Bangladesh: Reliance Bangladesh LNG and Power Project

Nonsovereign Project | 50253-001 Status: Proposed

The proposed Project will include facilities to import liquefied natural gas (LNG) and a natural gas fired power plant (CCPP). The LNG storage and re-gasification facility is proposed as an offshore Floating Storage unit (FSU) with storage capacity of 145,000 m3- 216,000 m3 and land based regasification facility with capacity of 750MMSCFD located on Kutubdia Island. The 750 MW CCPP, utilising re-gasified LNG (RLNG) as fuel, is proposed to be located on land allotted by Bangladesh Power Development Board (BPDB), in Meghnaghat, Narayanganj District.

Project Details

Project Officer
Tang, Sonali Private Sector Operations Department Request for information
Country
  • Bangladesh
Sector
  • Energy
 
Project Name Reliance Bangladesh LNG and Power Project
Project Number 50253-001
Borrower/Company Reliance Bangladesh LNG Terminal Limited
Reliance Bangladesh LNG and Power Limited
Country Bangladesh
Location
Approval Number
Type or Modality of Assistance
Loan USD 250.00 million Proposed
Political Risk Guarantee with Govt Guarantee USD 200.00 million Proposed
Strategic Agendas Inclusive economic growth
Drivers of Change Partnerships
Private sector development
Sector / Subsector

Energy - Conventional energy generation

Gender Equity and Mainstreaming No gender elements
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Infrastructure Finance Division 1
Responsible ADB Officer Tang, Sonali
Project Sponsor(s) Reliance Power Limited
Description The proposed Project will include facilities to import liquefied natural gas (LNG) and a natural gas fired power plant (CCPP). The LNG storage and re-gasification facility is proposed as an offshore Floating Storage unit (FSU) with storage capacity of 145,000 m3- 216,000 m3 and land based regasification facility with capacity of 750MMSCFD located on Kutubdia Island. The 750 MW CCPP, utilising re-gasified LNG (RLNG) as fuel, is proposed to be located on land allotted by Bangladesh Power Development Board (BPDB), in Meghnaghat, Narayanganj District.
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; providing an alternative to depleting domestic gas reserves and creating conditions for greater private sector participation. The Project also contributes to increasing the supply of clean energy to Bangladesh.
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 and with the MTR. The Project is fully aligned with Strategy 2020 as it belongs to one of ADBs core areas of operations (infrastructure) and is structured on a PPP basis.

Safeguard Categories

Environment A
Involuntary Resettlement A
Indigenous Peoples C

Summary of Environmental and Social Aspects

Environmental Aspects The project is classified category A for impacts on environment. While the impacts are not unprecedented and the project does not 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 showed that key environmental issues concerning biodiversity, ambient air and water quality, air emissions, domestic waste and effluents as well as noise pollution can be mitigated or controlled through adequate measures taken during the design phase and implementation of sound engineering practices during the construction and operational phases. A comprehensive program of mitigation and management during construction and operational phases of the project is planned. The national environmental and labor laws and regulations and the international standards will be followed, monitored and reported. Reliance Power Limited has a well-established environment, health and safety (EHS) cell at the corporate level which will support Reliance Bangladesh LNG and Power Limited and Reliance Bangladesh LNG Terminal 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.
Involuntary Resettlement The project is classified as category A for involuntary resettlement in compliance with ADB's Safeguard Policy Statement (2009). The power plant will be sited on lands owned by the Government and no land acquisition or involuntary resettlement impacts are envisaged. Land acquisition of approximately 75 acres belonging to 240 households will be required for development of land based regasification facility, terminal station and the onshore gas pipeline. In addition, potential economic displacement impacts are expected on fishing communities in the proposed project locations. A resettlement plan is being prepared to address and manage potential physical and economic displacement impacts.
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.
Stakeholder Communication, Participation, and Consultation The Project has carried out and is continuing public consultations with stakeholders at household, village, district and national levels. The Borrower will establish a stakeholder engagement program for the Project which will include a stakeholder consultations, disclosure activities and engagement exercises and media interactions.

Timetable for assistance design, processing and implementation

Concept Clearance 10 Aug 2016
Due Diligence
Credit Committee Meeting -
Approval -
Last PDS Update 21 Mar 2017

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 Public Communications Policy (PCP) 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.

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In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

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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.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

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The Public Communications Policy (PCP) 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.

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