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Bangladesh: Reliance Bangladesh Liquefied Natural Gas and Power Project

Nonsovereign (Private) Project | 50253-001 Status: Active

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

Project Officer
Khawaja, Haroun Ahmed Private Sector Operations Department Request for information
Country
  • Bangladesh
Sector
  • Energy
 
Project Name Reliance Bangladesh Liquefied Natural Gas and Power Project
Project Number 50253-001
Borrower/Company Reliance Bangladesh LNG and Power Limited
Country Bangladesh
Location Meghnaghat
Type or Modality of Assistance
3608 Loan Ordinary capital resources USD 182.00 million Committed
8381 Loan Leading Asia's Private Infrastructure Fund (LEAP) USD 100.00 million Committed
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Partnerships
Private sector development
Sector / Subsector

Energy / Conventional energy generation

Gender Equity and Mainstreaming Some gender elements
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Portfolio Management Division, PSOD
Responsible ADB Officer Khawaja, Haroun Ahmed
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.
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
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.
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
Concept Clearance 10 Aug 2016
Credit Committee Meeting 20 Oct 2017
Approval -
Last PDS Update 11 Feb 2021

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Evaluation Documents See also: Independent Evaluation

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Related Publications

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