supply in Bangladesh.
Project Outcome
Description of Outcome increased efficiency and capacity of the power system in Bangladesh.
Progress Toward Outcome Reconductoring of 65 km 132 kV line was completed. The line is now fully energized. Kachua Substation was energized on 17 January 2021.
Implementation Progress
Description of Project Outputs

Power generation system expanded and upgraded through replacement of an aging steam and gas turbine power plant of 220 megawatt (MW) capacity with a more efficient 400 MW gas-fired Combined Cycle Power Plant (CCPP) at Ashuganj Power Station complex

Transmission system expanded and upgraded through upgrade or construction of 132kv transmission lines and substations in Chittagong Division

demand side energy efficiency improved through replacement of meters with approximately 700,000 pre-payment meters in Dhaka Division.

Consultancy support provided for Aminbazar- Maowa- Mongla 400 kV double circuit transmission line and 400/230 kV substation at Aminbazar by December 2020.

Status of Implementation Progress (Outputs, Activities, and Issues)

Contract was signed with GOPA- International for Design, procurement and implementation support for the construction of 174 km 400 kV Amin bazar -Maowa Mongla transmission line. The consultant team was mobilized on early 2017. Already they have provided their suppoit in procurement and design approval. Line construction work is almost 75% complete. Consulting firm's contract completion date is June 2021.

EPC Contract signed on 20 March 2018. The old power plant demolished in November 2018. Construction of the new power plant started from February 2019. Pilling work was completed. Procurement of major equipment have been completed and those were delivered at site including Gas turbine, generator, steam turbine etc. Construction works are ongoing. Gas turbine, generator and Steam turbine have been placed on the foundation and pre-alignment completed . Installation of generator step up transformer, grid auxiliary transformer, unit auxiliary transformer, RMS, fire fighting system completed. Overall progress is 85.16%.

Contract was awarded for construction of Transmission Line on 9 April 2017. ACCC conductors were already delivered and installed. The line was energized on 3 May 2019.

Contract was awarded on 7 June 2017 for construction of 4 nos of substations. Almost 100% materials (6 transformers and 3 GIS) are delivered at site. Physical progress is as below:

Comilla: 95% Construction work of the control room building is completed. Testing of GIS equipment 100% completed. Overall testing and pre commissioning work is ongoing. Expected energization date May 2021.

Kachua: Substation energized on 17 Jan 2021.

Madunaghat: GIS control room building 80% complete. Pre commissioning and testing work is ongoing. Expected energization June 2021.

Kalurghat: GIS control room building 85% complete. Expected energization July 2021.

Overall physical progress is 83.50%.

Contract was awarded for construction of Transmission Line on 9 April 2017. All the materials at delivered at site. Out of 7.2 km, 6.7 km line construction completed. Expected completion date June 2021. Overall physical progress is 94%.

Two contracts were signed on 19 June 2018 for supply of 1 million prepaid meters with related services. Installation of 87,500 single phase meters and 12,500 3 phase meters completed in 10 December 2019. All meters are functional.

Geographical Location Nation-wide, Ashuganj City, Chandpur, Comilla, Dhaka Division, Kachua, Kalurghat
Safeguard Categories
Environment A
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects Given the potential environmental impacts, e.g. cooling water discharge to the Meghna River and nitrogen oxides (NOx) emissions, Output 1 is classified as environmental category A. Even if Output 1 is classified as environmental category A, it is not expected to cause significant adverse environmental impacts. Output 1 focuses on generation efficiency improvement that will reduce pollutant intensity and offset pollution emission growth without consuming more natural gas by adopting more efficient power plant. Potential environmental impacts are mostly predictable and reversible. Sensitive ecosystems will not be impacted. The impacts such as NOx emissions and cooling water discharge to the Meghna River during operation will be mitigated through best available technology built-in to the power plant design that includes low NOx burners with NOx reduction system. Potential environmental impacts of Output 2 will occur in construction stage, which is temporary, predictable and reversible. There will be no impacts on forests, sanctuaries or protected areas, and historical and cultural monuments. Output 3 will have minimal environmental impacts. The replaced meters which are functional will be re-used in other locations. Any final disposal should occur at existing approved waste management facilities in Bangladesh.
Involuntary Resettlement The project has avoided land acquisition for the Power Plant by establishing the plant inside an enclosed compound owned by Ashuganj Power Station Company Limited (APSCL). No land needs be acquired for Subprojects under Output 1 and Output 3. There has been no physical displacement of people under any subprojects of Tranche 3. However, 2.02 hectares of private land acquisition was required in Hajigong Pourashava for one out of four sub-stations of the project for output 2. A resettlement plan endorsed by the executing agency has been disclosed to the ADB website on 29 June 2015 for this section. The resettlement plan adequately assess the land acquisition and resettlement impacts of the proposed tranche and the measures developed to address identified impacts are adequate. The 17 owners of the land have already received compensation as per RP. The RP had an estimate of approximately 1235 additional HHs to be impacted on temporary basis during construction of tower and stringing of transmission lines. This number will be revised due to design change in transmission lines to be underground trough government land. Meaningful consultation has been undertaken with project stakeholders, and information disclosure is continued through updates on ADB website.
Indigenous Peoples 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.
Stakeholder Communication, Participation, and Consultation
During Project Design Public consultations were conducted with local communities including fishermen. The communities welcomed the project to improve reliability of power supply. Community concerns were identified in the EIA, and mitigation measures have been incorporated into the EMP. PMU of each executing agency has dedicated staff responsible for monitoring environmental issues and implementing the EMP.
During Project Implementation The project was approved in December 2015. Grievance redress committees (GRC) will be set up by the executing agencies as the project components commence. The GRC will convene twice a month and will keep the record of the grievances, and provide the solution(s) within 30 days from the date of the complaint. All complaint related documentation such as minutes of the meeting and decisions will be summarized and become part of the semi-annual monitoring report submitted to ADB. If the grievance is not addressed, the complainant can seek legal redress of the grievance in the appropriate courts.
Business Opportunities
Consulting Services Project Implementation Support Consultants for APSCL (Firm, QCBS 90:10)
Procurement Turnkey package of Ashuganj 400MW CCPP (East); Turnkey package of 132 Kv transmission line and substations in Chittagong Division; Supply package of pre-payment meters in Dhaka Division.
Responsible ADB Officer Nahar, Nazmun
Responsible ADB Department South Asia Department
Responsible ADB Division Bangladesh Resident Mission
Executing Agencies
Ashuganj Power Station Company Ltd. (APSCL)
[email protected]
Ashuganj, B-Baria
3402, Bangladesh
Bangladesh Rural Electrification Board
Implementing Agency
Directorate of Procurement
Head Office Bldg.-7th Flr, Zoar Sahara,
Khilkhet, Dhaka-1229, Bangladesh
Power Grid Company of Bangladesh, Ltd. (PGCB)
Mr. Mohammed Salim
[email protected];_WEBSITE:WWW.PGCB.ORG
PGCB Head Office
A/2 Jahurul Islam Avenue
Aftabnagar, Badda, Dhaka-1212, Bangladesh
Timetable
Concept Clearance -
Fact Finding -
MRM 05 Oct 2015
Approval 08 Dec 2015
Last Review Mission -
Last PDS Update 28 Sep 2021

Loan 3350-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
08 Dec 2015 22 Dec 2015 05 Jan 2016 30 Jun 2021 30 Jun 2022 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 530.00 Cumulative Contract Awards
ADB 205.00 18 Nov 2021 172.45 0.00 91%
Counterpart 105.00 Cumulative Disbursements
Cofinancing 220.00 18 Nov 2021 141.79 0.00 75%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory 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 Access to Information Policy (AIP) 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
Power System Expansion and Efficiency Improvement Investment Program - Tranche 3: Bangladesh Rural Electrification Board Audited Project Financial Statements (July 2019-June 2020) Audited Project Financial Statements Dec 2020
Power System Expansion and Efficiency Improvement Investment Program - Tranche 3: Ashuganj Power Station Company Audited Project Financial Statements (July 2019-June 2020) Audited Project Financial Statements Dec 2020
Power System Expansion and Efficiency Improvement Investment Program - Tranche 3: Power Grid Company Audited Project Financial Statements (July 2019-June 2020) Audited Project Financial Statements Dec 2020
Power System Expansion and Efficiency Improvement Investment Program - Tranche 3: Power Grid Company Audited Project Financial Statements (July 2018-June 2019) Audited Project Financial Statements Feb 2020
Power System Expansion and Efficiency Improvement Investment Program - Tranche 3: Bangladesh Rural Electrification Board Audited Project Financial Statements (July 2018-June 2019) Audited Project Financial Statements Dec 2019
Power System Expansion and Efficiency Improvement Investment Program - Tranche 3: Ashuganj Power Station Company Audited Project Financial Statements (July 2018-June 2019) Audited Project Financial Statements Dec 2019
Power System Expansion and Efficiency Improvement Investment Program - Tranche 3: Power Grid Company Audited Project Financial Statements (July 2017-June 2018) Audited Project Financial Statements Dec 2018
Power System Expansion and Efficiency Improvement Investment Program - Tranche 3: Ashuganj Power Station Company Audited Project Financial Statements (July 2017-June 2018) Audited Project Financial Statements Dec 2018
Power System Expansion and Efficiency Improvement Investment Program - Tranche 3: Bangladesh Rural Electrification Board Audited Project Financial Statements (July 2017-June 2018) Audited Project Financial Statements Dec 2018
Loan Agreement (Ordinary Operations) for Loan 3350-BAN: Power System Expansion and Efficiency Improvement Investment Program - Tranche 3 Loan Agreement (Ordinary Resources) Dec 2015
Project Agreement for Loan 3350-BAN: Power System Expansion and Efficiency Improvement Investment Program - Tranche 3 Project/Program Agreements Dec 2015
Power System Expansion and Efficiency Improvement Investment Program - Tranche 3: Periodic Financing Request Report Periodic Financing Request Reports Nov 2015
Power System Expansion and Efficiency Improvement Investment Program - Tranche 3: Tranche Report Tranche Reports Nov 2015

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 3: Output 2 Transmission System Environmental Monitoring Report (January-June 2021) Environmental Monitoring Reports Jul 2021
Power System Expansion and Efficiency Improvement Investment Program - Tranche 3: 400/230/132 kV Grid Network Development Project Social Monitoring Report (January-June 2021) Social Monitoring Reports Jul 2021
Power System Expansion and Efficiency Improvement Investment Program - Tranche 3: Ashuganj 400 MW (East) Combined Cycle Power Plant Project Social Monitoring Report (January-June 2021) Social Monitoring Reports Jul 2021
Power System Expansion and Efficiency Improvement Investment Program - Tranche 3: Ashuganj 400 MW (East) Combined Cycle Power Plant Project Environmental Monitoring Report (January-June 2021) Environmental Monitoring Reports Jul 2021
Power System Expansion and Efficiency Improvement Investment Program - Tranche 3: Ashuganj 400 MW (East) Combined Cycle Power Plant Project Environmental Monitoring Report (July-December 2020) Environmental Monitoring Reports Dec 2020
Power System Expansion and Efficiency Improvement Investment Program - Tranche 3: Output 2 Transmission System Social Monitoring Report (July-December 2020) Social Monitoring Reports Dec 2020
Power System Expansion and Efficiency Improvement Investment Program - Tranche 3: Ashuganj 400 MW (East) Combined Cycle Power Plant Project Social Monitoring Report (July-December 2020) Social Monitoring Reports Dec 2020
Power System Expansion and Efficiency Improvement Investment Program - Tranche 3: Ashuganj 400 MW (East) Combined Cycle Power Plant Project Environmental Monitoring Report (January-June 2020) Environmental Monitoring Reports Jun 2020
Power System Expansion and Efficiency Improvement Investment Program - Tranche 3: Ouput 2 Transmission System Environmental Monitoring Report (January-June 2020) Environmental Monitoring Reports Jun 2020
Power System Expansion and Efficiency Improvement Investment Program - Tranche 3: Ashuganj 400 MW (East) Combined Cycle Power Plant Project Social Monitoring Report (January-June 2020) Social Monitoring Reports Jun 2020
Power System Expansion and Efficiency Improvement Investment Program - Tranche 3: Output 2 Transmission System Social Monitoring Report (January-June 2020) Social Monitoring Reports Jun 2020
Power System Expansion and Efficiency Improvement Investment Program - Tranche 3: Ashuganj 400 MW (East) Combined Cycle Power Plant Project Social Monitoring Report (July- December 2019) Social Monitoring Reports Dec 2019
Power System Expansion and Efficiency Improvement Investment Program - Tranche 3: Output 2 Transmission System Social Monitoring Report (July-December 2019) Social Monitoring Reports Dec 2019
Power System Expansion and Efficiency Improvement Investment Program - Tranche 3: Ashuganj 400 MW (East) Combined Cycle Power Plant Environmental Monitoring Report (July-December 2019) Environmental Monitoring Reports Dec 2019
Power System Expansion and Efficiency Improvement Investment Program - Tranche 3: Output 2 Transmission System Environmental Monitoring Report (July-December 2019) Environmental Monitoring Reports Dec 2019
Power System Expansion and Efficiency Improvement Investment Program - Tranche 3: Ashuganj 400 MW (East) Combined Cycle Power Plant Environmental Monitoring Report (January-June 2019) Environmental Monitoring Reports Jun 2019
Power System Expansion and Efficiency Improvement Investment Program - Tranche 3: Ashuganj 400 MW (East) Combined Cycle Power Plant Social Monitoring Report (January-June 2019) Social Monitoring Reports Jun 2019
Power System Expansion and Efficiency Improvement Investment Program - Tranche 3: Output 2 Transmission System Social Monitoring Report (January-June 2019) Social Monitoring Reports Jun 2019
Power System Expansion and Efficiency Improvement Investment Program - Tranche 3: Output 2 Transmission System Environmental Monitoring Report (January-June 2019) Environmental Monitoring Reports Jun 2019
Power System Expansion and Efficiency Improvement Investment Program - Tranche 3: Ashuganj 400 MW (East) Combined Cycle Power Plant Environmental Monitoring Report (July-December 2018) Environmental Monitoring Reports Dec 2018
Power System Expansion and Efficiency Improvement Investment Program - Tranche 3: Output 2 Transmission System Social Monitoring Report (July-December 2018) Social Monitoring Reports Dec 2018
Power System Expansion and Efficiency Improvement Investment Program - Tranche 3: Construction of Ashugonj 400 MW Combined Cycle Power Plant Social Monitoring Report (July-December 2018) Social Monitoring Reports Dec 2018
Power System Expansion and Efficiency Improvement Investment Program - Tranche 3: Output 2 Transmission System Environmental Monitoring Report (July-December 2018) Environmental Monitoring Reports Dec 2018
Power System Expansion and Efficiency Improvement Investment Program - Tranche 3: Grid Network Development Project Environmental Monitoring Report (January- June 2018) Environmental Monitoring Reports Jul 2018
Power System Expansion and Efficiency Improvement Investment Program - Tranche 3: Grid Network Development Project Social Monitoring Report (January - June 2018) Social Monitoring Reports Jul 2018
Power System Expansion and Efficiency Improvement Investment Program - Tranche 3: Social Monitoring Report (January-June 2018) Social Monitoring Reports Jul 2018
Power System Expansion and Efficiency Improvement Investment Program - Tranche 3: Ashugonj 400 MW Combined Cycle Power Plant (East) Environmental Monitoring Report (January-June 2018) Environmental Monitoring Reports Jul 2018
Power System Expansion and Efficiency Improvement Investment Program - Tranche 3: Social Monitoring Report (July-December 2017) Social Monitoring Reports Jan 2018
Power System Expansion and Efficiency Improvement Investment Program - Tranche 3: Environmental Monitoring Report (July-December 2017) Environmental Monitoring Reports Dec 2017
Power System Expansion and Efficiency Improvement Investment Program - Tranche 3: Environmental and Social Monitoring Report (January-June 2016) Environmental and Social Monitoring Reports Feb 2017
Power System Expansion and Efficiency Improvement Investment Program - Tranche 3: Environmental and Social Monitoring Report (July-December 2016) Environmental and Social Monitoring Reports Feb 2017
Power System Expansion and Efficiency Improvement Investment Program - Tranche 3: Ashuganj 400 MW Combined Cycle Power Plant (East) Updated Environmental Impact Assessment Environmental Impact Assessments May 2016
Power System Expansion and Efficiency Improvement Investment Program - Tranche 3: Ashuganj 400 MW Combined Cycle Power Plant (East) Updated Environmental Impact Assessment Environmental Impact Assessments Oct 2015
Power System Expansion and Efficiency Improvement Investment Program - Tranche 3: Initial Environmental Examination Initial Environmental Examination Sep 2015
Power System Expansion and Efficiency Improvement Investment Program - Tranche 3: Initial Environmental Examination Initial Environmental Examination Jun 2015
Power System Expansion and Energy Efficiency Improvement Investment Program - Tranche 3: Resettlement Plan Resettlement Plans Jun 2015
Power System Expansion and Efficiency Improvement Investment Program - Tranche 3: Ashuganj 400 MW Combined Cycle Power Plant (East) Environmental Impact Assessment Environmental Impact Assessments May 2015

Evaluation Documents See also: Independent Evaluation

None currently available.


Related Publications

None currently available.


The Access to Information Policy (AIP) 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.


Contracts Awarded

Contract Title Approval Number Contract Date Contractor | Address Executing Agency Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
PCSS 0018 OF LOAN 2966 CONSULTING SERVICES FOR CONSTRUCTION OF AMINBAZAR MOWA MONGLA 400 KV DOUBLE CIRCUILT T/L AND 400/230 KV S/S AT AMINBAZAR Loan 3350 01 Sep 2019 M/S. INTEC GOPA-INTERNATIONAL ENERGY CONSULTA | JUSTUS-VON-LIEBIG-STR. 1 61352 BAD HOMBURG, GERMANY GERMANY Ashuganj Power Station Company Ltd. (APSCL) 4,236,483.42 3,294,950.37
SMART METER EXPERT TO PROVIDE SERVICES FOR PREPAYMENTS E-METERING IN DHAKA DIVISION UNDER RURAL ELECTRIFICATION PROGRAM(PHASE-1) Loan 3350 11 Apr 2019 GUG WON YOUN | 411-903,195, MAPO-DAERO, MAPO-GU,SEOUL, KOREA KOREA, REPUBLIC OF Ashuganj Power Station Company Ltd. (APSCL) 196,066.00 196,066.00
PROCUREMENT OF SUPPLY, INSTALLATION, TESTING, COMM ISSIOINING AND INITIAL MAINTENANCE OF SMART PRE-PA YMENT METERS AND RELATED SERVICES (DHAKA 1/3/4 P Loan 3350 20 Jun 2018 WASION GROUP LTD | NO.468 WEST TONGZIPO ROAD, HIGH-TECH IND USTRIAL DEVELOPMENT,CHANGSHA CITY,CHINA CHINA,PEOPLE'SREP.O Ashuganj Power Station Company Ltd. (APSCL) 13,024,026.00 13,024,026.00
PROCUREMENT OF SUPPLY, INSTALLATION, TESTING, COMM ISSIOINING AND INITIAL MAINTENANCE OF SMART PRE-PA YMENT METERS AND RELATED SERVICES (NAR,NAR,GA,MY Loan 3350 20 Jun 2018 HEXING ELECTRICAL CO. LTD | NO.1418 (SHANGCHENG INDUSTRIAL ZONE), HA NGZHOU CITY CHINA CHINA,PEOPLE'SREP.OF Ashuganj Power Station Company Ltd. (APSCL) 12,612,646.00 12,612,646.00
PROCUREMENT OF PLANT DESIGN, SUPPLY AND INSTALLATI ON OF ASHUGANJ 400 MW COMBINED CYCLE POWER PLANT P ROJECT (EAST) Loan 3350 29 Mar 2018 CONSORTIUM OF CHINA NATIONAL TECHNICAL IMPORT | OVERSEAS ECONOMIC COOPERATION (CNTC-CC OEC),BEIJING, CHINA,PEOPLE'SREP.OF Ashuganj Power Station Company Ltd. (APSCL) 179,462,325.00 64,558,634.00
Construction and Completion of 132/33Kv Substations in Chittagong Division (Turnkey) Loan 3350 14 Jun 2017 ABB India Limited (India) | 21st Floor, World Trade Centre, Brigade Gateway, No 26/1 Rajkumar Rd, Bengaluru, India Ashuganj Power Station Company Ltd. (APSCL) 26,895,086.00 26,849,557.00
CD08: ACSE Zebra Conductor Package 8 Loan 3350 17 Apr 2017 Consortium-Ccc Engineering, Etern, Hanbaek | Rm 806, Soluxe Fortune Bldng, No. 63 Xidawang Rd., Chaoyang Beijing China, People's Republic of Ashuganj Power Station Company Ltd. (APSCL) 9,417,452.06 9,414,060.36
Project Implementation Support for Ashuganj 400MW CCPP (Consulting Services) Loan 3350 04 Apr 2017 Poyry Switzerland Ltd, Switzerland in association with | Herostrasse 12, Ch-8048 Zurich Switzerland Ashuganj Power Station Company Ltd. (APSCL) 2,606,949.22

Procurement Plan

None currently available.