Bangladesh: Financing Brick Kiln Efficiency Improvement Project

Sovereign Project | 45273-001 Status: Active

ADB is supporting Bangladesh’s efforts to promote energy efficiency in brick-making, one of the biggest polluting industries in the country. The project will establish a credit facility that will provide loans to brick makers to build or upgrade to cleaner kinds of kilns. Brick-making is energy-intensive and a main source of greenhouse gas emission and fine particulate pollution in Bangladesh.

Project Details

Project Officer
Alam, Nazmul South Asia Department Request for information
Country
  • Bangladesh
Modality
  • Loan
Sector
  • Finance
 
Project Name Financing Brick Kiln Efficiency Improvement Project
Project Number 45273-001
Country Bangladesh
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2865-BAN: Financing Brick Kiln Efficiency Improvement Project
Ordinary capital resources US$ 30.00 million
Loan 2866-BAN: Financing Brick Kiln Efficiency Improvement Project
concessional ordinary capital resources lending / Asian Development Fund US$ 20.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Private sector development
Sector / Subsector

Finance - Infrastructure finance and investment funds

Gender Equity and Mainstreaming Some gender elements
Description
Project Rationale and Linkage to Country/Regional Strategy
Impact

Project Outcome

Description of Outcome
Progress Toward Outcome Recent ADB Midterm Review Mission suggested that the staff and workers of subprojects must follow Environmental, health and social safety (EHS) and use personal protection equipment (PPE). 11 due diligence and monitoring reports were disclosed in 2016.
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)

Complied for 13 subprojects which are in commercial operation or under construction.

ACFID transferred the project to the Sustainable Finance Department of Bangladesh Bank. The credit facility under ADB through Bangladesh Bank is fully operational.

ACFID transferred the project to the Sustainable Finance Department of Bangladesh Bank.

Till date, 13 subprojects were approved by the project having aggregate cost of $32.6 million

Geographical Location

Summary of Environmental and Social Aspects

Environmental Aspects According to ADB's Safeguard Policy Statement 2009 (SPS 2009), the project is classified as FI (financial intermediary) for environment, involuntary resettlement, and indigenous peoples. An environmental and social management system (ESMS) arrangement consistent with SPS 2009 was prepared to guide PFIs to evaluate the subprojects and develop their own ESMS. Safeguards related eligibility criteria eliminate any subproject that could be classified as category "A,"_based on SPS 2009. PFIs will be incentivized to adopt and comply with the developed ESMS arrangements to access the credit facility. The project will only finance environment categorization B and C subproject. A subproject categorization process is being implemented and reviewed by ADB to ensure accuracy and compliance.
Involuntary Resettlement Upgradation of existing FCKs will not likely lead to additional land acquisition. Construction of greenfield energy efficient kilns will be mostly confined in subborrowers' own land. The project will only finance Involuntary Resettlement (IR) categorization B and C subproject. A subproject categorization process is being implemented and reviewed by ADB to ensure accuracy and compliance.
Indigenous Peoples All land acquisition to the small ethnic community people will not be permitted. The project will only finance Indigenous Peoples (IP) categorization B and C subproject. A subproject categorization process is being implemented and reviewed by ADB to ensure accuracy and compliance.
Stakeholder Communication, Participation, and Consultation
During Project Design Key C&P pertains of consultations with (i) government stakeholders on the need to reduce air pollution from brick kilns and on the government commitment to implement the project, (ii) brickfield owners' interests and incentives to receive funds for the proposed technology upgrade, and (iii) potential lenders on their appetite for providing such specialized lending in the brick sector, and for the confirmation of the realistic nature of the project rationale.
During Project Implementation ADB has conducted frequent, often monthly, reviews on the project implementation. All relevant government and public entities are well involved. Site visits and consultations are required as a part of the safeguard compliance requirements.

Responsible Staff

Responsible ADB Officer Alam, Nazmul
Responsible ADB Department South Asia Department
Responsible ADB Division Bangladesh Resident Mission
Executing Agencies
Ministry of Finance
Economic Relations Division (ERD), MOF
Sher-e-Bangla Nagar, Dhaka_1207
Bangladesh

Timetable

Concept Clearance -
Fact Finding -
MRM -
Approval -
Last Review Mission -
Last PDS Update 29 Mar 2017

Loan 2865-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
10 May 2012 20 Jun 2012 08 Nov 2012 31 Dec 2015 31 Mar 2017 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 30.00 Cumulative Contract Awards
ADB 30.00 10 May 2012 0.00 0.00 0%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 10 May 2012 13.00 0.00 43%

Loan 2866-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
10 May 2012 20 Jun 2012 08 Nov 2012 31 Dec 2015 31 Mar 2017 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 20.00 Cumulative Contract Awards
ADB 20.00 10 May 2012 0.00 0.00 0%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 10 May 2012 19.98 0.00 100%

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.

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
Financing Brick Kiln Efficiency Improvement Project: Nowhata Green Bricks Ltd. Environmental Due Diligence Report Safeguards Due Diligence Reports Dec 2016
Financing Brick Kiln Efficiency Improvement Project: Rashid Auto Bricks Ltd. Environmental Monitoring Report Environmental Monitoring Reports Dec 2016
Financing Brick Kiln Efficiency Improvement Project: Stone Bricks Ltd. Environmental Monitoring Report Environmental Monitoring Reports Dec 2016
Financing Brick Kiln Efficiency Improvement Project: Farmland Green Auto Bricks Ltd. Environmental Due Diligence Report Safeguards Due Diligence Reports Nov 2016
Financing Brick Kiln Efficiency Improvement Project: MRD Bricks Ltd. Environmental Due Diligence Report Safeguards Due Diligence Reports Aug 2016
Financing Brick Kiln Efficiency Improvement Project: Tradexcel Auto Bricks Ltd. Environmental Monitoring Report Environmental Monitoring Reports Aug 2016
Financing Brick Kiln Efficiency Improvement Project: Panchgaon Auto Bricks Ltd. Environmental Monitoring Report Environmental Monitoring Reports Aug 2016
Financing Brick Kiln Efficiency Improvement Project: Bricks 2010 Ltd. Environmental Monitoring Report Environmental Monitoring Reports Jun 2016
Financing Brick Kiln Efficiency Improvement Project: KB Auto Bricks Ltd. Environmental Due Diligence Report Safeguards Due Diligence Reports Jun 2016
Financing Brick Kiln Efficiency Improvement Project: First Auto Bricks Ltd. Environmental Due Diligence Report Safeguards Due Diligence Reports Jun 2016
Financing Brick Kiln Efficiency Improvement Project: Seminannual Social Compliance Audit Report for Stone Bricks Ltd. Social Compliance Audit Report Mar 2016
Financing Brick Kiln Efficiency Improvement Project: Environment and Social Due Diligence Report for Panchgaon Auto Bricks Ltd. Safeguards Due Diligence Reports Feb 2015
Financing Brick Kiln Efficiency Improvement Project: Environment and Social Due Diligence Report for Tradexcel Auto Bricks Ltd. Safeguards Due Diligence Reports Feb 2015
Financing Brick Kiln Efficiency Improvement Project: Environment and Social Due Diligence Report for Bondhu Unity Auto Bricks Ltd. Safeguards Due Diligence Reports Dec 2014
Financing Brick Kiln Efficiency Improvement Project: Environment and Social Due Diligence Report for Arabi Auto Bricks Ltd. Safeguards Due Diligence Reports Oct 2014
Financing Brick Kiln Efficiency Improvement Project: Environment and Social Due Diligence Report for Stone Bricks Ltd. Safeguards Due Diligence Reports Oct 2014
Financing Brick Kiln Efficiency Improvement Project: Environment and Social Due Diligence Report for Priyo Automatic Bricks Ltd. Safeguards Due Diligence Reports Aug 2014
Financing Brick Kiln Efficiency Improvement Project: Environment and Social Due Diligence Report for Rashid Auto Bricks Ltd. Safeguards Due Diligence Reports Aug 2014
Financing Brick Kiln Efficiency Improvement Project: Environment and Social Due Diligence Report for Bricks 2010 Ltd. Safeguards Due Diligence Reports Jun 2014
Financing Brick Kiln Efficiency Improvement Project Environment and Social Management System Arrangements Apr 2012

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

No contracts awarded for this project were found

Procurement Plan

None currently available.