BANGLADESH POWER ENERGY EFFICIENCY

The project consists of converting 4 natural gas fired open cycle power units to combined cycle mode of operation by the addition of heat recovery boilers and steam turbines (two of the four power plants are to be financed by the EIB). The existing generation capacity of the plants is 470 MW which will increase to 705 MW as a result of the conversions.The conversions will also result in efficiency improvements of the order of 75% and capacity increase of a 50% order, without any increase in the amount of fuel used. The plants are located in the Rajshashi and Sylhet regions of Bangladesh.

Objectives

These two project components to be financed by the Bank are eligible under the ALA (Asia and Latin America) general mandate objectives: (a)Social and economic infrastructure (energy security, energy infrastructure) and (b) climate change mitigation and adaptation.

Comments

Sector(s)

Energy

Proposed EIB finance (Approximate amount)

EUR 85 million

Total cost (Approximate amount)

EUR 245 million

Environmental aspects

If the project components were located in the EU they would fall under Annex II of the EIA directive leaving it up to the competent authority to determine the need for an EIA. The project components are not located near or within areas of nature conservation, and no protected flora and fauna will be adversely affected. No project components will entail permanent physical displacement, however for the associated transmission line components there will be temporary displacement of small businesses and impact on land for crops. The requirement for an EIA, and extent of social assessment required, will be assessed during appraisal.

Procurement

The Bank will require the promoter to ensure that contracts funded by the Bank will be implemented in accordance with the Bank's Guide to Procurement.

Status

Approved - 18/12/2012.

Disclaimer

Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. Therefore data provided on this page is indicative and cannot be considered to represent official EIB Policy (see also the Explanatory notes).

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Guide to procurement

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