Bangladesh : Reliance Bangladesh Liquefied Natural Gas and Power Project
The proposed Project will include a natural gas fired power plant (CCPP). The 718 MW CCPP, utilizing re-gasified LNG (RLNG) as fuel, is proposed to be located on land allotted by Bangladesh Power Development Board (BPDB), in Meghnaghat, Narayanganj District. The project initially also included an LNG terminal located near Kutubdia Island but since ADB's Board approval, the Project scope has been reduced. The project will only consist of the CCPP and the ADB loan and guarantee amounts will be reduced accordingly.
Project Details
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Project Officer
Mosnier, Zsuzsanna
Private Sector Operations Department
Request for information -
Country/Economy
Bangladesh -
Modality
-
Sector
- Energy
| Project Name | Reliance Bangladesh Liquefied Natural Gas and Power Project | ||||||||||
| Project Number | 50253-001 | ||||||||||
| Borrower / Company | Reliance Bangladesh LNG and Power Limited |
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| Country / Economy | Bangladesh |
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| Location | Meghnaghat | ||||||||||
| Type or Modality of Assistance |
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| Strategic Agendas | Environmentally sustainable growth Inclusive economic growth Regional integration |
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| Drivers of Change | Partnerships Private sector development |
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| Sector / Subsector | Energy / Conventional energy generation |
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| Gender | Some gender elements | ||||||||||
| Responsible ADB Department | Private Sector Operations Department | ||||||||||
| Responsible ADB Division | Portfolio Management Division, PSOD | ||||||||||
| Responsible ADB Officer | Mosnier, Zsuzsanna | ||||||||||
| Project Sponsor(s) | |||||||||||
| Description | The proposed Project will include a natural gas fired power plant (CCPP). The 718 MW CCPP, utilizing re-gasified LNG (RLNG) as fuel, is proposed to be located on land allotted by Bangladesh Power Development Board (BPDB), in Meghnaghat, Narayanganj District. The project initially also included an LNG terminal located near Kutubdia Island but since ADB's Board approval, the Project scope has been reduced. The project will only consist of the CCPP and the ADB loan and guarantee amounts will be reduced accordingly. | ||||||||||
| Objectives and Scope | The Project is expected to generate significant development impact for Bangladesh: easing a key energy infrastructure constraint; generating employment during construction and operation; and creating conditions for greater private sector participation. The Project also contributes to increasing the supply of clean energy to Bangladesh and thereby result in improved social and economic conditions. | ||||||||||
| Status of Development Objectives | The project is still under construction. | ||||||||||
| Status of Operation/Construction | As of the end of February 2023, an overall progress of 92.9% had been achieved by the EPC Contractor, Samsung C&T Corporation, which is 6.5% behind the planned progress of 99.4% as per the schedule of the Project. The delay is on account of erection and commissioning (E&C) of equipment and gas linkage for commissioning. An additional 600m temporary gas pipeline will be added to the project components to source gas from the existing gas pipeline beside the project site. The temporary gas pipeline is necessary until the government is able to supply gas from the valve station of Gas Transmission Company Limited (GTCL) as originally planned. | ||||||||||
| Linkage to Country/Regional Strategy | The project will support economic growth in Bangladesh, promote private sector development in the energy sector, catalyze long-term private financing, which are in line with ADBs country partnership strategy (CPS) 2016-2020. The Project is fully aligned with Strategy 2030 as it promotes private sector engagement in one of ADBs core areas of operations (infrastructure). |
| Safeguard Categories | |
|---|---|
| Environment | A |
| Involuntary Resettlement | C |
| Indigenous Peoples | C |
| Summary of Environmental and Social Aspects | |
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| Environmental Aspects | The project is classified category A for impacts on environment. While the impacts are not unprecedented and the project is not expected to adversely affect an environmentally sensitive area, they are diverse and the potential construction, operational and safety risks due to the nature and scale of the project are considered significant. The environmental impact assessment reports showed that key environmental issues concerning biodiversity, air emissions, effluent quality, domestic waste, and noise pollution can be reduced and mitigated through adequate measures taken during the design phase and implementation of sound engineering practices during the construction and operational phases, which are presented in the Environmental management plans. Stakeholder consultations with communities and affected people have been conducted at project locations and will be continued during project implementation. The sponsor has a well-established environment, health and safety (EHS) cell at the corporate level which will support Reliance Bangladesh LNG and Power Limited for management of EHS issues at project sites. Occupational and community health, safety and security procedures are in place including the establishment of an Emergency Response and Disaster Management Plan. Supplementary environmental and social assessment is currently being carried out for the additional temporary gas pipeline. Minimal environmental risk is anticipated as the pipeline will be constructed within the boundary of the industrial complex owned by Bangladesh Power Development Board (BPDB). |
| Involuntary Resettlement | The project was initially classified as category B for involuntary resettlement in compliance with ADB's Safeguard Policy Statement (2009). The categorization was based on the involuntary resettlement impact that will be brought about by the construction of gas transmission line from the LNG terminal to the national grid requiring land acquisition and land requisition. The project scope was revised to exclude the gas transmission line and LNG terminal and is now limited to the development of a 750 MW combined cycle power plant (CCPP). The CCPP will be located within a 35-acre plot leased by the Bangladesh Power Development Board (BPDB) to the borrower and no involuntary resettlement impact is envisaged. In addition, the construction of gas pipeline from the valve station of Gas Transmission Company Limited (GTCL) to the power plant and the transmission line connecting the power plant to the 400kV substation will be undertaken within the project boundary and will not lead to any physical or economic displacement. The project was recategorized as C on involuntary resettlement based on the revised project scope confirming that the project will not entail any involuntary resettlement impact. |
| Indigenous Peoples | The project is classified Category C for impacts on Indigenous Peoples. The ESIA confirms that there are no indigenous communities in the project locations that will be impacted due to the project. The project is not expected to affect territories or natural and cultural resources owned, used, occupied, or claimed by indigenous peoples as their ancestral domain. |
| Stakeholder Communication, Participation, and Consultation | Meaningful consultations with relevant stakeholders at the project sites were conducted and information disclosure done in accordance with ADB SPS. Community liaison officers will be deployed to develop, implement and manage the stakeholder engagement and grievance redress mechanisms in the project. |
| Timetable for assistance design, processing and implementation | |
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| Concept Clearance | 10 Aug 2016 |
| Credit Committee Meeting | 20 Oct 2017 |
| Approval | - |
| Last PDS Update | 16 Mar 2023 |
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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| Title | Document Type | Document Date |
|---|---|---|
| Reliance Bangladesh Liquefied Natural Gas and Power Project: Updated Project Memo | Documents Produced Under Grant/Loans/TA | Jul 2020 |
| Reliance Bangladesh Liquefied Natural Gas and Power Project: Initial Poverty and Social Analysis | Initial Poverty and Social Analysis | Dec 2017 |
| Reliance Bangladesh Liquefied Natural Gas and Power Project: Report and Recommendation of the President | Reports and Recommendations of the President | Nov 2017 |
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.
Evaluation Documents See also: Independent Evaluation
None currently available.
Related Publications
None currently available.
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ADB Finances Largest Private Gas Power Plant to Improve Access to Energy in Bangladesh
DHAKA, BANGLADESH (31 July 2020) — The Asian Development Bank (ADB) has signed a $200 million financing package with Reliance Bangladesh LNG and Power Limited (RBLPL) to build and operate a 718-megawatt (MW) combined-cycle gas-fired power plant in Bangladesh. The project will ease ongoing energy shortages and drive further private sector investments in the country’s power sector.