You are on page 1of 5

PROJECT DATA SHEET

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.

PDS Creation Date

08 Mar 2006

PDS Updated as of

21 Jan 2013

Project Name

Sustainable Power Sector Development Program (Project)

Country

Bangladesh

Project/Program Number

36107-013

Status

Approved

Geographical Location

Dhaka, Western and Northern part of the country

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.

Sector and/or Subsector Classification

Energy / Energy Sector Development

Thematic Classification

Economic growth Governance Private sector development

Gender Mainstreaming Categories

FINANCING
Type/Modality of Assistance Loan Loan TOTAL Approval Number 2333 2332 Source of Funding Asian Development Fund Ordinary capital resources Counterpart Approved Amount (US$ thousand) 5,000 400,000 274,900 US$ 679,900

SAFEGUARD CATEGORIES
For more information about the safeguard categories, please see http://www.adb.org/site/safeguards/safeguard-categories

Environment

Involuntary Resettlement

Indigenous Peoples

SUMMARY OF ENVIRONMENTAL AND SOCIAL ISSUES


No major issues have been identified. All necessary environmental clearances have been obtained. Environmental Aspects No major issues have been identified. All necessary environmental clearances have been obtained. Involuntary Resettlement Indigenous Peoples

STAKEHOLDER COMMUNICATION, PARTICIPATION, AND CONSULTATION


During Project Design During Project Implementation

DESCRIPTION
Building on the first power sector development program approved in 2003, the policy loan aims to provide further support and incentives to the Government for power sector reform activities through financial stabilization of sector entities and their improved governance. The investment loan will be linked to the ongoing power sector reforms and will expand power supply capacity, enhance transmission network reliability, and improved quality of supply in Dhaka and surrounding areas. The entire exercise of the Sustainable Power Sector Development Program is to support economic growth of the country and gradually relieve the Government of financially supporting the power sector.

PROJECT RATIONALE AND LINKAGE TO COUNTRY/REGIONAL STRATEGY


ADB has developed its strategy for the power sector in consultation with the Government and other key development partners involved in the sector. In parallel with its continued support for expanding and upgrading power supply systems in Bangladesh as part of a least-cost expansion plan, the strategy consists of (i) changes in the business environment through continued corporatization and commercialization of sector entities as well as increasing private sector participation, (ii) institutional improvements in power sector entities, (iii) creation of new power sector companies to serve as role models for the sector, (iv) enlarging the scope of PBSs, (v) strengthening the long-term planning and regulatory processes, and (vi) promotion of good governance at the sector and corporate levels. The proposed program addresses items (i), (ii) (iii), (v), and (vi) of this strategy. Item (iv) has been addressed through ADB's earlier projects and World Bank's ongoing project for rural electrification. The program was included in 2007 Country Operations and Business Plan for Bangladesh.

DEVELOPMENT IMPACT
Increased capacity and reliable power supply for sustained economic growth.

PROJECT OUTCOME
Description of Outcome Progress Towards Outcome

1. Improved power sector sustainability through financial and By 10 October 2012, the project has reduced line losses organizational restructuring 2. Expanded peak generation from 3.4% to 3.1% under PGCB, from 16.7% to 11.29% capacity and reduction of load shedding 3. Improved power under DESCO and from 30% to 13.47% under DPDC. transmission capacity and reduction of transmission system losses in Dhaka area 4. Institutional capacity development

OUTPUTS AND IMPLEMENTATION PROGRESS


Description of Project Outputs Status of Implementation Progress (Outputs, Activities, and Issues)

Construction of clean natural gas-fired power plants Construction and augmentation of transmission systems Distribution system upgraded in DESCO Area Distribution system upgraded in DPDC Area Institutional Capacity Development Fully functional legal and regulatory framework Financial restructuring of power sector entities with increased public-private partnership

Cumulative contract awards and disbursements of the Project as of 10 October 2012 were $352.81million and $304.67 million respectively, or 84.6% and 75.2% of the loan amount. Overall progress of the Project was 79% compared to a revised elapsed loan closing period of 84.5% under Loan 2332 and 81.20% under Loan 2333. By 10 October 2012, the project has added transmission and distribution capacity by 238 MVA and 1,555 MVA respectively.The project has also added 157 km 132kV transmission line in the report period.

BUSINESS OPPORTUNITIES
Date of First Listing 08 Mar 2006

Consulting Services

Consultants will be recruited in accordance with ADB's Guidelines on the Use of Consultants, and other arrangements satisfactory to ADB for the engagement of consultants.

Procurement

Good and services financed by ADB will be procured following ADB's Guidelines for Procurement. For such procurement, bid specifications will be prepared so as to ensure maximum competition under international competitive bidding.

Procurement and Consulting Notices

http://www.adb.org/projects/36107-013/business-opportunities

TIMETABLE
Concept Clearance 31 Oct 2005

Fact-finding

10 Apr 2006 to 27 Apr 2006

Management Review Meeting

29 Jun 2006

Approval

26 Jun 2007

Last Review Mission

MILESTONES
Closing Approval No. Loan 2332 Loan 2333 Approval 26 Jun 2007 26 Jun 2007 Signing 28 Jun 2007 28 Jun 2007 Effectivity Original 24 Sep 2007 24 Sep 2007 30 Jun 2010 30 Jun 2010 Revised 30 Sep 2013 31 Dec 2013 Actual

STATUS OF COVENANTS
Covenants are categorized under the following categoriesaudited accounts, safeguards, social, sector, financial, economic, and others. Covenant compliance is rated by category by applying the following criteria: (i) Satisfactoryall covenants in the category are being complied with, with a maximum of one exception allowed, (ii) Partly Satisfactorya maximum of two covenants in the category are not being complied with, (iii) Unsatisfactorythree or more covenants in the category are not being complied with. As per the 2011 Public Communications Policy, covenant compliance ratings for Project Financial Statements apply only to projects whose invitation for negotiation falls after 2 April 2012.
Category Approval No. Sector Social Financial Economic Others Safe Project Financial Statements

Loan 2333 Loan 2332

CONTACTS AND UPDATE DETAILS


Responsible ADB Officer Hongliang Yang (rmurshed@adb.org)

Responsible ADB Department

South Asia Department

Responsible ADB Division

Energy Division, SARD

Executing Agencies

Dhaka Power Distribution Company Ltd. (DPDC) Mr. A F M Faridul Haque Ministry of Power, Energy and Mineral Resources Mr. Md. Abul Kalam Azad Dhaka Electric Supply Company Ltd. (DESCO) Mr. Saleh Ahmed Power Grid Company of Bangladesh, Ltd.(PGCB)

Mr. Md. Ruhul Amin Bangladesh Power Development Board (BPDB) A S M Alamgir Kabir

LINKS
Project Website http://www.adb.org/projects/36107-013/main

List of Project Documents

http://www.adb.org/projects/36107-013/documents