The Asian Development Bank is working with Bangladesh to boost the country’s power supply. The project is working to reform and strengthen the power sector, using both public and private sector financing, to build and improve power plants, and expand power distribution lines.
|Project Name||Power System Expansion and Efficiency Improvement Investment Program - Tranche 3|
|Project Type / Modality of Assistance||Loan
|Source of Funding / Amount||
|Strategic Agendas||Environmentally sustainable growth
Inclusive economic growth
|Drivers of Change||Knowledge solutions
|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.|
|Description of Outcome||increased efficiency and capacity of the power system in Bangladesh.|
|Progress Toward Outcome||Implementation is ongoing.|
|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.
|Status of Implementation Progress (Outputs, Activities, and Issues)||
Power Generation - Bidding for procurement of Ashuganj East 400MW Combined Cycle Power Plant (CCPP) following 2S process is ongoing. Expected to be finalized by Q1/2018. Project Supervision Consultant has been already contracted.
Transmission System - Two contracts for transmission and substation packages are contracted and works are ongoing.
Demand Side Management - Procurement process for 1 million smart prepaid meters in 2 packages ongoing through International Competitive Bidding process. Expected to be finalized by Dec 2017.
|Geographical Location||Nation-wide, Ashuganj City, Chandpur, Comilla, Dhaka Division, Kachua, Kalurghat|
|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 resettlement plan describes the extent of involuntary resettlement impact and spells out provisions of compensation and assistance to the affected persons. The resettlement plan adequately assesses the land acquisition and resettlement impacts of the proposed tranche and the measures developed to address identified impacts are adequate. The resettlement plan was endorsed by the executing agencies, and disclosed on the ADB website on 29 June 2015. Subproject of Output 1 locates inside APSCL's power station premises, and no land needs be acquired. No land acquisition is involved in subproject of Output 3. For Output 2 with PGCB as executing agency, land acquisition is needed for only one substation. The private land from 17 title holders of accumulated 2.02 hectares has been acquired by PGCB. There will be no physical displacement of people under any subproject of Tranche 3. Meaningful consultation and information disclosure were undertaken with (i) project stakeholders, and (ii) the general public through the ADB website. If any changes or additional land requirements or involuntary resettlement impacts are identified, an updated resettlement plan will be prepared. PMU of PGCB has experience of implementation of the resettlement plans from Tranche 1 and 2, and in previous ADB projects.|
|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.|
|Consulting Services||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.|
|Procurement||Project Implementation Support Consultants for APSCL (Firm, QCBS 90:10)|
|Responsible ADB Officer||Nahar, Nazmun|
|Responsible ADB Department||South Asia Department|
|Responsible ADB Division||Bangladesh Resident Mission|
Ashuganj Power Station Company Ltd. (APSCL)
3402, Bangladesh Bangladesh Rural Electrification Board (BREB)
Directorate of Procurement
Head Office Bldg.-7th Flr, Zoar Sahara,
Khilkhet, Dhaka-1229, Bangladesh Power Grid Company of Bangladesh, Ltd. (PGCB)
IEB Bhaban (4th Floor)
|MRM||05 Oct 2015|
|Approval||08 Dec 2015|
|Last Review Mission||-|
|Last PDS Update||28 Sep 2017|
|Approval||Signing Date||Effectivity Date||Closing|
|08 Dec 2015||22 Dec 2015||05 Jan 2016||30 Jun 2021||-||-|
|Financing Plan||Loan Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||530.00||Cumulative Contract Awards|
|ADB||205.00||08 Dec 2015||38.23||0.00||19%|
|Cofinancing||220.00||08 Dec 2015||3.99||0.00||2%|
|Status of Covenants|
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|
|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.
Evaluation Documents See also: Independent Evaluation
None currently available.
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.
|Tender Title||Type||Status||Posting Date||Deadline|
|Loan No. 3350-BAN: Power System Expansion and Efficiency Improvement Investment Program - Tranche 3 [PPMW-01]||Invitation for Bids||Closed||23 Jun 2017||10 Aug 2017|
|BAN: Power System Expansion and Efficiency Improvement Investment Program - Tranche 3||Advance Notice||Archived||06 Jul 2015|
|Contract Title||Approval Number||Contract Date||Contractor||Contractor Address||Executing Agency||Contract Description||Total Contract Amount (US$)||Contract Amount Financed by ADB (US$)|
|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)||Turnkey||26895086||26849557|
|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)||Turnkey||9417452.06||9414060.364|
|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)||Consultancy||2606949.22|
None currently available.