fbpx 51137-001: Southwest Transmission Grid Expansion Project | Asian Development Bank

Bangladesh: Southwest Transmission Grid Expansion Project

Sovereign (Public) Project | 51137-001 Status: Active

The project will improve the operational performance of the power sector and contribute to the Government of Bangladesh's target to achieve electricity for all by 2021 through (i) constructing (a) a 400/132-kilovolt (kV) substation at Gopalganj; (b) a 230 kV transmission line in the southern zone, from Barisal to Faridpur; and (c) a 400 kV transmission line in the western zone, from Bogra to Rohanpur; and (ii) implementing a capacity development program in the electric utility industry to promote socially and gender inclusive growth . The project will use state-of-the-art conductors with higher power transmission capacity and lower energy loss in both the 230 kV and 400 kV transmission lines

Project Details

Project Officer
Nahar, Nazmun South Asia Department Request for information
Country
  • Bangladesh
Modality
  • Grant
  • Loan
Sector
  • Energy
 
Project Name Southwest Transmission Grid Expansion Project
Project Number 51137-001
Country Bangladesh
Project Status Active
Project Type / Modality of Assistance Grant
Loan
Source of Funding / Amount
Grant 0589-BAN: Southwest Transmission Grid Expansion Project
Japan Fund for the Joint Crediting Mechanism US$ 7.00 million
Japan Fund for the Joint Crediting Mechanism US$ 7.00 million
Grant 0590-BAN: Southwest Transmission Grid Expansion Project
Republic of Korea e-Asia and Knowledge Partnership Fund US$ 500,000.00
Republic of Korea e-Asia and Knowledge Partnership Fund US$ 500,000.00
Loan 3683-BAN: Southwest Transmission Grid Expansion Project
Ordinary capital resources US$ 350.00 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 / Electricity transmission and distribution

Gender Equity and Mainstreaming Some gender elements
Description The project will improve the operational performance of the power sector and contribute to the Government of Bangladesh's target to achieve electricity for all by 2021 through (i) constructing (a) a 400/132-kilovolt (kV) substation at Gopalganj; (b) a 230 kV transmission line in the southern zone, from Barisal to Faridpur; and (c) a 400 kV transmission line in the western zone, from Bogra to Rohanpur; and (ii) implementing a capacity development program in the electric utility industry to promote socially and gender inclusive growth . The project will use state-of-the-art conductors with higher power transmission capacity and lower energy loss in both the 230 kV and 400 kV transmission lines
Project Rationale and Linkage to Country/Regional Strategy Bangladesh has sustained an average annual economic growth rate of 6.5% since 2007, despite the 2008 2009 global financial crisis. Bangladesh is now evolving into a middle-income country since its gross domestic product per capita has risen steadily from $1,110 in 2014 to $1,544 in 2017. The structure of the Bangladesh economy is gradually shifting from agriculture to manufacturing and services. Poverty has been halved since 2000, and many of the Millennium Development Goal targets have been met. Building on these achievements, the government has set new priority targets to (i) accelerate the annual economic growth to 7.5% to move to middle-income status by 2021; (ii) create jobs and support rural development to engender inclusive growth and poverty reduction; (iii) reduce poverty from 24.8% in 2015 to 18.6% in 2020, and extreme poverty from 12.9% in 2015 to about 8.9% in 2020; and (iv) reduce environmental degradation and climate change vulnerabilities.
Impact

National target of electricity for all achieved by 2021

Combined transmission and distribution losses reduced from 13% to 9% of generation, and uninterrupted power supply provided to industries by 2020

Project Outcome
Description of Outcome Capacity of electricity supply in Bangladesh increased
Progress Toward Outcome Power delivery capacity of southern and western grid will be enhanced by 5,515 MVA after all contract implementation. After implementation of the contracts, transmission loss will be reduced. Transmission loss and CO2 emission reduction will be assessed during completion. Overall implementation is on track to achieve outcomes.
Implementation Progress
Description of Project Outputs

New substation at Gopalganj installed

Transmission network in southern Bangladesh expanded

Transmission network in western Bangladesh expanded

Socially inclusive capacity in the electric utility industry enhanced

Status of Implementation Progress (Outputs, Activities, and Issues) The overall implementation progress is 14%. Output-1: For the Gopalganj North 400/132KV AIS substation installation (Package 1), the contract was signed on 26 Dec 2018 and implementation progress is 18%. Some civil works have been delayed due to COVID-19. Output-2: For the construction the Barisal-North Gopalganj-North Faridpur 230 KV transmission line (Package 2), the contract was signed on 22 May 2019 and implementation progress is 40%; and for the Faridpur 230/132 KV GIS substation installation (Package 3), the contract was signed on 8 May 2019 and implementation progress is 20%. Output-3: For the construction of construction of Bogura-Rahanpur 400kV and associated 230kV & 132kV Transmission Lines, the contract was signed on 20 November 2019, implementation progress is 25% and civil works are on-going. Package 5 for the construction of Bogra (West)- Rohanpur, Chapainawabganj-Rohanpur, Niamatpur-Rohanpur transmission line is expected to be awarded by Q1 2021. Output 4: For capacity development, a training program is under preparation to support university students and PGCB staff.
Geographical Location Nation-wide
Safeguard Categories
Environment B
Involuntary Resettlement A
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The project will not pass through any ecologically sensitive areas and will not bring significant adverse environmental impacts.
Involuntary Resettlement The substations and transmission line alignments have been carefully designed to minimize land acquisition and involuntary resettlement.
Indigenous Peoples No indigenous peoples, within the meaning of ADB's Safeguard Policy Statement (2009), are 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 will be continued throughout implementation of the project.
Business Opportunities
Consulting Services All procurement of goods, works, nonconsulting, and consulting services will be undertaken in accordance with ADB Procurement Policy (2017, as amended from time to time) and ADB''s Procurement Regulations for ADB Borrowers (2017, as amended from time to time).
Procurement All procurement of goods, works, nonconsulting, and consulting services will be undertaken in accordance with ADB Procurement Policy (2017, as amended from time to time) and ADB''s Procurement Regulations for ADB Borrowers (2017, as amended from time to time).
Responsible ADB Officer Nahar, Nazmun
Responsible ADB Department South Asia Department
Responsible ADB Division Bangladesh Resident Mission
Executing Agencies
Power Grid Company of Bangladesh, Ltd. (PGCB)
[email protected];_WEBSITE:WWW.PGCB.ORG
PGCB Head Office
A/2 Jahurul Islam Avenue
Aftabnagar, Badda, Dhaka-1212, Bangladesh
Timetable
Concept Clearance 14 Jul 2017
Fact Finding 28 Jan 2018 to 12 Feb 2018
MRM 18 Apr 2018
Approval 31 Jul 2018
Last Review Mission -
Last PDS Update 30 Sep 2020

Grant 0589-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
31 Jul 2018 10 Sep 2018 27 Sep 2018 31 Dec 2023 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 14.00 Cumulative Contract Awards
ADB 0.00 31 Jul 2018 0.00 6.96 99%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 14.00 31 Jul 2018 0.00 6.96 99%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Partly satisfactory Unsatisfactory Unsatisfactory - Unsatisfactory

Grant 0590-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
31 Jul 2018 10 Sep 2018 27 Sep 2018 31 Dec 2023 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 1.00 Cumulative Contract Awards
ADB 0.00 31 Jul 2018 0.00 0.00 0%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 1.00 31 Jul 2018 0.00 0.00 0%

Loan 3683-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
31 Jul 2018 10 Sep 2018 27 Sep 2018 31 Dec 2023 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 524.50 Cumulative Contract Awards
ADB 350.00 31 Jul 2018 249.30 0.00 71%
Counterpart 174.50 Cumulative Disbursements
Cofinancing 0.00 31 Jul 2018 56.11 0.00 16%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory Unsatisfactory Unsatisfactory - Unsatisfactory

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.

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.

Title Document Type Document Date
Southwest Transmission Grid Expansion Project: Audited Project Financial Statements (July 2019-June 2020) Audited Project Financial Statements Dec 2020
Southwest Transmission Grid Expansion Project: Audited Project Financial Statements (July 2018-June 2019) Audited Project Financial Statements Dec 2019
Amendments to the Loan Agreement for Loan 3683-BAN and Grant Agreements for Grant 0589-BAN and 0590-BAN: Southwest Transmission Grid Expansion Project Loan Agreement (Ordinary Resources) Jun 2019
Loan Agreement (Ordinary Operations) for Loan 3683-BAN: Southwest Transmission Grid Expansion Project Loan Agreement (Ordinary Resources) Sep 2018
Grant Agreement (Externally Financed - Japan Fund for the Joint Crediting Mechanism) for Grant 0589-BAN: Southwest Transmission Grid Expansion Project Grant Agreement Sep 2018
Grant Agreement (Externally Financed - Republic of Korea e-Asia and Knowledge Partnership Fund) for Grant 0590-BAN: Southwest Transmission Grid Expansion Project Grant Agreement Sep 2018
Project Agreement for Loan 3683-BAN: Southwest Transmission Grid Expansion Project Project/Program Agreements Sep 2018
Southwest Transmission Grid Expansion Project: Report and Recommendation of the President Reports and Recommendations of the President Jul 2018
Southwest Transmission Grid Expansion Project: Project Administration Manual Project/Program Administration Manual Jul 2018
Southwest Transmission Grid Expansion Project: Procurement Plan Procurement Plans May 2018
Southwest Transmission Grid Expansion Project: Initial Poverty and Social Analysis Initial Poverty and Social Analysis Jul 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.


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.

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
ENGINEERING SUPPORT AND SUPERVISION OF 400KV SUBST ATION Loan 3683 28 Oct 2020 WAPCOS LIMITED GURGAON, INDIA INDIA Power Grid Company of Bangladesh, Ltd. (PGCB) CONSULTANCY 1,260,251.28 1,260,251.28
INSTALLATION OF 400KV OUTDOOR GIS SUBSTATION AT BO GURA (WEST) & RAHANPUR AND UPGRADATION / EXTENSION OF GOPALGANJ AND CHAPAINAWABGANJ (OLD) SUBSTATIO Loan 3683 24 Sep 2020 M/S. JV OF SHANGHAI ELECTRIC AND REVERIE SHANGHI CHINA,PEOPLE'SREP.OF Power Grid Company of Bangladesh, Ltd. (PGCB) TURNKEY 81,265,664.00 81,263,715.84
BOGURA-RAAHANPUR 400KV DC AND ASSOCIATED 230KV &13 2KV TRANSMISSION LINES Loan 3683 21 Nov 2019 KALPATARU POWER TRANSMISSION LTD. PLOT NO-101, PART-III, G.I.D.C. ESTATE, SEC-28, GANDHINAGAR-382 028, GUJARAT INDIA Power Grid Company of Bangladesh, Ltd. (PGCB) TURNKEY 60,875,997.76 60,875,997.76
DESIGN, SUPPLY, INSTALLATION, TESTING & COMMISSIONING OF BARISAL(N)-GOPALGANJ(N)-FARIDPIR (N) 230KV DOUBLE CIRCUIT TRANSMISSION LINE Loan 3683 24 May 2019 M/S KALTAPARU POWER TRANSMISSION LIMITED PLOT NO-101, G.I.D.C. ESTATE, SECTOR-28, GANDHINAGAR-382 028, GUJARAT INDIA Power Grid Company of Bangladesh, Ltd. (PGCB) TURNKEY 64,935,904.69 64,901,065.36
DESIGN SUPPLY INSTALLATION TESTING & COMMISSIONING OF BARISAL(N)-GOPALGANJ(N)-FARIDPUR Grant 0589 22 May 2019 M/S KALPATARU POWER TRANSMISSION LIMITED PLOT NO-101 PART-III G.I.D.C. ESTATE SECTOR-28 GANDHINAGAR-382 028 GUJARAT INDIA Power Grid Company of Bangladesh Ltd. (PGCB) 6,999,145.43
DESIGN, SUPPLY, INSTALLATION, TESTING AND COMMISSIONING OF 230 KV INDOOR GIS SUBSTATION WITH 132 KV AIS AT FARIDPUR AND GIS BAY EXTENSION Loan 3683 15 May 2019 CONSORTIUM OF DEC AND XD SWITCHGEAR NO. 18, XIXIN ROAD, HIGH-TECH DISTRICT, CHENGDU, SICHUAN 611731 CHINA,PEOPLE'SREP.OF Power Grid Company of Bangladesh, Ltd. (PGCB) TURNKEY 32,175,059.46 11,800,588.72
DESIGN, SUPPLY, INSTALLATION, TESTING & COMMISS'NG OF GOPALGANJ 400/132KV SUBSTATIONON TURNKEY BASIS Loan 3683 09 Jan 2019 CONSORTIUM OF SEPCOIII-ENERGYPAC ENERGY CENTER (1ST & 2ND FLOOR) 25 TEJGAON INDUSTRIAL AREA, DHAKA-1208 BANGLADESH Power Grid Company of Bangladesh, Ltd. (PGCB) TURNKEY 28,862,743.74 28,862,743.74

Procurement Plan