Bangladesh : Bangladesh Power System Enhancement and Efficiency Improvement Project -Additional Financing

Sovereign Project | 49423-006

The proposed additional financing will yield expansion of Output 3 (distribution network in rural areas of Bangladesh improved) of the original project. Over 46,000 km (Original: 38,000 km) of 33 kV and 11 kV distribution lines and associated facilities rehabilitated, and over 16,000 km (Original: 12,000 km) of 33 kV and 11 kV distribution lines and associated facilities will be constructed. An updated design and monitoring framework is in Attachment 2.

Project Name Bangladesh Power System Enhancement and Efficiency Improvement Project -Additional Financing
Project Number 49423-006
Country / Economy Bangladesh
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 4039-BAN: Bangladesh Power System Enhancement and Efficiency Improvement Project -Additional Financing
Concessional ordinary capital resources lending US$ 130.00 million
Loan 4040-BAN: Bangladesh Power System Enhancement and Efficiency Improvement Project -Additional Financing
Ordinary capital resources US$ 70.00 million
Operational Priorities OP1: Addressing remaining poverty and reducing inequalities
OP2: Accelerating progress in gender equality
OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
OP5: Promoting rural development and food security
OP6: Strengthening governance and institutional capacity
Sector / Subsector

Energy / Electricity transmission and distribution

Gender Effective gender mainstreaming
Description The proposed additional financing will yield expansion of Output 3 (distribution network in rural areas of Bangladesh improved) of the original project. Over 46,000 km (Original: 38,000 km) of 33 kV and 11 kV distribution lines and associated facilities rehabilitated, and over 16,000 km (Original: 12,000 km) of 33 kV and 11 kV distribution lines and associated facilities will be constructed. An updated design and monitoring framework is in Attachment 2.
Project Rationale and Linkage to Country/Regional Strategy The additional financing for BREB is proposed to further improve access to efficient and reliable electricity supply in rural areas in Khulna division (western Bangladesh). BREB has sought assistance from ADB to enhance the primary distribution network capacity of the rural electrification network and to rehabilitate and improve sections of the network that are over 20 years old using wooden distribution poles with low-capacity conductors. These investments are needed to ensure delivery of increasing requirement of power and meet customer demand in an efficient and reliable manner. Proposed additional scope is strongly linked to the ongoing project's scope and can be efficiently implemented under the same implementation arrangements. The overall project scope is aligned with the government's the Perspective Plan of Bangladesh, 20102021: Making Vision 2021 a Reality, and the 7th Five Year Plan. It is also aligned with Bangladesh country partnership strategy for 201620.
Impact

100% access to power by 2021 and power sector sustainability improved in Bangladesh by 2030

Project Outcome
Description of Outcome

Access to efficient and reliable electricity supply in Bangladesh improved

Progress Toward Outcome Seven contracts were awarded as of September 2022.
Implementation Progress
Description of Project Outputs

National transmission network in southern Bangladesh strengthened

Distribution network in DESCO service areas improved

Distribution network in rural areas of Bangladesh including the capacity of end-users improved

Capacity in power sector agencies enhanced

Status of Implementation Progress (Outputs, Activities, and Issues) Procurement is ongoing for other packages.
Geographical Location Nation-wide
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The project is classified as Category B for environment. The IEE adequately assessed the impacts and risks of the identified substations, and confirms the project will not impact on legally protected areas or internationally or nationally important biodiversity areas or physical cultural resources.
Involuntary Resettlement The project is classified as Category B for resettlement. Potential impacts of the project on land acquisition and involuntary resettlement are not anticipated to be significant.
Indigenous Peoples The project is classified as Category B for indigenous peoples.
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services Three international individual consultants and five national individual consultants will be recruited to support financial, procurement, and safeguards due diligence. One individual national consultant will be recruited to support safeguard monitoring. ADB will engage the consultants following the ADB Procurement Policy (2017, as amended from time to time) and its associated project administration instructions and/or staff instructions
Procurement Since BREB has successfully awarded all contracts under the ongoing loan, the recommended project procurement classification is Category B.
Responsible ADB Officer Horiguchi, Kazuhiro
Responsible ADB Department Sectors Group
Responsible ADB Division Energy Sector Office (SG-ENE)
Executing Agencies
Bangladesh Rural Electrification Board
Ministry of Power, Energy and Mineral Resources
Timetable
Concept Clearance 20 Nov 2019
Fact Finding 29 Jun 2020 to 29 Jun 2020
MRM 25 Sep 2020
Approval 09 Dec 2020
Last Review Mission -
Last PDS Update 14 Sep 2022

Loan 4039-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
09 Dec 2020 29 Dec 2020 26 Jan 2021 30 Jun 2026 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 130.00 Cumulative Contract Awards
ADB 130.00 09 Jan 2024 46.43 0.00 36%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 09 Jan 2024 25.29 0.00 19%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory Satisfactory Satisfactory - Satisfactory

Loan 4040-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
09 Dec 2020 29 Dec 2020 26 Jan 2021 30 Jun 2026 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 183.50 Cumulative Contract Awards
ADB 70.00 09 Jan 2024 0.00 0.00 0%
Counterpart 113.50 Cumulative Disbursements
Cofinancing 0.00 09 Jan 2024 0.00 0.00 0%
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.

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Title Document Type Document Date
Bangladesh Power System Enhancement and Efficiency Improvement Project - Additional Financing: Audited Project Financial Statements (July 2022-June 2023) Audited Project Financial Statements Feb 2024
Bangladesh Power System Enhancement and Efficiency Improvement Project - Additional Financing: Audited Project Financial Statements (July 2021-June 2022) Audited Project Financial Statements Jan 2023
Loan Agreement (Ordinary Operations) for Loan 4040-BAN: Bangladesh Power System Enhancement and Efficiency Improvement Project Loan Agreement (Ordinary Resources) Dec 2020
Project Agreement for Bangladesh Power System Enhancement and Efficiency Improvement Project Project/Program Agreements Dec 2020
Loan Agreement (Ordinary Operations [Concessional]) for Loan 4039-BAN: Bangladesh Power System Enhancement and Efficiency Improvement Project Loan Agreement (Ordinary Resources) Dec 2020
Bangladesh Power System Enhancement and Efficiency Improvement Project - Additional Financing: Gender Action Plan Gender Action Plans Nov 2020
Bangladesh Power System Enhancement and Efficiency Improvement Project - Additional Financing: Report and Recommendation of the President Reports and Recommendations of the President Nov 2020
Bangladesh Power System Enhancement and Efficiency Improvement Project - Additional Financing: Project Administration Manual Project/Program Administration Manual Sep 2020
Bangladesh Power System Enhancement and Efficiency Improvement Project - Additional Financing: Procurement Plan Procurement Plans Jun 2020

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
Bangladesh Power System Enhancement and Efficiency Improvement Project – Additional Financing: Social Monitoring Report (July-December 2023) Social Monitoring Reports Jan 2024
Bangladesh Power System Enhancement and Efficiency Improvement Project – Additional Financing: Social Monitoring Report (January-June 2023) Social Monitoring Reports Aug 2023
Bangladesh Power System Enhancement and Efficiency Improvement Project – Additional Financing: Environmental Monitoring Report (January-June 2022) Environmental Monitoring Reports Jul 2022
Bangladesh Power System Enhancement and Efficiency Improvement Project – Additional Financing: Social Monitoring Report (July-December 2021) Social Monitoring Reports Jan 2022
Bangladesh Power System Enhancement and Efficiency Improvement Project – Additional Financing: Environmental Monitoring Report (July-December 2021) Environmental Monitoring Reports Jan 2022
Bangladesh Power System Enhancement and Efficiency Improvement Project – Additional Financing: Social Monitoring Report (January-June 2021) Social Monitoring Reports Jul 2021
Bangladesh Power System Enhancement and Efficiency Improvement Project – Additional Financing: Environmental Monitoring Report (January-June 2021) Environmental Monitoring Reports Jul 2021
Bangladesh Power System Enhancement and Efficiency Improvement Project - Additional Financing: Updated Initial Environmental Examination Initial Environmental Examination Oct 2020
Bangladesh Power System Enhancement and Efficiency Improvement Project - Additional Financing: Updated Resettlement Plan Resettlement Plans Oct 2020
Bangladesh Power System Enhancement and Efficiency Improvement Project - Additional Financing: Initial Environmental Examination Initial Environmental Examination Sep 2020
Bangladesh Power System Enhancement and Efficiency Improvement Project - Additional Financing: Resettlement Plan Resettlement Plans Sep 2020

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.

  • 10 Dec 2020 | News Release

    ADB Increases Support for Power Distribution in Bangladesh

    ADB has approved a $200 million loan as additional financing to the ongoing Bangladesh Power System Enhancement and Efficiency Improvement Project to further improve electricity distribution network in rural areas in the Khulna division.

Tenders

Tender Title Type Status Posting Date Deadline
4039/4040-BAN: Bangladesh Power System Enhancement and Efficiency Improvement Project-Additional Financing [MCEP/BREB/ KD-W-3; MCEP/BREB/ KD-W-10 and MCEP/BREB/ KD-W-11] Invitation for Bids Closed
4039/4040-BAN: Bangladesh Power System Enhancement and Efficiency Improvement Project-Additional Financing [MCEP/BREB/ KD-G-15/2; MCEP/BREB/ KD-G-16/1 & MCEP/BREB/KD-G-23] Invitation for Bids Closed
4039/4040-BAN: Bangladesh Power System Enhancement and Efficiency Improvement Project-Additional Financing [MCEP/BREB/KD-G-13; MCEP/BREB/KD-G-17; MCEP/BREB/KD-G-18; MCEP/BREB/KD-G-20] Invitation for Bids Closed
4039/4040-BAN: Bangladesh Power System Enhancement and Efficiency Improvement Project-Additional Financing [MCEP/BREB/KD-G-22] Invitation for Bids Closed
4039/4040-BAN: Bangladesh Power System Enhancement and Efficiency Improvement Project-Additional Financing [Package SS1] Invitation for Bids Closed
4039/4040-BAN: Bangladesh Power System Enhancement and Efficiency Improvement Project-Additional Financing (EQ-09) Invitation for Bids Closed
4039/4040-BAN: Bangladesh Power System Enhancement and Efficiency Improvement Project-Additional Financing [MCEP/BREB/KD-G-22] Invitation for Bids Closed
4039/4040-BAN: Bangladesh Power System Enhancement and Efficiency Improvement Project-Additional Financing [MCEP/BREB/KD-G-14/1, MCEP/BREB/KD-G-18] Invitation for Bids Closed
4039/4040-BAN: Bangladesh Power System Enhancement and Efficiency Improvement Project-Additional Financing [MCEP/BREB/KD-G-15, MCEP/BREB/KD-G-17, MCEP/BREB/KD-G-18, MCEP/BREB/KD-G-19] Invitation for Bids Closed
4039/4040-BAN: Bangladesh Power System Enhancement and Efficiency Improvement Project-Additional Financing [MCEP/BREB/KD-G-13, MCEP/BREB/KD-G-14, MCEP/BREB/KD-G-20, MCEP/BREB/KD-G-29] Invitation for Bids Closed
4039/4040-BAN: Bangladesh Power System Enhancement and Efficiency Improvement Project-Additional Financing [MCEP/BREB/KD-G-21] Invitation for Bids Closed

Contracts Awarded

Contract Title Approval Number Contract Date Contractor | Address Executing Agency Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
Procurement of SPC Poles - Lot 2 Loan 4039 29 Dec 2023 Castle Construction Co., Ltd. | House No. 44, Road No. 16 (New) 27 (Old), Dhanmondi, Dhaka Bangladesh Rural Electrification Board 6,460,948.00 6,460,948.00
Procurement of Guy and Grounding Wire Loan 4039 29 Dec 2023 SQ Wire & Cable Co., Ltd. | Flat A12, Room 02, House No. 21, Road No. 17, Banani, Dhaka Bangladesh Rural Electrification Board 1,021,720.00 1,021,720.00
Procurement of Conductor and Guy Accessories Loan 4039 29 Dec 2023 SQ Wire & Cable Co., Ltd. | Flat A12, Room 02, House No. 21, Road No. 17, Banani, Dhaka Bangladesh Rural Electrification Board 1,189,090.00 1,189,090.00
Procurement of SPC Poles - Lot 3 Loan 4039 21 Dec 2023 CONTECH CONSTRUCTON LTD. | House No. 78, Road No. 2 Banani, Dhaka Bangladesh Rural Electrification Board 6,458,495.00 6,458,495.00
Procurement of SPC Poles - Lot 1 Loan 4039 21 Dec 2023 TSCO Power Limited | Level 13, Plot 57, Block B, Suvastu Suraiya Trade Center, Kemal Ataturk Avenue, Banani, Dhaka Bangladesh Rural Electrification Board 6,459,609.00 6,459,609.00
Conductor & Wire (Underground Cable) Loan 4039 20 Sep 2023 Zhongtian Technology Submarine Cable Co., Ltd. | No. 1 Xinkai South Road Nantong Economic & Technological Development Zone, Jiangsu, China Bangladesh Rural Electrification Board (BREB) 5,498,150.00 5,498,150.00
Procurement of Distribution Transformers Loan 4039 23 Nov 2022 MANS ELECTRICAL LTD. | House No. 10A Flat No. 4-D Globe Nibash, Segun Bagicha, Dhaka Bangladesh Rural Electrification Board (BREB) 1,685,670.00 1,685,670.00
SPC Poles - Lot 1 Loan 4039 28 Feb 2022 Castle Construction Co. Ltd. JV with Poles and Concrete Ltd. and TSCO Power Ltd. | House No. 44, Road No. 16, 27 Dhanmondi, Dhaka Bangladesh Rural Electrification Board(BREB) 3,697,590.70 3,697,590.70
SPC Poles - Lot 3 Loan 4039 28 Feb 2022 Charka SPC Poles Ltd. JV with Confidence Infrastructure Ltd. and Poles and Concrete Ltd. | House No. 719/A(old), 85(new), Road No. 7/A, Satmosjid Road, Dhanmondi, Dhaka Bangladesh Rural Electrification Board(BREB) 3,697,051.80 3,697,051.80
SPC Poles - Lot 2 Loan 4039 28 Feb 2022 Charka SPC Poles Ltd. JV with DADA Engineering Ltd. and Confidence Infrastructure Ltd. | House No. 719/A(old), 85(new), Road No. 7/A, Satmosjid Road, Dhanmondi, Dhaka Bangladesh Rural Electrification Board(BREB) 3,698,474.65 3,698,474.65
Package EQ-03 - Supply of Conductor & Guy Accessories Loan 4039 27 Jan 2022 SQ Trading & Engineering | Level 12, Suite A12, House 21, Road 17, Block C, Banani, Dhaka Bangladesh Rural Electrification Board (BREB) 1,029,780.00 1,029,780.00
Package EQ-04 - Power Transformer Loan 4039 31 Jan 2022 TS Transformers Limited | Suvastu Suraiya Trade Centre (Level 11), 57 Kemal Ataturk Avenue, Block B, Banani C/A, Dhaka Bangladesh Rural Electrification Board (BREB) 3,159,940.00 3,159,940.00

Procurement Plan