Bangladesh: North Dhaka Waste to Energy Project (AIIB-000617)

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
North Dhaka
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
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."
Borrower
WTE Power Plant North Dhaka Private Limited (China Machinery Engineering Corporation)
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Climate and Environment
  • Energy
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)
$ 100.00 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)
$ 100.00 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)
$ 467.00 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
Other Related Projects
Primary Source

Original disclosure @ AIIB website

Updated in EWS Jan 6, 2025

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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.

As stated by the AIIB, the project development objective is to reduce landfill waste and generate renewable energy by processing municipal solid waste in North Dhaka, Bangladesh.

The Project involves the design, financing, engineering, construction, operation, and maintenance of a waste-to-energy (WtE) facility located on the south side of the Amin Bazar landfill in North Dhaka and a six-kilometer transmission line to be connected to the Savar substation. It comprises four incineration lines and two sets of 35 MW turbo-generator systems. It is the first WtE project in Bangladesh to divert municipal solid waste from landfill and generate renewable energy.

The Project benefits from a series of project agreements for 25-year, including Implementation Agreement (IA) with the Government of Bangladesh (GoB), Power Purchase Agreement (PPA) with BPDB, Waste Supply Agreement (WSA) with Dhaka North City Corporation (DNCC), and Land Use Agreement (LUA) with DNCC.

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

As stated by the AIIB, the total project cost is around USD467 million, which is expected to be funded by USD157 million equity and USD310 million debt. AIIB’s financing amount will be up to USD100 million.

Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

As stated by Bloomberg, China Machinery Engineering Corporation contracts international engineering projects. The Company constructs thermal power plants, hydro power plants, power station projects and communication projects. Furthermore, the Company also offers import and export services in electric meters, electro-optic light and castings products.

WTE Power Plant North Dhaka Private Limited is a Special Purpose Vehicle (SPV) of China Machinery Engineering Corporation.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - China Machinery Engineering Corporation - CMEC Client Infrastructure

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:

Ziwei Liao - Senior Investment Officer
Email: ziwei.liao@aiib.org

Borrower - WTE Power Plant North Dhaka Private Limited:

Liping Wang - Managing Director
Email: wanglp@cmec.com

Parent Company - China Machinery Engineering Corporation:

Pu Wang - Deputy General Manager of Investment and Assets Operation Department
Email: wangpu@cmec.com

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

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How it works