Bangladesh : Rupsha 800-Megawatt Combined Cycle Power Plant Project

Project Name

Rupsha 800-Megawatt Combined Cycle Power Plant Project

Project Number

50161-003

Country / Economy

• Bangladesh

Project Status

Active

Project Type / Modality of Assistance

• Grant
• Loan

Source of Funding / Amount

Grant 9194-BAN: Supporting Socially Inclusive Development for Better Livelihoods through Rupsha Power Plant Project

Source	Amount
Japan Fund for Prosperous and Resilient Asia and the Pacific	US$ 1.50 million

Loan 3676-BAN: Rupsha 800-Megawatt Combined Cycle Power Plant Project

Source	Amount
Ordinary capital resources	US$ 500.00 million

Loan: Rupsha 800-Megawatt Combined Cycle Power Plant Project

Source	Amount
Islamic Development Bank	US$ 300.00 million

Strategic Agendas

• Environmentally sustainable growth
• Inclusive economic growth

Drivers of Change

• Gender Equity and Mainstreaming
• Governance and capacity development
• Knowledge solutions
• Partnerships

Sector / Subsector

• Energy / Conventional energy generation - Electricity transmission and distribution - Oil and gas transmission and distribution

• Information and communication technology / ICT industries and ICT-enabled services

Gender

Effective gender mainstreaming

Description

The project targets improving energy security in Bangladesh. It will increase availability of efficient and cleaner energy by developing a state-of-the-art power plant with 800-megawatt (MW) generation capacity using cleaner and highly efficient power generation technology. The project also envisages the construction of associated natural gas supply and power transmission infrastructure facilities, as well as strengthening of the institutional capacity and overall business process of the project's executing agency, North-West Power Generation Company Limited (NWPGCL), to efficiently plan and operate power plants.

Project Rationale and Linkage to Country/Regional Strategy

Bangladesh has the eighth largest population and is the 10th most densely populated country in the world. The country has achieved consistent and steady economic growth, with real gross domestic product estimated at 6.1% in fiscal year (FY) 2014, 6.6% in FY2015, and 7.1% in FY2016. The structure of the Bangladesh economy is gradually shifting from agriculture to manufacturing and services. The government's strategy for development in the medium to long term focuses on four priorities: (i) accelerating growth to 7.5% per year; (ii) making this growth more inclusive, pro-poor, and environmentally sustainable; (iii) reducing the poverty rate from 24.8% to 18.6% and the extreme poverty from 12.9% to about 8.9%; and (iv) providing productive jobs for all new entrants to the labor force by 2021.

Despite the economic success, the country faces major challenges in its effort to maintain the growth trend and move closer to upper middle-income status because of infrastructure deficiencies. Bangladesh ranks low in infrastructure quality (behind India, Pakistan, and Sri Lanka), and as such, addressing infrastructure deficiencies is a top priority for the government. A major challenge is to provide modern and affordable energy services to those who lack access. Inadequate energy could result in a loss of productivity and competitiveness and become a constraint to faster growth and greater investment in the short to medium term. To mitigate this constraint and sustain Bangladesh's economic momentum, the government has prepared an investment plan to increase power generation capacity, as well as improve and extend the power transmission and distribution network, with the aim of achieving universal access to grid-connected electricity by 2021.

Impact

Energy security improved, and electricity supply increased

Project Outcome

Description of Outcome

Availability of efficient and cleaner energy increased

Progress Toward Outcome

The project's total weighted progress is 52.74% for Loan 3676-BAN and 55.93% for Grant 9194-BAN against the elapsed project period of 64.74% from project approval. There are: (i) 3 procurement packages and 3 consulting services contracts under the loan, and (ii) 9 procurement packages and 1 consulting services contract under the grant. All contracts under the loan are awarded and work is in progress.

Implementation Progress

Description of Project Outputs

Efficient gas-fired power generation increased

Energy transfer systems upgraded

Institutional capacity of NWPGCL strengthened

Socially inclusive development of communities neighboring the project site pilot tested

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

Project implementation is ongoing, but facing slight delays due to COVID-19 pandemic and associated lockdowns. EPC contractor is actively working.This component of the project has been completed. Output indicator is achieved.Project implementation ongoing, but facing some delay due to COVID-19 related issues.Project implementation ongoing, but facing some delay due to COVID-19 related issues.Project implementation ongoing, but facing some delay due to COVID-19 related issues.Project implementation ongoingImplementation of this component is ongoingProject Management Consulting firm has been appointed and currently providing on the job trainings for NWPGCL staff.Consulting firm provided trainings to NWPGCL staff.Consulting firm has been appointed and currently developing the strategy.A specialized consulting firm has been recruited and currently developing customized trainings. Ongoing COVID-19 pandemic is affecting the progress.A specialized consulting firm has been recruited and currently developing customized trainings for skills development. Unfortunately ongoing COVID-19 pandemic is affecting the delivery of such trainings to local communities.Contract to install solar PV panels had been completed. A 20 KWp solar panel had been installed on the rooftop of the school.Contract for equipment had been completed.Contract for equipment had already been completed.

Geographical Location

Khalishpur, Khulna

Safeguard Categories

Environment

A

Involuntary Resettlement

B

Indigenous Peoples

C

Summary of Environmental and Social Aspects

Environmental Aspects

Measures are being taken to ensure compliance with EIA and EMP at all stages of project implementation. ADB is continuously monitoring this aspect. Semiannual environmental monitoring reports are being submitted to ADB on time and the latest report was covering period from January to June 2021.

Involuntary Resettlement

Construction of 800 MW combined cycle power plant is undertaken within government premises. The land transfer and acquisition have finished. Compensations were paid in accordance with the entitlement matrix. Power transmission infrastructure facilities will have temporary impacts on crops and will have minor impacts on the temporary and semi-permanent structures of some households in the project area. This impact will be managed through the resettlement plans and all losses will compensated in accordance with the entitlement matrix. Social safeguard monitoring reports have been submitted in a timely manner and the latest report was covering January to June 2021. All safeguards monitoring reports have been disclosed on ADB's website.

Indigenous Peoples

Based on due diligence no indigenous peoples as defined by ADB's Safeguards Policy Statement (2009), were found within the project area.

Stakeholder Communication, Participation, and Consultation

During Project Design

A series of consultations with key stakeholder groups and communities have been conducted during project preparation, and communities' inputs have been incorporated into the project design.

During Project Implementation

Consultation with stakeholders and communities is an ongoing process and taking place throughout implementation of the project.

Business Opportunities

Consulting Services

Following advance contracting actions in accordance with ADB's policies and procedures, the project executing agency commenced selection of Project Management and Construction Supervision Consultant in April 2017. Quality- and cost-based selection method (quality: cost weighting of 80:20), is being used following ADB's Guidelines on the Use of Consultants (2013, as amended from time to time).

Procurement

Universal procurement shall apply to the power plant contract package as it will be jointly cofinanced by ADB and IDB. Procurement of all remaining packages will follow ADB's Procurement Guidelines (2015, as amended from time to time). An oversight role by ADB will assist NWPGCL to ensure meeting integrity requirements during the bidding process and project implementation.

Contact

Responsible ADB Officer

Sanda, Roka

Responsible ADB Department

Sectors Group

Responsible ADB Division

Energy Sector Office (SG-ENE)

Executing Agencies

North-West Power Generation Co. Ltd.(NWPGCL)

Timetable

Concept Clearance

15 Dec 2016

Fact Finding

16 Oct 2017 to 26 Oct 2017

MRM

09 Mar 2018

Approval

26 Jun 2018

Last Review Mission

-

Last PDS Update

20 Sep 2022

Funding

Grant 9194-BAN

Loan 3676-BAN