Bangladesh : Smart Metering Energy Efficiency Improvement Project
The proposed program will contribute to the government's program to improve demand-side management and energy conservation by installing prepaid gas meters for all domestic customers by December 2023 and improve operational performance of the gas distribution companies, focusing on the government's priority areas of Greater Dhaka and Chittagong. Installation of prepaid gas meters is expected to (i) reduce system losses through saving of gas by preventing gas wastage, (ii) build up awareness among customers to use gas more efficiently, (iii) improve financial health of gas distribution companies by earning revenues in advance and reducing billing, collection, and monitoring cost, (iv) improve management efficiency and enhance customer service of gas distribution companies, (v) prevent accident due to gas leakage in internal pipelines, and (vi) help meet the national climate target by reducing carbon emissions by gas savings.
Request for information
21 November 2023
|Project Name||Smart Metering Energy Efficiency Improvement Project|
|Country / Economy||Bangladesh
|Project Type / Modality of Assistance||Loan
|Source of Funding / Amount||
|Operational Priorities||OP1: Addressing remaining poverty and reducing inequalities
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
|Sector / Subsector||
Energy / Energy efficiency and conservation - Energy utility services
|Gender||Effective gender mainstreaming|
|Description||The proposed program will contribute to the government's program to improve demand-side management and energy conservation by installing prepaid gas meters for all domestic customers by December 2023 and improve operational performance of the gas distribution companies, focusing on the government's priority areas of Greater Dhaka and Chittagong. Installation of prepaid gas meters is expected to (i) reduce system losses through saving of gas by preventing gas wastage, (ii) build up awareness among customers to use gas more efficiently, (iii) improve financial health of gas distribution companies by earning revenues in advance and reducing billing, collection, and monitoring cost, (iv) improve management efficiency and enhance customer service of gas distribution companies, (v) prevent accident due to gas leakage in internal pipelines, and (vi) help meet the national climate target by reducing carbon emissions by gas savings.|
|Project Rationale and Linkage to Country/Regional Strategy||
Fast economic growth in Bangladesh has been accompanied by a rapid increase in energy consumption, as well as rising carbon dioxide (CO2) emissions. In 2010, the total primary energy supply in Bangladesh reached 1.25 million tera-joule (TJ), while the corresponding CO2 emissions were 49 million tons (MtCO2). By 2019, these two indicators soared to 1.81 million TJ and 88 MtCO2 (rising by 45% and 80%), respectively. This has translated into a fast domestic energy supply deficit, a situation that net energy imports tripled from 180 TJ to 533 TJ during the period.
Waste of natural gas is prevalent among domestic customers who consume about 13% of national gas production. While all other customer categories are provided with gas meters, most domestic customers use non-metered gas. Domestic customers now pay a fixed amount of Taka 975 per month for each double burner regardless of the quantity of gas they use. Since they do not pay for every unit of gas, they tend to use gas inappropriately often using gas for drying clothes, keeping rooms warm in winter, and even saving the expenses of match sticks, nor do they consider using more efficient gas appliances. Some domestic customers do not report gas leakage in internal pipelines because it doesn't affect their bills, which leads to increased system losses and potential accident.
Of nearly 4.3 million domestic gas customers nationwide, only about 350,000 have come under prepaid metering coverage as of November 2021. Following the government's program to install 2 million prepaid gas meters by December 2022 and 100% domestic customers under prepaid gas metering coverage by December 2023, each of six gas distribution companies are making the move to procure and install prepaid gas meters for the remaining domestic customers in accordance with the government's standard technical specifications. A feasibility study conducted by the government estimated that the amount of actual gas saving by a prepaid gas meter could be 44.69 cubic meters a month. If all domestic customers are under prepaid gas metering coverage nationwide, the amount of gas saving could reach 43 BCF or Tk.16 billion a year.
(i) Energy intensity lowered (Energy Efficiency and Conservation Master Plan up to 2030)
(ii) Greenhouse gas emissions reduced (Updated Nationally Determined Contribution)
|Description of Outcome||
Efficiency, safety, and sustainability of gas distribution improved
|Progress Toward Outcome|
|Description of Project Outputs||
Demand-side measures for efficiency improvement and safe gas use implemented.
Low-carbon energy transition promoted.
Customer services-oriented management enhanced.
Institutional capacity and operational management strengthened.
|Status of Implementation Progress (Outputs, Activities, and Issues)|
|Summary of Environmental and Social Aspects|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design|
|During Project Implementation|
|Responsible ADB Officer||Sakai, Atsumasa|
|Responsible ADB Department||Sectors Group|
|Responsible ADB Division||Energy Sector Office (SG-ENE)|
Energy & Mineral Resources Division, MOPEMR
|Concept Clearance||04 Jan 2023|
|Fact Finding||28 May 2023 to 11 Jun 2023|
|MRM||18 Sep 2023|
|Approval||21 Nov 2023|
|Last Review Mission||-|
|Last PDS Update||21 Nov 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|
|Loan Agreement (Ordinary Operations) for Loan 4386-BAN: Smart Metering Energy Efficiency Improvement Project||Loan Agreement (Ordinary Resources)||Nov 2023|
|Project Agreement for Loan 4386-BAN: Smart Metering Energy Efficiency Improvement Project||Project/Program Agreements||Nov 2023|
|Smart Metering Energy Efficiency Improvement Project: Report and Recommendation of the President||Reports and Recommendations of the President||Oct 2023|
|Smart Metering Energy Efficiency Improvement Project: Gender Assessment and Action Plan||Gender Action Plans||Oct 2023|
|Promoting Energy Transition, Safety and Energy Efficiency in the Energy Sector Project: Technical Assistance Report||Technical Assistance Reports||Oct 2023|
|Smart Metering Energy Efficiency Improvement Project: Initial Poverty and Social Analysis||Initial Poverty and Social Analysis||Nov 2022|
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|
|Smart Metering Energy Efficiency Improvement Project: Titas Gas Transmission and Distribution Company Limited Environmental and Social Due Diligence Report||Safeguards Due Diligence Reports||Aug 2023|
Evaluation Documents See also: Independent Evaluation
None currently available.
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.
None currently available.