Natural Gas Infrastructure and Efficiency Improvement Project (ADB-45203-006)

Countries
  • Bangladesh
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • Asian Development Bank (ADB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Active
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
Nov 18, 2016
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.
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)
$ 227.00 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
Primary Source

Original disclosure @ ADB website

Updated in EWS Jun 26, 2020

Disclosed by Bank Aug 19, 2016

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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.

DESCRIPTION

The project aims to (i) improve efficiency in natural gas production by installing seven wellhead gas compressors at location A of Titas gas field, and (ii) expand natural gas transmission pipeline capacity by constructing an approximately 181-kilometer, 36-inch parallel gas transmission pipeline from Chittagong through Feni to Bakhrabad.

PROJECT RATIONALE AND LINKAGE TO COUNTRY/REGIONAL STRATEGY

In Bangladesh, natural gas exploration and production has not kept pace with demand growth. Bangladesh Petroleum Exploration and Production Company Limited (BAPEX) has not done extensive exploration for many years due to lack of public funds. Exploration in offshore blocks stalled in the early 2000s for various reasons, including unattractive production-sharing contracts. To combat the gas crisis, there is an urgent need to accelerate gas exploration and production. The Government of Bangladesh established the gas development fund in 2012 to support upstream activities and undertake large-scale exploration in onshore and offshore areas. BAPEX has initiated well appraisals, such as three-dimensional seismic surveys and development of discovered and producing gas fields, to prove additional gas reserves. Bangladesh Oil, Gas and Mineral Corporation (Petrobangla) has assigned offshore exploration rights to and signed new production-sharing contracts with international oil companies to complement BAPEX's onshore exploration program. In the meantime, Petrobangla is pursuing a program to increase recovery from existing gas fields by installing wellhead gas compressors.

Inadequate gas transmission infrastructure is another hurdle in Bangladesh's gas sector. The gas transmission infrastructure coverage is not able to serve the country's key market areas, as most gas supply points are in the northeast and central regions, while delivery points are in the central, south, and west. Ongoing Asian Development Bank loans have greatly enhanced the transmission capability. However, the Chittagong area is still suffering from a gas supply shortfall due to full capacity attainment of the existing 175 km, 24-in Bakhrabad Chittagong gas transmission pipeline. To enhance the throughput capabilities and facilitate transmission of additional gas, the gas transmission network must be expanded to accommodate the upcoming diversified gas supply sources from imports and offshore discoveries into the national gas network.

IMPACT

Energy sector contribution to sustainable economic growth increased (Bangladesh Seventh Five-Year Plan

OUTCOME

Efficiency in gas production improved and gas transmission pipeline capacity expanded.

CONSULTING SERVICES

The recruitment of consultants will follow ADB''s Guidelines on the Use of Consultants (2013, as amended from time to time).

PROCUREMENT

Project-related procurement will be carried out following ADB''s Procurement Guidelines (2015, as amended from time to time). As the project will be jointly financed by ADB and AIIB, universal procurement will be applied to works, goods, and consulting services to be financed under the project.

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

Loan 3461-BAN: Natural Gas Infrastructure and Efficiency Improvement Project
Ordinary capital resources US$ 100.00 million

Loan 3462-BAN: Natural Gas Infrastructure and Efficiency Improvement Project
Concessional ordinary capital resources / Asian Development Fund US$ 67.00 million

Loan 8318-BAN: Natural Gas Infrastructure and Efficiency Improvement Project
Asian Infrastructure Investment Bank US$ 60.00 million


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.

ACCOUNTABILITY MECHANISM OF ADB

The Accountability Mechanism is an independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an Asian Development Bank-financed project. If you submit a complaint to the Accountability Mechanism, they may investigate to assess whether the Asian Development Bank is following its own policies and procedures for preventing harm to people or the environment. You can learn more about the Accountability Mechanism and how to file a complaint at: http://www.adb.org/site/accountability-mechanism/main

CONTACTS

Responsible ADB Officer Zhang, Hongwei
Responsible ADB Department South Asia Department
Responsible ADB Division Energy Division, SARD
Executing Agencies
Bangladesh Gas Fields Company Ltd.
Birashar, Brahmanbaria
Brahmanbaria-3400
Bangladesh
Gas Transmission Company Ltd.
F-18/A, Sher-E-Bangla Nagar
Administrative Area, Agargaon
Dhaka, 1207

How it works

How it works