Bangladesh : Dhaka and Western Zone Transmission Grid Expansion Project

Sovereign Project | 51137-003

The proposed project builds upon ADB's strong and sustained work in the power sector of Bangladesh. Complementing the investment in the recently-approved Southwest Transmission Grid Expansion Project and Rupsha 800-Megawatt Combined Cycle Power Plant in the southwest region, the project will focus on addressing some of the remaining deficiencies in the transmission system to enhance power transfer capacity to the load centers in the southern and western zones. These interventions will also strengthen in-country power transfer capacity for increased cross-border power trade with India. In addition, the project will develop the capacity of PGCB in financial management, and in drone utilization to improve operations efficiency. The project is aligned with the Energy Policy of ADB and the priorities of ADB's country partnership strategy for Bangladesh, 2016-2020.

Project Details

Project Name Dhaka and Western Zone Transmission Grid Expansion Project
Project Number 51137-003
Country / Economy Bangladesh
Project Status Active
Project Type / Modality of Assistance Grant
Loan
Source of Funding / Amount
Grant 0675-BAN: Dhaka and Western Zone Transmission Grid Expansion Project
People's Republic of China Poverty Reduction and Regional Cooperation Fund US$ 750,000.00
Loan 3853-BAN: Dhaka and Western Zone Transmission Grid Expansion Project
Ordinary capital resources US$ 300.00 million
Loan 8374-BAN: Dhaka and Western Zone Transmission Grid Expansion Project
Asian Infrastructure Investment Bank US$ 200.00 million
Operational Priorities OP2: Accelerating progress in gender equality
OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
OP4: Making cities more livable
OP6: Strengthening governance and institutional capacity
OP7: Fostering regional cooperation and integration
Sector / Subsector

Energy / Electricity transmission and distribution

Gender Some gender elements
Description The proposed project builds upon ADB's strong and sustained work in the power sector of Bangladesh. Complementing the investment in the recently-approved Southwest Transmission Grid Expansion Project and Rupsha 800-Megawatt Combined Cycle Power Plant in the southwest region, the project will focus on addressing some of the remaining deficiencies in the transmission system to enhance power transfer capacity to the load centers in the southern and western zones. These interventions will also strengthen in-country power transfer capacity for increased cross-border power trade with India. In addition, the project will develop the capacity of PGCB in financial management, and in drone utilization to improve operations efficiency. The project is aligned with the Energy Policy of ADB and the priorities of ADB's country partnership strategy for Bangladesh, 2016-2020. The project also supports operational priorities of ADB's Strategy 2030: (i) addressing poverty and inequality through modern energy access; (ii) tackling climate change, building climate and disaster resilience; (iii) accelerating progress in gender equality; and (iv) accelerating governance and institutional capacity.
Project Rationale and Linkage to Country/Regional Strategy The proposed Dhaka and Western Zone Transmission Grid Expansion Project will help expand and strengthen the transmission networks in the Greater Dhaka area and western zone of Bangladesh, improve financial management in Power Grid Company of Bangladesh Limited (PGCB), and apply best practices in operations and maintenance.
Impact

National target of electricity for all achieved by 2021 (Perspective Plan of Bangladesh, 2010-2021: Making Vision 2021 a Reality)

Project Outcome
Description of Outcome

Reliability and efficiency of electricity supply in Greater Dhaka and western zone of Bangladesh improved

Progress Toward Outcome Procurement of all packages completed. Constructions of transmission lines and substations are ongoing.
Implementation Progress
Description of Project Outputs

Transmission system in Greater Dhaka expanded

Transmission system in western zone expanded

Institutional capacity of PGCB strengthened

Status of Implementation Progress (Outputs, Activities, and Issues) Output 1 is to deliver four contracts for expansion of transmission networks in and around Dhaka city through constructions of: (i) loop-in-loop-out (LILO) 400 kV and 230 kV transmission line in KaliganjPurbachal, (ii) RampuraBashundhara 132 kV double circuit transmission line, (iii) Kaliganj 400/230 kV substation, and (iv) Purbachal 400/230 kV substation. All four contracts have been awarded, and implementation is going on. Output 2 comprises four contracts in the Western zone of Bangladesh including: (i) construction of 176 km of 230 kV and 132 kV transmission line in Khulna, Kustia, Meherpur, and Begerhat districts; (ii) construction of 191 km of 230 kV and 132 kV transmission line in Barishal, Bhola, Bagerhat, Pirojpur, Syedpur, and Rajshahi districts; (iii) construction of five substations and bay extensions in Khulna, Jessore, Satkhira, Meherpur, and Bagerhat districts; and (iv) construction of six substations and bay extensions in Madaripur, Niphamari, Lalmonirhat, Faridpur, Jhalokathi, Pirojpur, Naogaon, and Rajshahi districts. All contracts have been awarded, and implementation is ongoing. Output 3 is designed to build PGCB's institutional capacity by developing an enterprise resource planning (ERP) system for asset management, and development of a drone inspection unit in PGCB for route survey and transmission route planning. The ERP package was cancelled as per GOB request. For the drone inspection unit of PGCB- procurement is ongoing, whereas the individual consultant has already been recruited.
Geographical Location Barisal, Dhaka, Khulna, Rajshahi, Rangpur
Safeguard Categories
Environment B
Involuntary Resettlement A
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects Project management unit (PMU) has been formulated with a newly appointed project director as the focal person and supported by the Environment and Social Unit of PGCB for safeguards support. PGCB is also recruiting a consulting firm with its own funds to support the environment and social safeguards monitoring, health and safety supervision, and reporting. The EA confirmed evaluation of candidate firms is complete and they should be on board by January 2022. Construction work has yet to start, the only activities to date are land acquisition and design, drawing, and transmission line route survey works for contract packages 3 and 4. The initial environmental examination (IEE) will be updated to reflect any changes in design, siting, or routing and cleared for disclosure on the ADB website before they approve the detailed design and give the go-ahead for construction works to commence.
Involuntary Resettlement A grievance redress mechanism (GRM) has been established. No grievances have been received in relation to the land acquisition and the land acquisition is expected to be completed by June 2022. Land acquisition is expected to be completed by June 2022.
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 Contracts for consulting support to PGCB are planned under the project requiring an estimated 31 person-months input for ERP installation by a consulting firm. One individual consultant with total 2-person months will be engaged to draft the drone legislation for GOB and one individual consultant with total 8-person months will be engaged for monitoring and reporting the progress and status of RP implementation. Consulting firms will be engaged using the quality- and cost-based selection (QCBS) method with a standard qualitycost ratio of 90:10. Project director and project management unit (PMU) will supervise and provide counterpart support to contractors, consulting firms and consultants who will be engaged under the project.
Procurement Open competitive bidding with international advertisement and national advertisement will be used. Request for quotation will be used for contracts for procurement of works and equipment worth less than $100,000. The procurement plan should be updated whenever change in the procurement arrangements is required and agreed.
Responsible ADB Officer Nahar, Nazmun
Responsible ADB Department South Asia Department
Responsible ADB Division Bangladesh Resident Mission (BRM)
Executing Agencies
Power Grid Company of Bangladesh, Ltd. (PGCB)
Timetable
Concept Clearance 10 Apr 2019
Fact Finding 16 Apr 2019 to 25 Apr 2019
MRM 22 Jul 2019
Approval 08 Nov 2019
Last Review Mission -
Last PDS Update 30 Nov 2023

Grant 0675-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
08 Nov 2019 11 Dec 2019 16 Jul 2020 31 Dec 2024 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 0.75 Cumulative Contract Awards
ADB 0.00 24 Jan 2024 0.00 0.73 97%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.75 24 Jan 2024 0.00 0.05 6%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - Satisfactory - Satisfactory

Loan 3853-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
08 Nov 2019 11 Dec 2019 16 Jul 2020 31 Dec 2024 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 549.25 Cumulative Contract Awards
ADB 300.00 24 Jan 2024 217.66 0.00 74%
Counterpart 249.25 Cumulative Disbursements
Cofinancing 0.00 24 Jan 2024 68.68 0.00 23%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - Satisfactory - Satisfactory

Loan 8374-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
17 Jan 2020 30 Jun 2020 28 Sep 2020 31 Dec 2024 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 200.00 Cumulative Contract Awards
ADB 0.00 24 Jan 2024 0.00 157.09 79%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 200.00 24 Jan 2024 0.00 0.00 0%

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
Dhaka and Western Zone Transmission Grid Expansion Project: Audited Project Financial Statements (July 2022-June 2023) Audited Project Financial Statements Dec 2023
Dhaka and Western Zone Transmission Grid Expansion Project: Audited Project Financial Statements (July 2021-June 2022) Audited Project Financial Statements Feb 2023
Dhaka and Western Zone Transmission Grid Expansion Project: Audited Project Financial Statements (July 2020-June 2021) Audited Project Financial Statements Feb 2022
Project Agreement for Loan 3853-BAN and Grant 0675-BAN: Dhaka and Western Zone Transmission Grid Expansion Project Project/Program Agreements Dec 2019
Grant Agreement (Externally Financed) for Grant 0675-BAN: Dhaka and Western Zone Transmission Grid Expansion Project Grant Agreement Dec 2019
Loan Agreement (Ordinary Operations) for Loan 3853-BAN: Dhaka and Western Zone Transmission Grid Expansion Project Loan Agreement (Ordinary Resources) Dec 2019
Dhaka and Western Zone Transmission Grid Expansion Project: Project Administration Manual Project/Program Administration Manual Oct 2019
Dhaka and Western Zone Transmission Grid Expansion Project: Report and Recommendation of the President Reports and Recommendations of the President Oct 2019
Dhaka and Western Zone Transmission Grid Expansion Project: Procurement Plan Procurement Plans Sep 2019
Dhaka and Western Zone Transmission Grid Expansion Project: Initial Poverty and Social Analysis Initial Poverty and Social Analysis Apr 2019

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.

Title Document Type Document Date
Dhaka and Western Zone Transmission Grid Expansion Project: Environmental Monitoring Report (July-December 2023) Environmental Monitoring Reports Jan 2024
Dhaka and Western Zone Transmission Grid Expansion Project: Environmental Monitoring Report (January-June 2023) Environmental Monitoring Reports Nov 2023
Dhaka and Western Zone Transmission Grid Expansion Project: Social Monitoring Report (January-June 2023) Social Monitoring Reports Aug 2023
Dhaka and Western Zone Transmission Grid Expansion Project: Final Addendum 3 (Packages 3 and 4) to Initial Environmental Examination Initial Environmental Examination Apr 2023
Dhaka and Western Zone Transmission Grid Expansion Project: Environmental Monitoring Report (July-December 2022) Environmental Monitoring Reports Jan 2023
Dhaka and Western Zone Transmission Grid Expansion Project: Final Addendum 2 to Initial Environmental Examination Initial Environmental Examination Oct 2022
Dhaka and Western Zone Transmission Grid Expansion Project: Updated Resettlement Plan Resettlement Plans Jul 2022
Dhaka and Western Zone Transmission Grid Expansion Project: Final Addendum 1 to Initial Environmental Examination Initial Environmental Examination Jul 2022
Dhaka and Western Zone Transmission Grid Expansion Project: Environmental Monitoring Report (January-June 2022) Environmental Monitoring Reports Jul 2022
Dhaka and Western Zone Transmission Grid Expansion Project: Environmental Monitoring Report (July-December 2021) Environmental Monitoring Reports Jan 2022
Dhaka and Western Zone Transmission Grid Expansion Project: Social Monitoring Report (July-December 2021) Social Monitoring Reports Jan 2022
Dhaka and Western Zone Transmission Grid Expansion Project: Social Monitoring Report (January-June 2021) Social Monitoring Reports Sep 2021
Dhaka and Western Zone Transmission Grid Expansion Project: Social Monitoring Report (July-December 2020) Social Monitoring Reports Sep 2021
Dhaka and Western Zone Transmission Grid Expansion Project: Environmental Monitoring Report (January-June 2021) Environmental Monitoring Reports Jul 2021
Dhaka and Western Zone Transmission Grid Expansion Project: Environmental Safeguard Monitoring Report (July-December 2020) Environmental Monitoring Reports Jan 2021
Dhaka and Western Zone Transmission Grid Expansion Project: Resettlement Plan Resettlement Plans Jul 2019
Dhaka and Western Zone Transmission Grid Expansion Project: Initial Environmental Examination Initial Environmental Examination Jul 2019

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.

Tenders

Tender Title Type Status Posting Date Deadline
L3853-L8374-BAN: Dhaka and Western Zone Transmission Grid Expansion Project [PGCB/ADB-GRANT/0675-BAN/DWZTGEP/DRONE] Invitation for Bids Closed
L3853-L8374-BAN: Dhaka and Western Zone Transmission Grid Expansion Project [PGCB/ADB/3853-BAN/DWZTGEP/400kV&230kV LILO/P1] Invitation for Bids Closed
Loan Nos. 3853/8374 and Grant 0675-BAN: Dhaka and Western Zone Transmission Grid Expansion Project Other Notice Closed
L3853-G0675-L8374-BAN: Dhaka and Western Zone Transmission Grid Expansion Project [PGCB/ADB/L3853 /DWZTGEP/GIS/P6] Invitation for Bids Closed
L3853-G0675-L8374-BAN: Dhaka and Western Zone Transmission Grid Expansion Project [PGCB/ADB/L3853/AIIB/L8374/DWZTGEP/GIS/P5] Invitation for Bids Closed
L3853-G0675-L8374-BAN: Dhaka and Western Zone Transmission Grid Expansion Project [PGCB/ADB/3853-BAN/DWZTGEP/UGTL/P2] Invitation for Bids Closed
L3853-G0675-L8374-BAN: Dhaka and Western Zone Transmission Grid Expansion Project [PGCB/AIIB/L8374/DWZTGEP/GIS/P8] Invitation for Bids Closed
Consultancy for external monitor Individual - Consulting Closed
Consultancy Service for ERP System Design and Implementation Firm - Consulting Closed
Consultancy Service for Drone Legislation Individual - Consulting Closed
L3853-G0675-L8374-BAN: Dhaka and Western Zone Transmission Grid Expansion Project (PGCB/AIIB/L0272A/DWZTGEP/GIS/P7) Invitation for Bids Closed
L-3853-BAN: Dhaka and Western Zone Transmission Grid Expansion Project [PGCB/ADB/3853-BAN/TL/Package-04] Invitation for Bids Closed
L3853-BAN: Dhaka and Western Zone Transmission Grid Expansion Project [PGCB/ADB/3853-BAN/TL/Package-03] Invitation for Bids Closed
51137-BAN: Dhaka and Western Zone Transmission Grid Expansion Project Advance Notice Active

Contracts Awarded

Contract Title Approval Number Contract Date Contractor | Address Executing Agency Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
Design, Supply, Installation, Testing and Commissioning of 400 kV and 230 kV Transmission Lines LILO at Kaliganj and Purbachal Substations at Turn-Key Basis Loan 3853 08 Oct 2023 Hanbaek Co., Ltd. | 23, Bia-ro, Gwangsan, Republic of Korea Power Grid Company of Bangladesh, Ltd. 7,441,768.03 7,438,740.43
Design, Supply, Installation, Testing & Commissioning of 400/230kV GIS substation on Purbachal on Turnkey basis Loan 3853 04 Nov 2022 China Electric Power Equipment and Technology Company Ltd. PRC | F10, Ducheng Plaza, No. 8, Nanheng Street East Xicheng District, Beijing, China Power Grid Company of Bangladesh, Ltd. (PGCB) 57,813,121.96 57,770,590.20
Design, Supply, Installation, Testing and Commissioning of 230kV and 132kV transmission lines on turnkey basis Loan 3853 20 Oct 2022 JV of TBEA Co. Ltd. (TBEA) & TBEA Shandong Luneng Taishan Cable Co., Ltd. (TBEA LUNENG) | No. 189 South Beijing Road, Changji, Xinjiang, PRC Power Grid Company of Bangladesh, Ltd. (PGCB) 16,632,941.21 16,629,281.53
PACKAGE 4-DESIGN SUPPLY INSTALLATION TESTING & COMMISSIONING OF 230KV & 132KV TRANSMISSION LINES IN WESTERN ZONE ON TURNKEY BASIS Loan 3853 07 Jul 2021 M/S. TRANSRAIL LIGHTING LIMITED | 501 A B C E FORTUNE 2000 BLOCK G BANDRA KURLA COMPLEX BANDRA EAST MUMBAI INDIA Power Grid Company of Bangladesh, Ltd. (PGCB) 83,069,444.32 83,069,444.32
DESIGN,SUPPLY,INSTALLATION,TESTING & COMMISSIONING OF 230KV & 132KV TL IN WESTERN ZONE ON TURNKEY BASIS (PACKAGE 3) Loan 3853 10 May 2021 M/S LARSEN & TOUBRO LIMITED | L&T HOUSE, N.M. MARG, BASLLARD ESTATE, MUMBAI 400001, INDIA Power Grid Company of Bangladesh, Ltd. (PGCB) 60,232,129.73 60,232,129.73

Procurement Plan

Title Document Type Document Date
Dhaka and Western Zone Transmission Grid Expansion Project: Procurement Plan Procurement Plans Sep 2019