Bangladesh: Natural Gas Infrastructure and Efficiency Improvement Project (AIIB-000015)

Countries
  • Bangladesh
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • Asian Development Bank (ADB)
  • Asian Infrastructure Investment Bank (AIIB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
A
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Mar 22, 2017
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
People’s Republic of Bangladesh
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Construction
  • Energy
  • Infrastructure
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 60.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 453.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Campaign Documents
Primary Source

Original disclosure @ AIIB website

Updated in EWS May 10, 2023

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to AIIB documents, "the objectives of the proposed Project are to improve efficiency in gas production in Titas Gas Field and to expand gas transmission pipeline capacity between Chittagong and Bakhrabad."

The project has two components. Under component 1, seven wellhead compressors (5 operating and 2 stand-by) will be installed in Titas Gas Field. Upon completion, it is estimated that an additional 1.0 trillion cubic feet of gas will be produced from the Titas gas field. Under component 2, a 181 km, 36-inch gas transmission pipeline will be constructed. The proposed pipeline will constitute a trunk transmission pipeline between Chittagong and Bakhrabad to transport regasified LNG to central and west gas markets.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

The Project is estimated to cost $453.0 million, including taxes, duties, contingencies, and financing charges during construction. ADB’s loan and the Bank’s loan will be used on a pro-rata basis to finance the cost items. Any shortfall in the funds required would be covered by either the government or implementing agencies.


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Bank:
Hongliang Yang
Team Leader/Senior Investment Operations Specialist
Department of Investment Operation
Email: hyang@aiib.org

ADB:
Hongwei Zhang
Team Leader/Finance Specialist (Energy)
South Asian Department
Email: hwzhang@adb.org

Borrower:
Masuma Akter
Economic Relations Division
Ministry of Finance
People’s Republic of Bangladesh
Email: makter72@yahoo.com

Implementation Agency:
Md. Kamruzzaman
Bangladesh Gas Fields Company Ltd.
47 Bijoy Nagar
Dhaka 3400, Bangladesh
Email: mdbgfcl@yahoo.com


Md. Mahbub Sarwar
Gas Transmission Company Ltd.
House #39, Road #3
Sector #3, Uttara Model Town
Dhaka 1230, Bangladesh

ACCOUNTABILITY MECHANISM OF AIIB

In addition, the AIIB has a Bank Oversight Mechanism. According to AIIB's policies, "people who believe they have been or are likely to be adversely affected by a failure of the Bank to implement the ESP may also submit complaints to the Bank's oversight mechanism in accordance with the policies and procedures to be established by the Bank for such mechanism." However, at the time of writing, it is unclear what the exact scope and function of this Oversight Mechanism will be.

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How it works