Bangladesh: Bangladesh Bhola IPP

OBJECTIVE

The objective is to increase power generation capacity in Bangladesh and help the country meet its power demand as it faces acute power shortages.

DESCRIPTION

The project will be developed by Shapoorji Pallonji Infrastructure Capital Company Private Limited through Nutan Bidyut (Bangladesh) Limited (NBBL), a special purpose vehicle incorporated in Bangladesh for the sole purpose of developing and operating the project.

The 220 MW power plant will include two gas turbine generators, two heat recovery steam generators and one steam turbine generator along with the balance of the plant, including facilities for fuel gas transportation, compression and conditioning system, high-speed diesel storage, cooling water system and water treatment facility. Power will be evacuated through the proposed gas insulated switchyard of the proposed plant to the existing 230 kV air insulated switchyard to Barisal substation through the existing 230 kV transmission line. A gas pipeline of around 5 kilometers from the Shahbazpur gas field to the project site alongside the existing pipeline will be constructed.

PROJECT FINANCING

For more information about project financing, please review the project summary.

ENVIRONMENTAL AND SOCIAL INFORMATION

The project has been prepared using AIIB’s Environmental and Social Policy (ESP) and the legislation of Bangladesh. Environmental clearance for the project has been obtained from the Department of Environment, Government of the People of Bangladesh on Mar. 20, 2017. Under AIIB’s ESP, and Environmental and Social Standard (ESS) 1: Environmental and Social Assessment and Management and ESS 2: Involuntary Resettlement are applicable to the project. The project has been classified as Category B since its impacts are similar to those induced by the existing adjacent BPDB power plant, limited in number and localized to the project area. The project’s instruments comprise an Environmental and Social Impact Assessment (ESIA), an Environmental and Social Management Plan (ESMP), a Resettlement Planning Framework, a Gender Action Plan, a project-level Grievance Redressal Mechanism (GRM), a Stakeholder Engagement Plan, a Labor and Influx Management Plan (LIMP) and relevant Environmental, Health, Safety, Social (EHSS) procedures, also in line with the AIIB’s ESP. Monitoring indicators, responsibilities, budgets and schedules are provided in these plans. Environmental and social impacts of the project have been identified through AIIB’s environmental and social due diligence which included a site visit. These have been ascertained to be manageable to acceptable levels through the implementation of the ESMP and other plans. The impacts encompass increased noise and vibration during the plant construction and operation, change in air quality due to construction dust and combustion emissions, affected aquatic ecology and surface water quality due to dredging and effluent discharge and land acquisition and associated development in the area. Cumulative impacts on physical, biological and socioeconomic conditions are anticipated due to the existing adjacent BPDB power plant and the proposed project. Principal risks associated with the project include transportation of natural gas through the pipeline, chlorine and potentially in the future, the transportation, handling (loading/unloading) and storage of high-speed diesel. Appropriate design features have been adopted while a high-level Emergency Response Plan, an Emergency Preparedness and Response Procedure and an onsite Spill Control and Management procedure are available. The land requirement for the project is approximately 22.78 acres, half of which has been transferred to NBBL by BPDB on a long-term lease. NBBL has acquired a quarter of it on a willing buyer-willing seller basis, and the remaining land for the gas pipeline right-of-way will be acquired by the Sundarban Gas Company Limited for and under the supervision of NBBL. Land acquisition for the plant site and right-ofway will induce economical resettlement, while a minimal number of households may be physically displaced. The process of acquisition, including consultation during the planning and implementation phases, will consider avoidance and minimization of resettlement, and comply with the AIIB’s ESS. The LIMP, Human Resources Management and Labor Management procedures prepared by NBBL address in-migration’s impact on local communities, employment conditions and occupational health and safety measures in line with AIIB’s requirements. During the ESIA process, project-affected communities have been consulted to identify concerns. The ESIA and other plans are disclosed on http://www.shapoorjipallonji.com/company/SPInfrastructure and a project-level GRM has been designed for redress of community grievances at field and corporate levels.