Energy Sector Security Enhancement Project (WB-P181811)

Countries
  • Bangladesh
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • World Bank (WB)
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."
Voting Date
Jul 15, 2025
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.
Borrower
Government of Bangladesh - Petrobangla
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Energy
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Guarantee
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 350.00 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)
$ 2,100.00 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.
Bank Documents
Primary Source

Original disclosure @ WB website

Updated in EWS Mar 5, 2025

Disclosed by Bank Feb 20, 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.

According to the Bank’s website, the project development objectives are to enhance gas supply security by facilitating access to cost-effective financing, and strengthen the institutional capacity of sector agencies.

This operation would utilize IDA guarantee instrument to mobilize private sector capital in the natural gas sector, while also working in partnership with other development institutions. The use of a World Bank IDA guarantee would increase the availability of liquidity in a cost-effective manner, improve the creditworthiness of Petrobangla, and support its energy security. The proposed operation would also provide technical assistance to the sector in partnership with other development partners, in preparation for broader sector reforms to improve the sustainability of the energy sector.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

The environmental risk rating is proposed as “Moderate”. This is based on the nature of operational activities; the project is a guarantee that facilitates liquidity to support purchase of LNG and TA to help with institutional strengthening. No physical works will occur under the project. However, the project has indirect environmental and social risks associated with the suppliers’ capacity to transport, handle and store LNG. The E&S risks associated with transportation, handling and storage of LNG include occupational health and safety (OHS) and community health and safety risks (including the potential for spills or accidents), air emissions and noise.

The social risk of this operation is assessed to be “Moderate.” The project will not involve any construction or any physical facilities enhancement. Hence the project will not require any land acquisition and is not going to cause any economic or physical displacement.

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

IDA Guarantee: US$ 350.00 million

Total Financing: US$ 2,100.00 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.

Bangladesh Oil, Gas & Mineral Corporation (Petrobangla) is a government-owned oil, gas and mineral exploration and distribution corporation of Bangladesh. It has the mandate to explore, produce, transport, manage and sell oil, natural gas and other mineral resources. It also concludes production-sharing agreements with international oil companies for exploration and development of oil, gas and mineral resources in Bangladesh.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Petrobangla Client -

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.

World Bank

Olayinka Mutiat Edebiri
Senior Energy Specialist

Varun Rachappa Hallikeri
Senior Infrastructure Finance Specialist

Borrower/Client/Recipient

The Government of Bangladesh

Implementing Agencies

Petrobangla
Rezanur Rahman
Mr
petchair@petrobangla.org.bd

A K M Mizanur Rahman
Rahman
petrofin@petrobangla.org.bd

ACCESS TO INFORMATION

To submit an information request for project information, you will have to create an account to access the Access to Information request form. You can learn more about this process at: https://www.worldbank.org/en/access-to-information/request-submission

ACCOUNTABILITY MECHANISM OF THE WORLD BANK

The World Bank Inspection Panel is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by a World Bank-financed project. If you submit a complaint to the Inspection Panel, they may investigate to assess whether the World Bank is following its own policies and procedures for preventing harm to people or the environment. You can contact the Inspection Panel or submit a complaint by emailing ipanel@worldbank.org. Information on how to file a complaint and a complaint request form are available at: https://www.inspectionpanel.org/how-to-file-complaint

How it works

How it works