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

Countries
  • Bangladesh
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
Bank Risk Rating
A
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Mar 22, 2017
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
People’s Republic of Bangladesh
The holder of the loan, grant, or other investment.
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, etc.
Investment Amount (USD)
$ 60.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. 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, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ AIIB website

Updated in EWS May 18, 2019


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Project 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
  • Asian Development Bank (ADB)
  • Asian Infrastructure Investment Bank (AIIB)

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

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.