Bangladesh: Electricity Distribution Modernization (Chattogram and Sylhet Divisions) Project (AIIB-000642)

Regions
  • South Asia
Geographic location where the impacts of the investment may be experienced.
Countries
  • Bangladesh
Geographic location where the impacts of the investment may be experienced.
Specific Location
Chattogram, Sylhet
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
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
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
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."
Borrower
Government of Bangladesh
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • 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)
$ 531.00 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.
Loan Amount (USD)
$ 531.00 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)
$ 820.26 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.
Primary Source

Original disclosure @ AIIB website

Updated in EWS Apr 4, 2024

Disclosed by Bank Mar 29, 2024


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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 the AIIB, the objective of the project is to increase delivery, reliability, and efficiency of power supply in selected areas of Chattogram and Sylhet Divisions in Bangladesh.

Bangladesh Rural Electrification Board (BREB), one of the major state-owned entities in the energy sector in Bangladesh, is responsible for extending electricity distribution services to the rural areas of the country. The entity, through its 80 "Palli Bidyut Samities" (PBSs) (i.e., rural electricity clusters) organized under eight divisions, collectively serves more than 77 percent of the country's electricity consumers. Out of 80 PBSs, Chattogram and Sylhet divisions have 19 PBSs that provide services to around 9.2 million consumers (including industrial and commercial users).

These two divisions have developed socio-economically at an accelerated pace in the last 15 years. The Government of Bangladesh's (GoB) has targeted developing 25 Economic Zones (EZs) and other mega infrastructure in the Chattogram division and expanding industrial opportunities in the Sylhet division. BREB anticipates an increase in consumer demand for reliable electricity supply in these two divisions. In order to (i) cater to the expected additional demand, (ii) decongest the network, and (iii) reduce the distribution losses, BREB has initiated this project to increase the capacity and modernize the distribution network.

The following activities are planned in the project scope:
(1) Installation and augmentation of approximately 135 nos. of 33/11 kilovolt (kV) substations (2,062 megavolt-amperes (MVA));
(2) Construction and modernization of around 30,000 kilometers (km) of 33/11 kV distribution lines; and
(3) Installation of River-crossing Towers, Switching Stations, Supervisory Control and Data Acquisition (SCADA) System, and Fault Locators.

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

Accoding to the AIIB, the financing gap will be filled by the following investments:
- US$ 115.94 million (GoB); and
- US$ 173.32 million (BREB).


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.

AIIB Team Leader:

Hari Bhaskar - Principal Investment Specialist
Email: hari.bhaskar@aiib.org

Borrower - Ministry of Finance, People’s Republic of Bangladesh:

Md. Anwar Hossain - Additional Secretary & Wing Chief (Asia, JEC, F&F), Economic Relations Division (ERD)
Email: wingchief08@erd.gov.bd

Implementing Agency - Bangladesh Rural Electrification Board (BREB):

Ajay Kumar Chakraborty - Chairman
Email: chairman@reb.gov.bd
Website: http://reb.gov.bd/

ACCESS TO INFORMATION

You can submit an information request for project information at: https://www.aiib.org/en/contact/information-request/index.html

ACCOUNTABILITY MECHANISM OF AIIB

The AIIB has established the Accountability Mechanism for Project-Affected People (PPM). The PPM provides Òan opportunity for an independent and impartial review of submissions from Project-affected people who believe they have been or are likely to be adversely affected by AIIBÕs failure to implement the ESP in situations when their concerns cannot be addressed satisfactorily through Project level GRMs or AIIB Management processes.Ó Two or more project-affected people can file a complaint. Under the current AIIB policy, when the bank co-finances a project with another development bank, it may apply the other bank's standards. You can refer to the Project Summary Information document to find out which standards apply. You can learn more about the PPM and how to file a complaint at: https://www.aiib.org/en/about-aiib/who-we-are/project-affected-peoples-mechanism/how-we-assist-you/index.html

The complaint submission form can be accessed in Arabic, Bahasa Indonesia, Bengali, Chinese, English, Tagalog, Hindi, Nepali, Russian, Turkish, or Urdu. The submission form can be found at: https://www.aiib.org/en/about-aiib/who-we-are/project-affected-peoples-mechanism/submission/index.html

How it works

How it works