49423-004: Bangladesh Power System Enhancement and Efficiency Improvement Project | Asian Development Bank

Bangladesh: Bangladesh Power System Enhancement and Efficiency Improvement Project

Sovereign (Public) Project | 49423-004 Status: Closed

The Bangladesh Power System Enhancement and Efficiency Improvement Project (the Project) to be prepared using the TA will enhance the coverage and improve the reliability and efficiency of the transmission and distribution network. This will facilitate better utilization of the country's growing power generation capacity to meet the growth in electricity demand across the country. It takes forward support to the transmission and distribution utilities provided under the Power System Expansion and Efficiency Improvement Investment Program, a multitranche financing facility (MFF) approved in 2012 of which the final tranche was approved in 2015.

Project Details

Project Officer
George, Len V. South Asia Department Request for information
Country
  • Bangladesh
Modality
  • Technical Assistance
Sector
  • Energy
 
Project Name Bangladesh Power System Enhancement and Efficiency Improvement Project
Project Number 49423-004
Country Bangladesh
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 9083-BAN: Bangladesh Power System Enhancement and Efficiency Improvement Project
Technical Assistance Special Fund US$ 225,000.00
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Sector / Subsector

Energy / Electricity transmission and distribution

Gender Equity and Mainstreaming Some gender elements
Description

The Bangladesh Power System Enhancement and Efficiency Improvement Project (the Project) to be prepared using the TA will enhance the coverage and improve the reliability and efficiency of the transmission and distribution network. This will facilitate better utilization of the country's growing power generation capacity to meet the growth in electricity demand across the country. It takes forward support to the transmission and distribution utilities provided under the Power System Expansion and Efficiency Improvement Investment Program, a multitranche financing facility (MFF) approved in 2012 of which the final tranche was approved in 2015.

The Government of Bangladesh has requested ADB lending assistance of about $400 million in 2016 to finance the government's investment plan for transmission and distribution to be taken up by the Power Grid Company of Bangladesh Limited (PGCB), the Bangladesh Rural Electrification Board (BREB), the Dhaka Power Distribution Company Limited (DPDC), and the Dhaka Electric Supply Company Limited (DESCO). The project is expected to be approved in 2016.

Project Rationale and Linkage to Country/Regional Strategy

Energy shortages are a critical infrastructure constraint to Bangladesh's economic development. The government has set an ambitious target of achieving electricity for all by 2021 and initiated plans for significant investments across the electricity generation, transmission and distribution value chain to meet an expected demand of 19 gigawatt (GW) by 2021 and 34 GW by 2030. On the generation sub-sector, measures under implementation to increase capacity include rehabilitation and efficiency improvement of existing public sector gas-fueled power plants, setting up large imported fuel-based (coal and natural gas) power plants, the creation of inter-country grid interconnections to source power from the south Asia region, and investments in grid-connected solar power generation. There has been a notable improvement in the last five years with electricity generation capacity crossing 11 GW in 2015 (i.e. doubling of capacity since 2009), ending the rolling blackouts faced in major cities. However, significant investments are still needed to meet the 2021 targets including new diversified generation sources and improved operational efficiencies for existing plants. ADB, through technical assistance, is supporting the government on its diversification for improving energy security. Significant investment activities are ongoing, including from the private sector and bilateral support to develop power generation in Bangladesh.

Investments in electricity transmission and distribution network, however, have not kept pace with the increase in generation capacity. The shortfall in investments, coupled with the increase in supply and demand, has increased the stress (overloading) on existing network assets that are expected to worsen over time. The government has identified the requirement for significant public sector investments to strengthen the grid, reduce losses, improve electricity access and improve quality of supply in the electricity transmission and distribution network to meet and prepare for the significant growth in electricity supply and demand. During the 7th Five Year Plan (2016-2020), a requirement for over 8,400 circuit kilometer (km) of transmission lines and over 90,000 circuit km of distribution lines is targeted. This would support the major rural electrification plan to increase the coverage from about 74% in 2015 to about 90% by 2021 and to enhance the capacity of existing but old rural distribution networks. The government has also set targets of reducing distribution system losses from about 12% to less than 10% in urban areas through construction of new electricity distribution lines, modernization of sub-stations and control centers, large-scale introduction of smart meters, and implementation of demand-side energy efficiency measures to improve the quality of electricity supply in urban areas including Dhaka, Chittagong, Khulna, and Rajshahi. In addition to investment requirements, implementation of the reform process in the electricity transmission and distribution sector would be reviewed with the government and other development partners to ensure that the utilities retain sufficient autonomy, and enhance institutional capabilities in a time-bound manner to improve their operational effectiveness.

Impact Accessibility and sustainability of power supply in Bangladesh improved by 2030 (Power System Master Plan for 2030)
Project Outcome
Description of Outcome A well-designed Bangladesh Power System Enhancement and Efficiency Improvement Project developed
Progress Toward Outcome
Implementation Progress
Description of Project Outputs Technical and sector due diligence reviews of components of the ensuing project undertaken
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Nation-wide
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services Individual consultants recruited by ADB for S-PPTA.
Procurement Not applicable.
Responsible ADB Officer George, Len V.
Responsible ADB Department South Asia Department
Responsible ADB Division Energy Division, SARD
Executing Agencies
Asian Development Bank
6 ADB Avenue,
Mandaluyong City 1550, Philippines
Ministry of Power, Energy and Mineral Resources
WAPDA Building
Motijheel Commercial Area, Dhaka-1000
Bangladesh
Timetable
Concept Clearance -
Fact Finding -
MRM -
Approval 09 Mar 2016
Last Review Mission -
Last PDS Update 23 Mar 2018

TA 9083-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
09 Mar 2016 - 09 Mar 2016 31 Oct 2016 31 Dec 2017 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
225,000.00 0.00 0.00 0.00 0.00 0.00 225,000.00 09 Mar 2016 210,501.61

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.

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Evaluation Documents See also: Independent Evaluation

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Related Publications

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Tenders

Tender Title Type Status Posting Date Deadline
Procurement Specialist Individual - Consulting Closed 11 Jul 2017 17 Jul 2017

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.