Bangladesh: Distribution System Upgrade and Expansion Project (AIIB-0003)

Countries
  • Bangladesh
Where the impacts of the investment may be experienced.
Financial Institutions
  • 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
B
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
Jun 24, 2016
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
Government of Bangladesh
The holder of the loan, grant, or other investment.
Sectors
  • Energy
The service or industry focus of the investment. A project can have several sectors.
Investment Amount (USD)
$ 165.00 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)
$ 262.29 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 Feb 26, 2018


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Project Description

AIIB approved a loan of $165 million for the Distribution System Upgrade and Expansion Project in Bangladesh.

The project consists of two components:

(1) provision of about 2.5 million service connections to rural consumers;

(2) upgrading two grid substations and conversion of 85 km overhead distribution lines into underground cables in north Dhaka.

The Bangladesh Rural Electrification Board and Dhaka Electric Supply Company Limited are the project implementation agencies.

The Project implementation period is from July 2016 to June 2019, and upon completion, is expected to benefit an estimated 12.5 million people, in both urban and rural areas. The Loan Closing Date will be December 31, 2019.

Investment Description
  • Asian Infrastructure Investment Bank (AIIB)

AIIB loan: $165 million, with a 25-year term, including a grace period of 5 years, at the Bank’s standard interest rate for sovereign-backed loans with this weighted average maturity.

Contact Information

ACCOUNTABILITY MECHANISM OF AIIB

In addition, the AIIB has a Project-affected People’s 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, the exact scope and function of its Project-affected People’s Mechanism are yet to be finalized.