Bangladesh: Study on Energy Security

Sovereign Project | 48277-004

a. Link to Country Partnership Strategy/Regional Cooperation Strategy:

Project Details

  • Project Officer
    Yusupov, Aziz A.
    South Asia Department
    Request for information
  • Country
    Bangladesh
  • Modality
    • Technical Assistance
  • Sector
    • Energy
Project Name Study on Energy Security
Project Number 48277-004
Country Bangladesh
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 8839-BAN: Study on Energy Security
Technical Assistance Special Fund US$ 1.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Sector / Subsector

Energy / Conventional energy generation - Energy sector development and institutional reform

Gender Equity and Mainstreaming Some gender elements
Description

a. Link to Country Partnership Strategy/Regional Cooperation Strategy:

The proposed capacity development technical assistance (TA) will conduct a study on the security of energy supplies in Bangladesh. The government has adopted a comprehensive energy development strategy as part of its Sixth Five-Year Plan. It includes measures to boost power supply emphasizing, among others, diversified primary energy sources. The government will try to exploit all forms of primary energy and increase electricity generating capacity based on different primary energy supply options. Implementation of this plan can be facilitated by a systematic study on energy security with the intention of diversifying the primary energy sources. The study can be extended by conducting feasibility studies on high priority power generation projects identified based on the recommendations. These studies are aligned with ADB's country strategy where key interventions in the energy sector include, among others, investments in new power-generating facilities.

b. Impact

The impact will be enhanced primary fuel diversification in Bangladesh''s power sector. The indicator will be at least one project recommended by the study is commissioned by 2022.

c. Outcome

The outcome of the TA will be capacity of the Power Division of the Ministry of Power, Energy and Mineral Resources to diversify fuel sources for power generation increased . The indicator will be inclusion of the recommendations of the study included in an updated optimal power generation plan by 2017. This will enable Bangladesh to diversify fuel sources in its power generation system which will lead to greater reliability and adequate power supplies.

d. Outputs

The output of the TA will be (i) understanding of the overall security of energy supplies in Bangladesh improved, and (ii) of the most attractive baseload generation options confirmed with specific case studies provided. The indicators will be the final energy security study report submitted to the Power Division of the Ministry of Power, Energy, and Mineral Resources by 2017 and feasibility study report (s) of the specific case studies submitted to the Power Division, Ministry of Power, Energy and Mineral Resources by 2017.

Project Rationale and Linkage to Country/Regional Strategy Bangladesh''s heavy reliance on domestic natural gas in power generation has become one of the main bottlenecks in generation capacity additions to supply the exponentially increasing demand for electricity. Even with a total generation capacity of 10,416 megawatt (2014), inadequate gas production has resulted in power shortages seriously impacting the economic activities and hindering government plans to expand power supply to the population without electricity access. Only 62% Bangladeshis has access to electricity and its per capita consumption stands at 321 kWh which is the second lowest in South Asia. It has been estimated that the economic loss in the industrial sector due to power outages can be as high as 1.7% of the GDP (2004 estimates). In addition, the energy sector suffers from issues such as inefficient sectoral allocation of gas ans its use and poor financial sustainability in the sector mainly due to underpricing of gas and electricity. Considering these factors, fuel diversification in the power sector for greater reliability of electricity supply and for improved energy security, is therefore a pressing need. Government has already embarked on a fuel diversification policy with due consideration given to primary energy sources such as nuclear, coal and imported liquefied natural gas (LNG) for power generation. However, a systematic study on the way forward in fuel diversification and other related energy security issues remains to be undertaken.
Impact Enhanced primary fuel diversification in Bangladesh's power sector
Project Outcome
Description of Outcome Increased capacity of the Power Division of the Ministry of Power, Energy and Mineral Resources to diversify fuel sources for power generation
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

1. Understanding of the overall security of energy supplies in Bangladesh improved

2. Feasibility of the most attractive baseload generation options confirmed with specific case studies provided

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

Inception Workshop was conducted on 21 January 2016. The initial findings were presented with the stakeholders and the plan for the next steps.

The Inception Report was prepared by the consultants and submitted on 23 February 2016.

Energy Security Options Report was received in July 2016 after a workshop where Ministry, Power Division, Energy Division along with utilities attended. There were several recommendations including (i) introduction of small scale LNG solutions, (ii) recommendations on regional cooperation in the power and gas sector

Final Report on Energy Security (Phase I) received on 23 January 2017 including recommendations from meeting with Power Division and BPDB.

The Interim Report (Phase II) was received on 19 May 2017.

Geographical Location
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design The government has requested this study as an urgent matter which needs to be attended to, in the energy sector. This has been discussed with the relevant institutions in the government during several ADB missions and also included in the COBP.
During Project Implementation

Further stakeholder consultations will be under taken during the implementation of the TA and its activities will be adjusted to be in line with the outcome of such meetings.

The progress of the TA will be monitored through inception, interim, draft final and final reports on the study. Further, a senior advisor appointed in the TA will continuously monitor and guide the consulting team during the whole period. Also there will be a minimum of two stakeholder meetings on the findings of the study to validate the approach of the study and the final findings.

These meetings, a final dissemination seminar and an ADB publication will be used to disseminate the findings of the study among the key stakeholders.

Business Opportunities
Consulting Services

The services of the senior advisor (6 person-months) is on-going and the social safeguards specialist's contract (3 person-months) has ended.

A consulting firm has been recruited to conduct a comprehensive study on energy security in Bangladesh with emphasis on its power generation sector.

The consultants will also, based on the recommendations of the study and in consultation with the Government of Bangladesh and ADB, conduct adequate due diligence on the selected priority generation project(s) to support financing by ADB, other development partners and the private sector.

Goods procured under the TA will be handed over to the BPDB on completion of the TA project.

Procurement No major procurement is expected. Any procurement of goods will be carried out in accordance with ADB's Procurement Guidelines (2013, as amended from time to time).
Responsible ADB Officer Yusupov, Aziz A.
Responsible ADB Department South Asia Department
Responsible ADB Division Energy Division, SARD
Executing Agencies
Bangladesh Power Development Board (BPDB)
WAPDA Building, 9th Floor
Motijhel C/A
Dhaka-1000,Bangladesh
Timetable
Concept Clearance 10 Nov 2014
Fact Finding 01 Nov 2014 to 02 Nov 2014
MRM -
Approval 17 Dec 2014
Last Review Mission -
Last PDS Update 21 Sep 2018

TA 8839-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
17 Dec 2014 24 Feb 2015 24 Feb 2015 31 Dec 2017 31 Dec 2018 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
1,000,000.00 0.00 200,000.00 0.00 0.00 0.00 1,200,000.00 29 Sep 2021 548,505.72

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.

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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.

None currently available.


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.

Tenders

No tenders for this project were found.


Contracts Awarded

Contract Title Approval Number Contract Date Contractor | Address Executing Agency Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
Capacity Development Technical Assistance 8839 25 Nov 2015 PriceWaterhouseCoopers Pvt. Ltd. (India) in association with Lahmeyer International Pvt. Ltd. (India) | #8-2-293/82/A/1131A, Road No. 36, Jubile derabad, India/Andhra Pradesh 500034, In, 17th Flr, Bldg 10, Tower C, DLF Cyber City Bangladesh Power Development Board (BPDB) 676,323.00

Procurement Plan

None currently available.