Bangladesh : Smart Metering Energy Efficiency Improvement Project

Sovereign Project | 56004-001

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 Details

Project Name Smart Metering Energy Efficiency Improvement Project
Project Number 56004-001
Country / Economy Bangladesh
Project Status Active
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
Loan 4386-BAN: Smart Metering Energy Efficiency Improvement Project
Ordinary capital resources US$ 200.00 million
TA 10187-BAN: Promoting Energy Transition, Safety and Energy Efficiency in the Energy Sector Project
Technical Assistance Special Fund US$ 1.00 million
Republic of Korea e-Asia and Knowledge Partnership Fund US$ 750,000.00
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.[1]

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.

Impact

(i) Energy intensity lowered (Energy Efficiency and Conservation Master Plan up to 2030)

(ii) Greenhouse gas emissions reduced (Updated Nationally Determined Contribution)

Project Outcome
Description of Outcome

Efficiency, safety, and sustainability of gas distribution improved

Progress Toward Outcome
Implementation Progress
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)
Geographical Location Nation-wide
Safeguard Categories
Environment C
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Responsible ADB Officer Zhang, Hongwei
Responsible ADB Department Sectors Group
Responsible ADB Division Energy Sector Office (SG-ENE)
Executing Agencies
Energy & Mineral Resources Division, MOPEMR
Timetable
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

Loan 4386-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
21 Nov 2023 28 Nov 2023 28 Feb 2024 30 Jul 2029 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 264.19 Cumulative Contract Awards
ADB 200.00 25 Apr 2024 0.00 0.00 0%
Counterpart 64.19 Cumulative Disbursements
Cofinancing 0.00 25 Apr 2024 0.05 0.00 0%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory - Satisfactory - Satisfactory

TA 10187-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
21 Nov 2023 28 Dec 2023 28 Dec 2023 31 Dec 2026 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
1,000,000.00 750,000.00 0.00 0.00 0.00 0.00 1,750,000.00 25 Apr 2024 0.00

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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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.


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Tenders

Tender Title Type Status Posting Date Deadline
International Gas Appliance Safety Standards Specialist (Team Leader) Individual - Consulting Closed
National Gas Specialist Individual - Consulting Closed
National Gas Standards Specialist Individual - Consulting Closed
Project Management Consulting Firm (International) Firm - Consulting Closed
Methane Leakage, Loss Reduction, and Operational Efficiency Improvement Plan for Gas Distribution in Bangladesh Firm - Consulting Closed
Energy Transition and Decarbonization Strategy for the Gas Distribution Sector in Bangladesh Firm - Consulting Closed
Individual Consultant (IoT Specialist) Individual - Consulting Closed
Individual Consultant (Web System Specialist) Individual - Consulting Closed
Individual Consultant (Software Specialist) Individual - Consulting Closed
Individual Consultant (Financial Management Specialist) Individual - Consulting Closed

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

Title Document Type Document Date
Smart Metering Energy Efficiency Improvement Project: Procurement Plan Procurement Plans Jul 2023