People’s Republic of Bangladesh: Bangladesh Power System ......commercial losses and increasing...

Bangladesh Power System Enhancement and Efficiency Improvement Project (RRP BAN 49423)

Project Number: 49423-005 March 2017

People’s Republic of Bangladesh: Bangladesh

Power System Enhancement and Efficiency

Improvement Project

Project Administration Manual

http://www.adb.org/Documents/RRPs/?id=49423-005-3

ABBREVIATIONS

ADB – Asian Development Bank ADF – Asian Development Fund BERC – Bangladesh Energy Regulatory Commission BPDB – Bangladesh Power Development Board BPL – below poverty line BREB – Bangladesh Rural Electrification Board DESCO – Dhaka Electric Supply Company Limited DMCS – Dhaka, Mymensingh, Chittagong, and Sylhet DPDC – Dhaka Power Distribution Company Limited EIA – environmental impact assessment EMP – environmental management plan FAPAD – Foreign-Aided Projects Audit Directorate FHH – female headed households GAP – gender action plan GRC – Grievance Redress Committee GW – gigawatt IEE – initial environmental examination INGO – implementing non-government organization JICA – Japan International Cooperation Agency MSME – micro, small, and medium enterprise LGRC – local level Grievance Redress Committee LIBOR – London interbank offered rate NGO – non-government organization OCR – ordinary capital resources O&M – operations and maintenance PAM – project administration manual PBS – palli bidyut samity (rural electricity cooperative) PGCB – Power Grid Company of Bangladesh Limited PGRC – project level Grievance Redress Committee RRP – report and recommendations to the president RRKB – Rajshahi, Rangpur, Khulna, and Barisal km – kilometer kV – kilovolt QCBS – quality-and cost- based selection QBS – quality-based selection SOE – statement of expenditures TOR – terms of reference

CONTENTS

I. PROJECT DESCRIPTION 1

II. IMPLEMENTATION PLANS 3

A. Project Readiness Activities 3 B. Overall Project Implementation Plan 5

III. PROJECT MANAGEMENT ARRANGEMENTS 6

A. Project Implementation Organizations: Roles and Responsibilities 6 B. Key Persons Involved in Implementation 6 C. Project Organization Structure 8

IV. COSTS AND FINANCING 9

A. Cost Estimates Preparation and Revisions 10 B. Key Assumptions 10 C. Detailed Cost Estimates by Expenditure Category 12 D. Allocation and Withdrawal of Loan and Grant Proceeds 13 E. Detailed Cost Estimates by Financier 14 F. Detailed Cost Estimates by Components 16 G. Detailed Cost Estimates by Year 17 H. Contract and Disbursement S-Curve 18 I. Fund Flow Diagram 18

V. FINANCIAL MANAGEMENT 19

A. Financial Management Assessment 19 B. Disbursement 24 C. Accounting 25 D. Auditing and Public Disclosure 25

VI. PROCUREMENT AND CONSULTING SERVICES 26

A. Advance Contracting and Retroactive Financing 26 B. Procurement of Goods, Works, and Consulting Services 26 C. Procurement Plan 28 D. Consultant's Terms of Reference 43

VII. SAFEGUARDS 44

VIII. GENDER AND SOCIAL DIMENSIONS 46

IX. PERFORMANCE MONITORING, EVALUATION, REPORTING, AND COMMUNICATION 49

A. Project Design and Monitoring Framework 49 B. Monitoring 52 C. Evaluation 52 D. Reporting 53 E. Stakeholder Communication Strategy 53

X. ANTICORRUPTION POLICY 54

XI. ACCOUNTABILITY MECHANISM 54

XII. RECORD OF CHANGES TO THE PROJECT ADMINISTRATION MANUAL 54

Annex 1: Consultant's Terms of Reference 55

Project Administration Manual Purpose and Process

1. The project administration manual (PAM) describes the essential administrative and

management requirements to implement the project on time, within budget, and in accordance with the policies and procedures of the government and Asian Development Bank (ADB). The PAM should include references to all available templates and instructions either through linkages to relevant URLs or directly incorporated in the PAM. The Power Grid Company of Bangladesh Limited, Bangladesh Rural Electrification Board, Dhaka Electric Supply Company Limited, and Power Division of the Ministry of Power, Energy and Mineral Resources are wholly responsible for the implementation of ADB-financed projects, as agreed jointly between the borrower and ADB, and in accordance with the policies and procedures of the government and ADB. ADB staff is responsible for supporting implementation including compliance by Power Grid Company of Bangladesh Limited, Bangladesh Rural Electrification Board, Dhaka Electric Supply Company Limited, and Power Division of the Ministry of Power, Energy and Mineral Resources of their obligations and responsibilities for project implementation in accordance with ADB’s policies and procedures. At loan negotiations, the borrower and ADB shall agree to the PAM and ensure consistency with the loan and grant agreements. Such agreement shall be reflected in the minutes of the loan negotiations. In the event of any discrepancy or contradiction between the PAM and the loan and grant agreements, the provisions of the loan and grant agreements shall prevail.

After ADB Board approval of the project's report and recommendations of the President (RRP), changes in implementation arrangements are subject to agreement and approval pursuant to relevant government and ADB administrative procedures (including the Project Administration Instructions) and upon such approval, they will be subsequently incorporated in the PAM.

I. PROJECT DESCRIPTION

1. In 1971 when Bangladesh gained independence, only 3% of its population had access to electricity. By 2015, this rose to about 72% with per-capita electricity consumption reaching 371 kilowatt-hour per annum.1 The gross domestic product of Bangladesh has been growing at a rate of over 6% consistently over the last decade. Meeting the need for reliable and affordable electricity is a challenge for Bangladesh as it seeks to sustain economic growth and aims to transition to middle income country status by 2021.2 To support inclusive growth and development as well as creation of more and better jobs, the government has set a target of electricity for all by 2021 and is working across the electricity generation, transmission and distribution value chain to enhance improved delivery of electricity and meet the expected demand of 19 gigawatts (GW) by 2021.3 2. Increasing power generation capacity. It is significant to note that expensive liquid fuel sources, such as diesel and furnace oil, have proliferated in the last 10 years and contributed about 20% of the power generation in 2015. This increase in capacity contributed to a notable increase in electricity generation capacity that crossed 13 GW in 2015 (more than double of the installed capacity in 2009) and ending the rolling blackouts in major cities. Since 2007, retail electricity tariffs in Bangladesh have increased by about 7.9% annually but have been inadequate to cover the increase in cost of power.4 In the generation sub-sector, long term planning is focused on increasing the installed generating capacity including rehabilitation and efficiency improvement of existing public sector gas-fueled power plants and creation of inter-country transmission grid interconnections. Bangladesh is also executing plans to set up imported liquefied natural gas terminals and gas and coal power plants. There are also investments planned in grid-connected and off-grid solar power generation.5 These measures support scaling up and diversifying generation capacity through a range of financing sources, including through the private sector. This momentum in growth in generation capacity is expected to be maintained with at least 7 GW of generation capacity to be installed by 2021 that would reduce dependence on liquid fuel sources and facilitate a transition to a lower cost trajectory for power purchase costs over the medium term. 3. Strengthening transmission network coverage. The Power Grid Company of Bangladesh Limited (PGCB) is responsible for the national transmission grid in Bangladesh. The south-west part of Bangladesh is a high-growth-potential region for economic corridor development as well as a location for multiple power plants. There is one existing interconnection crossing the Padma River and connecting the eastern and western regions of Bangladesh at 230 kilovolts (kV). A second high-voltage interconnection over the Padma between the southwest regions and Dhaka would improve reliability and permit efficient power flows over the national transmission network.

1 Government of Bangladesh, Planning Commission. 2015. 7th Five-Year Plan. Dhaka. This figure includes captive

power generation by industries. 2 Government of Bangladesh, Ministry of Planning, Planning Commission. 2012. Perspective Plan of Bangladesh

2010–2021, Making Vision 2021 a Reality. Dhaka. Bangladesh is ranked 107 in the 2015 Global Competitiveness Index ratings behind most South Asian countries on account of several factors including infrastructure constraints.

3 Government of Bangladesh, Ministry of Power, Energy and Mineral Resources. 2011. Power System Master Plan

2010. Dhaka. An updated master plan is under preparation. 4 Bangladesh Power Development Board (BPDB) purchases all electricity and sells this to distribution utilities

including Dhaka Electric Supply Company Limited (DESCO) and Bangladesh Rural Electrification Board (BREB). BPDB has not been able to pass on the full cost of liquid fuel power purchase to the distribution sector.

5 Bangladesh has a successful program for off-grid electrification using solar home systems that has helped improve

access to electricity. Projects for large utility-scale grid-connected renewable energy are under consideration.

2

4. Distribution System Control in Dhaka. Dhaka city has been one of the major beneficiaries of improved power availability in recent years. Dhaka Electric Supply Company Limited (DESCO) services about half the city and has progressively improved its distribution losses from 27.0% in 2001 to 8.4% in 2015, which places it among the best city based utilities in the south Asia region. This has been achieved through a relentless focus on reducing commercial losses and increasing the share of its medium voltage network. DESCO is now focusing on improving its ability to monitor and control its city distribution network and improve the quality of customer service and network utilization. 5. Enhancement of rural distribution network. To meet its target of 100% electrification by 2021, the Government of Bangladesh has since 2011 embarked on a large scale rural electrification program supported by development partners including Japan International Cooperation Agency and the World Bank. Bangladesh’s rural electrification experience commenced in 1977 with a few rural areas electrified through a program supported by the United States Agency for International Development through the Bangladesh Rural Electrification Board (BREB), the apex rural electrification agency responsible for financing procurement and technical oversight of the palli bidyut samitis (PBSs)6 that are responsible for operations, billing and collection in rural areas. The rural electrification network with about 15 million customers, accounts for over 42% of power consumption in the country and is responsible to serve industries, irrigation, and domestic demand in rural areas. Distribution loss levels in rural areas are at about 12.5% in 2016, lower than 15.0% in 2009 and expected to reduce to about 10.0% by 2021 driven by investments in loss reduction and the recently approved plan to decentralize and manage widespread rural operations at a regional level. Sales are growing at 11% annually and about 0.5 million new consumers are being connected annually to the rural distribution network. Some sections of the distribution network are over 20 years old and using wooden distribution poles with low capacity conductors. Rehabilitation and improvement of the capacity of such lines, and the rural network in general, is urgently needed to carry increasing volume of power and meet customers’ demand in an efficient and reliable manner. 6. Capacity Development for sector planning and regulation. Under the 7th Five Year Plan (2016–2020),7 over 8,400 circuit kilometers (km) of transmission lines and over 120,000 circuit km of distribution lines are to be constructed and rehabilitated. It is expected that about 90% of the population would be served through the grid by 2020. Capacity development of the sector agencies on medium term transmission planning, distribution system planning, loss monitoring, and feasibility studies for new generation projects and to consolidate on recent progress on tariff regulations would be needed. 7. The Asian Development Bank (ADB) is a key development partner in the power sector of Bangladesh and has been active in supporting investments in power generation, efficiency improvement, international power interconnections and improvement of transmission and distribution networks. In particular, ADB has supported power generation capacity addition and cross-border connectivity in Western Bangladesh. The project is aligned with the country partnership strategy (CPS), 2016–2020 for Bangladesh that highlights the need for strengthening of transmission and distribution network, and improving access.8 The CPS for

6 At the end of fiscal year 2016, there were 77 PBSs or rural electricity cooperatives that purchase power from the

Bangladesh Power Development Board and sell it to retail consumers at 33 kV and lower voltages. They are responsible for maintaining the distribution infrastructure created by BREB.

7 Government of Bangladesh, Planning Commission. 2015. 7th Five-Year Plan. Dhaka.

8 ADB. 2016. Country Partnership Strategy: Bangladesh, 2016–2020. Manila.

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2016–2020 emphasizes a focus on rural infrastructure creation as well as removal of infrastructure constraints. Both targets are supported under the proposed project.

A. Impact and Outcome

8. The project will contribute to 100% access to power by 2021 and improved power sector sustainability in Bangladesh by 2030. This is aligned with the Bangladesh’s Perspective Plan9 and Power System Master Plan (footnote 3). The outcome will be improved access to efficient and reliable electricity supply in Bangladesh. The performance indicators are given in the Design and Monitoring Framework.

B. Outputs

9. The outputs of the project include: (i) national transmission network in Bangladesh strengthened by PGCB through the construction of a 174 km long high voltage 400 kV transmission link between south west Bangladesh and Dhaka; (ii) distribution network in Dhaka improved in DESCO service areas through design and installation of control systems; (iii) distribution network in rural areas of Bangladesh improved to support increase in safe, efficient and productive electricity usage in BREB service areas; and (iv) capacity in power sector agencies enhanced including on new project design and improved regulatory compliance.10

II. IMPLEMENTATION PLANS

A. Project Readiness Activities

10. The loan implementation will be completed by June 2020. The loan closing date would be December 2020. Implementation arrangements are given in Table 1. The implementation schedule is shown in Table 2.

Table 1: Project Implementation Arrangements

Aspects Arrangements

Implementation period July 2016– June 2020

Estimated completion date 30 June 2020 (loan closing date will be December 2020)

Management

(i) Oversight body PGCB board, BREB board, DESCO board, and Power Division (Ministry of Power, Energy and Mineral Resources)

(ii) Executing agencies PGCB, BREB, DESCO, and Power Division of Ministry of Power, Energy and Mineral Resources

(iii) Key implementing agencies

PGCB, BREB, DESCO, and Power Cell

(iv) Implementation unit Project management units in PGCB, BREB, DESCO, and Power Cell

Procurement International competitive bidding, national competitive bidding, and shopping

48 contracts, comprising 39 ICB, 2 NCB, and 7 shopping contracts

$585 million

Consulting services Quality- and cost-based selection and quality-based selection

12 contracts following quality- and cost-based selection

$21 million

9 Government of Bangladesh, Ministry of Planning, Planning Commission. 2012. Perspective Plan of Bangladesh

2010–2021, Making Vision 2021 a Reality. Dhaka. 10

Capacity building and related support (output 4) is proposed to be supported by the Special Fund resources loan as well as possible grant assistance from Japan Fund for Poverty Reduction.

4

Aspects Arrangements

Retroactive financing and/or advance contracting

Eligible contract packages and eligible expenditures agreed between ADB and the borrower may be considered for advance contracting and retroactive financing.

Disbursement The loan and grant proceeds will be disbursed in accordance with ADB's Loan Disbursement Handbook (2015, as amended from time to time) and detailed arrangements agreed between the government and ADB.

ADB = Asian Development Bank, BREB = Bangladesh Rural Electrification Board, DESCO = Dhaka Electric Supply Company Limited, ICB = international competitive bidding, NCB = national competitive bidding, PGCB = Power Grid Company of Bangladesh Limited. Sources: Asian Development Bank estimates.

Table 2. Implementation Schedule

ADB = Asian Development Bank, BREB = Bangladesh Rural Electrification Board, DESCO = Dhaka Electric Supply Company Limited, DOE = Department of Environment, EAs = executing agencies, ECNEC = Executive Committee of the National Economic Council, ERD = Economic Relations Division, MPEMR = Ministry of Power, Energy and Mineral Resources, NG3 = National Grid 3, PGCB = Power Grid Company of Bangladesh Limited, SCADA = supervisory control and data acquisition, SPC = spun pre-stressed concrete. Source: Asian Development Bank and executing agencies estimates.

2016 2017

Aug Sep Oct Nov Dec Jan Feb Mar Apr May Responsible parties

Advance contracting actions

Submission of bidding documents

Submission of bidding documents for NG3 X PGCB

Submission of bidding documents for SCADA

systemX

DESCO

Submission of master bidding documents for

SPC packageX

BREB

Submission of scope of work for consulting

contracts under TA loanX

Power Cell

Retroactive financing actions

Tendering for NG3 X PGCB

Tendering for design of SCADA system X DESCO

Tendering for SPC package X BREB

Tendering for remaining phase 1 packages X BREB

Tendering for consulting contracts X Power Cell

Approval of Project Proposals

Development Project Proposal of BREB X BREB, DOE, ECNEC

Technical Assistance Project Proposal of

BREB for JFPRX

BREB,MPEMR

Technical Assistance Project Proposal of

Power CellX

Power Cell, ECNEC

Loan negotiations X ADB, ERD,EAs

ADB Board Approval X ADB

Loan signing X ADB, ERD,EAs

Loan Effectiveness X ADB, ERD,EAs

Loan Disbursement X ADB, ERD,EAs

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B. Overall Project Implementation Plan

ADB = Asian Development Bank, BREB = Bangladesh Rural Electrification Board, DESCO = Dhaka Electric Supply Company Limited, EA = executing agency, PGCB = Power Grid Company of Bangladesh Limited, Q = quarter, SCADA = supervisory control and data acquisition. Source: Asian Development Bank and executing agencies estimates

Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Component 1: PGCB Project

Bidding

Bid evaluation and award

Implementation

Component 2: DESCO Project

Design consultant

Bidding


Implementation

SCADA centre

Bidding


Implementation

Component 3: BREB Project

Project implementation

Monitoring Consultant

Bidding


Implementation

Phase 1

Bidding


Implementation

Phase 2

Bidding


Implementation

Component 4: Studies

Bidding


Implementation

2016 20182017 2019 2020

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III. PROJECT MANAGEMENT ARRANGEMENTS

A. Project Implementation Organizations: Roles and Responsibilities

Project implementation organizations

Management Roles and Responsibilities

Executing Agency (PGCB, DESCO, BREB, Power Division)

Responsible for overall execution, supervision and monitoring the tendering, award, and implementation of respective project components

Comply with agreed covenants

Project Management Unit PMU in each executing agency headed by a project director will implement the project including working with consultants for design procurement and implementation and be responsible for preparation and submission of withdrawal applications and meeting reporting requirements including audit reports and financial statements

The PMU will be responsible for finalizing surveys and detailed designs, update of safeguard documents, preparation of semi-annual safeguard monitoring reports, and timely submission to ADB

Responsible for setting up grievance redress mechanisms and addressing grievances raised by affected persons in a timely manner

Disclose relevant information to affected people and undertaken consultations

Update the environment and resettlement documents in case of unanticipated impacts, prepare corrective action plans, and update documents

Ministry of Finance Economic Relations Division

Will enter into the loan agreement with ADB and on-lend the ADB loan to PGCB, BREB, and DESCO.

Ministry of Power Energy and Mineral Resources

Will provide policy direction to sector entities including BPDB and PGCB and be responsible for coordination between these agencies. Will also assess the consulting study outputs and provide guidance on their implementation

Contractors Will undertake implementation of the contracts

ADB Will undertake regular project reviews and facilitate in implementation of the project including compliance by the executing agency/implementing agency of obligations and responsibilities for project implementation

ADB = Asian Development Bank, BREB = Bangladesh Rural Electrification Board, BPDB = Bangladesh Power Development Board, DESCO = Dhaka Electric Supply Company Limited, PGCB = Power Grid Company of Bangladesh Limited, PMU = project management unit. Source: Asian Development Bank estimates.

B. Key Persons Involved in Implementation

Executing Agency Power Grid Company of Bangladesh Limited

A. Monayem Project Director NLDC Complex Bhabhan (8th Floor) Aftab Nagar, Rampura Dhaka-1219

Bangladesh Rural Development

Mr. Nazmul Haque

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Board

Project Director (East) BREB Bhabhan, Nikunja-2, Khilkhet Dhaka - 1229

Telephone:

Mr. Hindol Das Project Director (West) BREB Bhabhan, Nikunja-2, Khilkhet Dhaka - 1229

Telephone:

Dhaka Electric Supply Company Limited

Mr. M. Hoque Project Director Faruk Sarani, Nikunja-2, Uttara, Dhaka-1229 Telephone :

Power Cell (on behalf of Power Division)

Mr. Rouf Miah Director (9th Floor), BPDB Bhabhan 1 Abdul Ghani Road Dhaka-1219

Asian Development Bank

South Asia Department

Priyantha Wijayatunga Director Telephone No.: (63-2) 632-6131 Email address: [email protected]

Mission Leader

Len George Energy Specialist Telephone No.: +91 11 2410 7200 Email address: [email protected]

mailto:[email protected]

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Ministry of Finance Economic Relations

Department

Ministry of Power, Energy and Mineral Resources

(Power Division) – Overall Coordination

Executing Agency

(PGCB)

PMU

Executing Agency (Power Division)

PMU

Executing Agency

(DESCO)

PMU

Executing Agency

(BREB)

PMU 1 (covers Rajshahi,

Rangpur, Khulna, and Barisal)

PMU 2 (Dhaka, Mymensingh,

Chittagong, and Sylhet divisions)

C. Project Organization Structure

BREB = Bangladesh Rural Electrification Board, DESCO = Dhaka Electric Supply Company Limited, PGCB = Power Grid Company of Bangladesh Limited. Notes: 1. BREB PMUs: 1 project director, 2 deputy directors (technical), 1 deputy director (finance) and 1 deputy director (administration) supported by 4 executive

engineers (1 for each division). 2. PGCB PMU: 1 project director, 1 deputy project director, 1 executive engineer, 6 sub-divisional engineers, and 1 deputy manager (accounts and administration)

with additional support staff. 3. DESCO PMU: 1 project director, 1 deputy project director, 2 sub divisional engineers, and 1 assistant manager (accounts and administration) with additional

support staff. 4. Power Division PMU: 1 project director, 1 deputy project director, and 1 deputy director (accounts and administration) with additional support staff Joint Chief at

Power Division and his team will coordinate on the consulting studies with Power Cell and required sector agencies.

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IV. COSTS AND FINANCING

11. The total estimated cost of the project (all components) is $1,058.7 million. The cost estimate includes taxes, duties, and other charges on the loan during construction. 12. The investment plan is summarized in Table 3 below. ADB will finance turnkey contracts, goods and installation, and consulting services for project implementation. Counterpart funding will be provided by the executing agencies and the government in the form of equity and loan for each component, toward financing taxes and duties, land development costs, environment and social mitigation, overheads and consulting services for project implementation. Packages will be separately allocated to financiers and except for PGCB turnkey packages, no package will be financed jointly. For PGCB turnkey packages, foreign costs would be funded out of the loan and local costs from counterpart contribution. Local currency packages are expected to be financed under the government counterpart contribution. The investment plan and financing plan are summarized in Table 3 and Table 4, respectively.

Table 3: Investment Plan ($ million)

Item Amount a

A. Base Costsb

1. National transmission system development by the Power Grid Company of Bangladesh Limited in southern Bangladesh 145.5

2. Distribution improvement in Dhaka Electric Supply Company Limited service areas 18.2

3.

Distribution system upgrade, rehabilitation, extension, and rural electrification in Bangladesh Rural Electrification Board service areas 778.9

4. Enhanced capacity of power sector agencies through Power Division 17.9

Subtotal (A) 960.5

B. Contingenciesc 72.6

C. Financing Charges During Implementationd 25.6

Total Cost (A+B+C) 1,058.7 Power Division = Power Division of the Ministry of Power, Energy and Mineral Resources. a

In 2016 prices. Includes taxes and duties of $186.6 million to be financed by the government and $4.0 million by the Asian Development Bank. The amount of taxes and duties to be financed by ADB: (i) are within the reasonable threshold identified during the CPS preparation process, (ii) represents a very nominal percentage of the loan, (iii) apply only to ADB-financed expenditures, and (iv) are considered material and relevant to the success of the Project.

b Based on development project proposals prepared by the sector agencies.

c Physical contingencies are estimated at 10% for transmission component, 2% for distribution automation component, 3% for rural distribution component and 4% for capacity building component. Price contingencies are estimated using the Asian Development Bank's forecast of international and domestic inflation, and include provision for potential exchange rate fluctuation under the assumption of a purchasing power parity exchange rate.

d Includes interest and commitment charges. Interest during construction for the ordinary capital resources loan has been estimated at the 5-year fixed London interbank offered rate (LIBOR) plus a spread of 0.5% and a maturity premium of 0.1%. Commitment charges for the ordinary capital resources loan are 0.15% per year to be charged on the undisbursed loan amount. Interest during implementation for the concessional ordinary capital resources (OCR) loan has been estimated at an interest rate of 2% per year.

Source: Asian Development Bank estimates.

13. ADB will finance turnkey contracts, goods and installation, and consulting services for project implementation. The government has requested (i) a regular loan of $600 million, and (ii) a concessional loan in various currencies equivalent to SDR11.6 million ($16

10

million),11 both from ADB’s ordinary capital resources (OCR) to help finance the project. The regular loan will have a 25-year term, including a grace period of 5 years; an annual interest rate determined in accordance with ADB’s London interbank offered rate (LIBOR)-based lending facility;12 a commitment charge of 0.15% per year, and such other terms and conditions set forth in the draft regular loan and project agreements. The concessional loan will have a 25-year term, including a grace period of 5 years; an interest rate of 2% per year during the grace period and thereafter, and such other terms and conditions set forth in the concessional loan and project agreements. The Japan Fund for Poverty Reduction will provide grant co-financing equivalent to $2 million, to be administered by ADB. The government has provided ADB with (i) reasons for its decision to borrow under ADB’s LIBOR-based lending facility based on these terms and conditions, and (ii) an undertaking that these choices were its own independent decisions and not made in reliance on any communications or advice from ADB. 14. Counterpart funding will be provided by the executing agencies and the government in the form of equity (60%) and loan (40%) for each component, toward financing taxes and duties, land development costs, environment and social mitigation, overheads and consulting services for project implementation. ADB loan will be onlent to each executing agency at rates ranging from 2%-4% in line with the ‘Lending/Relending Terms of Local and Foreign Currency Loans Regulations’ of the Government of Bangladesh. Packages will be separately allocated to financiers and except for PGCB turnkey packages, no package will be financed jointly. For PGCB turnkey packages, foreign costs would be funded out of the loan and local costs from counterpart contribution. Local currency packages are expected to be financed under the government counterpart contribution. The financing plan is summarized in Table 4 below.

Table 4: Financing Plan

Source Amount ($ million) Share of Total (%)

Asian Development Bank Ordinary capital resources (regular loan) 600.0 56.7 Ordinary capital resources (concessional loan) 16.0 1.5

Japan Fund for Poverty Reduction (grant) 2.0 0.2 Government of Bangladesh 440.7 41.6

Total 1,058.7 100.0


A. Cost Estimates Preparation and Revisions

15. Detailed cost estimates were obtained from the development project proposals, the document prepared for approval of the project by the Planning Commission, Bangladesh. The cost estimates are based on costs of similar projects executed in the recent past. B. Key Assumptions

16. The following key assumptions underpin the cost estimates and financing plan:

(i) Exchange rate: Tk78.4 = $1.00 (as of October 2016).

11

SDR0.725 = $1.00 as of 23 October 2016. 12

The interest includes a maturity premium of 10 basis points. This is based on the loan terms in para 13 and the government’s choice of repayment option and dates.

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(ii) Price contingencies based on expected cumulative inflation over the implementation period are as follows:

Table 5: Escalation Rates for Price Contingency Calculation

Item 2017 2018 2019 2020 Average

Foreign rate of price inflation 1.4% 2.9% 4.5% 6.0% 3.7% Domestic rate of price inflation 6.3% 13.2% 20.6% 28.5% 17.2% Source: Asian Development Bank estimates.

(iii) In-kind contributions were calculated based on the requirements and details

as outlined in the development project proposals.

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C. Detailed Cost Estimates by Expenditure Category

Table 6: Detailed Cost Estimates by Expenditure Category

BDT = Bangladesh taka, USD = US dollar. Notes: Numbers may not sum precisely because of rounding. a

2016 prices.

b Physical contingencies are estimated at 10% for transmission component, 2% for distribution automation component, 3% for rural distribution component and

4% for capacity building component.. Price contingencies computed using ADB’s forecasts of international and domestic inflation includes a provision for potential exchange rate fluctuation under assumption of a purchasing power parity exchange rate.

c Interest during construction for ADB loan(s) has been computed at the 5–year forward London interbank offered rate plus a spread of 0.6%. Commitment

charges for an ADB loan are 0.15% per year to be charged on the undisbursed loan amount (for LIBOR-based loans only). Sources: Development project proposals and 2016 Asian Development Bank assessment.

Foreign

Exchange

Local

CurrencyTotal Cost

Foreign

Exchange

Local

Currency

Total

Cost

% of Total

Base Cost

A.

1,012.3 14,458.5 15,470.8 12.9 184.4 197.3 20.5%

39,981.4 13,201.1 53,182.6 510.0 168.4 678.3 70.6%

407.7 1,625.5 2,033.2 5.2 20.7 25.9 2.7%

852.3 547.7 1,400.0 10.9 7.0 17.9 1.9%

- 967.9 967.9 - 12.3 12.3 1.3%

- 22.5 22.5 - 0.3 0.3 0.0%

Subtotal (A) 42,253.7 30,823.3 73,077.0 539.0 393.2 932.1 97.0%

B.

- 474.7 474.7 - 6.1 6.1 0.6%

- 173.3 173.3 - 2.2 2.2 0.2%

17.2 1,559.3 1,576.5 0.2 19.9 20.1 2.1%

Subtotal (B) 17.2 2,207.4 2,224.6 0.2 28.2 28.4 3.0%

Total Base Cost 42,270.9 33,030.7 75,301.6 539.2 421.3 960.5 100.0%

C.

2,632.9 404.9 3,037.8 33.6 5.2 38.7 4.0%

961.0 1,863.4 2,824.4 12.3 21.6 33.9 3.5%

Subtotal (C) 3,593.9 2,268.4 5,862.2 45.8 26.8 72.6 7.6%

D.

299.9 1,629.6 1,929.5 3.8 20.8 24.6 2.6%

17.7 62.5 80.2 0.2 0.8 1.0 0.1%

Subtotal (D) 317.6 1,692.1 2,009.7 4.1 21.6 25.6 2.7%

46,182.5 36,991.1 83,173.6 589.1 469.7 1,058.7 110.2%

3. Consulting

Item

BDT Million USD Million

Investment Costsa

1. Civil Works and installation

2. Mechanical and equipment

2. Price

a. Project Management

b. Capacity Development

4. Inland Transport

5. Environment and Social mitigation

Recurrent Costsa

1. Salaries

2. Accommodation

3. Equipment operation and maintenance

Contingenciesb

1. Physical

Financial Charges During Implementation c

1. Interest During Implementation

2. Commitment charges

Total Project Cost (A+B+C+D)

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D. Allocation and Withdrawal of Loan and Grant Proceeds 17. Packages will be separately allocated to financiers and no package will be financed jointly except PGCB civil works and installation and PGCB equipment and materials where ADB will fund the foreign currency requirement and counterpart will fund local currency requirement.

Table 7: Allocation and Withdrawal of OCR Loan Proceeds

CATEGORY ADB FINANCING BASIS

Item

Amount allocated for ADB Financing

($ million)

Percentage and Basis for Withdrawal from the Loan

Account

1. Civil Works and Installation 44.5 a. PGCB Transmission tower and

sub-stations 12.9 100% of total expenditure claimed

b. DESCO SCADA 0.0 c. BREB zonal office complex 31.6 100% of total expenditure claimed

2. Mechanical and Equipment 509.8 100% of total expenditure claimed a. PGCB Transmission tower and

sub-stations 60.6 100% of total expenditure claimed

a

b. DESCO SCADA 10.2 100% of total expenditure claimed a

c. BREB Distribution Investments 439.0 100% of total expenditure claimed a

3. Project Management, Capacity Development

7.0 100% of total expenditure claimed

4. Unallocated 38.7 Total 600.0 ADB = Asian Development Bank, BREB = Bangladesh Rural Electrification Board, DESCO= Dhaka Electric Supply Company Limited, PGCB = Power Grid Company of Bangladesh Limited, SCADA = supervisory control and data acquisition. a exclusive of all duties and taxes imposed within the territory of the borrower.


Table 8: Allocation and withdrawal of ADF Loan Proceeds


Item

Amount allocated for ADB

Financing ($ million)

Percentage and Basis for Withdrawal from the Loan

Account

Consulting and Recurrent Costs 16.0 100% of the total expenditure claimed

Total 16.0 ADB = Asian Development Bank estimate.

Table 9: Allocation and Withdrawal of Grant Proceeds


Item Amount allocated for ADB Financing

($ million)

Percentage and Basis for Withdrawal from the Loan Account

1. Equipment 0.28 100% of the total expenditure claimed 2. Capacity Development

(including training and workshops) 1.46 100% of the total expenditure claimed

3. Recurring Costs 0.18 100% of the total expenditure claimed 4. Unallocated 0.08 Total 2.00

ADB = Asian Development Bank. Source: Asian Development Bank estimates.

14

E. Detailed Cost Estimates by Financier

Table 10: Detailed Cost Estimates by Financier ($ million)

Note: Numbers may not sum precisely because of rounding. ADB = Asian Development Bank, BREB = Bangladesh Rural Electrification Board, DESCO = Dhaka Electric Supply Company Limited, JFPR = Japan Fund for Poverty Reduction, OCR = ordinary capital resources, PGCB = Power Grid Company of Bangladesh Limited. a

Government of Bangladesh contribution will include debt (40%) and equity (60%) according the Ministry of Finance lending terms for local currency loans. b

2016 prices.

Amount

(Costs)

Amount

(Taxes

and

Duties)

% of Cost

Category

Amount

(Costs)

Amount

(Taxes

and

Duties)

% of Cost

CategoryAmount

% of Cost

Category

Amount

(Costs)

Amount

(Taxes and

Duties)

Amount

(Total)

% of Cost

Category

Total

Cost

A. Investment Costsab

1. Civil Works and installation 44.5 - 22.6% - - 0.0% - 0.0% 135.7 17.1 152.8 77.4% 197.3 a. PGCB : Transmission tower and sub-station 12.9 - 25.3% - - 0.0% - 0.0% 34.6 3.5 38.0 74.7% 50.9 b. PGCB : Civil works including buildings - - 0.0% - - 0.0% - 0.0% 9.2 0.7 9.9 100.0% 9.9 c BREB: Electrical installation - - 0.0% - 0.0% - 0.0% 91.9 9.7 101.6 100.0% 101.6 d. BREB : Zonal office complexes 31.6 - 90.5% - 0.0% - 0.0% - 3.3 3.3 9.5% 34.9

2. Mechanical and equipment 509.8 - 75.2% - - 0.0% 0.3 0.0% 0.8 167.5 168.3 24.8% 678.3 a. PGCB: Transmission system 60.6 - 0.0% - - 0.0% - 0.0% - 18.2 18.2 23.1% 78.8 b. DESCO: SCADA system 10.2 - 75.4% - - 0.0% - 0.0% - 3.3 3.3 24.6% 13.5 c. DESCO: Masts - - 0.0% - - 0.0% - 0.0% 0.8 0.2 1.0 100.0% 1.0 d. BREB: Rural electrification 439.0 - 75.1% - - 0.0% - 0.0% - 145.8 145.8 24.9% 584.8 e. JPFR: Equipment - - 0.0% - - 0.0% 0.3 - - - - 0.0% 0.3

3. Consultinga. Project Management 4.0 1.0 15.3% 0.8 0.2 3.1% - 0.0% 17.9 2.0 19.9 76.9% 25.9

a. Project management/implementation consultant4.0 1.0 79.4% 0.0% - 0.0% - - - 0.0% 5.0 b. BREB: National supervision/civil consultant - - 0.0% 0.0% - 0.0% 17.9 2.0 19.9 100.0% 19.9 c. Power Division : Consultant - - 0.0% 0.8 0.2 80.0% - 0.0% - - - 0.0% 1.0

b. Capacity Development 2.0 - 11.2% 11.2 2.8 62.7% 1.5 8.2% 0.4 - 0.4 2.2% 17.9 a. DESCO Training - - 0.0% 0.0% 0.0% 0.3 - 0.3 100.0% 0.3 b. BREB Training 2.0 - 97.0% 0.0% 0.0% 0.1 - 0.1 3.0% 2.1 c. Power Division led capacity building and traiining 0.0% 11.2 2.8 80.0% 0.0% - - - 0.0% 14.0 d. JPFR Training 0.0% 0.0% 1.5 100.0% - - - 0.0% 1.5

4. Inland Transport - - 0.0% - 0.0% - 0.0% 12.3 - 12.3 100.0% 12.3 5. Environment and social mitigation - - 0.0% - 0.0% - 0.0% 0.3 - 0.3 100.0% 0.3 Subtotal (A) 560.3 1.0 60.1% 12.0 3.0 1.3% 1.7 0.2% 167.4 186.6 354.0 38.0% 932.1

B. Recurrent Costs1. Salaries - - 0.0% - 0.0% 0.1 2.0% 5.9 - 5.9 98.0% 6.1 2. Accommodation - - 0.0% - 0.0% 0.1 2.7% 2.2 - 2.2 97.3% 2.2 3. Equipment operation and maintenance - - 0.0% - 0.0% - 0.0% 20.1 - 20.1 100.0% 20.1 Subtotal (B) - - 0.0% - - 0.0% 0.2 0.6% 28.2 - 28.2 99.4% 28.4 Total Base Cost 560.3 1.0 58.3% 12.0 3.0 1.2% 1.9 0.2% 195.6 186.6 382.2 39.8% 960.5

C. Contingenciesc 38.7 - 53.3% 1.0 - 1.4% 0.1 0.1% 32.8 - 32.8 45.2% 72.6 D. Financial Charges During Implementationd - 0.0% - 0.0% - 0.0% 25.6 - 25.6 100.0% 25.6

a. PGCB - - 0.0% - - 0.0% - 0.0% 7.0 - 7.0 100.0% 7.0 b. DESCO - - 0.0% - - 0.0% - 0.0% 0.7 - 0.7 100.0% 0.7 c. BREB - - 0.0% - - 0.0% - 0.0% 17.2 - 17.2 100.0% 17.2 d. Power Division 0.0% - - 0.0% - 0.0% 0.7 - 0.7 100.0% 0.7

Total Project Cost (A+B+C+D) 599.0 1.0 56.6% 13.0 3.0 1.2% 2.0 0.2% 254.0 186.6 440.7 41.6% 1,058.7

% Total Project Coste 57% 2% 0% 42% 100%

Government CounterpartADB OCR (regular loan) ADB OCR (concessional loan)

Item

JFPR

15

c Physical contingencies are estimated at 10% for transmission component, 2% for distribution automation component, 3% for rural distribution component and 4% for capacity

building component. Price contingencies computed using ADB’s forecasts of international and domestic inflation includes a provision for potential exchange rate fluctuation under the assumption of a purchasing power parity exchange rate.

d Interest during construction (IDC) for ADB loan(s) has been computed at the 5-year forward London interbank offered rate plus a spread of 0.6%. Commitment charges for an ADB

loan are 0.15% per year to be charged on the undisbursed loan amount (for LIBOR-based loans only). e

Project costs includes taxes and duties of $ 186.6 million to be financed by the government as cash contribution and $ 4 million to be financed by ADB. In addition, minor taxes on equipment, capacity development and recurrent costs financed under the JFPR will also be charged to the JFPR. The amount of taxes and duties to be financed by ADB:

(i) are within the reasonable threshold identified during the CPS preparation process, (ii) represents a very nominal percentage of the loan, (iii) apply only to ADB-financed expenditures, and (iv) considered material and relevant to the success of the Project.

Sources: Development project proposals and 2016 Asian Development Bank staff estimates.

16

F. Detailed Cost Estimates by Components

Table 11: Detailed Cost Estimates by Components ($ million)

Note: Numbers may not sum precisely because of rounding; 2016 prices. Sources: Development project proposals and 2016 Asian Development Bank estimates.

Amount % of Cost Amount % of Cost Amount % of Cost Amount % of Cost A.

197.3 60.8 31% - 0% 136.5 69% - 0%678.3 78.8 12% 14.5 2% 584.8 86% 0.3 0%

25.9 - 0% 1.8 7% 23.1 89% 1.0 4%17.9 - 0% 0.3 2% 2.1 12% 15.5 87%12.3 1.5 12% 0.3 2% 10.6 86% - 0%0.3 0.3 100% - 0% - 0% - 0%

932.1 141.4 15% 16.9 2% 757.0 81% 16.7 2%B.

6.1 1.9 31% 0.6 10% 3.0 49% 0.6 10%2.2 0.5 21% 0.3 13% 1.4 64% 0.1 3%

20.1 1.8 9% 0.4 2% 17.5 87% 0.5 2%28.4 4.1 14% 1.3 4% 21.8 77% 1.2 4%

960.5 145.5 15% 18.2 2% 778.9 81% 17.9 2%C.

38.7 14.6 38% 0.4 1% 23.1 60% 0.7 2%33.9 9.6 28% 0.7 2% 23.1 68% 0.5 2%

Subtotal (C) 72.6 24.2 33% 1.0 1% 46.1 63% 1.2 2%D.

24.6 6.8 28% 0.7 3% 16.4 67% 0.7 3%

2. Commitment charges 1.0 0.2 21% 0.0 2% 0.8 78% - 0%Subtotal (D) 25.6 7.0 27% 0.7 3% 17.2 67% 0.7 3%

1,058.7 176.7 17% 19.9 2% 842.2 80% 19.9 2%

Financial Charges During

1. Interest during construction

Total Project Cost (A+B+C+D)

Subtotal (B)

Total Base Cost

Contingencies

1. Physical

2. Price

Subtotal (A)

Recurrent Costs

1. Salaries

2. Accommodation

3. Equipment operation and maintenance

3. Consulting

a. Project management

b. Capacity development

4. Inland transport

5. Environment and social mitigation

Component 4

Investment Costs

1. Civil Works and installation

2. Mechanical and equipment

Item Total Cost

Component 1 Component2 Component 3

17

G. Detailed Cost Estimates by Year

Table 12: Detailed Cost Estimates by Year ($ million)

Note: Numbers may not sum precisely because of rounding.

Sources: Development project proposals and 2016 Asian Development Bank estimates assessment.

2017 2018 2019 2020

A. Investment Costs

1. Civil works and installation 197.3 29.6 97.1 55.4 15.2

2. Mechanical and equipment 678.3 89.4 391.1 182.1 15.8

3. Consulting - - - - -

a. Project management 25.9 7.6 12.8 5.6 -

b. Capacity development 17.9 4.9 5.4 4.1 3.5

4. Inland transport 12.3 1.6 7.1 3.3 0.3

5. Environment and social mitigation 0.3 0.3 - - -

Subtotal (A) 932.1 133.4 513.4 250.5 34.8

B. Recurrent Costs

1. Salaries 6.1 1.5 1.9 1.9 0.6

2. Accommodation 2.2 0.6 0.7 0.7 0.1

3. Equipment operation and maintenance 20.1 6.3 6.6 6.6 0.6

Subtotal (B) 28.4 8.4 9.3 9.3 1.3

Total Base Cost 960.5 141.8 522.8 259.8 36.1

C. Contingencies 72.6 4.7 33.8 26.9 7.2

D. Financial Charges During Implementation 25.6 0.5 6.1 15.1 4.0

Total Project Cost (A+B+C+D) 1,058.7 147.0 562.7 301.8 47.3

% of Total project cost 100% 14% 53% 29% 4%

Item

Total

Cost

18

H. Contract and Disbursement S-Curve

Figure 1: S-Curve

I. Fund Flow Diagram

Figure 2: Fund Flow Diagram

ADB = Asian Development Bank, BREB = Bangladesh Rural Electrification Board, DESCO = Dhaka Electric Supply Company Limited, OCR = ordinary capital resources, PGCB = Power Grid Company of Bangladesh Limited, SOE = statement of expenditures.

0

100

200

300

400

500

600

700

2016 2017 2018 2019 2020

Contract Award Disbursements

Suppliers Bank

Commitment

Reimbursement including SOE Fund flow

Government of Bangladesh Ministry of Finance

Economic Relations Division

Asian Development Bank

PGCB DESCO BREB

Turnkey Contractor/ Supplier/ Consultant

Direct payment

Imprest Account

Power Division

Direct Payment

19

V. FINANCIAL MANAGEMENT

A. Financial Management Assessment

18. This financial management assessment (FMA) was conducted in 2015 and subsequently updated in 2016. The FMA was prepared in accordance with ADB’s Guidelines for the Financial Management and Analysis of Projects13 and the Financial Due Diligence: A Methodology Note.14 The FMA considered the capacity of PGCB, DESCO, BREB and Power Division including fund flow arrangements, staffing, accounting and financial reporting systems, financial information systems, and internal and external auditing arrangements. Based on the analysis, the assessment concludes that the existing organizational structures are generally well designed and appropriate for the respective entities and the project. The current accounting standards, policies, accounting and invoice procedures, asset management, budget, internal and external audits, and financial reports are effective for the agencies and appropriate for the project. The assessment for each executing agency is given in the paragraphs below.

19. PGCB was incorporated in 1996 in accordance with Companies Act 1994. It is responsible for power transmission in the country. PGCB has over 2,000 employees and listed on the Dhaka Stock Exchange and the Chittagong Stock Exchange. PGCB follows the accruals basis of accounting. It has an accounting system which is adequate for the recording of all relevant financial transactions of the projects being implemented. The Chart of Accounts of PGCB is adequate to properly record and report on project activities and disbursement categories. The accounts of PGCB are prepared in accordance with the requirements of Bangladesh Financial Reporting Standards and audited annually by a firm of Chartered Accountants. The Audit is carried out in accordance with the International Standards of Auditing, as adopted by the Institute of Chartered Accountants of Bangladesh. PGCB is also subject to annual statutory audits of the Commercial Audit Directorate of the Office of the CAG of Bangladesh, the Supreme Audit Institution, for its non-development operations. PGCB’s development projects are annually audited by the Foreign-Aided Projects Audit Directorate (FAPAD) of the Comptroller and Auditor General. 20. PGCB’s financial management exhibits some strengths: (i) PGCB has years of experience of implementing projects financed by ADB and other donors; (ii) it has adequately trained personnel to look after all aspects of a foreign-funded project; (iii) it has a number of qualified professional accountants heading various accounting and finance offices; (iv) personnel are conversant with all aspects of ADB procedures; and (v) a detailed budget preparation exercise is also carried out every year as well as a variance analysis and review. 21. PGCB does not have a fully computerized integrated financial and accounting system; PGCB does not insure its fixed assets (which are operational) against natural calamities, accidents, etc., which can be perceived as a risk of arranging for funds to replace such damaged assets. A key concern in the past was that the transmission tariff had not revised since 2004 until 2016, leading to fund constraints, resulting in non-payment of debt service dues to the government. PGCB’s inherent risk is assessed as substantial and the overall control risk is assessed as moderate.

22. DESCO is one of the two companies distributing electricity in Dhaka, the other being Dhaka Power Distribution Company Limited (DPDC). Both companies were formed as a result

13

ADB. 2005. Financial Management and Analysis of Projects. Manila. 14

ADB. 2009. Financial Due Diligence: A Methodology Note. Manila.

20

of the “unbundling” of the distribution wing of Bangladesh Power Development Board (BPDB). In 1991, a new organization, Dhaka Electricity Supply Authority, which later became DPDC, took over electricity distribution in Dhaka. Later in 1998 some areas of Dhaka were handed over to another new electricity distribution company DESCO, while Dhaka Electricity Supply Authority continued to serve the remaining areas. The Board of Directors of DESCO consists of 11 members and is headed by a non-executive Chairman, who is an official of the Power Division of the Ministry of Power, Energy and Mineral Resources.

23. DESCO has institutional experience in implementing foreign aided projects, including projects funded by ADB. DESCO has a Finance and Accounts Department headed by the Executive Director, who is assisted by 40 employees. The Finance and Accounts Department’s personnel have relevant qualifications and experience and have training in various areas of their work. The company prepares its accounts on accruals basis in accordance with Bangladesh Financial Reporting Standards, BAS, and the requirements of the Company’s Act 1994. The accounts are audited annually by a firm of chartered accountants. In addition to the yearly audited accounts, the company also informs its shareholders about its quarterly financial performance. This is done in accordance with the rules of the Bangladesh Securities and Exchange Commission, which makes it mandatory for all listed companies to make these quarterly disclosures. In addition to the statutory audit, the FAPAD, also carries out audits of the foreign aided projects and sends reports of its findings to the respective Project Director, who then, jointly with the General Manager (Audit), briefs the company’s management on issues to be addressed.

24. DESCO's financial management has certain strengths: (i) it has an efficient computerized accounting system, and can (ii) accurately and timely generate the reports. Budgets are prepared and actual expenditures are compared with the budgets and variances are analyzed. There are, however, certain weaknesses which need to be addressed urgently: (i) internal audit is understaffed, and as a result, audit of different offices and cost centers cannot be carried out annually; (ii) the company does not have a computerized fixed asset register; (iii) most employees are performing the same tasks year after year; and (iv) there is no job rotation. DESCO's overall risk is assessed as moderate.

25. The BREB was established by a Presidential Ordinance in 1977. It operates under the Ministry of Power, Energy and Mineral Resources. BREB operates under its Board, which consists of a full time Chairman and four full time members looking after the departments of Administration, Engineering, PBS, and Training and Finance. In addition to this, there are also six part time members who represent BPDB, Bangladesh Agriculture Development Corporation, Bangladesh Small and Cottage Industries Corporation, Bangladesh Rural Development Board, PGCB, and Institute of Chartered Accountants of Bangladesh

26. BREB has over 100 offices all over the country. The organization has been entrusted with the task of providing electricity to the country’s rural areas. This, it does through 77 rural electricity cooperatives known as palli bidyut samity (PBS), serving a total customer base of over 15 million. BREB is responsible for planning and installation of the electrification network in rural areas. Once constructed, the network is handed over to the respective PBS for operation, maintenance and retail services to customers. BREB's is dependent on the government for its financial requirements. It borrows from the government and on-lends this to service agreements with customers. BREB borrows at an interest rate of 2.0% and then lends it to the PBSs at an interest rate of 3.0%. BREB does not pay any taxes.

21

27. The organization has an Accounting Department and a Finance Department. Each department is headed by a Director. The two directors report to the Board Member of Finance. Under the two departments, there are six designations and the total number of personnel is 66. Although the organization has over 100 regional and zonal offices, the accounting and finance function is almost completely centralized. There are a few regional project offices which have an accounts department. BREB’s external audit is conducted by a firm of chartered accountants. Reports are submitted every year to the BREB management and stakeholders within the 134 day time limit set by the government, after the end of the financial year. The audit is carried out in line with Bangladesh Standards of Auditing (BSA). No major issues of concern were raised by the auditors during the past three years. In addition to this, all foreign aided projects are also audited every year by the FAPAD. None of the two auditors has mentioned any major areas of concern or raised any major audit issues.

28. BREB's financial management has certain strengths, important ones are (i) Chart of Accounts, (ii) Accounts Manual, and an (iii) Internal Audit Manual. They have software for stores as well as payroll management.

29. Some of the weaknesses are (i) its monthly accounts, even after 38 years of the organization, are still prepared manually; (ii) the fixed asset records are not computerized; (iii) internal audit is understaffed and there is no training policy for internal auditors; (iv) the standard of external audit could be improved; and (v) its overall inherent as well as control risk are substantial. 30. The Power Division of the Ministry of Power, Energy and Mineral Resources will be implementing consulting service contracts, and has adequate experience and capacity. Power Division complies with the accounting, auditing, budgeting and internal control systems in place by the GOB. Power Divisions overall risk is assessed as Moderate. 31. A limited integrity due diligence was conducted for the state owned enterprises, PGCB,DESCO and BREB and results were satisfactory. 32. PGCB, DESCO, Power Division and BREB have agreed to implement some steps to address the deficiencies.

Table 13: Risks and Mitigation Plan for Utilities

Agency Financial Management

Risks Mitigation Plan Timeline

PGCB, DESCO, BREB, and Power Division

Delay in release of counterpart funds by the government

Highest clearance received for PGCB; DESCO components including yearly allocation of funds in the Annual Development Plan Similar clearance is expected for BREB and Power Division components before ADB loan approval

Final clearance received for all investment components in November 2016 and expected for Power Division component by March 2017.

PGCB, DESCO, and BREB

Tariffs inadequate to cover costs

Transmission and distribution tariff

Regular periodic tariff filing by agencies to

22



regulations are effective from June 2016. Support for periodic tariff filing in line with new regulations

ensure tariffs cover costs including support from consultants under Output 4.


Lack of a fully computerized integrated financial and accounting system

IT specialists appointed for developing a fully computerized integrated package or an Enterprise Resource Planning system

Work on-going with World Bank support including an IT roadmap for the sector agencies. To be coordinated and reviewed periodically.

PGCB No insurance of fixed assets Fixed asset register incomplete

Quotations should be invited from the leading insurers in the country Fixed asset register to be completed with ongoing development partner assistance

Within one year (end 2017) Expected on or before end of 2018


Unresolved external audit observations Lack of adequate personnel in the internal audit department for DESCO and BREB and limited training for staff. All offices are not audited annually

A plan to be developed to address the major audit observations and assign the work to the departments concerned. BREB and DESCO to identify number of staff required to prepare job descriptions and apply for management approval Support to develop internal audit capacity in agencies under Output 4 in coordination with agencies like ICAB to be developed

Work on this should be completed before the external audit in 2018. Work to start in 2017. To be completed by end 2018.

DESCO Valuation of assets taken over from DESA (about 20% of DESCO’s fixed asset figure) is not completed.

Action point under the future roadmap for restructured agencies under Output 4

Timeline to recruit and complete exercise to be determined under Output 4 support (before 2019).

BREB BREB has not completed a major ADB project for the last 5 years Accounting and finance staff are not familiar with ADB’s policies and

Briefing on ADB’s policies and procedures needed for BREB PMU.

Training to be carried out in stages to cover all accounting and project personnel. To be implemented fully by end 2017.

23



procedures, especially with regard to ADB’s reporting requirements.

BREB At present, accounting and fixed asset recording are done manually using spreadsheets. The size and the nature of the organization require adoption of IT based tools.

BREB has started computerization of stores and payroll. World Bank-funded consulting support provided for identification of ERP system. Periodic review and coordination on status of ERP system to identify if additional support needed from ADB.

Identification to be completed in 2017. Six monthly follow-ups.

BREB Debt servicing is a constraint for less profitable PBS

BREB has implemented a cross-subsidy system in 2015 based on differential bulk supply cost. Options paper on differing loan terms for PBS to be explored including passing on equity from Government of Bangladesh as equity or grant.

Options paper to be prepared in 2017 including on options to manage the difference in performance between PBS. Covenant to review achievement of debt service paid versus claimed and to improve this gradually.

BREB Decentralization of BREB into divisions and lack of capacity

Capacity of finance and accounts team to be studied and strengthened to support decentralization move at BREB

Capacity building measures at decentralized division offices to be carried out by 2019.

ADB = Asian Development Bank, BREB = Bangladesh Rural Electrification Board, DESA = Dhaka Electricity Supply Authority, DESCO = Dhaka Electric Supply Company, ICAB = Institute of Chartered Accountants of Bangladesh, PBS = palli bidyut samity (rural electricity cooperative), PGCB = Power Grid Company of Bangladesh Limited, PMU = project management unit

33. Power Division, Ministry of Power Energy and Mineral Resources will be executing agency for the ADF loan to fund consulting support. Power Cell under Power Division will be responsible for making payments to consultants and has prior experience including trained finance and administration staff to administer ADB funded consultancy assignments including under Tranche 1 of the ongoing Power System Expansion and Efficiency Improvement Investment Program. It has similarly executed several other projects with other bi-lateral and multi-lateral agencies.

24

B. Disbursement

1. Disbursement Arrangements for ADB and ADB-administered Funds

34. The loan and grant proceeds will be disbursed in accordance with ADB’s Loan Disbursement Handbook (2015, as amended from time to time), and detailed arrangements agreed upon between the government and ADB. Online training for project staff on disbursement policies and procedures is available.15 Project staffs are encouraged to avail of this training to help ensure efficient disbursement and fiduciary control. Pursuant to ADB's Safeguard Policy Statement (2009), ADB funds may not be applied to the activities described on the ADB Prohibited Investment Activities List set forth at Appendix 5 of the Safeguard Policy Statement.

35. Imprest fund procedure. Separate imprest accounts are proposed to be established and maintained by Power Division and BREB for each funding source. The currency of the imprest account(s) is the US dollar. The imprest accounts are to be used exclusively for ADB’s and ADB-administered funds share of eligible expenditures. The agency who established the imprest account in its name is accountable and responsible for proper use of advances to the imprest account.

36. The total outstanding advance to the imprest account to Power Division and BREB should not exceed the estimate of ADB’s share of expenditures to be paid through the imprest account for the forthcoming 6 months. The executing agencies may request for initial and additional advances to the imprest accounts based on an Estimate of Expenditure Sheet16 setting out the estimated expenditures to be financed through the accounts for the forthcoming 6 months. Supporting documents should be submitted to ADB or retained by the executing agencies in this project in accordance with the Loan Disbursement Handbook when liquidating or replenishing the imprest accounts.

37. ADB's direct payment, commitment, reimbursement including statement of expenditures (SOE) procedures will be followed.

38. Statement of expenditure procedure.17 The SOE procedure may be used for reimbursement of eligible expenditures or liquidation of advances to the imprest accounts. Regarding SOE procedure, it will be used for reimbursement for eligible expenditures not exceeding $100,000 per individual payment. Supporting documents and records for the expenditures claimed under the SOE should be maintained and made readily available for review by ADB's disbursement and review missions, upon ADB's request for submission of supporting documents on a sampling basis, and for independent audit.

39. Before the submission of the first withdrawal application, the Borrower should submit to ADB sufficient evidence of the authority of the person(s) who will sign the withdrawal applications on behalf of the Borrower, together with the authenticated specimen signatures of each authorized person. The minimum value per withdrawal application is $100,000, unless otherwise approved by ADB. The Borrower will consolidate claims to meet this limit for reimbursement claims.

15

Disbursement eLearning. http://wpqr4.adb.org/disbursement_elearning 16

ADB. 2015. Loan Disbursement Handbook. Manila. 10B. 17

SOE forms are available in Appendix 9B and 9C of ADB’s Loan Disbursement Handbook (2015, as amended from time to time).

http://wpqr4.adb.org/disbursement_elearning

25

40. Each executing agency will be responsible for (i) preparing disbursement projections for each year, (ii) requesting budgetary allocations for counterpart funds, (iii) collecting supporting documents, and (iv) preparing and sending withdrawal applications. Withdrawal applications and supporting documents will demonstrate, among other things that the goods, and/or services for all the packages were produced in or from ADB members, and are eligible for ADB financing.

41. Government counterpart funds will be used to finance the remaining miscellaneous works, services, taxes, and duties. C. Accounting

42. Each executing agency will maintain, or cause to be maintained, separate books and records by funding source for all expenditures incurred on the project following International Financial Reporting Standards (accrual-based accounting following the equivalent national accounting standards). The executing agencies will prepare project financial statements in accordance with the government's accounting laws and regulations which are consistent with international accounting principles and practices. D. Auditing and Public Disclosure

43. Each executing agency will cause the detailed consolidated project financial statements to be audited in accordance with International Standards on Auditing as adopted by The Institute of Chartered Accountants of Bangladesh, by an independent auditor acceptable to ADB. The audited project financial statements together with the auditor’s opinion will be presented in the English language to ADB within 6 months from the end of the fiscal year by the executing agencies. 44. Each executing agency will also cause the entity-level financial statements to be audited in accordance with International Standards on Auditing and with the government's audit regulations, by an independent auditor acceptable to ADB. The audited entity-level financial statements, together with the auditors’ report and management letter, will be submitted in the English language to ADB within 1 month after their approval by the competent authority.

45. The audit report for the project financial statements will include a management letter and auditor’s opinions, which cover (i) whether the project financial statements present an accurate and fair view or are presented fairly, in all material respects, in accordance with the applicable financial reporting standards; (ii) whether the proceeds of the loan were used only for the purpose(s) of the project; and (iii) whether the borrower or executing agency was in compliance with the financial covenants contained in the legal agreements (where applicable). 46. Compliance with financial reporting and auditing requirements will be monitored by review missions and during normal program supervision, and followed up regularly with all concerned, including the external auditor.

47. The government and the executing agencies in this project have been made aware of ADB’s approach to delayed submission, and the requirements for satisfactory and acceptable quality of the audited project financial statements.18 ADB reserves the right to require a change

18 ADB’s approach and procedures regarding delayed submission of audited project financial statements:

(i) When audited project financial statements are not received by the due date, ADB will write to the executing agency advising that (a) the audit documents are overdue; and (b) if they are not received within the next 6

26

in the auditor (in a manner consistent with the constitution of the borrower), or for additional support to be provided to the auditor, if the audits required are not conducted in a manner satisfactory to ADB, or if the audits are substantially delayed. ADB reserves the right to verify the project's financial accounts to confirm that the share of ADB’s financing is used in accordance with ADB’s policies and procedures.

48. Public disclosure of the audited project financial statements, including the auditor’s opinion on the project financial statements, will be guided by ADB’s Public Communications Policy 2011.19 After the review, ADB will disclose the audited project financial statements and the opinion of the auditors on the project financial statements no later than 14 days of ADB’s confirmation of their acceptability by posting them on ADB’s website. The management letter, additional auditor’s opinions, and audited entity financial statements will not be disclosed.20

VI. PROCUREMENT AND CONSULTING SERVICES

49. This section reflects the project's specific procurement and consulting services arrangements. A. Advance Contracting and Retroactive Financing

50. All advance contracting and retroactive financing will be undertaken in conformity with ADB Procurement Guidelines (2015, as amended from time to time) and ADB’s Guidelines on the Use of Consultants (2013, as amended from time to time). The issuance of invitations to bid under advance contracting and retroactive financing will be subject to ADB approval. The borrower, executing agency and implementing agency have been advised that approval of advance contracting and retroactive financing does not commit ADB to finance the project. 51. Advance contracting. Advance contracts can be entered into for goods, works and consulting services through (i) tendering, and bid evaluation for civil works packages; (ii) preparation of tender documents to procure materials and equipment; (iii) evaluation of bids; and (iv) recruitment of consultants. Master bidding documents for BREB have been cleared and the first set of tenders for SPC poles will start in September 2016. 52. Retroactive financing. Retroactive financing for up to 20% of the loan amount incurred before loan effectiveness, but not more than 12 months before the signing of the loan agreement is sought from management.

B. Procurement of Goods, Works, and Consulting Services

53. All procurement of goods and works will be undertaken in accordance with ADB’s

months, requests for new contract awards and disbursement such as new replenishment of imprest accounts, processing of new reimbursement, and issuance of new commitment letters will not be processed.

(ii) When audited project financial statements are not received within 6 months after the due date, ADB will withhold processing of requests for new contract awards and disbursement such as new replenishment of imprest accounts, processing of new reimbursement, and issuance of new commitment letters. ADB will (a) inform the executing agency of ADB’s actions; and (b) advise that the loan may be suspended if the audit documents are not received within the next 6 months.

(iii) When audited project financial statements are not received within 12 months after the due date, ADB may suspend the loan.

19 Public Communications Policy: http://www.adb.org/documents/pcp-2011?ref=site/disclosure/publications

20 This type of information would generally fall under public communications policy exceptions to disclosure. ADB.

2011. Public Communications Policy. Paragraph 97(iv) and/or 97(v).

http://www.adb.org/documents/pcp-2011?ref=site/disclosure/publications

27

Procurement Guidelines (2015, as amended from time to time). 54. International competitive bidding procedures will be used for civil works contracts estimated to cost $15 million or more, and supply contracts valued at $2 million or higher. Shopping will be used for contracts for procurement of works and equipment worth less than $100,000. 55. Before the start of any procurement, ADB and the government will review the public procurement laws of the central and state governments to ensure consistency with ADB’s Procurement Guidelines (2015, as amended from time to time). 56. Procurement plan for entire project but including comprehensive information on the type and method of procurement, bidding procedures and type of bidding documents to be used for first 18 months of implementation, and national competitive bidding guidelines are in Section C 57. All consultants and non-government organizations (NGOs) will be recruited according to ADB’s Guidelines on the Use of Consultants (2013, as amended from time to time).21 The terms of reference (TOR) for all consulting services are detailed in Section D.

58. Contracts for consulting support to BREB and DESCO are planned under the project. Consulting firms will be engaged using the quality- and cost-based selection (QCBS) method with a standard quality-cost ratio of 80:20. For grant administered by ADB, quality-based selection (QBS) would be followed.

21

Checklists for actions required to contract consultants by method available in e-Handbook on Project Implementation at: http://www.adb.org/documents/handbooks/project-implementation/

http://www.adb.org/documents/handbooks/project-implementation/

28

C. Procurement Plan

Basic Data

Project Name: Bangladesh Power System Enhancement and Efficiency Improvement Project Project Number: 49423-005 Approval Number:

Country: Bangladesh Executing Agencies:

Bangladesh Rural Electrification Board (BREB), Dhaka Electric Supply Company Ltd. (DESCO), Power Div-Min of Power, Energy & Mineral Resources, Power Grid Company of Bangladesh, Ltd. (PGCB)

Project Procurement Classification: Category B Implementing Agency:

N/A

Project Procurement Risk: Moderate Project Financing Amount: US$

1,058,700,000 ADB Financing: US$ 616,000,000 Cofinancing (ADB Administered): US$

2,000,000 Non-ADB Financing: US$ 440,700,000

Project Closing Date: 31 December 2020

Date of First Procurement Plan: 31 July 2016

Date of this Procurement Plan: 23 October 2016

A. Methods, Thresholds, Review and 18-month Project Procurement Plan

1. Procurement and Consulting Methods and Thresholds

59. Except as ADB may otherwise agree, the following process thresholds shall apply to procurement of goods and works.

Procurement of Goods and Works Method Threshold Comments International Competitive Bidding for Works $15,000,000 International Competitive Bidding for Goods $2,000,000 Shopping for Goods Below $ 100,000

National Competitive Bidding for Works Beneath that stated for ICB, Works

National Competitive Bidding for Goods Beneath that stated for ICB, Goods

Consulting Services

Method Comments

Quality- and Cost-Based Selection QCBS will be used for consulting services from firms (80:20)

Individual Consultants Selection Biodata

29

2. Goods and Works Contracts Estimated to Cost $1 Million or More

60. The following table lists goods and works contracts for which the procurement activity is either ongoing or expected to commence within the next 18 months.

Part A: Transmission Network Improvement (PGCB)

Package Number

General Description Estimated

Value ($ million)

Procurement Method

Review (Prior/ Post)

Bidding Procedure

Advertisement Date

(quarter/year) Comments

1-1 Transmission Tower Package 400kV D/C Aminbazar - Mongla

49.0 ICB Prior 1S2E Q1/2017 Prequalification of Bidders: N Domestic Preference Applicable: Y

Bidding Document: Plant Financed by ADB and Government of Bangladesh

1-2 River crossing Tower Package Padma Bridge

34.1 ICB Prior 1S2E Q1/2017

1-3 Substation package 400kV/230kV substation at Aminbazar


Part B: North Dhaka Distribution network operation Improvement (DESCO)

Package Number


Value ($ million)

Procurement Method


Bidding Procedure

Advertisement Date


2 Design, Supply and Installation of Supervisory Control and Data Acquisition System

11.0

ICB Prior 1S2E Q3 / 2017 Prequalification of Bidders: N Domestic Preference Applicable: Y Bidding Document: Plant Financed by ADB

30

Part C: Rural Area Distribution Improvement (BREB)

Package Number


Value ($ million)

Procurement Method


Bidding Procedure

Advertisement Date


3-1 Line Hardware and Insulator for Dhaka, Mymensingh, Chittagong and Sylhet divisions

(3-1-1) Lot1:3.6 (3-1-2) Lot2:3.6 (3-1-3) Lot3:2.2

ICB Prior 1S1E Q4/2016 Prequalification of Bidders: N Domestic Preference Applicable: Y Advanced Contracting: Y Bidding Document: Goods Financed by ADB

3-2 Conductor for Dhaka, Mymensingh, Chittagong and Sylhet divisions

(3-2-1) Lot1:12.8 (3-2-2) Lot2:9.4 (3-2-3) Lot3:2.6

ICB Prior 1S1E Q4/2016

3-3

Conductor Accessories & Guy Accessories, Connector and Guy & Grounding Wire for Dhaka, Mymensingh, Chittagong and Sylhet divisions

(3-3-1) Lot1:1.5 (3-3-2) Lot2:1.7 (3-3-3) Lot3:2.6


3-4 SPC Poles for Dhaka, Mymensingh, Chittagong and Sylhet divisions

(3-4-1) Lot1:16.6 (3-4-2) Lot2:16.6 (3-4-3) Lot3:16.6


3-5 Cross-arm and Anchor-Log for Dhaka, Mymensingh, Chittagong and Sylhet divisions

(3-5-1) Lot1:2.9 (3-5-2) Lot2:1.5


3-6 Distribution Transformer and Sectionalizing Devices (Fuse Cutout & Surge Arrester, Fuse link, Line ACR, Line Voltage regulator, Capacitor) for Dhaka, Mymensingh, Chittagong and Sylhet divisions

(3-6-1) Lot1:10.0 (3-6-2) Lot2:1.5


31

Package Number


Value ($ million)

Procurement Method


Bidding Procedure

Advertisement Date


3-7 Meter (1- Phase Electronic, 3-Phase with socket, meter seal) and 11kV CT&PT for Dhaka, Mymensingh, Chittagong and Sylhet divisions

(3-7-1) Lot1:4.4 (3-7-2) Lot2:0.3


3-8 Line Hardware and Insulator for Rajshahi, Rangpur, Khulna and Barisal Divisions

(3-8-1) Lot1:3.2 (3-8-2) Lot2:3.2 (3-8-3) Lot3:2.0


3-9 Conductor for Rajshahi, Rangpur, Khulna and Barisal Divisions

(3-9-1) Lot1:10.2 (3-9-2) Lot2:8.2 (3-9-3) Lot3:2.0


3-10 Conductor Accessories & Guy Accessories, Connector and Guy & Grounding Wire for Rajshahi, Rangpur, Khulna and Barisal Divisions

(3-10-1) Lot1:1.4 (3-10-2) Lot2:1.5 (3-10-3) Lot3: 2.0


3-11 SPC Poles for Rajshahi, Rangpur, Khulna and Barisal Divisions

(3-11-1) Lot1:15.3 (3-11-2) Lot2:15.3 (3-11-3) Lot3:15.3


3-12 Cross-arm and Anchor-Log for Rajshahi, Rangpur, Khulna and Barisal Divisions

(3-12-1) Lot1:2.8 (3-12-2) Lot2:1.2


3-13 Distribution Transformer and Sectionalizing Devices (Fuse Cutout & Surge Arrester, Fuse link, Line ACR, Line Voltage

(3-13-1) Lot1:8.6 (3-13-2) Lot2:1.2


32

Package Number


Value ($ million)

Procurement Method


Bidding Procedure

Advertisement Date


regulator, Capacitor) for Rajshahi, Rangpur, Khulna and Barisal Divisions

3-14 Meter (1- Phase Electronic, 3-Phase with socket, meter seal) and 11kV CT for Rajshahi, Rangpur, Khulna and Barisal Divisions

(3-14-1) Lot1:3.4 (3-14-2) Lot2:0.3


3-15 Line Hardware and Insulator for Dhaka, Mymensingh, Chittagong and Sylhet divisions

(3-15-1) Lot1:3.6 (3-15-2) Lot2:3.6 (3-15-3) Lot3:2.2


3-16 Conductor for Dhaka, Mymensingh, Chittagong and Sylhet divisions

(3-16-1) Lot1:14.1 (3-16-2) Lot2:10.2


3-17 Connector Guy & Grounding Wire for Dhaka, Mymensingh, Chittagong and Sylhet divisions

(3-17-1) Lot1:1.7 (3-17-2) Lot2:2.6


3-18 Conductor Accessories & Guy Accessories, Connector and Guy & Grounding Wire for Dhaka, Mymensingh, Chittagong and Sylhet divisions

(3-18-1) Lot1:1.5


33

Package Number


Value ($ million)

Procurement Method


Bidding Procedure

Advertisement Date


3-19 SPC Poles for Dhaka, Mymensingh, Chittagong and Sylhet divisions

(3-19-1) Lot1:16.6 (3-19-2) Lot2:16.6 (3-19-3) Lot3:16.6

(3-19-4) Lot4:11.1


3-20 Cross-arm and Anchor-Log for Dhaka, Mymensingh, Chittagong and Sylhet divisions

(3-20-1) Lot1:2.9 (3-20-2) Lot2:1.5


3-21 Distribution Transformer and Sectionalizing Devices (Fuse Cutout & Surge Arrester, Fuse link, Line ACR, Line Voltage regulator, Capacitor) for Dhaka, Mymensingh, Chittagong and Sylhet divisions

(3-21-1) Lot1:10.0 (3-21-2) Lot2:1.5


3-22 Meter (1- Phase Electronic, 3-Phase with socket, meter seal) and 11kV CT&PT for Dhaka, Mymensingh, Chittagong and Sylhet divisions

(3-22-1) Lot1:5.3 (3-22-2) Lot2:0.3


3-23 Line Tools, Operational Equipment for Dhaka, Mymensingh, Chittagong and Sylhet divisions


3-24 Line Hardware and Insulator for Rajshahi, Rangpur, Khulna and Barisal Divisions

(3-24-1) Lot1:3.2 (3-24-2) Lot2:3.2 (3-24-3) Lot3:2.0


34

Package Number


Value ($ million)

Procurement Method


Bidding Procedure

Advertisement Date


3-25 Conductor for Rajshahi, Rangpur, Khulna and Barisal Divisions

(3-25-1) Lot1:10.2 (3-25-2) Lot2:1.5 (3-25-3) Lot3:2.0


3-26 Conductor Accessories & Guy Accessories, Connector and Guy & Grounding Wire for Rajshahi, Rangpur, Khulna and Barisal Divisions

(3-26-1) Lot1:1.4 (3-26-2) Lot2:1.5 (3-26-3) Lot3:2.0


3-27 SPC Poles for Rajshahi, Rangpur, Khulna and Barisal Divisions

(3-27-1) Lot1:15.3 (3-27-2) Lot2:15.3 (3-27-3) Lot3:15.3 (3-27-4) Lot4:10.2


3-28 Cross-arm and Anchor-Log for Rajshahi, Rangpur, Khulna and Barisal Divisions

(3-28-1) Lot1:2.8 (3-28-2) Lot2:1.2


3-29 Distribution Transformer and Sectionalizing Devices (Fuse Cutout & Surge Arrester, Fuse link, Line ACR, Line Voltage regulator, Capacitor) for Rajshahi, Rangpur, Khulna and Barisal Divisions

(3-29-1) Lot1:8.0 (3-29-2) Lot2:1.8


3-30 Meter (1- Phase Electronic, 3-Phase with socket, meter seal) and 11kV CT&PT for Rajshahi, Rangpur, Khulna and Barisal Divisions

(3-30-1) Lot1:3.4 (3-30-2) Lot2:0.3


35

Package Number


Value ($ million)

Procurement Method


Bidding Procedure

Advertisement Date


3-31 Street Light, Accessories & Line Tools, Operational Equipment for Rajshahi, Rangpur, Khulna and Barisal Divisions


3-32 Construction of Head Quarter Office, Zonal Office Complex and Residential Building in Dhaka, Mymensingh, Chittagong and Sylhet divisions

(3-32-1) Lot1: 1.7 (3-32-2) Lot2: 1.7 (3-32-3) Lot3: 2.2 (3-32-4) Lot4: 1.1 (3-32-5) Lot5: 1.1 (3-32-6) Lot6: 1.1 (3-32-7) Lot7: 1.1 (3-32-8) Lot8: 1.1

NCB Prior 1S1E Q2/2017 Prequalification of Bidders: N Domestic Preference Applicable: N Advanced Contracting: Y Bidding Document: Works Financed by ADB

3-33 Construction of Head Quarter Office, Zonal Office Complex and Residential Building in Rajshahi, Rangpur, Khulna and Barisal Divisions

(3-33-1) Lot1: 5.6 (3-33-2) Lot2: 2.8 (3-33-3) Lot3: 4.3 (3-33-4) Lot4: 1.8 (3-33-5) Lot5: 2.0 (3-33-6) Lot6: 4.0

NCB Prior 1S1E Q2/2017

3. Consulting Services Contracts Estimated to Cost $100,000 or More

61. The following table lists consulting services contracts for which the recruitment activity is either ongoing or expected to commence within the next 18 months.

Package Number


Value Recruitment

Method


Advertisement Date

(quarter/year)

Type of Proposal

Comments

1 Project Management, Supervision and Implementation Support for DESCO

1,800,000 QCBS Prior Q4/2016 FTP Assignment: International Quality-Cost Ration: 80:20

36

Package Number


Value Recruitment

Method


Advertisement Date

(quarter/year)

Type of Proposal

Comments

Advance Contracting: Y

2 Consulting Services for Up-gradation, Rehabilitation and Intensification of Distribution System (Dhaka, Mymensingh, Chittagong and Sylhet, Rajshahi , Rangpur, Khulna, Barishal Divisions

3,000,000 QCBS Prior Q1/2017 FTP Assignment: International Quality-Cost Ration: 80:20 Advance Contracting: Y

3 Feasibility studies and new business models for wind and solar parks (Power Division)


4 Transmission planning, project support for PGCB, and renewable integration studies/protocol development (Power Division)


5 GIS-based management system installed in ten PBSs (Power Division)


6 Feasibility study on small 500,000 QCBS Prior Q1/2017 STP Assignment:

37

Package Number


Value Recruitment

Method


Advertisement Date

(quarter/year)

Type of Proposal

Comments

scale LNG for industries/electricity production (Power Division)

International Quality-Cost Ration: 80:20 Advance Contracting: Y

7 Implementation of tariff methodology, energy auditing and efficiency improvement procedures for power plants (Power Division)


8 Analysis of transmission and distribution losses and establishing loss targets (Power Division)


9 Energy efficiency of buildings: establishment of a building energy efficiency rating system (Power Division)

500,000 QCBS Prior Q2/2017 STP Assignment: International Quality-Cost Ration: 80:20 Advance Contracting: Y

10 Promoting good governance in power sector to provide better service delivery (Power Division)

250,000 QCBS Prior Q2/2017 STP Assignment: International Quality-Cost Ration: 80:20

38

Package Number


Value Recruitment

Method


Advertisement Date

(quarter/year)

Type of Proposal

Comments

Advance Contracting: Y

11 Training for BREB 2,200,000 QCBS Prior Q2/2017 FTP

4. Goods and Works Contracts Estimated to Cost Less than $1 Million and Consulting Services Contracts Less than $100,000 (Smaller Value Contracts)

62. The following table lists smaller-value goods, works and consulting services contracts for which the activity is either ongoing or expected to commence within the next 18 months.

Goods and Works

Package Number

General Description

Estimated Value ($)

Number of Contracts

Procurement Method

Review (Prior/

Post/Post(Samp

le))

Bidding Procedure

Advertisement Date


1

Jeep (BREB) 240,000 2 ICB Prior 1S1E Q1 / 2017 Two Jeeps per contract

2 Pickup (Double Cab)

(BREB)

400,000 2 ICB Post 1S1E Q1 / 2017 Five Pickups per contract

3

Motor Cycle (BREB)

60,000 2 Shopping Post 1S1E Q1 / 2017 Ten Motor Cycles per contract

Consulting Services

Package Number

General Description

Estimated Value

Number of Contracts

Recruitment Method


Advertisement Date

(quarter/year)

Type of Proposal

Comments

None

B. Indicative List of Packages Required Under the Project

63. The following table provides an indicative list of goods, works and consulting services contracts over the life of the project,

39

other than those mentioned in previous sections (i.e., those expected beyond the current period).

Package Number

General Description

Estimated Value

(cumulative)

Estimated Number of Contracts

Procurement Method

Review (Prior/

Post/Post(Sample))

Bidding Procedure

Comments

None

Package Number

General Description

Estimated Value

(cumulative)


Recruitment Method

Review (Prior/Post)

Type of Proposal

Comments

None

C. List of Awarded and On-going, and Completed Contracts 64. The following tables list the awarded and on-going contracts, and completed contracts.

1. Awarded and Ongoing Contracts

Goods and Works

Package Number

General Description

Estimated Value

Awarded Contract

Value

Procurement Method

Advertisement Date (quarter/

year)

Date of ADB Approval of

Contract Award Comments

None

Consulting Services

Package Number

General Description

Estimated Value

Awarded Contract

Value

Recruitment Method

Advertisement Date

(quarter/year)


Contract Award Comments

None

2. Completed Contracts

Goods and Works

Package Number

General Description

Estimated Value

Contract Value

Procurement Method

Advertisement Date (quarter/

year)


Contract Award

Date of Completion

Comments

None

Consulting Services

40

Package Number

General Description

Estimated Value

Contract Value

Recruitment Method

Advertisement Date

(quarter/ year)


Contract Award

Date of Completion

Comments

None

D. Non- ADB Financing

65. The following table lists goods, works and consulting services contracts over the life of the project, financed by Non-ADB sources

1. Goods and Works Goods and Works

Package Number

General Description

Estimated Value ($)


Procurement Method

Comments

1

Productive Energy Usage

75,000 2 Shopping

Productive energy usage kits

To be procured by Implementation consultant under review from BREB

2

Safety Equipment 25,000 1 Shopping

Safety testing kits


3

Incubation center equipment

10,000 1 Shopping


4 GIS devices 90,000 1 Shopping

For equipping 2 PBS


5 Up-gradation and Rehabilitation of Distribution lines (Dhaka, Mymensingh, Chittagong and Sylhet Divisions) (BREB)

40,000,000 10 NCB

41

6 Construction of new distribution lines for the Intensification of Existing Distribution System (Dhaka, Mymensingh, Chittagong and Sylhet Divisions) (BREB)

11,000,000 10 NCB

7 Up-gradation and Rehabilitation of Distribution lines (Rajshahi, Rangpur, Khulna and Barisal Divisions) (BREB)

35,000,000 10 NCB

8 Construction of new distribution lines for the Intensification of Existing Distribution System (Rajshahi, Rangpur, Khulna and Barisal Divisions) (BREB)

8,000,000 10 NCB

2. Consulting Services Contracts Estimated to Cost $100,000 or More

Package Number


Value Recruitment

Method


Advertisement Date

(quarter/year)

Type of Proposal

Comments

1 Translating Improvements in Electricity Supply to Better Livelihood and Improved Working Environment in Rural Bangladesh (BREB JFPR)


42

A. Regulation and Reference Documents 66. The procedures to be followed for national competitive bidding shall be those set forth for the National Open Tendering Method in The Public Procurement Rules, 2008 (as updated and pursuant to The Public Procurement Act, 2006 issued by the Government of Bangladesh) with the clarifications and modifications described in the following paragraphs required for compliance with the provisions of the Procurement Guidelines.

B. Procurement Procedures

1. Eligibility

67. The eligibility of bidders shall be as defined under section I of the Procurement Guidelines; accordingly, no bidder or potential bidder should be declared ineligible for reasons other than those provided in section I of the Guidelines, as amended from time to time.

2. Advertising 68. The posting of NCB specific notices for contracts valued at less than $1 million on ADB’s website is not required but is highly recommended.

3. Location of Bid Submission

69. Submission of bids to ‘primary’ and ‘secondary’ locations, or ‘multiple droppings’ of bids, shall not be required or allowed. Advertisements and bidding documents shall specify only one location for delivery of bids.

4. Bid Price as Percentage of Estimate 70. Bids shall not be invited on the basis of percentage above or below the estimated cost, and contract award shall be based on the lowest evaluated bid price of responsive bid from eligible and qualified bidder.

5. Lottery 71. A lottery system shall not be used to determine a successful bidder, including for the purpose of resolving deadlocks.

6. Rejection of All Bids and Rebidding

72. Bids shall not be rejected and new bids solicited without ADB’s prior concurrence.

C. Bidding Documents

7. Anti-Corruption 73. Definitions of corrupt, fraudulent, collusive and coercive practices shall reflect the latest ADB Board-approved Anti-Corruption Policy definitions of these terms and related additional provisions (such as conflict of interest, etc.).

8. Qualification Requirements

43

74. Qualification criteria and specific requirements must be explicitly stated in the bidding documents and applied consistently during bid evaluation.

9. Rejection of Bids 75. A bid shall not be rejected on the grounds that its bid price is not within a percentage range above or below the contract estimate.

10. ADB Policy Clauses

76. A provision shall be included in all NCB works and goods contracts financed by ADB requiring suppliers and contractors to permit ADB to inspect their accounts and records and other documents relating to the bid submission and the performance of the contract, and to have them audited by auditors appointed by ADB.

77. A provision shall be included in all bidding documents for NCB works and goods contracts financed by ADB stating that the Borrower shall reject a proposal for award if it determines that the bidder recommended for award has, directly or through an agent, engaged in corrupt, fraudulent, collusive, coercive or obstructive practices in competing for the contract in question.

78. A provision shall be included in all bidding documents for NCB works and goods contracts financed by ADB stating that ADB will declare a firm or individual ineligible, either indefinitely or for a stated period, to be awarded a contract financed by ADB, if it at any time determines that the firm or individual has, directly or through an agent, engaged in corrupt, fraudulent, collusive, coercive or obstructive practices or any integrity violation in competing for, or in executing, ADB-financed contract.

D. Consultant's Terms of Reference

79. The consultants’ terms of reference are in Annex 1.

44

VII. SAFEGUARDS

A. Social Safeguards 80. he project will not involve any land acquisitions or physical displacement of the population. However, temporary economic displacements are anticipated. The resettlement impacts of the project are exclusively confined to the transmission system development component (Aminbazar-Mawoa-Mongla 400kV transmission line) which will include temporary loss of crops cultivated in an area of about 1,389 acres of private land, a permanent loss of an estimated 4,661 standing and commercial trees with an average of 27 trees per acre, and permanent loss of 0.43 acres of land by the erection of transmission towers and stringing of transmission lines. As a result, a maximum of 2,180 households might be temporarily affected, but the overall impact of the losses on households’ economy and living standards will be marginal.

81. The project will ensure compensation at replacement cost to the affected persons (APs) who lose their standing trees and crops, irrespective of the title they hold to their land. The APs who would permanently lose their land due to transmission tower footings, will be provided with additional compensation. The vulnerable APs will also be provided with additional cash assistance. Furthermore, the project will allow the APs to use the land which was cleared for the installation of the towers for the same purpose for which it has been used earlier, after the completion of the construction work, except for planting of trees which are of a certain height. APs will also be given advance notice to harvest the crops and trees prior to the commencement of the construction work. Moreover, construction work will be scheduled to commence during non-farming seasons as much as possible, to avoid/minimize the impacts on farmers’ livelihoods and incomes. The project implementation agency (PIA) will also negotiate with contractors to offer employment to local communities, wherever it is required, particularly to the men and women temporarily affected by the project and to ensure that those employees are paid equal wages irrespective of their gender. All the compensation will be paid prior to the commencement of civil works in an appropriate manner according to the Bangladesh laws and regulations.

82. A resettlement plan has been prepared by the PIA which includes provisions for payment of compensation with an entitlement matrix and a resettlement budget. No direct impact is foreseen on indigenous peoples and thus no indigenous peoples development plan has been prepared. The project has been classified as category B for involuntary resettlement impacts and category C for indigenous peoples. Implementation of the resettlement plan and its activities is the sole responsibility of the executing agency. Implementation of resettlement plan activities shall be closely monitored by the PIA and performance shall be reported back to the ADB on a six-monthly basis.

B. Environmental Safeguards 83. None of the project components will have significant adverse environmental impacts. There are no protected or ecologically sensitive areas in the project impact areas. The Aminbazar-Mawoa-Mongla 400kV transmission line will mostly traverse through agricultural fields avoiding settlements and ecologically sensitive areas. However, there will be a slight change in the vegetation pattern in some locations within the transmission line right-of-way, with restrictions imposed on planting of tall trees. The construction of platforms for towers across the Padma River will have temporary impacts on the aquatic life and water quality, but such adverse impacts can be mitigated through the implementation of the Environmental Management Plan

45

(EMP) included in the initial environmental examination (IEE). The subproject for distribution system upgrade, rehabilitation, extension and rural electrification in BREB/PBS service areas benefits the semi-urban and rural communities and has minimal environmental impacts. Recycling and disposal of waste material (wood, metal, ceramics etc.) has to be handled properly by the PIA, particularly in view of the large amounts of oil used in pole mounted transformers. Almost all the PBSs have storage warehouses and storage yards, where materials are stored and procedures are in place for final disposal of waste materials. Minor impacts identified in the IEE can be mitigated with implementation of the EMP and the Monitoring Plan.

C. Implementation of Safeguards 84. The PIAs will ensure the timely and adequate implementation of the resettlement plan and the environmental management plans (EMP) for each project component and that all activities comply with the applicable national and local laws and regulations in addition to ADB’s Safeguard Policy Statement 2009. In the event a subproject requires modifications to its design or configuration prior to or during project construction, the PIAs will ensure to revise and update the resettlement plans, EIA, IEE, and EMP accordingly, and will submit these to ADB for approval and clearance. The PIAs will assist in promoting environmentally and socially responsible implementation of the contracts. Contracts shall include provisions that comply with national labor laws and ADB guidance on labor standards, wages and acceptable working conditions, including measures to avoid and prevent discrimination against women in the workplace, equal pay for equal work, and also public awareness and sensitization of the risks and prevention of HIV/AIDS. Mitigation measures for issues arising from construction related work will be incorporated into the contractors’ contract documents. The PIAs will monitor, audit, and report to ADB on the implementation of the EMP for each subproject.

85. PGCB will establish a Grievance Redress Mechanism (GRM), implemented through a Grievance Redress Committee (GRC), to receive and resolve complaints as well as grievances from aggrieved persons including the Project-affected persons. The GRCs will be established through a gazette notification from the Ministry of Power, Energy and Mineral Resources, therefore, it will be a legally constituted body.

86. The GRC will be established both locally at union/municipal level at project sites and centrally at the project level to receive and settle grievances. Most grievances will be resolved at local level GRC (LGRC), but those cases which cannot be resolved at local level will be forwarded to the project level. The project level GRC (PGRC) will be constituted with representation from the PMU, the implementing NGO (INGO) and one independent person from civil society having knowledge of environmental and land acquisition law of Bangladesh. The INGO is the agency to be appointed by PGCB to administer all land resettlement issues for the project.

87. The INGO will keep close liaison with affected people and discuss any types of issues, observations, complaints at focused-group discussions on a fortnightly basis. Most issues will hopefully be settled in the focused-group discussions meeting. All complaints received at LGRC will be resolved within a maximum of four weeks of lodgment of the complaint.

88. If resolution at local level fails, the LGRC will refer the complaint with all details of the hearing to the PGRC. The complaint with the minutes of the hearing will be sent to the PD and PMU for further review. The PMU will review the minutes of hearings, make field visits and consult LGRC Members and aggrieved persons as necessary. Cases are to be resolved at

46

PGRC within five weeks from date of receipt from LGRC. If a decision at this level is found unacceptable, the aggrieved person(s) may seek satisfaction through the court system.

VIII. GENDER AND SOCIAL DIMENSIONS

89. The project is classified as effective gender mainstreaming (EGM). A GAP has been prepared for the project and activities identified will be implemented under the project. The project will contribute to enhancing women’s capacity in using energy based business opportunities. Business development support will be provided through business incubation centers developed in the selected PBSs. This will include support by providing training in technology, finance, productivity enhancement, energy efficiency in business operations, as well as linkage with local and national level business promotion and marketing entities.

90. The project will also provide women friendly working environment in the selected PBSs by improving the existing facilities and accommodating child care facilities. The women working in the PBSs will also be trained in new technologies like GIS based data collection and management for asset management for the PBS. This will empower the women with ability to use of state of the art technologies.

91. Resources have been allocated for the implementation of the GAP and its monitoring. Sex disaggregated database will be developed and progress of GAP implementation will be reported to ADB through quarterly progress reports. The evaluation of GAP implementation will be carried out as part of any benefit monitoring, including at project completion.

47

A. GENDER ACTION PLAN

GENDER ACTION PLAN

Activities Indicators/Targets Responsibilities Timeframe Outcome: Access to efficient and reliable electricity in Bangladesh improved

Provide new connections to rural households in targeted areas.

About 950,000 new connections including 875,000 rural households connected to electricity and benefiting at least 875,000 women

BREB and PBS Completed by 2021

Output 3. Rural distribution network in Bangladesh improved to support increase in safe, efficient, and productive electricity usage

1. Conduct a survey on women-led energy-based livelihoods in project-covered areas

1.1 Actual and potential (aspiring) women entrepreneurs in project covered areas identified

1.2 Business development needs and opportunities for energy-based livelihoods of women entrepreneurs identified

BREB and PBS Completed by 2018

2. Provide training on energy-based livelihoods and business development services to new or recently electrified BPL HHs

2.1 200 people including at least 30% women trained on energy based livelihoods and 50 small businesses including 50% led by women entrepreneurs supported

BREB, PBS, local EUGs, and SREDA

Completed by 2020

3. Provide end-user education to new or recently electrified households

3.1 Education on safe and efficient use of energy including energy efficient equipment for lighting, fans, cooking and rice milling to at-least 1000 people (at least 50% of participants are women) provided

3.2 Technical standards for electricity distribution enhanced with inclusion of safety of end consumers and need for awareness raising on safe and efficient use of electricity

BREB and PBS Completed by 2020 Completed by 2018

4. Provide technical skills training (e.g., distribution grid, service line and household wiring maintenance and troubleshooting; energy auditing and energy management certification for BPL HHs; simple and routine electrical repairs)

4.1 A total of 200 people from BPL HHs (at least 30% women) trained in energy-related technical skills

4.2 Livelihood opportunities for trained women increased

BREB, PBS, and SREDA

Completed by 2020

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Activities Indicators/Targets Responsibilities Timeframe Output 4. Capacity in transmission and distribution agencies enhanced

5. Enhance the technical capacities of PBS

5.1 Five PBS teams (with at least 30% women members) trained in supporting and monitoring safe last-mile connectivity

5.2 Action plan (including awareness raising measures) of five PBS to enable customers to transition from lifeline category (subsidized customers) to more productive usage of electricity supported

5.3 GIS based mapping for at least 2 PBS completed and mapping expanded to 8 more PBS with at least 30% trained women employees in GIS and asset mapping teams

5.4 Experiences of PBS in GIS mapping and integration activities shared with at least eight other PBSs with at least 30% women participants to enable a rolling out in those PBS

5.5 Business incubation centers in five PBSs equipped with facilities for training, awareness raising, and other support programs for energy-based women entrepreneurs (Target: at least 30% of operating staff from BPL or FHH)

BREB and PBS BREB, PBS, EUG, SREDA, and Women’s Chamber of Commerce BREB and PBS BREB and PBS BREB and PBS

By end of 2018 By 2018 By 2018 By 2019 By 2018

6. Enhance PBS women employees’ work environment and sustainability

6.1 Women employee friendly measures (e.g. support for daycare centers etc.) in at-least 5 PBS resulting in increased number of women employees

6.2 Skills level and barriers to good work performance of women and men analyzed, and programs to address identified problems and improve working environment in PBS and BREB developed.

BREB and PBS By 2020

BPL = below poverty line, BREB = Bangladesh Rural Electricity Board, EUG = electricity user group, FHH = female headed households, GIS = geographic

information system, HHs = households, PBS = palli bidyut samity (rural electricity cooperative), SREDA = Sustainable and Renewable Energy Development

Authority.

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IX. PERFORMANCE MONITORING, EVALUATION, REPORTING, AND

COMMUNICATION

92. The following monitoring, evaluation, reporting and communication would apply.

A. Project Design and Monitoring Framework

93. The project DMF is as follows.

Impact the Project is Aligned with

100% access to power by 2021 and power sector sustainability improved in Bangladesh by 2030 (Perspective Plan of Bangladesh, 2010–2021: Making Vision 2021 a Reality; and Power System Master Plan 2010)

a

Results Chain Performance Indicators with

Targets and Baselines

Data Sources and Reporting

Mechanisms Risks

Outcome By 2021: Access to efficient and reliable electricity supply in Bangladesh improved

Access indicators

a. About 950,000 new connections, including 875,000 rural households, connected to electricity network and benefiting at least 875,000 women (2016 baseline: 0)

a. Annual reports of BREB

Power generation capacity addition does not proceed as planned resulting in shortages

Reliability indicators

b. System average interruption duration index for DESCO-operated part of Dhaka city decreased by at least 25% (2015 baseline: 646 minutes) c. System average interruption duration index for BREB decreased by at least 20% (2015 baseline: 1,990 minutes based on planned interruptions for 11 kV feeders)

Efficiency indicators

d. Transmission losses reduced to 2.5% (2016 baseline: 3.0%) e. Rural distribution losses reduced to 10% (2016 baseline: Losses at 12.5%) f. Tariffs annually reviewed and reset to increasingly cover costs of transmission and distribution utilities as per approved regulations (2016 baseline: Occasional tariff

b. Annual reports of DESCO c. Annual reports of BREB d. Annual reports of PGCB e. Annual reports of BREB f. Annual reports of PGCB, DESCO, and BREB

50




Mechanisms Risks

reviews are not based on approved regulations) g. At least 65,000 tons of carbon emissions are avoided every year (2016 baseline: 0)

g. Annual report of BREB and PSMP

Outputs By 2020: 1. National transmission network in southern Bangladesh strengthened

1. About 174 km of 400 kV transmission lines and associated facilities constructed (Baseline: 0)

1. Annual reports of PGCB

Delays in construction of the associated facilities across Padma River could delay construction of the 400 kV transmission line

2. Distribution network in DESCO service areas improved

2. Distribution automation system in Dhaka city installed (Baseline: None)

2. Annual reports of DESCO

Counterpart funds are not released in a timely manner

3. Distribution network in rural areas of Bangladesh, including the capacity of end-users improved

By 2020: 3a. Over 38,000 km of 33 kV and 11 kV distribution lines and associated facilities rehabilitated (Baseline: 0) 3b. Over 12,000 km of 33 kV and 11 kV distribution lines and associated facilities constructed (Baseline: 0)

3a–d. Annual reports of BREB and PBSs

3c. 200 people trained on energy-based livelihoods with at least 30% women and 50 small businesses, including 50% led by women entrepreneurs, supported (Baseline: 0) 3d. At least 1,000 end-users (at least 40% women) trained on safe and efficient use of energy (Baseline: 0)

4. Capacity in power sector agencies enhanced

By 2019: 4a. Capital expenditure investment and tariff petitions by transmission and distribution utilities in accordance with approved tariff

4a. Tariff filing petitions received by the Bangladesh Energy Regulatory

51




Mechanisms Risks

regulations annually submitted. (Baseline: Occasional filing) 4b. Geographic information system-based mapping for at least two PBSs completed and mapping expanded to eight more PBSs with at least 30% trained women employees in geographic information system and asset mapping teams (Baseline: 0) 4c. Detailed engineering reports for four projects completed (Baseline: 0)

4d. Measures to attract more women employees in at least five PBSs in place . (Baseline: 0)

Commission 4b. Annual report of BREB and PBSs 4c. Review reports from Power Cell

4d. Review reports from BREB and PBSs

Key Activities with Milestones

1. National transmission network in southern Bangladesh strengthened 1.1 Initiate tendering by March 2017 1.2 Award contract by July 2017 1.3 Complete construction by June 2020

2. Distribution network in DESCO service areas improved 2.1 Initiate tendering by August 2016 2.2 Complete installation by December 2019

3. Distribution network in rural areas of Bangladesh including the capacity of end-users improved 3.1 Initiate tendering by September 2016 for first set of tenders 3.2 Initiate tendering by September 2017 for second set of tenders 3.3 Complete construction for first set of tenders by June 2019 3.4 Complete construction for second set of tenders by June 2020 3.5 Initiate recruitment of monitoring consultants by March 2017 3.6 Carry out activities for capacity building, and the productive and safe usage of electricity; and

complete setting of standards by March 2020

4. Capacity in power sector agencies enhanced 4.1 Identify project management unit staffing plan in the Ministry of Power, Energy and Mineral

Resources and utilities by August 2016 4.2 Project management unit operational by December 2016 4.3 Recruit consultants for feasibility studies and regulatory support by June 2017 4.4 Initiate periodic filing by transmission and distribution utilities by June 2018 4.5 Complete detailed engineering reports by June 2019 4.6 Complete implementation of gender action plan by December 2019

Inputs ADB: $600.0 million regular OCR loan and $16.0 million concessional OCR loan Japan Fund for Poverty Reduction: $2.0 million (grant) Government of Bangladesh: $440.7 million

52

Assumptions for Partner Financing Not applicable

ADB = Asian Development Bank, BREB = Bangladesh Rural Electrification Board, DESCO = Dhaka Electric Supply Company Limited, km = kilometer, kV = kilovolt, OCR = ordinary capital resources, PBSs = palli bidyut samity (rural electricity cooperative), PGCB = Power Grid Company of Bangladesh Limited, PSMP = Power System Master Plan. a Government of Bangladesh, Ministry of Planning, Planning Commission. 2012. Perspective Plan of Bangladesh,

2010–2021: Making Vision 2021 a Reality. Dhaka; and Government of Bangladesh, Ministry of Power, Energy and Mineral Resources. 2011. Power System Master Plan 2010. Dhaka.

Source: Asian Development Bank. B. Monitoring

94. Project performance monitoring. Overall monitoring of the project in terms of progress will be undertaken by the government, which will review monthly progress reports submitted by the executing agencies. The Projects Department of the executing agencies will monitor progress, procurement, quality, contract management, and fiduciary management. In addition, the Projects Department will undertake regular field visits and provide guidance to the Project Director and the Project Consultants.

95. Compliance monitoring. Financial covenants and compliance will be monitored by an external auditor.

96. Safeguards monitoring. The safeguards team identified in the resettlement plan will be responsible to coordinate and implement the entire social, environment, and resettlement activities including the implementation of the resettlement plan efficiently. A dedicated Resettlement Implementation Officer and environmental staff for the same would be part of the EA PMUs. To monitor all activities enumerated in the environment management plan and resettlement plan and report the same, a internal monitoring system would be operationalized and would be the responsibility of the Resettlement Officer. The reports of the internal monitoring would be prepared quarterly and updates included in the quarterly progress reports submitted to PGCB, BREB and DESCO and ADB for review and approval.

97. Gender and social dimensions monitoring. All the activities detailed out in the poverty and social action plans, would be closely monitored, and reported as enumerated in the previous paragraphs. The PMU would be supported with gender specialist resources for review and monitoring. The activities would be carried out in line with the principle of ADB by way of which, in case of involuntary resettlement, all efforts would be made to improve or at least restore the quality of life of all displaced persons

C. Evaluation

98. ADB will field regular review missions every six months at the minimum to review status of contract awards, disbursements, physical progress, and implementation of the environmental management plan and resettlement plans. Within 6 months of physical completion of the project, all executing agencies will submit a project completion report (PCR) to ADB. Subsequently, ADB will field a mission to finalize the PCR.

Table 14: Evaluation Methodology

Evaluation Activity Purpose Methodology Who responsible and involved

Review Mission Review the progress of the project and provide

Site visits and meetings with EA officials,

ADB and EAs

53

guidance to facilitate implementation

contractors, consultants at least twice a year

Mid Term Review Comprehensive review of the project

With Government of Bangladesh and EAs after 2 years of effectiveness

ADB and EAs

Project completion report

Evaluate the overall output of the project and its relevance and suitability

Site visit and meetings with EA officials, contractors, consultants

ADB/ PGCB

ADB = Asian Development Bank, EA = executing agency, PGCB = Power Grid Company of Bangladesh Limited.

D. Reporting

99. The executing agencies will provide ADB with (i) quarterly progress reports in a format consistent with ADB's project performance reporting system; (ii) consolidated annual reports including (a) progress achieved by output as measured through the indicator's performance targets, (b) key implementation issues and solutions, (c) updated procurement plan, and (d) updated implementation plan for the next 12 months; and (iii) a project completion report within 6 months of physical completion of the project. To ensure that projects will continue to be both viable and sustainable, project accounts and the executing agency audited financial statement together with the associated auditor's report, should be adequately reviewed.

E. Stakeholder Communication Strategy

100. The Stakeholder Communications Strategy is described in the following table. All executing agencies will post relevant information on their website. The website will include at minimum information regarding the bidding process, bidders, contract awards, use of funds disbursed under the project and physical progress.

Table 15: Stakeholder Communication Strategy

Project information to be

communicated

Means of Communication

Responsibility Audience Frequency

Report and Recommendation of the President with linked documents

ADB website ADB ADB, Government of Bangladesh, Development Partners, Civil Society, Individuals

Once

Project information while planning/ designing

Discussions and stakeholder consultations

PGCB, DESCO, BREB, Power Division

Project beneficiaries Regular intervals during planning and design

Status of implementation during construction

Boards at site EA/ Contractors

Project beneficiaries All the time at construction sites

Project Performance Reports and Project Information Documents


Every quarter

Periodic progress reports

Website of EAs PGCB, DESCO,

ADB, Government of Bangladesh,

Quarterly

54

Project information to be

communicated

Means of Communication

Responsibility Audience Frequency

BREB, Power Division through Power Cell

Development Partners, Civil Society, Individuals

Project completion report


Once

ADB = Asian Development Bank, EA = executing agency, PGCB = Power Grid Company of Bangladesh Limited.

X. ANTICORRUPTION POLICY

101. ADB reserves the right to investigate, directly or through its agents, any violations of the Anticorruption Policy relating to the project.22 All contracts financed by ADB shall include provisions specifying the right of ADB to audit and examine the records and accounts of the executing agency and all project contractors, suppliers, consultants, and other service providers. Individuals and/or entities on ADB’s anticorruption debarment list are ineligible to participate in ADB-financed activity and may not be awarded any contracts under the project.23

102. To support these efforts, relevant provisions are included in the loan agreement/regulations and grant agreement/regulations and the bidding documents for the project.

XI. ACCOUNTABILITY MECHANISM

103. People who are, or may in the future be, adversely affected by the project may submit complaints to ADB’s Accountability Mechanism. The Accountability Mechanism provides an independent forum and process whereby people adversely affected by ADB-assisted projects can voice, and seek a resolution of their problems, as well as report alleged violations of ADB’s operational policies and procedures. Before submitting a complaint to the Accountability Mechanism, affected people should make an effort in good faith to solve their problems by working with the concerned ADB operations department. Only after doing that, and if they are still dissatisfied, should they approach the Accountability Mechanism.24

XII. RECORD OF CHANGES TO THE PROJECT ADMINISTRATION MANUAL

104. All revisions and/or updates during the course of implementation should be retained in this section to provide a chronological history of changes to implemented arrangements recorded in the PAM, including revision to contract awards and disbursement s-curves.

22

Anticorruption Policy: http://www.adb.org/Documents/Policies/Anticorruption-Integrity/Policies-Strategies.pdf 23

ADB's Integrity Office web site: http://www.adb.org/integrity/unit.asp 24

Accountability Mechanism. http://www.adb.org/Accountability-Mechanism/default.asp.

http://www.adb.org/Documents/Policies/Anticorruption-Integrity/Policies-Strategies.pdf

http://www.adb.org/integrity/unit.asp

http://www.adb.org/Accountability-Mechanism/default.asp

Annex 1 55

TERMS OF REFERENCE

1. DESCO SCADA Project

105. An international consulting firm with national experts experienced in power distribution and supervisory control and data acquisition (SCADA) projects is required to provide assistance on tendering, evaluation, and contract award to the successful Bidder, project management and supervision including review and audit the detailed engineering design, procurement, construction, erection, testing and commissioning, environmental safeguards monitoring, issue of necessary progress reports, and improve the agency’s project management capacity. The consultants will ensure that the project is built on schedule in a satisfactory manner to the required standards within budget. The consultants will provide project management and supervision services for the duration of the entire Project. 106. A total of 44 international person-months and 50 national person-month of consulting services will be required under the assignment. The team composition of the key international and national consultants along with their estimated person-months is provided in table below

1.1 Scope of Services, Tasks (components) and Expected Deliverables

107. The primary place of assignment is Dhaka, Bangladesh. The consultants will work within the project management office based in Dhaka as well as the project offices on sites, and be responsible for inspection and supervision of the construction works, installation of equipment and testing, in order to ensure that the works are implemented and goods supplied in accordance with the designs, specifications and terms and conditions of the relevant civil works and supply contracts. The consultants would ensure that procurement of goods, services, and civil works contracts are in accordance with ADB’s procedures and guidelines. The services to be provided by the consultants include but are not limited to, the following:

a. Feasibility Study

(i) Prepare a feasible study report on existing and upcoming system of DESCO up to 2020 for implementing SCADA project;

(ii) Prepare conceptual design for SCADA system with underground fiber optic based and redundant microwave link; and

(iii) Negotiate with the local fiber optic backbone based communication service providers and submit a report including all technical information and cost as an alternative communication.

b. Preparation of bidding documents and detailed cost estimation

(i) Prepare bidding documents for SCADA system including communication network based on ADB’s Standard Bidding Document;

(ii) Prepare a maintenance contract document, which will be applicable after warranty period; and

(iii) Prepare detailed cost estimation of the project.

c. Bid Period and Bid Evaluation

(i) Assist DESCO during the pre-bid meeting and preparation of responses to queries raised by bidders;

(ii) If required, assist DESCO in issuance of amendments or changes to the technical specifications;

56 Annex 1

(iii) Review technical proposals and Assist DESCO to evaluate both technical and financial bids; and

(iv) Assist DESCO in the contract negotiation and modify contract documents if required.

d. Design Review

(i) Checking, certifying materials and equipment, specification, code and standard requirements, diagrams, plot plans, construction and fabrication drawing lists of materials with specifications, spare parts, operation and maintenance manuals etc. of instrumentation, Telecom and SCADA, and submit the same to the Project Director for approval;

(ii) Assist DESCO in discharging the contract in accordance with the time schedule;

(iii) Review and keep DESCO advised of any deviations and non-conformance to the technical specifications;

(iv) Report on all matters to the DESCO Project Director;

(v) Attending Factory Acceptance Tests if so required by DESCO; and

(vi) Advice DESCO authority as and when required.

e. Construction Supervision

(i) Inspect the construction works;

(ii) Review the contractor’s test procedures for compliance with manufacturer’s requirements and design criteria;

(iii) Witness the tests and review the test results. If test results are not satisfactory, address problems and arrange re-tests;

(iv) Assist DESCO in discharging the contract in accordance with the time schedule;

(v) Review and keep DESCO advised of any deviations and non-conformance to technical specifications;

(vi) Assist DESCO in issuance of taking over certificate and operational acceptance certificate;

(vii) Prepare and recommend an operational acceptance certificate whenever due for the works of the contractor and alert DESCO of work deficiencies, if any;

(viii) Confirm the remedial measures taken by the contractor, and recommend an operational acceptance certificate after expiry of the reliability test;

(ix) Report to the Project Director on all matters; and

(x) Advise DESCO as and when required.

f. Technology transfer and Training.

(i) Ensure effective technology transfer in all areas through appropriate training and working in close coordination with the assigned DESCO staff.

1.2 Team Composition and Qualification Requirements for the Key Experts

108. Qualification of the firm. The firm shall have experience in project management and supervisory work on power distribution projects of 33/11 kV and above of at least 10 years. The firm shall have the international and national consultants with expertise in design and operation of 33/11 kV and above substations, protection, control, SCADA and communication, project management, and implementation. The firm’s experience in developing countries in the region will be an advantage.

Annex 1 57

109. The team composition of the key international and national consultants along with their estimated person-months is provided in table below and the required qualification of the international and national key experts are provided in the following paragraphs

Table 16: Team Composition

Positions Number Key Person-Month

International 3 44

SCADA Engineer/Team Leader 1 22

Communication Engineer 1 18

Procurement Specialist 1 4

National 3 50

SCADA Engineer 1 22

Communication Engineer 1 22

Civil Engineer 1 6

Total 6 94 SCADA= supervisory control and data acquisition.

110. SCADA Engineer/Team Leader (international, 22 person-months over a period of 34 months). The qualified engineer should have a bachelor’s or higher degree in electrical, electronic, and communication engineering and preferably 5 years of team leadership and 10 years of experience in design, engineering, procurement, installation, testing, and commissioning similar projects. The aggregate duration of the assignment, during which he/she held the position of solely responsible manager must not be less than 5 years. He/she should have a previous work experience in projects financed by international financial organization, especially associated knowledge of ADB financed project, disbursement and monitoring procedures will be an advantage. Previous experience in developing countries in the regions is preferable.

111. The Team Leader will act as the authorized representative and administrator for the consultants, with the authority to liaise with the employer and make binding decisions on behalf of the consultant on all matters pertaining to the consultancy services. He/she will also coordinate with the team to ensure the project philosophy and technical policies are correctly and consistently implemented in the project.

112. Communication Engineer (international, 18 person-months over a period of 34 months). The Communication Engineer should have a bachelor’s or higher degree in electrical, electronic, and communication engineering and at least 10 years of work experience in project management, design, engineering, procurement, installation, testing and commissioning similar projects. The aggregate duration of the assignment during which he/she held the position of solely responsible manager must not be less than 5 years. Previous experience in developing countries in the regions is preferable.

113. Procurement Specialist (international, 4 person-months over a period of 34 months). The qualified engineer should have a bachelor or higher degree in engineering or business studies and at least 5 years of experience in the relevant field as a procurement manager in similar projects domestic and overseas under financing from multiple financial institutes, preferably ADB financed projects. Previous experience in developing countries in the regions is preferable.

58 Annex 1

114. SCADA Engineer (national, 22 person-months over a period of 34 months). The expert should have a bachelor degree or higher in electrical and electronic engineering and at least 5 years of experience in project management, design, engineering, procurement, installation, testing, commissioning and applying design and application of IT systems related to energy sector projects. Experience in database development will be advantage. Previous experience in developing countries in the region is preferable.

115. Communication Engineer (national, 22 person-months over a period of 34 months). The engineer should have a bachelor or higher degree in electrical/ electronic/ communication engineering and at least 5 years of relevant experience in design, engineering, procurement, installation, testing and commissioning power distribution projects. Previous experience in developing countries in the region is preferable.

116. Civil Engineer (national, 6 person-months over a period of 34 months). The specialist should have a bachelor or higher degree in civil engineering and at least 5 years of relevant experience in project management, design, engineering, procurement, installation, testing and commissioning similar projects. Previous experience in developing countries in the region is preferable.

Annex 1 59

2. BREB PROJECT IMPLEMENTATION MONITORING CONSULTANTS

2.1. Background

117. Operating under the Ministry of Power, Energy and Mineral Resources of the Government of Bangladesh, the BREB was incorporated under an Act of Parliament in October 1977, and commenced its activities in January 1978. BREB operates under a license issued by Bangladesh Energy Regulatory Commission (BERC). Under the provisions of the ordinance, the BREB has established 77 palli bidyut samitis (PBSs) as consumer-owned electricity cooperatives for implementation of the Rural Electrification program. BREB undertakes system development projects and the completed systems are handed over to PBSs responsible for operation and maintenance of the distribution systems.

118. BREB will receive financing from the ADB and Government of Bangladesh for upgrading, rehabilitation, and extension of distribution systems in all PBS areas, and to provide electricity supply to 950,000 new consumers as well as improve quality and reliability of supply to existing consumers.

119. The project will be implemented in the form of two sub-projects, each sub-project implemented under a Project Director appointed by BREB. The first sub-project will cover Dhaka, Mymensingh, Chittagong, and Sylhet (DMCS Project) Divisions with 42 PBSs, and the second sub-project will cover Rajshahi, Rangpur, Khulna and Barisal (RRKB Project) Divisions with 35 PBSs.

120. In the DMCS Divisions, a total of 20,535 km of selected 33kV, 11kV and LV lines will be rehabilitated, upgraded or augmented, and 6,465 km of new 11kV and LV lines will be constructed, together with the installation of 32,130 new 11kV/LV transformers with a cumulative capacity of 489 Megavolt amperes. New consumer connections targeted in DMCS Divisions is 500,000. In the RRKB Divisions, a total of 18,000 km of selected 33kV, 11kV and LV lines will be rehabilitated, upgraded or augmented, and 5,500 km of new 11kV and LV lines will be constructed, together with the installation of 25,704 new 11kV/LV transformers with a cumulative capacity of 391 Megavolt amperes. New consumer connections targeted in RRKB Divisions is 450,000.

121. For each sub-project, material and equipment will be procured in two stages, one in Financial Year 2016 and the other in Financial Year 2017, following ADB and Government of Bangladesh and BREB guidelines for procurement.

122. BREB plans to hire two types of consultants, to assist BREB to implement this project:

(i) Project Development and Management Consultants (National) (PDMC) to (a) conduct field surveys and prepare subprojects for implementation, (b) assist BREB in managing the project in its day-to-day operation, (c) prepare periodic reports on project progress and specific reports on special issue. The complete scope of work and the TOR of the PDMC will be provided by BREB. BREB will pay for these consultants under its own budget and

(ii) Project implementation monitoring consultants (PIMC), international, assisted by national consultants. The term of reference of the PIMC is given in this document.

123. This TOR is for the Project Implementation Monitoring Consultant. The PIMC’s scope includes both the DMCS and RRKB projects.

60 Annex 1

2.2. Objective of the Assignment

124. There are two key objectives of the assignment:

(i) Provide a comprehensive oversight of the project implementation, to ensure the project is implemented in accordance with BREB and ADB guidelines, and industry best practices; and

(ii) Capacity building of BREB and PBS staff to conduct network planning work and improve operational capacity and formulate new projects.

2.3. Timing

125. The assignment is expected to commence in the early 2017 and will continue for the duration of the project, estimated to be about three years.

2.4. Facilities Provided

126. Consultant’s Team will be provided with limited office space in BREB. The consultant requires to establish an office space in close proximity to BREB. BREB would provide assistance to the consultant in information collection and surveys, to conduct the work assigned.

127. The Consultant would carry out following tasks to achieve objectives of the assignment:

2.5. Scope of Work

a. Upgrade, rehabilitation, extension of distribution systems

(i) Establish and implement criteria for the selection of subprojects from among the lines that require rehabilitation, upgrade and extension, and on new areas, villages to be provided with electricity;

(ii) Inspect and verify, at BREB central warehouses, that samples of materials delivered are in accordance with the specifications;

(iii) Monitor to ensure that the issue of materials from stores is in accordance with project bill of quantities;

(iv) Supervise construction to ensure work is carried out in compliance with design, construction and safety standards of BREB and well as international best practices;

(v) Participate in inspection of completed works to ensure that materials issued are installed in accordance with bill of quantities;

(vi) Independently conduct selective checks on completed project components.

(vii) Conduct selective audits on material management and financial management of the project;

(viii) Evaluate performance of Project Management Consultants (PDMCs) in supervising the project implementation, and recommend improvements as found necessary;

(ix) Conduct assessments and audits on social impacts of the project; and

(x) Submit quarterly progress reports, and periodic reports on any of the items listed above to BREB and ADB.

Annex 1 61

b. Capacity building

(i) Capacity building of BREB and PBS staff Identify to undertake in-house network planning, design and project formulation;

(ii) The consultant will focus on developing this capacity at two selected PBSs, prepare a staff development plan including additional staff required, if any;

(iii) Identify equipment and software requirement, and arrange for procurement in consultation with BREB;

(iv) Provide training to undertake the tasks identified;

(v) Assist and guide staff of the two selected PBSs to prepare a five-year plan for system development, and to establish systems to conduct updates of the plan every year. Prepare two such 5–year plans along with PBS staff for 2017–2021 and update the pan for 2018–2022; and

(vi) Submit quarterly progress reports to BREB and ADB.

128. The TOR of individual consultants, who together would form the PIMC’s staff, would be the following.

129. The Power Distribution Engineering Specialist Team Leader (international) shall have a bachelor’s degree in Electrical Engineering, and preferably have post graduate qualifications in engineering, project management or finance. The candidate should have at least 20 years of post-qualification experience in one or several of the following, preferably at electricity distribution utilities and design/consulting companies: power distribution planning, network analysis, line design and substation design, specifications and standards in power distribution, project formulation, project implementation, and rural electrification.

130. The Power Distribution Specialist and Deputy Team Leader (national), shall have a bachelor’s degree in Electrical Engineering, and preferably have post-graduate qualifications in engineering, project management or finance. The candidate should have at least 10 years of post-qualification experience in electricity distribution, especially in rural electrification.

131. The TOR of the Power Distribution Engineering Specialist Team Leader would be the following. The Power Distribution Specialist and Deputy Team Leader (National) would assist the Power Distribution Engineering Specialist Team Leader in the tasks listed throughout the project period, and cover the duties by the Team Leader during his/her absence in Bangladesh.

(i) Review the Development Project Proposal (DPP), ADB’s report and report and recommendations to the president (RRP) related to the project, and the project administration manual (DPAM) of ADB, to ensure complete familiarity with the scope of the project and conditions under which the project has been approved by Government of Bangladesh and ADB;

(ii) Prepare criteria for the selection of lines to be upgraded, rehabilitated or extended, and prioritization, and the allocation of project resources among the PBSs, to ensure the targets set by BREB and ADB could be fulfilled;

(iii) Discuss such selection criteria with the BREB Project Director and Project Development and Management Consultant (PDMC), test the criteria by implementing it at least in one PBS. After required revisions, prepare a report stating the criteria, for review by BREB and ADB;

(iv) Establish a system in which lines selected by the PDMC are selectively sent to the PIMC for review and concurrence, such that an agreed share of all lines

62 Annex 1

selected by PDMC are reviewed for their compliance with the selection criteria, and that their material lists and costs are within acceptable norms;

(v) Prepare plans and direct team members to conduct field surveys and audits, to ensure selected lines comply with the agreed criteria and material lists prepared by the PDMC;

(vi) Prepare plans to selectively examine stores, and direct the Financial Specialist, to conduct selective audits on stores arrangement, procedure for issuing material, method of handling returns, arrangements in the field to store/retrieve material, relevant records, etc.;

(vii) Ensure material and construction design and standards are complied with, and prepare guidelines to PDMC and contractors. Conduct selective audits on lines being constructed including all its accessories and service connections, to verify that BREB standards and international best practices are strictly followed.

(viii) Review testing, commissioning and handing-over procedures, and prepare guidelines to contractors and to PDMC;

(ix) Review testing and commissioning procedures of new built or upgraded lines and equipment. Witness testing and commissioning tests selectively, and issue guidelines to contractors and PDMC to take corrective action;

(x) Prepare a plan for developing a 5–year network development plan for two selected PBSs, in consultation with the Distribution Planning Engineer (international;.

(xi) Prepare quarterly progress reports, covering all the aspects listed in the SOW and the TOR;

(xii) Prepare specific reports related to guidelines required to be prepared according to this TOR; and

(xiii) Any other specific tasks assigned by BREB and ADB.

132. The Power Distribution Planning Specialist (international) shall have a bachelor’s degree in Electrical Engineering, and a post graduate qualifications in Engineering. The candidate should have at least 20 years of post-qualification experience in the following, preferably at electricity distribution utilities and design/ and consulting companies: power distribution network planning, network analysis, line design and substation design, and rural electrification. The Power Distribution Planning Specialist (International) would have experience with at least one network analysis software package used in the utility industry.

133. The Power Distribution Planning Specialist (National), shall have a bachelor’s degree in Electrical Engineering, and preferably a post-graduate qualification in Engineering. The candidate should have at least 10 years of post-qualification experience in electricity distribution network planning and modelling, especially in rural electrification. Hands-on experience with a network planning model is preferred.

134. The TOR for Power Distribution Planning Specialist (international) would be the following. The Power Distribution Planning Specialist (national) would assist the Power Distribution Planning Specialist in the tasks listed.

(i) Assist the Team Leader in conducting the overall scope of work, especially those activities related to the criteria for the selection of lines for rehabilitation and upgrades;

Annex 1 63

(ii) Review present practices and procedures in planning the distribution network, by BREB and individual PBSs, and the role of the “Retainer Consultant”25 in network planning;

(iii) Prepare a plan and a procedure to facilitate a system for regular collection of information about the network status and new requirements, and to transfer such information to the network planning team;

(iv) Prepare proposals to establish planning teams in at least 2 PBSs, and at BREB, inclusive of staff, software and other resource requirements, and training, discuss with relevant officials and finalize;

(v) After review of the proposal by BREB and ADB, implement the network planning functions, by training staff at BREB and PBSs to collect data, prepare demand data and conduct forecasts, input to load flow analysis models, identification of problems such as network overloading, field measurements and verification;

(vi) Prepare and implement a plan to collect information on network performance, in such a manner that network modelling results can be verified, and segments of the network that do not meet the operational standards are identified;

(vii) Prepare and implement, together with BREB and PBS staff, a 5–year distribution network plan (to be updated every year) and a report, inclusive of an investment plan and the financial/economic justification of the plan;

(viii) Ensure the planning process and plans are prepared under best international practices; and

(ix) Guide PBS staff to update the plan at least for one further 5-year planning cycle.

135. The Financial Management Specialist (International) would be qualified with a bachelor’s degree in Financial Management, and would also be professionally qualified and certified to conduct audits. Financial Management Specialist (International) requires to carry at least 20 years of experience including international experience, preferably in a project environment and/or a utility environment.

136. Financial Management Specialist (National) would be a Chartered Accountant recognized in Bangladesh, and would carry at least 10 years of experience, preferably in a project environment and/or a utility environment.

137. The TOR for the Financial Management Specialist (International) would be the following. The Financial Management Specialist (National) would assist the Financial Management Specialist (International) in the tasks listed.

(i) Reviewing overall procurement contracts progress;

(ii) Review and check the requests for payments received from contractors and suppliers;

(iii) Review change orders to contracts and prepare reports to ADB on the amount of change order(s) and its status;

(iv) Review transactions on sample basis for ensuring that reported expenditure is backed by adequate and genuine documentation;

(v) Review of expenditure for the project from funds set aside as contingency and certify the reasonableness of the same;

25

Retainer Consultant is a Consultant who has a contract with PBSs to assist them in problem identification in networks, field studies and in preparation of proposals for network improvement.

64 Annex 1

(vi) Review the progress of the project implementation including checking that budgets are adequate, checking expenditure against budget and identifying issues of concern;

(vii) Measure and determine quantities for certification of drawdown request/ progress payments claimed from ADB;

(viii) Ensure adequacy of accounting staffing in the project management units and assess the continuing adequacy of operating accounting systems and related financial controls in the PMU, to confirm that the accounting information generated is reliable and financial controls have operated satisfactorily;

(ix) Develop an Accounts Manual (do’s & don’ts) for the project;

(x) Develop a coding system to uniquely cover all receipts & expenditures under the project;

(xi) Ensure that the internal audit of the project is carried out at least once every quarter and a list of audit findings prepared and followed up;

(xii) Attending periodic project review meetings to assess the progress and to review BREB’s presentation of problem areas;

(xiii) Analyze matters reported in audit reports and observations made and suggest actions to be taken and by whom; and

(xiv) Liaise with professional bodies such as the Institute of Chartered Accountants of Bangladesh to design a course for the training of internal auditors, in particular those who will be carrying out the internal audit of the project accounts. Facilitate the conducting of the course.

138. Site Engineers (national, 3 positions). Site engineers would be qualified with a bachelor’s degree in engineering, with at least 3 years of post-qualifying experience. Site engineers would assist the Power Distribution Engineering Specialist and Team Leader, the Power Distribution Planning Specialist, and their national counterparts, to conduct various tasks and field-level activities. 139. Site Supervisors (national, 3 positions). Site supervisors will be qualified with a diploma in engineering (electrical and civil) with at least 1 year of post qualifying experience. They will assist Site Engineers in their tasks in the field. Site supervisors would also assist the Financial Specialists in field work and in stores verification, as required. 140. Safeguards Specialist (international and national). The Safeguards Specialist (International) should have Post graduate degree in Environmental science/ Bachelor of Environmental Engineering/ Civil Engineering/ Master of any relevant subject having at least 15 years of global experience in EIA, SIA, EMP and DIA related works with at least 5 years for rural electrification projects as EIA/SIA/Environmental Specialist. The Safeguards Specialist (National) would be qualified with a degree in Science, Sociology or Environment, with 10 years of experience. The TOR for the Environmental Specialist (International) would be the following. The Safeguards Specialist (National) would assist the Environmental Specialist (International) in the tasks listed.

(i) Collection of Environmental quality data, Identify the environmental components.

(ii) Identify stages or elements of the projects that are sensitive’s to changes or variability in climate parameter and find out the impacts of this parameters on the climate, also identify the components of the projects

(iii) Field surveys, data collection, collation and analysis of the data.

Annex 1 65

(iv) Preparation of complete IEE, EIA, EMP, and Socio-economic impact assessment report on the basis of the scope work and international standard.

(v) Report to the team leader at different stages of the study and work under the supervision of the consultant

(vi) Review the ADB social and environmental safeguards documents related to the project, including the Resettlement Plan and the Initial Environmental Examination, and ensure that the observations, guidelines and assurances stated in such documents are implemented by all stakeholders.

(vii) Conduct regular briefings of stakeholders on the requirements of safeguards implementation.

(viii) Prepare a plan for assessing the effectiveness of the safeguards implementation.

(ix) Conduct sample surveys to examine the effectiveness of the project and the social benefits of the project.

(x) Identify the needs in awareness raising aspects to enhance the effects of the Project,

(xi) Identify and Assist BREB/PBS to implement awareness raising/education programs, on such issues as roles and responsibilities, energy usage, energy conservation, safe use of electricity, etc.;

(xii) Assess consumer satisfaction rate of the target PBSs during the implementation period;

(xiii) Collect social and economic baseline data before starting the construction works,

(xiv) Assist BREB/PBS to monitor the socio-economic impact of the Project and Reflect the monitoring results into progress reports,

(xv) Conduct evaluation on socio-economic impact of the Project after completion of constructions and reflect the results into the completion report;

Table 17: Allocation of Resources

Consultants Number of Positions

Person- months per

Position Basis

Project Period

Power Distribution Engineering Specialist and Team Leader (International)

1 20 Intermittent, 15 months in

Bangladesh

3 years

Power Distribution Planning Specialist (International)


Bangladesh

3 years

Financial Management Specialist (International)


Bangladesh

3 years

Safeguard Specialist (International)


Bangladesh

3 years

Total international 3 44

Power Distribution Specialist and 1 36 Full time 3 years

66 Annex 1

Deputy Team Leader (National)

Power Distribution Planning Specialist (National)

1 36 Full time 3 years

Financial Management Specialist (National)

1 36 Full time 3 years

Site Engineers (National) 4 36 Full time 3 years

Site Supervisors (National) 4 36 Full time 3 years

Safeguards Specialist (National) 1 24 Intermittent 3 years

Total National 12 204

Annex 1 67

3. TRANSLATING IMPROVEMENT IN ELECTRICITY SUPPLY TO BETTER LIVELIHOOD IN RURAL BANGLADESH

3.1. Background

141. Operating under the Ministry of Power, Energy and Mineral Resources of the Government of Bangladesh, BREB was incorporated under an Act of Parliament in October 1977, and commenced its activities in January 1978. BREB operates under a license issued by Bangladesh Energy Regulatory Commission (BERC). Under the provisions of the ordinance, the BREB has established 77 palli bidyut samitis (PBSs) as consumer-owned electricity cooperatives for implementation of the Rural Electrification program. BREB undertakes system development projects and the completed systems are handed over to PBSs responsible for operation and maintenance of the distribution systems.

142. BREB is receiving financing from the ADB and Government of Bangladesh for upgrading, rehabilitation, and extension of distribution systems in all PBS areas, and to provide electricity supply to 950,000 new consumers as well as improve quality and reliability of supply to existing consumers.

143. The project will be implemented in the form of two sub-projects, each sub-project implemented under a Project Director appointed by BREB. The first sub-project will cover Dhaka, Mymensingh, Chittagong, and Sylhet (DMCS Project) Divisions with 42 PBSs, and the second sub-project will cover Rajshahi, Rangpur, Khulna and Barisal (RRKB Project) Divisions with 35 PBSs.

144. In addition to the loan, BREB will also be receiving grant financing from JFPR for $2,000,000.

145. BREB plans to hire a consulting firm and/or NGO to assist BREB to implement this project. The consulting firm would experience of implementing similar productive energy projects in similarly placed countries for at least 3 years with access to international technical experts required for different outputs. Experience in developing member countries in the region would be desirable.

Output 1 Energy-based livelihoods with focus on business development

Energy-based livelihoods developed with a focus on women’s microenterprises in five PBSs. Linked to the project DMF’s output 3 and performance indicator 3c

BREB was set up with the aim to support rural people in Bangladesh to use electricity to improve their livelihoods and earning capacity. This output will promote and strengthen energy-based livelihoods through access to electrical appliances, technologies, and skills that emerge with the availability of electricity (and modern forms of energy) for local manufacturing, service, or retail activities with a particular focus on women's household-scale MSMEs. Consulting services of a non-government organization will be retained for skills training and support in purchasing equipment to start up or improve such MSMEs.

The output will aim to incubate and set up about 50 energy-based small businesses comprising at least 50% women entrepreneurs and employing at least 30% labor from BPL and/or women-led households.

a

In addition, about 200 people will be provided with the technical and skills training necessary to achieve energy-based livelihoods and to avail of related income and job opportunities. The trainees will include BPL

68 Annex 1

and women-led households, and the training will be coordinated with a woman advisor or a woman board member of the respective PBS, and with electricity user groups and SREDA.

The businesses will be registered with the local chamber of commerce and industry to ensure that they receive continuous support and capacity building, training, and access to future credit to keep the businesses sustainable. Case studies on successful entrepreneurs will be prepared and shared to catalyze more such businesses.

Selection of the PBS will be based on certain criteria: e.g., potential for MSME-related development in the PBS area, local offices or district representatives of Bangladesh Small and Cottage Industries Corporation and Bangladesh Women Chambers of Commerce and Industry, and space availability for an incubation center dedicated to energy-based livelihood creation. The interest of the woman director in the PBS to allocate time for this output and her remaining tenure will also be factors in the selection of the PBS.

The selection of 50 businesses will be based on a transparent process involving the woman director of PBS and electricity user groups. The selection of 200 people to be provided with technical and skills training will also be transparent.

Output 2 Awareness enhanced on safety and efficient use of energy

Safety standards updated and end-user education in the safe and efficient use of energy provided. Linked to the project DMF’s output 3 and performance indicators 3d and 3e

Project due diligence found that safety and awareness building in newly

electrified households as well as among PBS staff is essential given a

recent increase in electrocution cases in Bangladesh.

This output will focus on updating distribution connection standards and

raising awareness of newly electrified poor households about the safe

and efficient use of electricity, taking into consideration energy

consumption habits and patterns for household tasks.

Consulting services will be used to support an update of standards for

service line connections, from distribution transformer up to household

meter, and to train PBS staff in monitoring implementation of the

standards and in instructing consumers on the safe and efficient use of

electrical appliances and equipment.

This output will target existing employees of PBS in connectivity matters

(and include interested PBS women employees seeking to focus on

monitoring household or community-level wiring and connections). A

30% participation rate by women is targeted for training on safe,

efficient, and environment-friendly use of energy (including cooking).

Output 3 Improvement in the rural electricity cooperative

Improved the environment in rural electricity cooperatives for women employees and lifeline customers. Linked to the project DMF’s output 4 and performance indicator 4d

An action plan will be developed, and dovetailed with implementation

plans, to scale up the impact of the JFPR grant in coordination with the

women director of the PBS and BREB. This will have the following

aspects:

(i) Supporting the PBS in enabling customers to transition from the

lifeline category (subsidized consumers) to more productive electricity

use. This could involve awareness measures—e.g., energy user groups

encouraging women and non-government organizations to tie up with

Annex 1 69

Small Industries Corporation, SREDA, and the local Women’s Chamber

of Commerce as well as other enablers to promote productive usage of

electricity including opportunities for skill certification and job creation

opportunities.

(ii) Equipping the business incubation centers in five PBSs (output 1)

with facilities for training, awareness raising, and other support

measures for the participants in the business incubation program. A

team will be recruited to provide services at the center, and at least 30%

of operating staff will be from BPL or women-led households.

(iii) Assisting BREB and the participating PBS in a review of skill levels

of existing women employees and in reducing barriers to employment of

women in the PBS.

Output 4 Developing a reliable asset mapping system through GIS

Provided technical and skills training to avail of employment and livelihood opportunities. Linked to the project DMF’s output 4 and performance indicator 4b

A GIS system was developed for BREB with support from Japan

International Cooperation Agency.

A fast-track asset tagging and mapping program can be designed and

taken forward in the PBS using existing PBS employees with some

additional resources. Through this, BREB can develop a GIS database

on the distribution system and manage it efficiently and reliably,

particularly for the last-mile consumers. Training will be carried out and

handheld navigation equipment will be introduced to conduct GIS

mapping at lower voltage levels (11 kilovolts downwards to distribution

transformers and consumer level).

Data on the location and state of assets, including poles and

transformers, will be collected and integrated with an equipment record

card (ERC) system to improve reliability, asset management, and

distribution loss calculations, as well as customer services in the first

two PBSs. A dedicated team will be established in each PBS

responsible for regular periodic updates of the GIS database, and their

experience will be shared with at least three additional PBSs so as to

enable a national rollout of the program to other PBSs for GIS mapping

and integration activities.

The target will be GIS data collection (with 30% women enumerators)

and database management, and 30% women participants in

experience-sharing sessions. ADB = Asian Development Bank, BPL = below the poverty line, BREB = Bangladesh Rural Electrification Board, DMF = design and monitoring framework, GIS = geographic information system, JFPR = Japan Fund for Poverty Reduction, MSMEs = micro, small, and medium-sized enterprises, PBS = palli bidyut samity (rural electricity cooperative), SREDA = Sustainable Renewable Energy Development Authority. a ADB. 2011. Technical Assistance for Improving Gender-Inclusive Access to Clean and Renewable Energy in

Bhutan, Nepal, and Sri Lanka. Manila (TA 9158-REG). Potential opportunities in Bangladesh include agro-processing and agro-businesses, e.g., production of packaged foods such as mango; honey and pickles, automated rice milling, fish rearing, vending kiosks, tailoring and handicrafts, repair and maintenance of electrical equipment, as well as other possible new opportunities that would be determined by the consultant in coordination with the electricity user group in the PBS area. In the above mentioned TA, ADB -financed projects supported productive energy opportunities such as support for bamboo-based crafts and dairy processing activities. http://www.energia.org/cms/wp-content/uploads/2016/05/01-PRF4-Project-Note-WEB.pdf

Source: Discussions with utilities.

70 Annex 1

3.2. Objective of the Assignment

146. There key objective of the assignment is to support in the detailed design and implementation of the above identified outputs under the project in line with international best practices and support the sustainability of the identified interventions through the consulting delivery.

3.3. Timing

147. The assignment is expected to commence in the 2nd quarter of 2017 and will continue for the duration of the project, estimated to be 3 years.

3.4. Facilities Provided

148. Consultant’s team will have access to PBS offices in the identified PBS particularly for interactions with PBS staff. Women Director of the selected PBS would be the focal point along with PBS management for Output 1, 2, and 3. Staff of PBS would be assigned to be trained and carry out activities under Output 4.

149. The Consultant would carry out following tasks to achieve objectives of the assignment:

3.5. Outline Scope of Work

150. A consulting firm and/or NGO with gender and energy sector expertise will be retained and be responsible for the implementation of the TA activities. The scope of work would be as follows

(i) Identify through appropriate, consultative and transparent assessments - 50 new energy based small businesses that would receive a grant from the project;

(ii) A rapid quality assessment conducted to identify capacity gaps and needs for effective implementation of the microenterprise development activities;

(iii) Capacity building program developed and implemented based on identified business development activities training of trainers developing and implementing user awareness programs;

(iv) Provide skills and technical training as well as provide entrepreneurial support to above mentioned businesses through creating linkages with stakeholders such as the Bangladesh Small and Cottage Industries Corporation and Bangladesh Women Chambers of Commerce and Industry. Areas for training will include but not be limited to financial services, such as micro-credit; business development services, including skills training, and; market linkages and access;

(v) Provide technical and skills training to 200 people identified through a survey (conducted by the NGO with support from the PBS) on employment opportunities and energy based livelihoods and safe, efficient and environmentally friendly usage of energy; and

(vi) Develop and implement an action plan based on assessment of skills, and discussions with PBS employees as well as other stakeholders to support the scaling up of life-line category energy consumers to productive energy consumer as well as a reduction of barriers to employment of women in PBS. Support a long term plan to access credit and other facilities for the electricity user group headed by the Lady Director of the PBS.

Annex 1 71

151. Qualification of the international firm/NGO. The firm shall have experience in overall project management. They shall also have experience in design of projects in business development in rural setting, capacity development, rural electrification, technology transfer, and expertise in gender mainstreaming in the energy sector and GIS database development. The firm shall have the international and national consultants with relevant expertise. The firm’s experience in developing countries in the region will be an advantage. The approach and methodology for the project, the qualifications of each proposed party will need to be detailed by each shortlisted firm/NGO in their technical proposal. Outline TOR associated with individual international and national experts as well as national NGOs are outlined below.

152. The team composition of the key international consultants along with their estimated person months is provided in table below and the required qualification of the international key experts are provided in following paragraphs:

Positions Number Key Person-Months

International

Productive Energy Usage Specialist 1 4

Business Incubation Specialist 1 6

Distribution Safety Standards Specialist 1 4

Training Program Design and Development Specialist

1 6

Business Planning and Linkage Specialist 1 3

Gender Specialist 1 3

GIS Implementation Specialist 1 3

Total 7 29

National

Business development specialists 10 240

Electricity distribution specialist 5 60

Gender Specialist 1 24

GIS Support Specialist 2 48 Total 18 372

GIS = geographic information system.

153. Productive Energy Usage Specialist (International, 4 person-months over a period of the first 12 months). The specialist shall at least have a postgraduate degree in energy, rural development, business administration or related disciplines with at least 15 years of work experience in developing, financing or supporting productive energy usage in rural areas. Previous experience in developing countries in the region is preferable. The Team Leader will be an expert in energy based entrepreneurship development with proven experience in working with disadvantaged and poor communities and women’s livelihood programs. He/she will have demonstrated experience in energy related project design and management, capacity development training for small enterprises, gender inclusive planning, liaison with public sector and international organizations. He/she will be familiar with research and analysis for addressing pro-poor, social and gender issues in the energy sector. The Team Leader will be familiar with the energy sector in Bangladesh and issues of 'vulnerability', 'accessibility' and 'affordability' related to energy resources and services. He/she will have overall responsibility for the implementation of the Grant project in cooperation with the implementation activities of BREB and SREDA. The Specialist will be responsible for coordinating with BREB and other agencies on Output 1.

72 Annex 1

154. Business Incubation Specialist (international, 6 person-months over a period of first 18 months). The specialist shall have a bachelor or higher degree in business administration or related discipline with at least 15 years of work experience in small and medium business development for rural areas in energy based livelihood and in project design and implementation. Previous experience in developing countries in the regions is preferable. The Specialist will be responsible for coordinating with BREB and other agencies and work closely with the Productive Energy Usage Specialist on Output 1.

155. 10 Business Development Specialists (national, 24 person-months over a period of first 36 months). The business development specialist will have a post-graduate university degree in rural development, agriculture processing, food technology, business administration with at least 5–7 years of prior experience with in working with small scale rural businesses. Preference will be given to candidates having worked with national level NGO or government training organization or international organizations. More specifically, the consultant will be responsible for conducting technical and skills training programs for selected men and women in operation of small businesses and coordinate with other technical expert team members for defining and offering skills and business support training specific to various technologies. They will work with international experts to deliver Output 1. Two experts would be positioned in each of the five PBS. One may be an expert on agro processing and another on handicrafts/home based industries.

156. Distribution Safety Standards Specialist (international, 4 person-months over a period of the first 12 months). The specialist shall have a master’s degree in electrical engineering or related discipline with at least 15 years of work experience in electricity distribution in rural areas. Previous experience in developing countries in the regions is preferable. The Specialist will be responsible for coordinating and delivering on activities under Output 2.

157. Training Program Design and Development Specialist (international, 6 person-months over a period of first 18 months). The qualified candidate shall have at least bachelor’s degree in media, journalism or related disciplines with minimum 10 years of work experience on design of capacity building programs for rural audiences. Expertise in designing programs for first time electricity consumers or on safe and efficient usage of energy would be preferable. Previous experience in developing countries in the region is preferable. The Specialist would work closely with the Lady Directors in the PBS to prepare and organize the training material for effective dissemination. The Specialist will be responsible for coordinating and delivering on activities under Output 2 with the Distribution Safety Standards Specialist. 158. 5 Electricity Distribution Specialist (national, 12 person months over a period of first 18 months each). The specialist shall have a bachelor’s degree in electrical engineering or related discipline with at least 5–7 years of work experience in electricity distribution in rural areas. He/she should have gained formal and on the job training in safety of electrification systems from relevant authorities. He/she will be responsible for but not limiting to conduct community mobilizations and needs assessment and conduct user awareness program — in synchronization with the electrification of households of target beneficiaries in project areas and ongoing consumers of PBSs. The Specialist will work closely with international expertise to deliver all activities under Output 2.

159. Business Planning and Linkage Specialist (international, 03 person-months over a period of first 12 months). The qualified candidate shall have at least a bachelor’s degree in business administration and/or rural development, with minimum 10 years of work experience in

Annex 1 73

related areas. Expertise in working with rural electricity distribution companies an or cooperatives would be preferable. Previous experience in developing countries in the region is preferable. The Specialist would be responsible for coordinating and delivering on activities under Output 3.

160. Gender Specialist (international, 3 person-months over a period of first 12 months). The Gender Specialist should have a postgraduate university degree in social sciences or related discipline (an additional degree in engineering will be an advantage). He/she should have formal training in gender analysis and gender planning and demonstrated experience, skills, and expertise in mainstreaming gender in the energy sector including rural electrification. He/she should be familiar with the energy sector in the Asia Pacific region, especially on issues of “vulnerability,” “accessibility,” and “affordability” related to energy resources and services. Experience in conducting primary gender research is needed. He/she should also be familiar with gender analysis tools and methodologies in the energy sector. He/she should have consulted for international or nongovernment organizations (NGOs) supporting gender and development work in the energy sector. The Specialist would be responsible for working with other team members to deliver Output 3 including additional survey staff.

161. Gender and Development Specialist (national, 24 person Months over a period of 36 months). The Gender and Development specialists will have a postgraduate university degree in social sciences or related discipline(an additional degree in engineering will be an advantage) with a minimum of 5–7 years of work experience in gender assessment, implementation of gender and action plan activities, reporting and monitoring gender results . He/she should have formal training in gender analysis and gender planning and demonstrated experience, skills, and expertise in mainstreaming gender in the energy. More specifically but not limited to her main tasks will include (i) implement strategies and activities for women’s livelihood activities including the relevant training programs; (ii) support the preparation and implementation of the user-education activities at the community-level; (iii) develop gender-inclusive participatory strategies for strengthening community based management of small-scale energy systems, including the relevant training programs; (iv) preparing a gender action plan (GAP) incorporating the above project design features, including activities and targets and indicators; (v) support in the preparation and implementation of the ‘before and after’ baseline, follow-up and impact oriented surveys, including the conduct of focus group discussion to gather qualitative gender data; and (vi) and raise awareness amongst the poor, women and other vulnerable groups, to mitigate potential risks resulting from unsafe use of electricity.

162. GIS Implementation Specialist (international, 3 person-months over a period of first 12 months). The GIS Specialist will have relevant engineering or postgraduate university degree with specialization in GIS system implementation and GIS training. He/she must have at least 15 years of working experience in GIS matters and selection of software and equipment for GIS implementation. The Specialist would coordinate with other consultants working under the overall capacity building section of the loan and would be responsible for structuring the GIS roll out plan in the two PBSs and ensuring that the teams in the PBS are equipped and trained to undertake GIS activities indicated in Output 4.

163. 2 GIS Support Specialists (12 person months over a period of first 24 months). The GIS Specialist will have relevant engineering or postgraduate university degree with specialization in GIS system design and implementation. He/she must have at least 5 years of working experience in the GIS sector and have proven knowledge of developing training

74 Annex 1

programs, modules and equipment use. The Specialist would support in the delivery of Output 4.

Annex 1 75

4. CAPACITY BUILDING COMPONENT

4.1 Feasibility studies and new business models for wind and solar parks

a. Scope of Work

164. Government of Bangladesh has set a target to each generating company, (Ashugang Power Station Company Limited (APSCL), Coal Power Generation Company Bangladesh Limited, Electricity Generation Company of Bangladesh (EGCB), Rural Power Company Limited (RPCL), North West Power Generation Company Limited (NWPGCL), and Bangladesh Power Development Board to invest on 100 MW of solar photovoltaic and 100 MW of wind power generation. Generating companies are at various stages of project development, in considering this target for implementation. Meanwhile, proposals from private investors have reached the Government for both solar and wind power plants, and they are being evaluated by a committee, to examine the proposals for their completeness.

165. The technical assistance will provide consultancy support to (i) conduct feasibility studies for at least two wind parks and two solar parks; and (ii) develop a template for Power Purchase Agreements (PPAs) between the generating companies and BPDB (the single buyer) for wind and solar power plants, and the concession agreement between a project company and the government.

166. Each feasibility study will be preceded by a site verification study, and a pre-feasibility study. The site ranking, the selected two sites/siting areas, and then each pre-feasibility study will be reviewed and approved by the Power Cell. After the feasibility studies are completed, each solar park and each wind park would be ready to proceed to detailed engineering designs, financing and bidding. The technical assistance will also include the preparation of business plans for private sector participation in the development of wind and solar parks by the generating companies.

167. Power Division is planning to develop a larger wind and/or solar development zone, to facilitate private investments into blocks, allocated on a competitive basis. Site identification is on-going. Once the site/siting area is identified, a development plan for the solar/wind zone has to be prepared. BPDB will be the owner and operator of the infrastructure for this solar/wind power development zone. The development plan will allocate areas for wind and solar power development, by dividing the zone into several parks. Each soar/wind park will be allocated to a private developer, on the basis of a competitive bidding process.

168. Stage 1: The consultants would initially conduct a reconnaissance study through (i) analysis of previous studies and measurements conducted by various agencies; (ii) wind and solar maps produced by such studies; (iii) information available from international sources, and (iv) any site-specific studies and measurements, and then rank/confirm the sites/siting areas where such power plants may be considered to be located. Site selection/ranking would then be discussed with the government’s stakeholders, to decide on sites to be taken forward to pre-feasibility study level.

169. As of July 2016, the sites that may be considered for selection for pre-feasibility and feasibility study are the following. More sites may be added to the site selection list, depending on the progress with land allocation and other considerations, at the commencement of the study.

(i) Wind/solar development zone(s), to be facilitated by the Power Division and BPDB,

76 Annex 1

(ii) EGCB: 30 MW solar PV park in Chittagong, (iii) NWPGCL: 100 MW solar PV park in Pabna District, 50 MW wind park in Pyr, (iv) RPCL and APSCL: 200 MW solar PV park to be jointly developed in Podda River, and (v) BPDB: 100 MW solar PV park at Solargargy, 55 MW solar PV park at Gongachora,

Rampur 170. Stage 2: The required site-specific measuring instruments for wind and solar resources would be installed at the commencement of the pre-feasibility study, and maintained by the relevant generating company, throughout the study period and beyond. The pre-feasibility study would prepare plans for deployment of equipment; allocate land and siting space for the intended projects, conduct preliminary distribution and transmission studies, study equipment transport and delivery options, and conduct preliminary social and environmental impacts studies. The study would calculate project costs and develop indicative business plans for project implementation. The pre-feasibility study would develop levelized costs of generation from each site, which will form the basis of the decision to proceed to detailed feasibility study stage.

171. On the basis of the pre-feasibility study results, government through BERC and Power Cell, would issue a tariff notification about the price or the price ceiling, at which electricity from each designated wind park and solar park would be purchased into the grid, by BPDB, the single buyer.

172. Stage 3: Each feasibility study would build-up on the pre-feasibility study, and more specifically, map out the (i) layout of each wind and solar park; (ii) recommend/select wind turbines and solar PV equipment suitable for the site; (iii) conduct micro-siting and similar studies to develop indicative locations of equipment; (iv) develop distribution and transmission line requirements, to transfer power to the grid and conduct preliminary line route surveys, (v) conduct safeguards studies and evaluations; (vi) prepare transportation/logistics studies and costs; (vii) prepare detailed cost estimates of the project; and (viii) examine the project viability on the basis of the tariff offered to each type/location of power plant. At the end of the feasibility study, each site would be ready to proceed to implementation, by conducting detailed engineering designs and financing. The study will develop a comprehensive business plan for the implementation of the project, considering the specific features of the wind/solar development zone or park, as the case may be, and its intended owner/operator. In the case of the wind/solar development zone to be developed by Power Cell/BPDB, a public-private partnership business model, bid documents for competitive selection of private partners, and a zone development/management plan will be prepared.

173. Preparation of a PPA template: the study would consider the PPAs operational in Bangladesh and special considerations for wind and solar power plants, and develop a new PPA template to be used as the basis for negotiations between the power plant company and the single buyer. Special considerations to be included in the PPA template relevant to wind and solar power plants are dispatch limitations, seasonality, curtailments, pricing, intermittency, and spinning reserve requirements. The study will also examine and propose amendments to the concession agreement between the government and power generating companies, to consider special features of wind and solar power plants, and routine updates required to consider the current situation.

174. Structure of consulting support for the government to execute the feasibility studies would be as summarized below, followed by the list of specialists and person-month allocation for each team.

Annex 1 77

Stages 1 and 2: Resource assessment, site selection, and pre-feasibility studies Conducted by Team 1: Three international and three national consultants

Stage 3: Feasibility studies for two wind power plants Conducted by Team 2: Nine international nine national consultants Feasibility studies for two solar power plants

Conducted by Team 3: Nine international nine national consultants 175. Team 1: The Resource assessment, site selection, and pre-feasibility studies will be conducted by a 6-member team of consultants, whose specialties and person-month allocations are given below. The TOR for consultants are given in subsequent paragraphs.

International National

Power System Specialist/Team Leader 2 3 Wind Power Specialist 2 3 Solar Power Specialist 2 3

Total person-months 6 9

176. Power System Specialist/Team Leader (international): The Power System Specialist (international) and team leader will be responsible for the overall quality and implementation of the resource assessment, site selection and pre-feasibility studies, providing the required support to the executing agency the Power Division and the implementing agency, and reporting to an ADB project officer. The consultant should have a degree in electrical engineering and 15 years of experience in the energy sector including in power generation, transmission network analysis, grid integration of renewable energy-based generation. In particular, the tasks of the power systems specialist (international) and team leader will include, but not be limited, to the following.

(i) As the team leader, manage the consulting team, coordinate with other team members to develop a detailed work plan and an implementation schedule, work with the executing agency/implementing agency to oversee the consulting team, and compile, edit, and ensure the quality of reports to be issued under the studies;

(ii) Consult with executing agency/implementing agency counterpart staff in relation to the project objectives, design and implementation;

(iii) Direct national consultants in the day to day operational management of the feasibility study;

(iv) Review the sites listed above, their status of development in preparation for feasibility assessment; conduct discussions with Power Division, Power Cell and each generation company to develop a comprehensive long-list of sites/projects, each approximately sized at 100 MW for wind or solar power development;

(v) In consultation with and inputs from the wind power specialist and the solar power specialist, prepare a status report on the sites/projects in the long-list, in terms of resource availability, quality of resource information, status of land allocation, ease of grid interconnection;

(vi) Develop, discuss and implement a ranking methodology to select most promising sites to be included in the upcoming feasibility studies, present to Power Cell and generation companies, and finalize;

(vii) Prepare tentative grid interconnection plans and costs, to be provided with each pre-feasibility study, in consultation with PGCB;

78 Annex 1

(viii) Review the Bangladesh grid code, guidelines for interconnection of intermittent sources, and the present practices, and provide an outline of issues to be studied by feasibility study teams and the transmission planning teams conducting parallel studies;

(ix) In consultation with the wind power specialist and the solar power specialist, prepare cost estimates of wind and solar measuring instruments and equipment required to be installed on-site at each one of the four sites selected, to secure investment-grade resource data, in preparation for the feasibility studies;

(x) Assist Power Cell or the respective generating company to procure, install and operationalize the required measuring equipment, and to create an enabling environment for the feasibility study team to commence work; and

(xi) Organize an inception workshop and a concluding workshop to discuss and disseminate the findings among the Power Division/Power Cell staff, the generating companies, and other stakeholders.

177. The Power System Specialist (national) will be responsible for local inputs and support the international power system engineer and team leader in conducting the above-mentioned tasks. The specialist should preferably have a bachelor’s degree in electrical engineering and at least 7 years of experience in the power sector, including in power system design and implementation.

178. Wind Power Specialist (international): The wind power specialist (international) should have a degree in engineering or a related area, and at least 10 years of working experience in wind power development. Prior experience in developing renewable energy specific plans would be preferable. In particular, tasks of the wind power specialist (international) will include, but not be limited, to the following:

(i) Review the long-list of sites proposed for wind power development, and assess the sites in terms of attributes to be defined by the specialist, to enable site screening;

(ii) Analyze the existing renewable resource database and relevant studies done in the past to assess the renewable potential for wind;

(iii) Prioritize and rate the development potential of various sites; review the existing constraints, which may affect the development of wind power plants at the designated sites/siting areas;

(iv) Prepare specifications and cost estimates for additional resource information required to conduct a feasibility study, and assist Power Cell/generating company, to procure and install the required equipment;

(v) Provide inputs to the site selection report, and once a consensus has been reached with Power Cell, prepare pre-feasibility studies for the two selected wind power development sites; and

(vi) Assist the team leader and conduct workshops, to secure information and disseminate study findings/pre-feasibility studies.

179. The Wind Power Specialist (national) will be responsible for local inputs and support the international wind power specialist in conducting the above-mentioned tasks. The specialist should preferably have a bachelor’s degree in engineering and at least 7 years of experience in the power sector, including in renewable energy development.

180. Solar Power Specialist (international): The solar power specialist (international) should have a degree in engineering or a related area, and at least 10 years of working

Annex 1 79

experience in solar power project development. Prior experience in developing renewable energy specific plans would be preferable. In particular, tasks of the solar power specialist (international) will include, but not be limited, to the following:

(i) Review the long-list of sites proposed for solar power development, and assess the sites in terms of attributes to be defined by the specialist, to enable site screening;

(ii) Analyze the existing renewable resource database and relevant studies done in the past to assess the renewable potential for solar;

(iii) Prioritize and rate the development potential of various sites; review the existing constraints, which may affect the development of solar power plants at the designated sites/siting areas;

(iv) Prepare specifications and cost estimates for additional resource information required to conduct a feasibility study, and assist Power Cell/generating company, to procure and install the required measuring equipment;

(v) Provide inputs to the site selection report, and once a consensus has been reached with Power Cell, prepare pre-feasibility studies for the two selected solar power development sites; and

(vi) Assist the team leader and conduct workshops, to secure information and disseminate study findings/pre-feasibility studies.

181. The Solar Power Specialist (national) will be responsible for local inputs and support the solar power specialist (international) in conducting the above-mentioned tasks. The specialist should preferably have a bachelor’s degree in engineering and at least 7 years of experience in the power sector, including in project development of solar PV.

182. Teams 2 and 3: Two feasibility studies for wind power plants will be conducted by Team 2. Two feasibility studies for solar power plants will be conducted by Team 3. The work assigned to consultants, their specialties’ and person-month allocations are given below. The TOR for each consultant are given in subsequent paragraphs.


1 Power System Engineer/Team Leader 8 10

2 Wind Power/Solar Power Specialist 7 9

3 Medium Voltage Network/Distribution Specialist 4 4

4 Financial Analyst 3 3

5 Bid Advisor/ Transaction Specialist 4 4

6 Legal Specialist 3 3

7 Sociologist 4 6

8 Environmental specialist 4 6


183. Power System Engineer/Team Leader (international): The power system engineer (international) and team leader will be responsible for the overall quality and implementation of the feasibility study, providing the required support to the executing agency the Power Division and the implementing agency, and reporting to an ADB project officer. The consultant should have a degree in electrical engineering and 15 years of experience in the energy sector including in power system design and implementation. In particular, the tasks of the power systems engineer (international) and team leader will include, but not be limited, to the following:

80 Annex 1

(i) As a team leader, manage the consulting team, coordinate with other team members to develop a detailed work plan and an implementation schedule, work with the executing agency/implementing agency to oversee the consulting team, and compile, edit, and ensure the quality of reports to be issued under the feasibility study;



(iv) Review previous studies on wind (or solar) resource assessment, grid integration of wind and other embedded generators, and power generation expansion plans, and transmission plans;

(v) Identify the operational and technical issues pertaining to the Bangladesh power system due to the intermittent nature of wind (or solar) electricity generation;

(vi) Prepare a proposal on dispatch and control of the proposed wind (or solar) park jointly with the wind (or solar) power specialist;

(vii) Conduct technical due diligence on internal infrastructure of the proposed wind (solar) park including medium voltage network and internal cabling, examine alternative solutions;

(viii) Prepare composite cost estimates, and an implementation schedule for the implementation of wind (or solar) projects;

(ix) Estimate Green House Gas reduction, and identify and properly address climate change impacts;

(x) Coordinate the activities of the team in preparing the feasibility study, preliminary design and comprehensive due diligence report, and finalize them with inputs from other consultants; and

(xi) Organize workshops/conferences to discuss and disseminate the findings among the Power Division/Power Cell staff, the relevant generating company, and other stakeholders.

184. The Power System Engineer (national) will be responsible for local inputs and support the international power system engineer and team leader in conducting the above-mentioned tasks. The specialist should preferably have a bachelor’s degree in electrical engineering and at least 7 years of experience in the power sector, including in power system design and implementation.

185. Wind Power (Solar Power) Specialist (international): The wind power (solar power) specialist (international) should have a degree in engineering or a related area, and at least 10 years of working experience in wind power (solar power) development. Prior experience in developing renewable energy specific plans would be preferable. In particular, tasks of the wind power (solar power) specialist (international) will include, but not be limited, to the following:

(i) Analyze the existing renewable resource database and relevant studies done in the past to assess the renewable potential for solar and wind. Prioritize and rate the development potential of various renewable resources across geographical locations. Review the existing constraints, which may affect the development of renewable resources;

(ii) Review the efficacy of development of renewable energy parks (wind and solar) in the context of the Bangladesh power sector;

Annex 1 81

(iii) Prepare the technical designs of the wind (solar) power generation facilities and identify optimal specifications, given the market conditions, site conditions and resource availability, to ensure optimal use of resources and space;

(iv) Support the team leader in preparing/finalizing a feasibility study for the proposed wind (solar) parks;

(v) Support the power system engineer (international) in preparing a proposal and specifications for a dedicated dispatch control center for the proposed wind (solar) parks;

(vi) Arrange capacity building activities, workshops and training relating to development of wind (solar) projects, wind (solar) power generation technologies and relevant design matters; and

(vii) Advise the generating company on an appropriate specialized software for wind (solar) forecasting, control and management, and conduct training to the Power Cell and generating company staff on its application.

186. The Wind (Solar) Power Specialist (national) will be responsible for the local inputs and to support the wind (solar) power specialist (international) in conducting the above tasks. The specialist should have a bachelor’s degree in engineering and 7 years of experience in the energy sector including on the technical aspects of the wind (solar) power generation.

187. Medium Voltage Network/Distribution Specialist (international): The medium voltage network/distribution specialist (international) will prepare the design of internal electrical infrastructure of the proposed wind (solar) parks as well as relevant specifications, standards and practices. The specialist will coordinate with the team leader and provide the required support and information in a timely manner for the preparation of reports. The specialist should have a degree in engineering and preferably 10 years of experience in medium voltage network/distribution design. Experience in designing internal infrastructure for wind and/or solar parks would be advantageous. In particular, tasks of the medium voltage network/distribution specialist (international) will include, but not be limited, to the following:

(i) Support the team leader in preparing/finalizing a feasibility study for the proposed wind (solar) parks;

(ii) Conduct/review route surveys;

(iii) Finalize the least-cost design for line/cable routes and the cost estimates for relevant components of the wind (solar) parks;

(iv) Conduct load flow studies to optimally size the wire and develop an investment plan for the wind (solar) park internal infrastructure/cabling;

(v) Prepare technical specifications and requirements for internal infrastructure/cabling;

(vi) Prepare recommendations on standards and practices for internal electrical infrastructure of the wind (solar) parks;

(vii) Support the power system engineer (international) and team leader in preparing a proposal on a dedicated dispatch control center for the proposed wind (solar) parks; and

(viii) Support capacity building activities, workshops and training arranged by the consulting team.

188. Medium Voltage Network/Distribution Specialist (national). The medium voltage network/distribution specialist (national) will be responsible for local inputs and support the medium voltage network/distribution specialist (international) in conducting the above-

82 Annex 1

mentioned tasks. The specialist should preferably have a bachelor’s degree in engineering and preferably 7 years of experience in the in medium voltage network/distribution design.

189. Financial Analyst (international). The consultant should preferably have a degree in finance or business administration and preferably 10 years of relevant experience in financial management assessment and/or financial analysis of projects. Having a chartered accountant, CPA, or equivalent qualification would be advantageous. The specialist will assist the team leader and provide relevant inputs. In particular, tasks of the specialist will include, but not be limited, to the following:

(i) Prepare comprehensive cost estimates and financing plans for the project considering different financing options available to generation companies;

(ii) Design project fund flow/disbursement mechanisms;

(iii) Review any decisions of Bangladesh Energy Regulatory Commission (BERC) is assessing tariffs payable to wind (solar) power generation projects;

(iv) Carry out in-depth financial analysis, including calculation of the financial internal rate of return (FIRR) under the proposed financing structure. Alternatively, estimate the expected tariff through a levelized cost approach of the sub-projects. Identify key project risks and conduct relevant sensitivity analysis based on these risks. Outline practical strategies and approaches to mitigate the risks and to enhance financial robustness; and

(v) Conduct other relevant work assigned by the team leader.

190. Financial Analyst (national): The financial analyst (national) will be responsible for the local inputs and support the financial analyst (international) in conducting the above tasks. The consultant should preferably have a bachelor degree in finance or business administration with preferably 7 years of experience.

191. Bid Advisor/Transaction Specialist (international): The consultant should preferably have a degree in business administration, engineering or economics, and preferably 10 years of working experience in the energy sector, specifically on a competitive bidding framework in renewable energy. The specialist will prepare a competitive bidding framework for the private sector participation in wind/solar parks. In particular, tasks of the bid advisor/transaction specialist (international) will include, but not be limited, to the following:

(i) Support the executing agency/implementing agency in preparation of a competitive bidding framework for selection of private developers through a competitive bidding process;

(ii) Prepare a wind (solar) power business plan incorporating the existing and proposed plans for wind (solar) parks;

(iii) Support the executing agency/implementing agency in preparation of competitive bidding guidelines for the private sector participation in wind (solar) power generation;

(iv) Develop commercial arrangements and prepare draft competitive bidding documents (request for qualification, request for proposal, draft PPA, etc);

(v) Analyze prospects, viability and suitability of potential public-private partnership options in developing each wind (solar) park;

(vi) Identify optimal public-private partnership bid package options;

Annex 1 83

(vii) Undertake capacity building activities (training, workshops, etc.) to prepare the executing agency/implementing agency for conducting competitive bidding for the private sector selection/participation in wind (solar) power generation; and

(viii) Carry out other relevant work assigned by the team leader.

192. Bid Advisor/Transaction Specialist (national): The bid advisor/transaction specialist (national) will be responsible for the local inputs and support the bid advisor/ transaction specialist (international) in conducting the above tasks. The consultant should preferably have a bachelor’s degree in engineering or business administration with preferably 7 years of experience in the energy sector.

193. Legal Specialist (international): The consultant should preferably have (at least) a master’s degree in law and preferably 10 years of experience in advising renewable energy transactions. The specialist will prepare the draft legal and commercial documentation for the development of the wind (solar) power. In particular, tasks of the legal specialist will include, but not be limited, to the following:

(i) Prepare draft commercial documentation including a draft power purchase agreement, specifically focused on wind (solar) power generation between BPDB as the single buyer and a private sector developer;

(ii) Develop commercial aspects of the wind (solar) power generation, including preparation of the contractual arrangements for the public-private partnership mode, from the legal point of view;

(iii) Jointly with the bid advisor/transaction specialist (international), conduct capacity building activities (training, workshops, etc.) to prepare the executing agency/implementing agency for organizing competitive bidding for the private sector selection/participation in the wind (solar) power generation; and

(iv) Carry out other relevant work assigned by the team leader.

194. Legal Specialist (national): The legal specialist (national) will be responsible for the local inputs and support the international legal specialist in conducting the above tasks. The consultant should preferably have a bachelor’s degree in law and preferably 7 years of experience in advising commercial transactions relating to the energy sector, preferably for renewable energy.

84 Annex 1

5. TRANSMISSION PLANNING, PROJECT PREPARATORY SUPPORT FOR PGCB, AND RENEWABLE INTEGRATION STUDIES/PROTOCOL DEVELOPMENT

5.1. Scope of Work 195. PGCB owns and operates the transmission network in Bangladesh at 132 kV and above. Planning of the transmission network is conducted by the in-house staff of PGCB. Presently, PGCB has a transmission plan up to year 2021, while a longer-term master plan up to year 2041 is under preparation by with support from JICA.26

196. The technical assistance will provide specific support to PGCB for three activities: (a) review transmission network plans for the period 2016-2025, enhance the plans, and establish a regular 10–year transmission planning activity at PGCB that would satisfy both engineering as well as investment planning requirements for tariff and other regulatory determinations, (b) prepare plans, conceptual designs and feasibility studies for grid substations required to be built in rural and industrial areas to serve the growing demand over the period 2016–2025, and (c) conduct a grid integration study to examine impacts on reliability, stability and economics of developing wind and solar PV power plants, for the period 2016–2030.

197. Ten–year transmission development plan 2016–2025: Technical assistance provided under the project will build-up on the on-going planning work by PGCB presently conducted with in-house staff, to establish a system to review the transmission plan every year, and to prepare a 10-year rolling plan. PGCB presently has capability to conduct load-flow analysis, contingency analysis, short-circuit modelling, and stability analysis. Working with PGCB staff, the consultant will provide the following services: (i) review the approach, modelling work and software used by PGCB to assess the transmission system and to prepare plan for the future, (ii) examine adequacy and accuracy of data on the existing transmission network, generators and other network elements, and information about planned additions to the network, to ensure industry-standard analysis and accuracy of the simulations, (iii) establish a planning cycle, timelines and an associated work program at PGCB to secure information, consider proposed additions, conduct analyses, prepare plans, develop cost estimates, and documentation of the plan.

198. The consultant would conduct a comprehensive review of the 10-year plan prepared to ensure the plan represents the cost-optimal solution to substation and transmission capacity expansion, and power plant interconnection requirements. The consultant will examine the plan for real and reactive power balance, frequency and voltage stability, under normal and contingency conditions, and propose equipment and systems to stabilise the grid under adverse conditions. The consultant would comment on the data used in modelling and suggest any improvements required.

199. Feasibility and project preparatory study for transmission development: PGCB requires to ensure adequate and reliable power supply for the upcoming economic zone at Mirsarai in Chittagong, to establish transmission infrastructure for transfer of electricity generated from upcoming coal/LNG power plants at Moheskhali and Matarbari to the major load centers and to meet the rapidly growing demand of residential, commercial and industrial consumers in the southern region (in Gopalganj, Satkhira, Faridpur, Khulna, Chittagong and Greater Barisal Districts), as well as other locations throughout Bangladesh.

26

Japan International Cooperation Agency

Annex 1 85

200. The consultant will conduct the feasibility study for grid development in specific areas. The specific tasks to be conducted are summarized below: (a) review the power sub-sector in the project area, (b) conduct network analyses, and (c) confirm the transmission development plan. The consultant would then, (d) conduct preliminary identification of line routes, (e) conduct preliminary survey of substation areas, (f) prepare layout and design to be used in the feasibility study for transmission lines, new substations, and extension of existing substations. The consultant’s work will cover electrical, communications and SCADA27, civil, structural and architectural works. The consultant will provide (g) cost estimates, economic and financial analysis and justification of selected projects, and (h) conduct the environmental impact assessment of the proposed project.

201. Grid integration study for wind and solar power plants: The study will consider all the wind and solar power generation projects in progress so far, their likelihood of development, to prepare a baseline, as of 2016, for year 2020. Then for the period until 2040, considering the government policy on renewable energy development, plans prepared and approved by the government, the study would develop a plan for renewable energy development, alongside plans for other conventional power generating facilities. The study would then examine the technical, economic and commercial impacts of the renewable energy development plan, by conducting the required steady state and dynamic simulations, dispatch, intermittency, and financial/ economic impact modelling. The study would recommend the most prudent strategy for development of renewable energy, and recommend any changes to (i) codes and standards to ensure grid performance of the required quality, and (ii) tariff methodology and pricing of renewable energy

202. The work will be conducted by a team of consultants, whose specialties and person-month allocations are given below. The TOR for consultants are given in subsequent paragraphs.


1 Transmission Planning Specialist/Team Leader 7 7 2 Transmission and Substation Project Specialist 5 8 3 Power System Operations Specialist 2 2 4 Renewable Energy Specialist

2 4

5 Civil and Structural Engineer

3 5 6 Communication and SCADA Specialist 4 6 7 Financial Analyst

3 3

8 Power Economist

2 2 9 Sociologist

4 4

10 Environmental Specialist

3 3


SCADA = supervisory control and data acquisition.

203. Transmission Planning Specialist/Team Leader (international): The transmission planning specialist (international) and team leader will be responsible for the overall quality and implementation of the technical assistance project, providing the required support to the executing agency the Power Division and the implementing agency, and reporting to an ADB project officer. The consultant should have a degree in electrical engineering, a postgraduate degree, and preferably 15 years of experience in power system planning including in power transmission network analysis, project feasibility studies, substation designs, developing grid codes/standards, and grid integration of renewable energy-based generation. In particular, the

27

Supervisory Control and Data Acquisition

86 Annex 1

tasks of the international power systems specialist and team leader will include, but not be limited, to the following.



(iii) Direct national consultants in the day to day operational management of the technical assistance activities;

(iv) Review the periodically prepared master plans for grid development, status of their implementation, and the on-going planning and network analysis activities of PGCB’s planning team;

(v) Conduct a comprehensive review of PGCB’s transmission development plan, in terms of steady state, contingency, short circuit and stability assessment, and review the present study methods, approach and software used. Conduct additional studies and modelling work, to confirm PGCB’s plans and to revise as required;

(vi) Prepare a proposal for establishing all activities including manpower requirements and capacity building, to establish a 10-year rolling plan, to be updated once in two years, to meet the technical requirements of power plant interconnections, substations to serve customer growth, integrate renewable energy systems, and to estimate the investment requirements from both financing and regulatory points of view;

(vii) After discussion with PGCB, implement the proposal, and along with PGCB staff, prepare the 10–year rolling plan and establish data sources, methods of analysis, approach, costing, etc., to enable the plan to be updated by PGCB staff to meet technical and investment planning requirements at regular intervals;

(viii) Structure and prepare the report on the 10-year transmission development plan;

(ix) Working with the transmission and substation project specialist, prepare the needs assessment for transmission, substation and related projects to be implemented over the period 2017–2021;

(x) Structure the additional project specific transmission studies and guide the team to conduct project confirmation studies, and feasibility studies on such transmission and substation development projects;

(xi) Working with the renewable energy specialist, review the renewable energy development policy, grid-connected renewable energy development activities and ongoing feasibility studies, and assess the most likely scenario of addition of intermittent resource-based generation into the grid over a period of 15 years;

(xii) Conduct the required network studies to establish that interconnection of such renewable energy development projects would enable the transmission system to operate within accepted international norms in terms of reliability, stability and power quality;

(xiii) Establish a methodology to develop power system and machine parameters required for transient studies, and recommend ways to develop such parameters to ensure a high degree of accuracy of the stability studies;

Annex 1 87

(xiv) Prepare the protocol for grid interconnection of intermittent resource-based generation to the grid, proposing compressive amendments to the draft grid code, or by way of a stand-along grid code for such sources; and

(xv) Organize an inception workshop to present the detailed project scope, a mid-term workshop, and a concluding workshop to discuss and disseminate the findings among the Power Division/Power Cell staff, PGCB, and other stakeholders.

204. Transmission Planning Specialist (national): The transmission planning specialist (national) will be responsible for local inputs and support for the transmission planning specialist (international) and team leader in conducting the above tasks. The specialist should preferably have a bachelor’s degree in electrical engineering and at least 7 years of experience in the power sector, including in power system planning studies and project development.

205. Transmission and Substation Project Specialist (international): The transmission and substation project development specialist should have a degree in electrical engineering, and at least 12 years of working experience in several of the following activities in power transmission and substation development: feasibility studies, project development, cost estimation, project management, testing and commissioning, and should have worked on projects in the voltage range of 132 kV to 400 kV. In particular, tasks of the transmission and substation project development specialist will include, but not be limited, to the following:

(i) Review the list of subprojects required to be implemented under the transmission and substation development project, for compatibility with on-going projects and existing transmission and substation facilities;

(ii) Conduct the feasibility study for each project component including technical confirmation of the requirement, compatibility with other systems/equipment, site identification/verification, and costing of project components;

(iii) Ensure the concept of the substation control, either based on the conventional panel-controlled system (prevailing in existing substations) or on the digital computer controlled system, is selected in consultation with PGCB, and considering the requirement for data transmission to the Load Dispatch Center, located in Dhaka;

(iv) Based on the confirmation of the suitability of the substation areas, develop basic drawings for the new substations as well as the extension of existing substations including, but not limited to, the following: (a) Single line diagrams indicating the station arrangement, equipment layout

etc. (b) Layout drawings including sections and elevations showing, in general,

substation site, line termination positions and requirements, connections to existing facilities if any, bus work and provisions for future expansion, etc.

(c) Protection, control and metering drawings shall be developed and shall indicate types of protection, zones of protection and timing requirements, re- closing requirements, signaling and communications requirements, schematic drawings showing of the equipment protection to be provided, etc.

(d) Panel arrangements in the control room and extensions to the room, electrical auxiliaries, dc batteries or extensions to existing dc battery banks, etc.

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(e) Provision of necessary RTUs to allow integration of the substations into PGCB's remote control system;

(v) Verify the financial and economic viability of the proposed project components with the assistance of financial and economic specialists in the TA team, and compile the feasibility study report in accordance with government and ADB guidelines;

(vi) Prepare specifications for all project components, and review the bid documents prepared by PGCB;

(vii) Prepare a comprehensive Feasibility Study report, incorporating site selection, line routing, preliminary electrical and structural designs, cost estimates, financial and economic analyses, and safeguards analyses; and

(viii) Conduct capacity building, training and seminars, as required, to disseminate information among the staff of Power Division/Power Cell staff, PGCB, and other stakeholders.

206. Transmission and Substation Project Specialist (national): The transmission and substation project specialist (national) will be responsible for local inputs and support for the transmission and substation project specialist (international) in conducting the above tasks. The specialist should preferably have a bachelor’s degree in electrical engineering and at least 7 years of experience in the power sector, including in transmission and substation project development, design or construction.

207. Renewable Energy Specialist (international): The renewable energy specialist (international) should have a degree in engineering or a related area, and at least 10 years of working experience in wind or solar power development. Prior experience in developing renewable energy specific plans would be preferable. In particular, tasks of the renewable energy specialist (international) will include, but not be limited, to the following:

(i) Review the available resource information and on-going/previous studies, as well as project development initiatives by Power Cell and generating companies, to assess the locations where larger scale developments of wind and solar energy may occur within the planning period of 10 years;

(ii) Specifically examine the studies and feasibility studies conducted/being conducted by Power Cell and generating companies, to develop scenarios;

(iii) Asses the resource information and examine the impacts on the transmission system, in terms of seasonality and intermittency of wind and solar resources; provide information required for transmission system operations modelling and network analysis;

(iv) Develop renewable energy development scenarios, based on prudent development of resources within economic and technical limitations, to facilitate modelling of the expected impacts of each scenario on the grid; and

(v) Provide inputs to the modelling efforts by the transmission planning specialists, on technology developments and types of wind and solar power plants, and their technical parameters.

208. The Renewable Energy Specialist (national) will be responsible for the local inputs and to support the renewable energy specialist (international) in conducting the above tasks. The specialist should have a bachelor’s degree in engineering or a related discipline and 7 years of experience in the energy sector including on the technical aspects of the wind and solar power generation.

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209. Civil and Structural Engineer (international): The international civil and structural engineer project development specialist should have a degree in electrical engineering, and at least 12 years of working experience in several of the following activities in power transmission and substation development: feasibility studies, project development, cost estimation, project management, testing and commissioning, and should have worked on projects in the voltage range of 132 kV to 400 kV. In particular, tasks of the transmission and substation project development specialist will include, but not be limited, to the following:

(i) In association with transmission and substation project specialist, conduct preliminary line route identification in sufficient detail, also in close collaboration with PGCB as a basis to estimate its cost; the line route identification would identify angle and terminal points and may be based on existing information (PGCB information, topographical maps, GPS data, digital maps, etc.). On such basis the approximate initial route clearance and right of way aspects will have to be determined;

(ii) Drawn on a map, a preliminary line route indicating GPS coordinates;

(iii) More specifically, the line route identification would also assess the sub-soil conditions;

(iv) In coordination with PGCB the consultant should propose new substation areas, by conducting site visits to each of the areas requiring the selection of new land. Prior to the site visit, the consultant requires to acquaint himself, in consultation with PGCB, with the usual procedures of land acquisition in Bangladesh for project purposes;

(v) Ensure that content of the feasibility study would be sufficiently comprehensive for further use by PGCB in the process of land acquisition;

(vi) For the extension of the existing substations, inspect and locate the line terminations;

(vii) Provide preliminary and tentative layout drawings for all civil, structural engineering and architectural works and equipment including site improvements, access roads, fencing, drainage, grading, water supply, sewage and waste disposal and equipment foundations for the substation extensions and proposed new substations;

(viii) Prepare designs and drawings for any extensions to the control building or/and room at existing substations;

(ix) Prepare design drawings for general foundations and structural outlines; and

(x) Ensure the level of detail shown on the drawings would be sufficient to allow for the determination of scope of work by a contractor.

210. Civil and Structural Engineer (national). The civil and structural engineer (national) will be responsible for local inputs and support for the civil and structural engineer (international) in conducting the above tasks. The specialist should preferably have a bachelor’s degree in civil or structural engineering and at least 7 years of experience in the construction industry. Experience in power transmission and substation projects is desirable.

211. Communication and SCADA Specialist (international). The international communication and SCADA specialist should have a degree in electrical or communication/electronic engineering or a related area, and at least 12 years of working experience including communication systems and SCADA in the utility industry In particular, tasks of the international communication and SCADA specialist will include, but not be limited, to the following:

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(i) Study and design a new Communication and SCADA system the new substations, considering amongst others, the required signaling facilities, data transmission and communication channel requirements, telephone system. The use of fiber optical transmission system based on Optical Pilot Ground Wire (OPGW) on the new transmission lines should be given priority;

(ii) With respect to the extension of existing substations, review the existing communication and SCADA system, and if found adequate, extend the existing system to cover the new equipment. PLC extension may be more advantageous for the extension of existing substation systems; and

(iii) In any case, the data transmission shall take into account the requirements for the integration of the new or extended network components into the PGCB's LDC. System compatibility and a description of all control integration works into the LDC shall be addressed by the Consultant in order to safeguard the functionality and compatibility with the existing PGCB systems on transmission networks.

212. Communication and SCAD Specialist (national). The communication and SCADA specialist (national) will be responsible for local inputs and support for the communication and SCADA specialist (international) in conducting the above tasks. The specialist should preferably have a bachelor’s degree in electrical, telecommunication/electronic engineering, and at least 7 years of experience in communication. Experience in power transmission and substation projects is desirable.

213. Power System Operations Specialist (international). The power system operations specialist should have a degree in engineering or a related area, and at least 10 years of working experience in power system dispatch and control, preferably in systems including significant renewable energy inputs. Prior experience in developing renewable energy specific plans would be preferable. In particular, tasks of the wind power specialist will include, but not be limited, to the following:

(i) Review the planned generating facilities in consultation with Bangladesh Power Development Board (BPDB), the single buyer, and review the long term plans prepared by related agencies, including the Master Plans of 2010 and 2015;

(ii) Prepare a 20 year energy balance, considering the approved demand forecast, development plans for power plants, both conventional and renewable, and prepare operating costs estimates under these scenarios;

(iii) Provide inputs to systems studies conducted by the transmission planning specialist, to assess the dispatch of power plants, considering the seasonality and intermittency of planned renewable energy development;

(iv) Asses and cost spinning reserve and other ancillary services required to ensure network stability with larger scale renewable energy developments, as planned;

(v) Provide inputs to the grid integration protocol/grid code related to renewable energy development;

(vi) Study and recommend forecasting requirements and procedures, once intermittent and seasonal renewable sources are added to the system;

(vii) Prepare and conduct a workshop on power system operations under different scenarios compatible with development plans/studies conducted, to highlight the impacts and additional facilities required for system operations; and

(viii) Prepare a capacity development plan for PGCB and BPDB staff, in preparation for integration of larger scale renewable energy facilities from the point of view of

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system operations, including forecasting under resource uncertainty, and implement the agreed components of the capacity development plan.

214. Power System Operations Specialist (national). The power system operations specialist (national) will be responsible for local inputs and support for the power system operations specialist (international) in conducting the above tasks. The specialist should preferably have a bachelor’s degree in electrical engineering and at least 7 years of experience in the power sector, including in power system operations and dispatch.

215. Financial Analyst (international). The consultant should preferably have a degree in finance or business administration and preferably 10 years of relevant experience in financial management assessment and/or financial analysis of projects. Having a chartered accountant, CPA, or equivalent qualification would be advantageous. The specialist will assist the team leader and provide relevant inputs. In particular, tasks of the specialist will include, but not be limited, to the following:

(i) Prepare comprehensive cost estimates and financing plans for the project considering different financing options available to the implementing agency;

(ii) Design project fund flow/disbursement mechanisms;

(iii) Carry out in-depth financial analysis, including calculation of the financial internal rate of return (FIRR) under the proposed financing structure;

(iv) Identify key project risks and conduct relevant sensitivity analysis based on these risks. Outline practical strategies and approaches to mitigate the risks and to enhance financial robustness;

(v) Prepare the project costing and financial evaluation sections of the feasibility report; and

(vi) Conduct other relevant work assigned by the team leader.

216. Financial Analyst (national). The financial analyst (national) will be responsible for the local inputs and support the financial analyst (international) in conducting the above tasks. The consultant should preferably have a bachelor’s degree in finance or business administration with preferably 7 years of experience.

217. Power Economist (international). The international power economist will assist PGCB in estimating and analyzing costs of the proposed transmission and substations projects. The specialist will coordinate with the team leader and provide the required support and information in a timely manner for the preparation of reports. The international power economist should preferably have a degree in economics or engineering, and preferably 10 years of experience in the energy sector, including in the economic analysis of power projects. In particular, tasks of the power economist will include, but not be limited, to the following:

(i) Analyze the cost structure of the proposed transmission and substation, including both the up-front investment and operation and maintenance costs;

(ii) Estimate economic and environmental benefits of the project and its components;

(iii) Estimate all relevant costs for transmission and substation projects.

(iv) Carry out an economic analysis for the project following the ADB’s Guidelines for Economic Analysis, including (a) power demand analysis, (b) least-cost analysis, and (c) economic viability analysis;

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(v) Incorporate into the economic analysis an economic quantification of environmental impact due to the project following ADB’s Economic Valuation of Environmental Impacts: A Workbook (1996), and Environmental Assessment Guidelines (2003);

(vi) Discuss the assumptions and economic parameters used in the economic analysis, including the assumed consumers’ willingness to pay and resource cost savings in relation to alternative options;

(vii) Assess social and gender impacts jointly with a social development specialist; and

(viii) Carry out other relevant work assigned by the team leader.

218. Power Economist (national). The national power economist will be responsible for the local inputs and support the international power economist in conducting the above tasks. The national power economist should preferably have a bachelor’s degree in engineering or economics and preferably 7 years of experience in the energy sector, including in economic analysis of power projects.

219. Environmental Specialist (international). The environmental specialist shall be familiar and knowledgeable about Bangladesh environmental framework and approval requirements related to environmental clearances for power sector investment projects. The environmental specialist will have degree in environment, science or a related discipline, shall have at least 12 years of experience including preparing Environmental Impact Assessment and Initial Environmental Examinations (lEEs) of projects financed by international financial institutions, specifically ADB and the World Bank. In accordance with relevant guidelines and policies for environmental assessment, the international environmental specialist, with assistance of the national environmental specialist, will undertake, but not be limited to, the following tasks:

(i) Review of institutional capacity of the proposed executing and implementing agencies to prepare and implement environmental impact assessment (EIA) reports for the project components and the required Environmental Management Plan to determine mitigation measures in the design, construction, and maintenance phases of the project components and national regulatory requirements in accordance with the ADB's Environmental Policy (2002) and the ADB's Environmental Assessment Guidelines (2006);

(ii) Review laws, regulations and policies of Bangladesh on environment;

(iii) Prepare Rapid Environmental Assessment Checklist and determine environmental category for each project component;

(iv) Prepare project descriptions and a summary of environmental issues identified for each project component to support the determination of the project environmental categorization;

(v) Prepare Environmental Impact Assessments or Initial Environmental Examinations depending on the subproject categorization (environmental category A or B) assigned by ADB in accordance with the 2006 ADB Environmental Assessment Guidelines; and

(vi) Document and organize public consultations, including local stakeholders, at least once in representative project sites. If any environment Category-A components are identified, carry out two public consultations (once during the early stages of an environmental impact assessment (EIA) field work, and once when the draft EIA report is available and before loan appraisal by ADB); and

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(vii) Prepare environmental management plan (EMP) and Monitoring for each project component and a combined EMP and MP for the entire project. The project component EMPs and the combined EMP shall include a cost estimate plan for implementation of the proposed mitigation measures.

220. Environmental Specialist (national). The national environmental specialist will be responsible for the local inputs and support the international environmental specialist in conducting the above tasks. The national environmental specialist should preferably have a The environmental specialist will have degree in environment, science or a related discipline, shall have at least 7 years of experience including preparing Environmental Impact Assessment and Initial Environmental Examinations (lEEs).

221. Social Development Specialist (international). The international social development specialist should preferably have a degree in sociology and at least 12 years of experience including preparing social impact assessments. In accordance with all relevant policies, in particular with the relevant laws and policies of Bangladesh, ADB's Policy on Involuntary Resettlement (1995), and Policy on Indigenous People (1998), the tasks of the international social development specialist, will include, but will not be limited to, the following:

(i) Review the national legal policies on land acquisition and involuntary resettlement to verify adequacy and consistency with ADB's Involuntary Resettlement Policy and Indigenous People Policy and if gaps are found, recommend measures to bridge the gap. Analyze and confirm the following aspects (at national and local levels) that will apply to land acquisition and resettlement in the project area: (a) laws and regulations, including local practices; (b) budgetary processes (tentative agreement from concerned authorities on provision of outlays necessary for land acquisition and resettlement); and (c) relevant administrative arrangement and requirements;

(ii) If the project components involve resettlement, prepare a resettlement plan with full stakeholder participation including participation of the executing and implementing agencies. Resettlement plan should be implementable in the Bangladesh context and still meet ADB policy requirements;

(iii) Determine the replacement costs of all categories of losses; and prepare an indicative budget for land acquisition and resettlement costs with specific sourcing and approval process;

(iv) (iv) Assess the need for an indigenous peoples development plan and carry out any further indigenous people-targeted surveys, as necessary;

(v) Prepare a socioeconomic analysis, including a poverty profile and characteristics and determinants of primary project beneficiaries in the target areas of the proposed investment components based on a review of existing studies, data, and development plans. The analysis will include a review of poverty by gender and ethnic minority and propose specific actions to benefit vulnerable indigenous peoples and minorities; (vi) Analyze access to electricity, affordability, consumption levels, and consumer satisfaction across socioeconomic groups in target project areas, assess the determinants and elasticity of the demand for power by different socioeconomic groups, categorize areas where electrification would have the largest growth and poverty reduction impacts given the underlying potential of those areas, and assess the implications on employment generation for poor;

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(vi) In consultation with the power economist and financial analyst, define groups that would benefit from the proposed investment components, prepare an estimate of the distribution of the project's financial and economic benefits, and summarize the likely net benefits for each group in accordance with ADB's Handbook for Integrating Poverty Impact in Economic Analysis for projects. Given the available dataset, assess the direct, indirect, and distributional impacts of the project under different growth scenarios with and without the project, summarize the distributional impacts in a matrix, calculate the poverty impact ratio, and carry out appropriate risk and sensitivity analyses with respect to the poverty impact ratio;

(vii) Prepare a gender needs analysis to identify specific energy needs and preferences of poor and vulnerable women in project areas, design activities/indicators/targets responding to these energy needs to ensure gender beneficial impacts, and develop participatory gender-inclusive strategies to maximize women’s participation in project design, development and implementation;

(viii) Assess and recommend ways to improve gender equity, prepare a GAP, as needed;

(ix) Review land acquisition and relocation plans of project components that involve resettlement, and assess their conformity with ADB Guidelines for Involuntary Resettlement, including (a) time-bound arrangements, public consultation, public disclosure, relocation, compensation for affected inhabitants, and (b) costs related to relocation, compensation for land acquisition, and right-of-way;

(x) Incorporate all mitigation measures into the cost estimates of the proposed components; and

(xi) Prepare the TOR for the NGO/consultant who will be in charge of the implementation of the resettlement plans, indigenous peoples development plan and GAP.

222. Social Development Specialist (national). The national social development specialist will be responsible for the local inputs and support the international social development specialist in conducting the above tasks. The national social development specialist should preferably have a degree in sociology and at least 7 years of experience including preparing social impact assessments.

5.2. GIS-based management system installed in ten PBSs a. Scope of Work

223. Asset identification and management tasks of PBSs are generally weak. A modern electricity utility would maintain a comprehensive record of the geographic layout of the network, identify network elements using a coding system, and keep the information up to date using a geographic information system (GIS). New assets installed, old assets removed, asset maintenance work, as well as feeding points to the network and customer locations can be comprehensively identified in the GIS system. The system is also used to transfer information to network analysis and planning models.

224. A previous effort in 2006 has been abandoned after significant effort and resources were spent on various GIS-related capacity development and implementation work. A new activity to map 33 kV lines and 33 kV/11 kV substations in 39 PBSs has commenced in 2012, and has been completed June 2016. The work, funded under the JICA-assisted project, collected

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information on lines, poles, substations and transformers, and bulk customer service points, and has included them in a comprehensive GIS-based information system. The work selected one PBS (Jessore-2) and digitized the information up to the distribution transformer level throughout the PBS, but more work remains to be completed. The system and the database developed are currently operational, but lacks a mechanism to update the information. There are no GIS-qualified staff at PBSs to update the information. Beyond being a tool to view the layout of the network, substations, and their specifications, the system has not been linked to any management information tool, or for network planning, asset management or replacement functions. Therefore, the work is likely to be of little benefit to PBSs and to BREB in the years to come, unless urgent action is initiated to maintain the database through updates.

225. The World Bank under the TAPP project 2016, has committed to develop a plan for the implementation of GIS-based system for operations, monitoring, and analysis. A consultant will be engaged in 2016 under this World Bank-funded project to prepare a road map for establishment of a GIS-based utility management system coupled with engineering and financial analysis for the electric distribution network of the PBSs, institutional strengthening for preparation of a master plan based on technical and financial analyses under GIS environment, and integrating operation and revenue management of the PBSs for improvement of their overall performance. The planning process is expected to be completed in two years, under the World Bank technical assistance. The committed World Bank assistance, at this stage, is limited to the preparation of a GIS implementation plan, and a design.

226. The technical assistance project under ADB would have two phases: (I) completion and consolidation of work done so far by BREB with the support of the World Bank and JICA, (II) expansion of the GIS-based information system to at least eight other PBSs.

227. In Phase I, the consultant would study initiatives implemented so far, and (i) complete the information system for the Jessore-2 PBS, and (ii) develop a comprehensive GIS-based network model for one additional PBS, as a pilot project, but with all the facilities and a system for conducting regular updates. The work will design and implement a comprehensive GIS-based management system for Jessore-2 and the other PBS selected. BREB/PBS capability will be established to map their network, and use the information system for (i) comprehensive load flow analysis to identify bottlenecks, poor quality of supply, (ii) attend to customer complaints/outages, (iii) comprehensive energy management/loss monitoring, (iv) reliability assessment, and (v) asset management. The system would facilitate routine assessment of network performance and adequacy, and enable all planning work to be done on the basis of the information system developed. The work will result in a "live" GIS-based system, for many requirements of Jessore-2 and the selected PBS, and the consultant appointed would be capable of establishing/re-establishing the GIS system as well as to establish and make operational, the load flow analysis, reliability assessment, asset management, and other functions.

228. In Phase II, the experience of Phase I that covered Jossore-2 and one other PBS, will be expanded to at least eight other PBSs. All the PBSs, at the end of the TA project, would have operational GIS-based information systems, operational systems to update and to use the information for planning and management of the PBS networks.

229. After completion of Phase I, and after an independent review of the achievements and the ability of the established GIS to serve the needs of the PBSs, executing agency and implementing agency would decide whether to proceed to Phase II.

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230. The TA will be conducted by a team of consultants, whose specialties and person-month allocations are given below. The TOR for consultants are given in subsequent paragraphs.

Phase 1 Phase 2

International National International National

1 GIS Development Specialist/Team Leader 4 12 10 30 2 IT Specialist 4 8 10 30 3 GIS Management Specialists 2 10 5 40 4 Distribution Planning Specialist 5 5 5 10 5 Distribution Maintenance Specialist 3 3 4 8 6 Institutional and Capacity Building Specialist 3 4 3 5 7 Communication and SCADA Specialist 2 2 4 6

Total person-months 23 44 41 129

GIS = geographic information system, SCADA = supervisory control and data acquisition.

231. GIS Development Specialist/Team Leader (international). The international GIS development specialist and team leader will be responsible for the overall quality and implementation of the TA, preparation of a plan to implement Phase 1 and Phase 2, providing the required support to the executing agency the Power Division and the implementing agency , and reporting to an ADB project officer. The consultant should have a degree in geographic information systems, engineering, earth sciences, information technology or a relevant discipline, postgraduate qualifications, and preferably 15 years of experience in the development of geographic information systems, preferably in the utility industry, in emerging countries. In particular, the tasks of the international GIS development specialist and team leader will include, but not be limited, to the following.




(iv) Review the studies and implementation work conducted by BREB on GIS system development, under the World Bank and JICA-funded technical assistance, and prepare a report covering (i) scope, (ii) achievements, (iii) current status of conducting updates, (iv) potential facilities and applications that are under-utilized, (iv) network analysis, studies, voltage profiling, customer identification, complaint handling, etc that can be included in the work already done, (v) proposals to complete the work done at PBSs, especially Jessore-2, and (vi) proposals for upgrading and using the work done, as a starting point for the planned GIS development under the TA. The report would also focus on Jessore-2 PBS, earmarked to be completed under the TA, as well as the work done in all the PBSs to map distribution lines, in the recent past. Include one other PBS, selected in consultation with BREB and the relevant PBS, to implement a fully-fledged GIS-based managed system;

(v) With the approval of the proposed upgrade and completion of work, and planned value added services, lead the TA team to complete the work, with the required software and hardware installed, staff trained and an operational GIS-based

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management system at Jessore-2 PBS, and the selected PBS. The operational activities, among others, should include network analysis with up to date network topology and parameters, comparison with measured values, management of response to customer complaints/failure reports, and calculation of reliability indices;

(vi) Upon one year of successful operation, prepare a completion report, highlighting the implementation issues, successes and failures, and the prospects for the implemented GIS-based management system to be continued to operate under full ownership of the two PBSs;

(vii) Upon the decision by executing agency/implementing agency, commence work on Phase 2 of the TA, for 8 other PBSs identified in association with implementing agency. Prepare a report on qualifying features to describe why the specific eight PBSs were selected for implementation. Manage the up-front studies required, the GIS mapping activities, training and capacity building, etc., and proceed to implementation; and

(viii) Organize an inception workshop, mid-term workshop, and a concluding workshop to discuss and disseminate the findings among the Power Division/Power Cell staff, BREB/PBSs, and other stakeholders.

232. GIS Development Specialist (national). The GIS development specialist (national) will be responsible for local inputs and support the GIS development specialist (international) and team leader in conducting the above tasks. The specialist should preferably have a bachelor’s degree in a relevant field, and at least 7 years of experience in design of GIS-based utility management systems, implementation, capacity building and monitoring.

233. IT Specialist (international). The information technology specialist (international) should have a degree in information technology, computer engineering, or in a related area, and at least 12 years of working experience in the utility industry. In particular, tasks of the IT specialist will include, but would not be limited, to the following:

(i) Review the IT infrastructure with BREB and PBSs, with particular reference to the implementation of GIS-based management of the distribution network of PBSs, and at PBSs where GIS implementation has been conducted;

(ii) Prepare an IT development plan, with hardware and software, to enable the work already conducted at Jessore-2 and other PBSs to be fully enabled, to facilitate and conduct day to day activities of the respective PBSs;

(iii) Contribute to the assessment report and development plan for the PBSs where GIS have already been implemented, and once approved by BREB, implement the plan inclusive of training of PBS staff and other professionals;

(iv) Ensure that the newly established IT infrastructure is operational and system updates are conveniently conducted by PBS staff, and design all required systems to enable the PBSs to harness the full potential of the system;

(v) Assist the distribution planning specialists to establish network planning and monitoring software and equipment, to enable network modelling and planning conducted by BREB and PBSs would be compatible with the GIS;

(vi) Prepare a comprehensive review of the operation of the system system after one year, and present a road map for the rectification of shortcomings identified and implement the road map;

(vii) Prepare the proposal for the replication of the efforts at the PBSs including Jessore-2, to be replicated in eight other PBSs, where such PBSs will be

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selected in consultation with the team leader and BREB, and the IT infrastructure will be planned and implemented by the consultant;

(viii) Once approved, implement the plan at the eight PBSs selected, to analyze systems, align such systems to the requirements of a common basis for PBSs to operate, and to use GIS facilities in day-to-day operations of a modern utility;

(ix) Plan and conduct all training activities, in association with the national consultants and the institutional and capacity building specialists; and

(x) Assist the team leader and conduct workshops, to secure information and disseminate the work, to ensure the GIS would be effectively used by PBSs for regular work.

234. IT Specialist (national). The information technology specialist (national) will be responsible for local inputs and support the information technology specialist (international) in conducting the above tasks. The specialist should preferably have a bachelor’s degree in a related discipline and at least 7 years of experience in the implementation of GIS activities, preferably in the utility industry.

235. GIS Information Management Specialist (international). The GIS information management specialist (international) should have a degree in engineering, earth sciences, information technology or a related area, and at least 12 years of working experience in implementation of GIS, especially in the utility industry. In particular, tasks of the GIS information management specialist will include, but will not be limited, to the following:

(i) The full responsibility of managing the field-level information collection, and establishing the required systems to collect and update such information lies with the GIS information management specialist (international), and GIS information management specialist (national); review the status of information collection, the relevant systems, and prepare and implement systems to ensure all information required to make the GIS systems at PBSs including Jessore-2 are fully operational;

(ii) Prepare a comprehensive review of the GIS implemented at Jessore-2 and other PBSs once they are made fully operational by the TA team, address shortcomings, prepare a road map to address remaining deficiencies, and implement a plan to address such deficiencies;

(iii) Prepare the designs to implement GIS-based management systems in eight other PBSs, plan and manage the information collection system from the field, and the systems, procedures, equipment, etc., through which such information would checked, regularly updated, by PBS staff;

(iv) Upon approval by PBSs and BREB, implement the information collection in the field with such temporary staff as required, but in parallel training PBSs staff to collect and store the information, and to actually conduct hands-on information collection and management, to enable the GIS-based management systems established by the GIS specialist and the IT specialist;

(v) Ensure the required systems are in place to conduct regular updates of information by PBS staff, to clearly identify the comprehensive details of the PBS network and customer connectivity, to enable enhanced management of customer requests, complaints and to estimate the commercial and technical quality of the system;

(vi) Support the team leader in preparing/finalizing all reports;

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(vii) Plan and conduct all training activities, in association with the national consultants and the institutional and capacity building specialists; and

(viii) Assist the team leader and conduct workshops, to secure information and disseminate the work, to ensure the GIS would be effectively used by PBSs for regular work upon completion of the TA.

236. GIS Information Management Specialist (national). The GIS information management specialist (national) will be responsible for the local inputs and to support the GIS information management specialist (international) in conducting the above tasks. The specialist should have a bachelor’s degree in engineering, earth sciences, information technology or a related area, and 7 years of experience in GIS systems and information management, preferably in the utility industry.

237. Distribution Planning Specialist (international). The distribution planning specialist (international) will establish network planning and investment planning capability in selected PBSs, with linkage to the GIS established under this TA. The specialist will coordinate with the team leader and provide the required support and information in a timely manner for the preparation of reports. The specialist should have a degree in electrical engineering and preferably 12 years of experience in medium voltage network/distribution network planning. Hands-on experience in the use of one or several commercially available distribution planning models would be advantageous. In particular, tasks of the medium voltage network/distribution specialist will include, but would not be limited to, the following:

(i) Review periodically prepared plans for distribution development in PBSs, status of their implementation, and the on-going planning and network analysis activities of BREB and the consultants retained by PBSs;

(ii) Conduct a comprehensive review of development plans, and review the present study methods, approach and software used. Conduct additional studies and modelling work, to confirm plans for two selected PBSs (refer the PBSs that are selected for completion/implementation of GIS in phase 1 of this study), and to revise as required;

(iii) Prepare a proposal for establishing all activities including manpower requirements and capacity building, to establish a 10-year rolling plan in the two selected PBSs, to be updated once in two years, to meet the technical requirements of substations to serve customer growth, line development, integrate any power plants planned to be directly connected to distribution network, and to estimate the investment requirements from both financing and regulatory points of view;

(iv) Include in the plan, an assessment of network technical losses, and establish procedures to collect information to validate the model with field data;

(v) After discussion with BREB and the relevant PBSs, implement the proposal, and along with BREB/PBS staff, prepare the 10-year rolling plan and establish data sources, methods of analysis, approach, costing, etc., to enable the plan to be updated by BREB/PBS staff to meet technical and investment planning requirements, at regular intervals;

(vi) Structure and prepare the report on the 10-year distribution development plan for each selected PBS, along with PBS staff;

(vii) Provide inputs to the analysis and report by team leader, on the distribution planning aspects and a work plan for the eight PBSs to be selected for GIS

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implementation in phase 2 of the TA, and once approved; replicate the 10-year planning activity in such selected PBSs;

(viii) Plan and conduct all training activities, in association with the national consultants and the institutional and capacity building specialists; and

(ix) Assist the team leader and conduct workshops, to secure information and disseminate the work, to ensure the GIS would be effectively used by PBSs for regular work in network planning and monitoring.

238. Distribution Planning Specialist (national). The distribution planning specialist (national) will be responsible for local inputs and support the distribution planning specialist (international) in conducting the above tasks. The specialist should have a bachelor’s degree in electrical engineering and preferably 7 years of experience in medium voltage network/distribution planning and design. Hands-on experience in the use of one or several commercially available distribution planning models would be advantageous.

239. Distribution Maintenance Specialist (international). The distribution maintenance specialist (international) should have a degree in electrical engineering and preferably 12 years of relevant experience in distribution system management, of technical, customer and commercial aspects. The specialist will lead the effort to integrate the GIS with the provision of services to customers, improve the overall technical and commercial quality of supply to PBS customers. The specialist will assist the team leader and provide relevant inputs. In particular, tasks of the specialist will include, but would not be limited to, the following:

(i) Review the practices and procedures to handle customer requests for various services for regular and emergency requirements, at the PBSs in general, and at the two selected PBSs in particular;

(ii) Review the asset management and maintenance practices, and propose improvements, in view of the GIS-based information system planned;

(iii) Prepare a proposal (procedure, manpower requirements, hardware, software, and the expected outcome) on how (a) such customer services (b) asset management and maintenance activities, may be integrated with the GIS established in this TA, in consultation with the team leader, IT specialist, distribution planning specialist, and other team members;

(iv) Upon approval by BREB and the PBSs, implement the plan along with the PBS staff; assist PBSs to procure equipment and establish systems to manage customer requirements and services, to improve the overall commercial quality of service by PBSs;

(v) Establish a maintenance program that uses the key features of a GIS-based information system, with linkages to the asset register. Using industry best practices, link the management and maintenance of lines, line accessories, transformers and switchgear, to an overall asset management plan;

(vi) Review present practices in recording service outages to customers, and the calculation of reliability indices, and propose and implement more accurate calculations on the basis of GIS-based information;

(vii) Ensure, through training and capacity development, that the planned improvements to technical and commercial quality of services are achieved, through the definition of indices to measure, and compared against a pre-project baseline; correlate such indices to those listed in any distribution performance standards or distribution code;

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(viii) Prepare a plan and cost estimates, manpower deployment, and upon approval, implement the customer service, asset management and maintenance work through the new GIS-based system in eight other PBSs, as required in Phase 2 of the TA; and

(ix) Conduct other relevant work assigned by the team leader.

240. Distribution Maintenance Specialist (national). The distribution maintenance specialist (national) will be responsible for local inputs and support the distribution maintenance specialist (international) in conducting the above tasks. The specialist should have a bachelor’s degree in electrical engineering and preferably 7 years of experience in customer service and maintenance planning and management.

241. Institutional and Capacity Building Specialist (international). The institutional capacity building specialist (international) should preferably have a degree in business/public administration, engineering or finance, or a related field, and preferably 15 years of working experience in institutional development, specifically on capacity building, training, or academic teaching. The specialist will prepare and implement an institutional development plan, training and capacity building plan, in consultation will all members in the TA team. In particular, tasks of the international institutional and capacity building specialist will include, but would not be limited, to the following:

(i) Review the institutional structure of BREB/PBSs to facilitate the revised and upgraded GIS development under the TA period and beyond, and prepare an institutional structure for BREB/PBSs to face the challenges of additional and deeper implementation of GIS-based management systems;

(ii) Prepare qualifications and job descriptions and lists of duties of identified staff for BREB/PBSs in the GIS divisions, and assist BREB/PBSs to recruit and train such staff;

(iii) In consultation with the team leader and all members of the TA team, and with BREB/relevant PBSs, prepare a comprehensive plan for capacity building both at BREB and PBSs and in regulated utilities, prepare time schedules, identify TA team member resource persons and external resources persons, to provide a full range of training, capacity building and exposure visits, by way of consultation sessions, seminars, and hands-on workshops;

(iv) Implement the capacity building plan, manage all capacity building work under the TA, and make revisions to the plan as the TA work progresses into phase 2;

(v) Prepare a structure and qualifications of GIS and network planning/management teams in each PBS, to facilitate the clear understanding of the enhanced GIS activities and to respond to BREB’s requirements, including the management of GIS; and

(vi) Assist the international GIS specialist/team leader in conducting tasks under the TA.

242. Institutional and Capacity Building Specialist (national). The institutional and capacity building specialist (national) will be responsible for the local inputs and support the international institutional and capacity building specialist in conducting the above tasks. The consultant should preferably have a bachelor’s degree in business/public administration, engineering or finance, or a related field, with preferably 7 years of experience in the energy sector.

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243. Communication and SCADA Specialist (international). The consultant should preferably have a degree in electrical, electronic or telecommunication engineering, or a related field, and preferably 15 years of working experience in supervisory control and data acquisition in the utility industry. The specialist will prepare and implement a communication development plan. In particular, tasks of the communication and SCADA specialist include, but would not be limited to, the following:

(i) Review the existing communication facilities between PBSs and BREB, and between the key locations with the two PBSs planned to be provided with GIS based management systems in phase 1 of the TA;

(ii) Review the metering infrastructure already available, and being established in the on-going Power System Enhancement and Efficiency Improvement Project;

(iii) Prepare a proposal to ensure that information prepared in the GIS-based management system in the two PBSs, and the automated meter readings on all 33 kV and 11 kV meters at substations, is communicated to the respective PBS headquarters and to BREB, examining the manual process and the feasibility of an automated process, include training and other capacity development requirements of the two PBSs, include what degree of limited SCADA facilities may be provided in the PBSs, and the prospects for a fully-fledged SCADA facility;

(iv) Upon approval by BREB/PBSs, implement the proposal, assisting PBSs to procure the necessary communication infrastructure, and by providing the training required to the PBS staff;

(v) Prepare an evaluation of the communication facilities provided and its performance, and a proposal for the implementation of the same in eight more PBSs, after such decision is taken by BREB and the respective PBSs under phase 2 of the TA;

(vi) Assist the respective PBSs and BREB to implement the communication and metering infrastructure, and the limited SCADA facilities, if any;

(vii) Prepare a structure and qualifications of communication teams in each PBS and assist its implementation, to facilitate the clear understanding of the communication requirements of enhanced GIS activities and to respond to BREB’s requirements; and

(viii) Assist the international GIS specialist/team leader in conducting tasks under the TA.

244. Communication and SCADA Specialist (national). The communication and SCADA specialist (national) should preferably have a degree in electrical, electronic or telecommunication engineering, or a related field, and preferably 7 years of working experience in the utility industry, preferably in supervisory control and data acquisition. The specialist will assist to prepare and implement a communication development plan, by providing local inputs and ensuring compatibility with other on-going communication and SCADA development work in the utility industry in Bangladesh.

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5.3. Pre-feasibility study on small scale LNG for industries/electricity production

a. Scope of Work

245. The concept of small scale LNG involves distributing in smaller sized parcels directly at suitable low draft ports. LNG may be sourced from conventional LNG terminals or from LNG carriers. Delivery to end users may be through a combination of land transport in liquefied state and pipeline after regasification. The study will (i) identify sources and avenues from where LNG can be purchased, including mid-sea LNG carriers, and large scale import terminals in countries in the region; (ii) evaluate various options for procurement of LNG including the government procuring LNG, appointment of a national agency as an aggregator of LNG, third party marketers, etc.; (iii) assess various options for shipping and logistics arrangements including charter/hiring vessels, buying vessels, etc.; (iv) identify various strategic partners to design and effectively operate the supply chain of small scale LNG, (v) assess status of infrastructure (draft, jetty occupancy, etc.) at various ports in Bangladesh and identify possible gaps; (vi) assess the level of required infrastructure at these ports including for Jetty construction and/or upgrading of existing jetty, dredging, etc.; (vii) assess the infrastructure required for transportation of small scale LNG to off-takers including laying gas pipelines from import terminals to the gas grid and building of road networks and carriers for transporting LNG through special trucks/containers from import terminals to demand centers; (viii) identify the possible customers/off-takers whom small scale LNG can cater to; (ix) estimate the projected demand for gas from the customers; (x) identify possible models for tie-ups with strategic partners for building re-gasification facilities in customer-premises including rent, lease, etc.; and (xi) support required from government in terms of regulatory approvals and policy guidelines including access to ports, licensing, permits, etc.

246. The TA will be conducted by one team of consultants, whose specialties and person-month allocations are given below. The TOR for consultants are given in subsequent paragraphs.


1 Gas Industry Specialist/Team Leader 3 3 2 Power Generation Specialist 2 2 3 Industrial Energy Specialist 2 2 4 Energy Economist 2 2 5 Financial Specialist 2 2 6 Safeguards Specialist 3 3


247. Gas Industry Specialist/Team leader (international). The gas industry specialist (international) and team leader will be responsible for the overall quality and implementation of the TA, preparation of a plan to implement the TA, providing the required support to the executing agency the Power Division and the implementing agency the Power Cell, and reporting to an ADB project officer. The consultant should have a degree in Science, Chemical Engineering, Process Engineering, or a relevant discipline, postgraduate qualifications, and preferably 15 years of experience in the petroleum industry, preferably in the gas/liquefied natural gas (LNG) industry in emerging countries. In particular, the tasks of the international gas industry specialist and team leader will include, but not be limited, to the following.

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(ii) Consult with executing agency/implementing agency counterpart staff in relation to the project objectives, design, and implementation;


(iv) Assess the existing and planned natural gas production and delivery infrastructure in Bangladesh, and at neighboring states in India;

(v) Review the studies conducted under different TA programs and by industrial/gas industry agencies in Bangladesh, about potential introduction of LNG to Bangladesh, especially for large scale power generation, industrial thermal energy and industrial power generation requirements, and small scale power generation for standalone (captive) and grid requirements;

(vi) Study the government’s plans to expand the industrial base through establishment of new industrial zones and the thrust industries planned;

(vii) Considering the study scope of work and the status of energy supply and the gas delivery infrastructure already available/or being planned, and existing/prospective demand centers, prepare an inception report to establish the extent and the coverage of the pre-feasibility study;

(viii) Rank the most promising sites/siting areas and zones for the delivery of LNG using a scientific approach, in association with team members, and select not less than five sites to conduct pre-feasibility studies on potential power generation and industrial use of LNG;

(ix) Develop the proposed LNG receiving, storage, regasification and delivery infrastructure requirements, pipeline transport or otherwise, to deliver RLNG to the selected sites; prepare cost estimates and network diagrams, flow paths;

(x) Conduct pre-feasibility studies for the selected sites/siting areas, to facilitate decisions to proceed to detailed feasibility studies and engineering designs; and

(xi) Organize an inception workshop, mid-term workshop, and a concluding workshop to discuss and disseminate the findings among the Power Division/Power Cell staff, , and other stakeholders.

248. Gas Industry Specialist (national). The gas industry specialist (national) will be responsible for local inputs and support the gas industry specialist (international) and team leader in conducting the above tasks. The specialist should preferably have a bachelor’s degree in Science, Chemical Engineering, or Process Engineering, and at least 7 years of experience in the gas or petroleum industry.

249. Power Generation Specialist (international). The power generation specialist (international) should have a degree in electrical or mechanical engineering, or in a related area, and at least 12 years of working experience in planning, design, or operation of utility scale or industry scale generating facilities. In particular, tasks of the power generation specialist (national) will include, but would not be limited, to the following:

(i) Review existing power generation facilities, planned facilities, and the long term generation development plans/master plans for Bangladesh;

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(ii) Assess the generating facilities available with the manufacturing industry, their status and the desire of the manufacturing industry to continue to rely on captive generation, and the associated costs, and conduct a survey as required to establish the cost profile for capital, operating and fuel costs of such power generating facilities;

(iii) Assess the capacity needs in the upcoming industrial development zones/sites, considering the thrust industries, their power requirements, and reliability levels required, against what the national grid may be able to provide;

(iv) Evaluate the generation facilities that would be viable as central power plants to serve industrial zones, and the viability of using regassified LNG (R-LNG) for such power plants, in preference to other types of fuels currently used;

(v) Provide inputs to the assessment of the long-list of potential sites where R-LNG may be used for power generation, and to the pre-feasibility study on the potential sites/zones where R-LNG may be successfully used for power generation;

(vi) Assess generating technologies (reciprocating engines, open cycle gas turbines and combined cycle gas turbines) that would be suitable for the intended scale of applications in the target zones, and assist in developing the fuel requirements, capital, and operating costs; and

(vii) Assist the team leader and conduct workshops, to secure information and disseminate the study findings.

250. Power Generation Specialist (national). The power generation specialist (national) will be responsible for local inputs and support the power generation specialist (international) in conducting the above tasks. The specialist should preferably have a bachelor’s degree in electrical or mechanical engineering, or in a related area, and at least 7 years of experience on utility industry issues, including power generation planning and operations.

251. Industrial Energy Specialist (international). The industrial energy specialist (international) should have a degree in engineering, industrial management, energy or a related area, and at least 12 years of working experience in industrial development and policy, especially in the provision of energy and other utility services to industry. In particular, tasks of the industrial energy specialist (international) will include, but will not be limited, to the following:

(i) Review the energy requirements of industrial operations, for thermal operations, and the potential expansion and diversification into industries that are energy intensive;

(ii) Review sources of energy presently used and the potential for industries of higher energy intensity and value addition;

(iii) Review overall industrial development policy in Bangladesh, the thrust industries, and industrial zones, develop the potential energy demand in industry over 15 years, and assess the share of energy that may be technically provided with R-LNG, and the potential impacts on industrial viability and value addition;

(iv) Provide inputs to the selection of five or more industrial zones/industries, that would be included in the pre-feasibility study on R-LNG applications;

(v) Plan and conduct industrial surveys on energy requirements, costs and expansion plans, to forecast energy requirements and costs, of industries, and assess the benefits and limitations of introducing R-LNG; and

(vi) Assist the team leader and conduct workshops, to secure information and disseminate the work.

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252. Industrial Energy Specialist (national). The industrial energy specialist (national) will be responsible for local inputs and support the industrial energy specialist (international) in conducting the above tasks. The specialist should preferably have a bachelor’s degree in industrial or mechanical engineering, energy, or in a related area, and at least 7 years of experience on industrial policy, energy issues, and options.

253. Energy Economist (international). The energy economist (international) should have a degree in economics or engineering, and preferably 12 years of experience in energy policy and sector economics, and more specifically on power sector economics and industrial economics. In particular, tasks of the energy economist will include, but would not be limited, to the following:

(i) Assess the overall economic criteria on which the Power Sector and the Industrial Sector operations occur in Bangladesh;

(ii) Review the overall economic principles on which the gas and electricity industries in Bangladesh are based;

(iii) Review and update the cost estimates prepared by the gas sector expert for the selected sites to facilitate economic evaluation of LNG/R-LNG options, and undertake the necessary field visits to collect/verify information about the power sector, industrial operations, and overall energy economics;

(iv) Review the proposed projects to deliver R-LNG to specific sites, as defined in the short-lists of sites included in pre-feasibility studies, and conduct economic analyses in accordance with the accepted procedure, and ADB guidelines. The analysis should include sector context, demand analyses, economic rationale, project alternatives, identify and compare benefits and costs, undertake distribution analysis, and risk and sensitivity analyses;

(v) Incorporate economic quantification of environmental impacts owing to the project, in accordance the approved procedure;

(vi) Analyze tariff and pricing issues in consultation with other experts, examine cost recovery;

(vii) Consult with the Bangladesh Energy Regulatory Commission, to establish a basis for pricing R-LNG delivered from such smaller scale facilities; and

(viii) Assist the team leader and conduct workshops, to secure information and disseminate the work.

254. Energy Economist (national). The energy economist (national) will be responsible for local inputs and support the energy economist (international) in conducting the above tasks. The specialist should preferably have a bachelor’s degree in economics or engineering, and at least 7 years of experience on industrial economics, energy economics, and economic evaluation of infrastructure projects.

255. Financial Specialist (international). The financial specialist (international) should have a degree in finance, economics, business administration or engineering and preferably 12 years of experience in financial analysis of infrastructure projects, and more specifically on energy sector financial evaluation. In particular, tasks of the financial specialist (international) will include, but would not be limited, to the following.

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(i) Develop a business plan for the R-LNG facilities envisaged to serve small to medium scale customers and industrial zones, included in the pre-feasibility study;

(ii) Identify the indicative project cash flow requirements, and recommend appropriate funds flow mechanism, and disbursement arrangements and schedule;

(iii) Prepare the indicative financing plan, project expenditure and disbursement schedule as required for the pre-feasibility studies;

(iv) Conduct detailed financial analysis of the proposed projects, and provide inputs to the feasibility studies;

(v) Assess the financial management capability of the institutions/institutional structure proposed in the business plan, and prepare medium to long term forecasts of financial performance; and

(vi) Assist the team leader and conduct workshops, to secure information and disseminate the work.

256. Financial Specialist (national). The financial specialist (national) will be responsible for local inputs and support the financial specialist (international) in conducting the above tasks. The specialist should preferably have a bachelor’s degree in finance, economics or engineering, and at least 7 years of experience on financing and financial analysis of industrial, energy, and other infrastructure projects.

257. Safeguards Specialist (international). The safeguard specialist (international) should have a higher degree in a relevant field, preferably in Social Sciences or environment, with 12 years of experience in social impact assessment and preparation environmental impact assessments. The work of the international safeguards specialist will include, but would not be limited to, the following:

(i) If the project components involve resettlement, prepare a resettlement plan, which should be implementable in the Bangladeshi context;

(ii) Determine the replacement costs of all categories of losses;

(iii) Prepare a socioeconomic analysis, including a poverty profile and characteristics and determinants of primary project beneficiaries in the target areas of the proposed investment components based on a review of existing studies, data, and development plans;

(iv) Incorporate all mitigation measures into the cost estimates of the proposed projects;

(v) Prepare Rapid Environmental Assessment Checklists for selected sites;

(vi) Prepare project descriptions and a summary of environmental issues identified for each project component;

(vii) Undertake necessary consultations with the project stakeholders on relevant environmental issues and impacts; and

(viii) Assist the team leader and conduct workshops, to secure information and disseminate the work.

258. Safeguard Specialist (National). The safeguards specialist (national) will be responsible for local inputs and support the safeguards specialist (international) in conducting the above tasks. The safeguards specialist (national) should have a degree in a relevant field, preferably in Social Sciences or environment, with 7 years of field experience, preferably in energy sector projects.

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5.4. Implementation of tariff methodology, energy auditing and efficiency improvement procedures for power plants

a. Scope of Work

259. Bangladesh implemented unbundling of the electricity industry commencing from 1996, by corporatization of transmission and distribution entities. Accordingly, the PGCB was incorporated in 1996, to conduct the transmission (wires) activity and transmission system operations. Companies conducting distribution are (i) DPDC, (ii) DESCO, and (iii) West Zone Power Distribution Company Limited. Bangladesh Power Development Board (BPDB) retained the distribution networks in certain areas. BREB serves the rural areas of the country through a network of PBS. As such, there are five distribution entities, of which BREB is effectively structured as 77 individual distribution entities.

260. BPDB performs as the single buyer, purchasing from generation and selling to distribution. BPDB itself retains a large share of generation, while there are generating companies in which BPDB and other state entities hold controlling shares. Furthermore, there are Independent Power Producers (IPPs) serving the transmission system. In addition, there are Small Independent Power Producers (SIPPs) directly serving BPDB and BREB distribution networks. As such, there are four “types” of generation entities. Except BPDB’s own generation, other three types of generating companies have Power Purchase Agreements (PPAs) with BPDB, the single buyer. Sales of electricity by generating companies to BPDB, are governed by PPAs, while sales from BPDB’s own generation to BPDB (the single buyer) are not covered by a PPA or a similar instrument.

261. Bangladesh Energy Regulatory Commission (BERC) was established in 2003 through a legislative Act of the government. Among the responsibilities assigned to BERC, are the technical and economic regulation of the electricity industry. BERC has entertained submissions of tariff proposals from the transmission entity (PGCB) and each one of the five distribution entities, from time to time. In 2015, tariff orders were issued for BPDB (bulk supply tariff), PGCB (transmission wheeling tariff), and retail tariff orders were issued for all the distribution entities.

262. Implementation of tariff methodology. Tariff submissions and tariff determinations require to be conducted in more regular, predictable intervals. The tariff submission interval for transmission and distribution utilities can be 3 to 5 years, with intermediate adjustments for (i) inflation, (ii) efficiency improvement, (ii) additional capital expenditure incurred, and (iv) planed capital expenditure differed. Single buyer’s costs require to be passed-through from generation to transmission, onwards to distribution, and then to the customer. Owing to greater volatility of generation costs, bulk supply tariffs (BST) of the single buyer can be updated once a year, with adjustments for mismatch between the BST in the previous interval (year) and the actual. Thus, end-use customer tariffs would be adjusted, upwards or downwards, once a year, on a fixed date. Options for transmission pricing such as rate of return on assets (resulting is a charge for transmission capacity operational, as against the wheeling charge approach at present) may be considered.

263. The TA will enable BERC to hire a consulting company to (i) conduct a review of the tariff methodology, regulations, and practices applied at present, (ii) comprehensively discuss and conduct consultations with all stakeholders about the tariff methodology, tariff filing frequency, and process of tariff determination, (iii) develop comprehensive documentation of tariff methodology and rules for tariff filing and evaluation, (iv) assist BERC to conduct two tariff filing and determination processes under the new approach, inclusive of a public hearing and

Annex 1 109

comprehensive tariff decisions, (v) prepare all associated templates for tariff filing, analysis of filed tariffs and the determination, (vi) establish a database and a data submission procedure, to enable utilities to electronically submit tariff filings, associated information, and daily/monthly/yearly information on customers, sales, generation, and costs, (vii) establish regulatory accounting procedures, prepare manuals and guidelines, (viii) prepare and implement templates for the execution of power purchase agreements (or similar contracts) between BPDB generators and BPDB single buyer, (ix) streamline the procedure to approve investments by each utility over a planning period of ten years, that would be included and allowed in tariff filings, and the procedure to claw-back fees allowed for investments when they are not implemented, and (x) propose, discuss and implement reforms to customer tariff structure, including improved features of time-of-use pricing, demand charges, reactive power charges, and block tariffs.

264. The period of work will be a total of three years, during which two complete tariff filing and evaluation cycles will be completed for all utilities, on the basis of the revised tariff methodology and the filing procedure/rules established during the TA. At the end of the work, consultants would prepare a road map for the implementation of components of tariff methodology yet to be implemented, to enable BERC to reach the goal of effective economic regulation.

265. Energy auditing and efficiency improvement of power plants. As mandated by the BREC Act, BERC requires to ensure power plants operate at optimum efficiency, and that opportunities to improve efficiency are initiated through a systematic regulatory process. BPDB, the single-buyer, purchases from IPPs on the basis of PPAs as well as from BPDB’s own power plants, on the basis of reasonable costs approved by BERC. A systematic approach is required to ensure that energy efficiency in both IPPs and BPDB’s own power plants are regularly monitored, opportunities to improve efficiency are followed through to implementation.

266. The consultant will review the reported energy efficiency of all power plants in Bangladesh selling to the single-buyer, in relation to the power plant vintage, generating technology, and fuel used, and broadly investigate opportunities to improve efficiency through no-cost and low-cost methods. For three power plants of distinctly different technology/fuel combinations selected by BERC, the consultant will conduct heat rate testing using internationally accepted methodologies using the required calibrated instruments. The consultant will conduct a comprehensive energy audit (a level 3 energy audit) for each one of the three power plants, to clearly identify efficiency improvement opportunities including retrofits for heat recovery/combined heat and power applications, where relevant. Each energy audit report should provide clear identification of no-cost, low-cost, and capital intensive projects, to improve efficiency. The consultant will develop a procedure, required forms and formats of reports, to enable BERC to subsequently replicate the work done at the three power plants to all power plants licensed under the BERC Act.


110 Annex 1


1 Electricity Tariff Specialist/Team Leader 15 15 2 Financial Analysts (2)

20

3 Regulatory Economist 10 10 4 Electric Utility Financial Specialist 8 8 5 Information Technology Specialist 5 15 6 Institutional and Capacity Building Specialist 4 6 7 Energy Auditing Specialist 3 6 8 Power Plant Instrumentation Specialist 2 4


268. Electricity Tariff Specialist/Team Leader (International). The electricity tariff specialist (international) and team leader will be responsible for the overall quality and implementation of the TA, providing the required support to the executing agency the Power Division and the implementing agency BERC, all stakeholder institutions in the tariff filing and determination process, and reporting to an ADB project officer. The consultant should have a degree in electrical engineering, finance or economics, a postgraduate degree in a relevant discipline with preferably 15 years of experience in the electricity utility industry including electricity investment planning, costing of operations, overall costing of services, and end-use customer tariffs. In particular, the tasks of the electricity tariff specialist (international) and team leader will include, but not be limited, to the following.


(ii) Consult with executing agency/implementing agency counterpart staff and all stakeholders, especially the utilities that are licensed to perform various activities, in relation to the project objectives, design, implementation mechanism, and implementation schedule;

(iii) Direct national consultants in the day to day operational management of the TA;

(iv) Review the laws related to the electricity industry, tariff regulations and their operational aspects, and recent tariff filings and determinations, to prepare a report on the specific aspects, strengths, weaknesses and procedural aspects of economic regulation of the industry by BERC by way of tariff regulation;

(v) Prepare a proposal to complete the mandate of BERC as the economic regulator, through a procedure of tariff filing, tariff determination, implementation and ex-post adjustments, to ensure the regulated utilities are accountable for expenditure and income, and achieve financial viability;

(vi) Clearly identify the ring-fencing features of regulated utilities, and the compensation/penalties on performance with respect to network losses, commercial losses and demand-side management;

(vii) In consultation with executing agency/implementing agency, assist implementing agency to establish a tariff working group or a similar mechanism to ensure the inclusive participation of the regulated utilities in the work under the TA, to seek inputs and to disseminate outputs of the work of the consultants;

(viii) Organize an inception workshop, to present the gaps identified between regulations and implementation practices, and the consultants’ work plan to achieve implementation of methodology, and the procedure to modify the methodology itself, if required;

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(ix) Prepare a plan to achieve cost reflectivity in licensee tariffs and end-use customer tariffs including a time line for implementation, identifying the elements that will be implemented over the 3-year study period of the TA;

(x) Along with the other team members, prepare a standardized tariff filing template and associated information sheets, to enable the filing to be done on a prescribed format, with information sources clearly defined and linked to the main filing format;

(xi) Prepare the procedure and conduct a tariff filing exercise for all licensed utilities in accordance with an agreed time schedule (the first round), conducting adequate capacity building activities in the process;

(xii) Lead the review of the first tariff filing, make adjustments as required, and prepare the tariff determinations for BERC approval, highlight limitations of the information and the filings prepared by licensees and propose procedures to ensure updating of information;

(xiii) Along with the team, prepare and conduct comprehensive capacity building of BERC staff and staff of regulated utilities, and policy-making institutions, on the full range of financial, methodology, regulatory and policy aspects of the tariff making process;

(xiv) Prepare the procedure, and assist BERC to conduct a second tariff filing exercise for all licensed utilities in accordance with an agreed time schedule (the second round), specifically addressing the shortcomings of the first round, and follow through to assist BERC to prepare the analysis and determination;

(xv) Conduct a review of the success and shortcomings of the second tariff filing;

(xvi) Prepare a road map to systematically overcome the deficiencies and to achieve cost reflectivity at utility level, and at customer level, in discussion with BERC and utilities; and

(xvii) Conduct a concluding workshop to discuss and disseminate the findings, achievements of the TA, and the way forward with economic regulation, among the Power Division/Power Cell staff, and the licensed utilities.

269. Electricity Tariff Specialist/Deputy Team Leader (national). The electricity tariff specialist (national)/deputy team leader will be responsible for coordinating the team of national consultants to local inputs and support/act on behalf of the electricity tariff specialist (international) and team leader in conducting the above tasks. The electricity tariff specialist (national) and deputy team leader should preferably have a bachelor’s degree in finance, economics or engineering and at least 10 years of experience in utility industry, including in pricing and costing of utility services.

270. Financial Analysts (national, 2 persons). The financial analysts (national) would have a degree in finance, engineering, or professional qualifications in accounting with 5 years of experience, and would assist the electricity tariff specialist (international) and team leader and other members of the TA team to conduct financial evaluations and modelling, and their tasks include, but would not be limited to,

(i) Prepare the financial models and financial performance forecasts for each utility included in the regulatory structure, in three scenarios: business as usual, timely implementation of tariff methodology as currently approved, and timely implementation of tariff methodology revised in the study;

(ii) Assist the team leader and other members in the team to identify shortcomings in the implementation of accounting and auditing practices of individual utilities;

112 Annex 1

(iii) Conduct capacity building activities in accounting, financial modeling and tariff filing; and

(iv) Assist team members in the evaluation of each tariff filing during the study period.

271. Regulatory Economist (international). The regulatory economist should have a degree in economics, business management or engineering or a related area, and at least 12 years of working experience in developing and implementing economic regulatory initiatives, preferably in the electricity industry. In particular, tasks of the regulatory economist will include, but would not be limited, to the following:

(i) Review the tariff methodology for transmission and distribution pricing, specific parameters used in implementing the methodology and areas in the electricity industry where clear methodologies do not exist, and prepare a comprehensive analysis of strengths and weaknesses, and possible remedies/options to address weaknesses;

(ii) Plan and conduct one or several stakeholder workshops to clarify the approved methodology, and to reach a consensus on improvements or introduction of methodology that does not exist, and prepare comprehensive tariff methodology documents and draft regulations, if required, preferably as separate documents for (a) generation, (b) transmission and system operations, (c) bulk supply (single buyer), and for (d) distribution and supply;

(iii) Working with licensees and other utilities, develop power purchase agreements (PPAs), power sale agreements (PSAs), to implement the methodology of costing and pricing electricity transfers between the said entities;

(iv) Include technical and commercial performance requirements in the above PPAs and PSAs, upon review of existing procedures for rewarding or penalizing utility employees on the basis of performance indices, and device a mechanism in which customers are compensated for under performance, and implement the mechanism;

(v) Develop a procedure to benchmark distribution utilities against each other, and to benchmark all utilities against other utilities abroad, and identify features that should be improved in each utility;

(vi) Participate in the first round of tariff filing to prepare templates, conduct checks on templates, and to review the filed information, conduct revisions, and prepare the evaluation of the filing;

(vii) Develop or implement a model for the calculation of the cost of supply at each utility at each voltage level, and for each customer category, to facilitate clear identification/calculation of the cost of supply by way of capacity, energy and fixed costs, and time-of-use costs as applicable, and to calculate subsidies to each customer category;

(viii) Prepare the tariff determination, with adequate information about the filing considered and analyses conducted, for approval of BERC;

(ix) Conduct capacity building for BERC staff and for staff of the regulated utilities and such other entities, on the tariff filing and determination procedure, and all associated tasks;

(x) Establish the timeline for each activity of the tariff filing procedures from sales forecasting up to tariff determination and ex-post adjustments, for each tariff filing cycle; define the re-filing timeline, and prepare the necessary draft legal documents to establish the responsibilities of each licensee and BERC; and

Annex 1 113

(xi) Assist the team leader and conduct workshops, to secure information and disseminate study findings/pre-feasibility studies.

272. Regulatory Economist (national). The regulatory economist (national) will be responsible for local inputs and support the regulatory economist (international) in conducting the above tasks, and actively participate in the tariff methodology development and filing/review process. The specialist should have a bachelor’s degree preferably in economics, finance or electrical engineering, and at least 7 years of experience in the utility industry.

273. Electric Utility Financial Specialist (international). The electric utility financial specialist should preferably have a degree in finance, economic, business management or engineering or a related area, with professional qualifications in accounting and/or auditing, and at least 12 years of working experience in the utility industry finances, preferably in electricity utilities. In particular, tasks of the electric utility financial specialist (international) will include, but would not be limited, to the following:

(i) Prepare an assessment of accounting and auditing practices of each regulated utility and entity, to facilitate the degree of effort required in upgrading such practices to match the on-going and planned activities of economic regulation;

(ii) Prepare a plan for systematic upgrading of such practices, to match the requirements of the tariff determination process, such that information filed can be routinely checked by BERC;

(iii) Prepare a draft regulatory accounting manual to address the specific and unique features of the Bangladesh electricity industry structure and institutional arrangements, and implement the draft manual by the first tariff filing;

(iv) Participate in the first tariff filing by assisting the utilities to adhere to the tariff methodology and information requirements, and in the evaluation of the filed information, and in preparing the tariff determination;

(v) Revise the regulatory accounting manual to accommodate the experience of the first tariff filing, with a timeline for implementation of each activity;

(vi) Conduct capacity building sessions across all utilities and at BERC on the regulatory accounting procedure and the manual, to upgrade the knowledge of accounting and engineering staff of utilities to match the features of a modern utility;

(vii) Assist the regulatory economist to develop the benchmarks and benchmarking assessment of the regulated utilities; and

(viii) Assist the team leader and conduct workshops, to secure information and disseminate study findings.

274. Electric Utility Financial Specialist (national). The electric utility financial specialist (national) will be responsible for local inputs and support the international electric utility financial specialist in conducting the above tasks. The specialist should preferably have a bachelor’s degree in finance, economics, engineering, or professional qualifications in accounting, and at least 7 years of experience with financial assessments including the electricity industry.

275. Information Technology Specialist (international). The information technology specialist (international) should preferably have a degree in information technology or engineering, or professional qualifications in information technology, and preferably 12 years of experience with the industry. In particular, the tasks of information technology specialist (international) will include, but would not be limited, to the following:

114 Annex 1

(i) Review the status of IT applications at BERC to facilitate the revised and upgraded regular tariff filing envisaged under the TA, and prepare an IT development plan for BERC to face the challenges of additional and more frequent involvement in regulating electricity utilities;

(ii) Implement the IT development plan, in time to facilitate on-line filing of tariff applications during the first round of tariff filing by utilities under the new and improved tariff methodology, using standard templates;

(iii) Facilitate through the development of the necessary software and routines, the systematic communication between BERC and the regulated utilities, and the general public, during the tariff filing process, during evaluation process, the public hearing process and in the determination process, and finally to communicate the determination;

(iv) Establish an information system, into which licensees would be required to file their daily operations information, monthly sales and demand information, annual sales, demand and financial information, and such other information as required by BERC, arrange limited release of such technical, commercial and financial performance information in the public domain through the BERC website, and to facilitate BERC to prepare, among others (i) daily system performance report, (ii) monthly sales and performance report, (iii) annual sales, performance and financial reports;

(v) Together with the IT specialists (national), make the information system fully operational and updated over the period of the study;

(vi) Implement the capacity building plan and make revisions to the plan; and

(vii) Assist the electricity tariff specialist (international) and team leader in conducting tasks under the TA.

276. The information technology specialist (national) should preferably have a degree in information technology or engineering, or professional qualifications in information technology, and preferably 7 years of experience in systems analysis and development, preferably in the electricity industry, and should work together with the information technology specialist (international), to develop a fully operational information system to facilitate the periodic tariff review process, and the regular information exchange between BERC and the licensed entities, and the general public.

277. Institutional and Capacity Building Specialist (international). The institutional and capacity building specialist (international) should preferably have a degree in finance, economics, business management or engineering, or professional qualifications in human resource management or a related discipline, and preferably 12 years of experience with the industry. In particular, the tasks of institutional and capacity building specialist (international) will include, but would not be limited, to the following:

(i) Review the institutional structure of BERC to facilitate the revised and upgraded regular filing of tariffs envisaged under the TA period and beyond, and prepare an institutional structure for BERC to face the challenges of additional and deeper involvement of the regulating sector utilities;

(ii) Prepare qualifications and job descriptions and lists of duties of identified staff for BERC tariff regulation division, and assist BERC to recruit and train such staff;

(iii) In consultation with the team leader, all members of the TA team, BERC and regulated utilities, prepare a comprehensive plan for capacity building both at BERC and in regulated utilities, prepare time schedules, identify TA team

Annex 1 115

member resource persons and external resources persons, to provide a full range of training, capacity building and exposure visits, by way of consultation sessions, seminars, and hands-on workshops;

(iv) Implement the capacity building plan, manage all capacity building work under the TA, and make revisions to the plan as the TA work progresses into the second tariff filing;

(v) Prepare a structure and qualifications of regulatory response teams in each regulated utility, to facilitate the clear understanding of the enhanced economic regulatory activities and to respond to BERC’s requirements, including the management of the regulatory accounting procedure, and assist regulated utilities to implement the plan; and

(vi) Assist the international electricity tariff specialist and team leader in conducting tasks under the TA.

278. Institutional and Capacity Building Specialist (national). The institutional and capacity building specialist (national) should preferably have a degree in finance, economics, business management or engineering, or professional qualifications in human resource management or a related discipline, and preferably 7 years of experience in the institutional development and capacity building, preferably in the electricity industry. The institutional and capacity building specialist (national) will work together with the international specialist and the TA team to provide inputs and to conduct capacity building work.

279. Energy Auditing Specialist (international). The energy auditing specialist (international) should have a degree in engineering or a related area, and at least 12 years of relevant working experience including in power plant design, operations, auditing and energy management. Prior experience in conducting energy audits at power plants and conducting training on power plant energy auditing would be a distinct advantage. In particular, tasks of the energy auditing specialist (international) will include, but would not be limited, to the following:

(i) In discussion with the electricity tariff specialist and team leader, decide on the degree of information that would be required to be included in the PPAs or similar documents, to ensure that all thermal power plants of BPDB too, carry heat rate information that match the international best practices, review PPAs between IPPs and BPDB as the single-buyer, to examine the depth to which heat rate information is included in such documents;

(ii) Prepare a report on the present practices of declaring and measuring heat rates in power plants belonging to both BPDB and IPPs, strengths and weakness, compare such information with international best practices from the points of view of contractual obligations (PPAs) as well as from the points of view of ensuring national objectives of ensuring the optimum energy efficiency of power plants, and propose remedial actions;

(iii) Upon approval of the proposed remedial actions, prepare a guideline (guidebook) to be used by power plant owners as well as BERC, to input information about equipment, measurements, to comprehensively assess the energy efficiency of each power plant, at regular intervals, include in the guidebook, the procedure to conduct a heat rate test on the basis of relevant international standards;

(iv) Conduct training and capacity building for engineers nominated by BERC and the generating companies, on the contents of the guidebook, and the specific procedure of conducting a heat rate test;

116 Annex 1

(v) Select three power plants to conduct standard heat rate tests, plan the testing along with the instrumentation engineer, complete the guidebook for the three power plants along with the power plant engineers and other trainees nominated by BERC/other power plant companies, fix calibrated instruments as required; conduct the heat rate tests along with the power plant and other team of trainees, and prepare a comprehensive energy audit report along with the team;

(vi) Recommend the procedure, timeline and testing frequency, to replicate the heat rate testing at all power plants selling to BPDB the single-buyer; and

(vii) Assist the international electricity tariff specialist and team leader in conducting tasks under the TA.

280. Energy Auditing Specialist (national). The energy auditing specialist (national) will be responsible for local inputs, coordination with generating plants/companies, and support the energy auditing specialist (international) in conducting the above tasks. The specialist would actively participate in the power plant energy audits. The specialist should preferably have a bachelor’s degree in engineering and preferably 7 years of experience in energy management and power plant engineering.

281. Power Plant Instrumentation Specialist (international). The power plant instrumentation specialist (international) should preferably have a degree in engineering and preferably 12 years of relevant experience in power plant design, construction, operation, instrumentation, and energy management. The specialist will assist the team leader and provide relevant inputs, and manage the instrumentation required for heat rate testing. In particular, tasks of the specialist will include, but would not be limited, to the following:

(i) Review the status of power plant energy management from the point of view of instrumentation and data management, and provide inputs to the reports prepared by the energy auditing specialist (international);

(ii) Provide inputs to the energy auditing guidelines/guidebook prepared by the energy auditing specialist (international), with regard to instrumentation required and their accuracy/calibration levels;

(iii) Plan the required instrumentation for the three power plants where energy audits/heat rate tests are to be conducted, in association with power plant engineers, to meet the international standards and best practices, prepare costs estimates for instrumentation and associated services, and arrange instrumentation to be procured and installed;

(iv) Participate in the heat rate testing procedure and associated capacity building of BERC and power plant engineering staff, and in the preparation of the energy audit report;

(v) Provide inputs to the report prepared by the energy auditing specialist on the instrumentation and periodicity of calibration and testing, to enable power plants to conduct energy audits/heat rate tests as required by BERC; and

(vi) Assist the international electricity tariff specialist and team leader in conducting tasks under the TA.

282. Power Plant Instrumentation Specialist (national). The power plant instrumentation specialist (national) will be responsible for the local inputs and support the power plant instrumentation specialist (international) in conducting the above tasks, especially the coordination with power plants to obtain information, install instrumentation and to conduct energy audits/heat rate tests. The consultant should preferably have a bachelor’s degree in

Annex 1 117

engineering with preferably 7 years of experience in power plant operations and energy management/auditing.

5.4. Analysis of transmission and distribution losses and establishing regulatory loss targets

a. Scope of Work

283. As a whole, combined technical and commercial losses in the transmission and distribution network in Bangladesh is approaching 13% of net generation. Actual losses reported by distribution entities were BREB: 12.3% (FY2015, across all 77 PBSs), BPDB: 11.2% (FY2015, average across BPDB’s six distribution zones), DESCO: 8.4% (FY2015), DPDC: 9.3% (FY2015), WZPDC: 10.3% (FY2015). Since a substantial share of sales is to bulk customers served at 33 kV or at 11 kV which incurs lower technical losses and lower commercial losses, the distribution losses to serve retail customers at lower voltages are expected to be in the range of 12% to 18%, for many distribution utilities in Bangladesh. Such losses are certainly on the high side, and require careful analysis to first separate out the technical losses and commercial losses. Technical loss can be reduced to cost-optimal levels through investments on line upgrades, use of improved transformer designs, and improved transformer loading. Commercial losses can be managed and reduced more rapidly by minimizing metering problems, meter errors, and theft.

284. The Bangladesh Power System Enhancement and Efficiency Improvement Project (PSEEIP) finances rehabilitation and upgrade of distribution lines in BREB/PBS services areas. One key objectives of the project is to reduce losses in the network. Projects to enhance capacity in 33 kV/11 kV substations are under implementation by BREB with the assistance of other development partners, while ADB’s project in PBS areas is specifically focused on upgrades and rehabilitation of lines to enhance capacity, reduce losses, and to serve more customers. However, comprehensive methodology to separate losses as technical and commercial, and across voltage levels, has not been established as yet.

285. Regulatory loss targets are fixed by the Power Division for transmission, each distribution utility, and BPDB28, on the basis of their historic performance. These targets are fixed at the time of tariff determination. Individually, within each distribution utility, there are targets set for each year, which are monitored by the Power Cell. However, the setting of loss targets for each year is largely based on the historic performance of the utility and industry norms. This (TA) will provide technical support for the analysis of transmission and distribution losses, and for establishing regulatory loss targets using a scientific approach. Initially, the study will cover the PBSs served by the PSEEIP, and then expand to cover other distribution utilities and transmission.

286. The study will examine the structure of the distribution network of each PBS. Through case studies of low voltage distribution systems and network analyses of medium voltage distribution systems, it would establish the disaggregation of losses between technical and commercial, and propose target losses to be achieved each year over a period of five years, by each PBS. The study would assess the technical losses to be allowed in the 33 kV network, 33kV/11kV substation transformers, 11 kV lines, distribution transformers, and in the LV lines/service drops. It would also assess the technical losses to be allowed in the metering equipment. Thereafter, commercial losses would be estimated on the basis of present inputs to

28

for PBSs, BREB sets the targets

118 Annex 1

the PBS network and the energy sold, and by disaggregating the commercial losses across each segment of the network.

287. The study would thus establish a scientific basis for setting of loss reduction targets. Loss reduction and capacity enhancement require investments, some of which are funded through the PSEEIP. Such investments require to be planned and approved upfront, when loss targets are established during tariff determination. The results of the study would provide a linkage to the parallel study and implementation of tariff methodology under this TA, implemented by BERC. Tariff determinations would be preceded by the approval by BERC, of the capital expenditure plans of each utility, for the tariff determination period.



1 Power Distribution Planning Specialist/Team Leader 10 12 2 Power Transmission Planning Specialist 3 3 3 Distribution Modeling Engineers 8 16


289. Power Distribution Planning Specialist/Team Leader (international). The power distribution planning specialist (international) and team leader will be responsible for the overall quality and implementation of the TA, providing the required support to the executing agency the Power Division, the implementing agency Power Cell, and all stakeholder utilities to the study, and reporting to an ADB project officer. The power distribution planning specialist (international) and team leader should have a degree in electrical engineering, preferably with a postgraduate degree in a relevant discipline, with preferably 15 years of experience in the electricity utility industry including electricity distribution planning. In particular, the tasks of the power distribution planning specialist (international) and team leader will include, but would not be limited, to the following.


(ii) Consult with executing agency/implementing agency counterpart staff and all stakeholders, especially the utilities that would be subjected to the study, in relation to the project objectives, design, implementation mechanism, and implementation schedule;


(iv) Review the indicative losses in the transmission network, and in the networks of each licensed distributor and PBS, as reflected by the published actual values for five most recent years, and forecast as targets by each utility or regulatory/policy agency, use most prudent values, and prepare an energy loss balance for the most recent years, and one forecast year;

(v) Evaluate the depth and accuracy of meters available in each utility/distribution entity, to measure and disaggregate loss at each voltage level, for separate geographic regions;

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(vi) In consultation with executing agency/implementing agency, assist implementing agency to establish a working group on power system losses or a similar mechanism to ensure the inclusive participation of the utilities in the work under the TA, to seek inputs and to disseminate outputs of the work of the consultants;

(vii) Prepare an inception report with initial findings, proposed coverage of the study, study methodology and work plan, software to be used, and data sources, to be discussed with all utilities, BERC and executing agency/implementing agency;

(viii) Establish the methodology for the determination of distribution losses, and their disaggregation into technical and commercial losses, at each level of voltage, device, and geographic region/utility, plan and conduct case studies and modelling work, to develop the impacts of customer mix, seasonality, feeder lengths, etc on the technical losses;

(ix) Guide the modelling engineers to establish and conduct sample studies, case studies, and simulations, and secure the assistance of utilities to conduct on-site measurements and accounting, to establish the validity of model results;

(x) Calculate and present losses, sufficiently disaggregated, for the first year of the 5-year planning period (eg. FY2017), present an interim study report to stakeholders, to discuss methodology, application of methodology, and results

(xi) Discuss ways and means, and investment requirement to reduce both technical and commercial losses;

(xii) On the basis of the agreed methodology, develop the five year loss forecast, (eg FY2017–FY2021 or other five year period as agreed) to provide year by year technical and commercial loss targets to each utility/PBS, sufficiently disaggregated into voltage levels and geographic areas of each utility/PBS;

(xiii) Benchmark the losses with other similar distribution utilities in the region, and utilities in Bangladesh against each other, using indicators such as line lengths, customer mix, customer density, etc.;

(xiv) Establish models, calculation procedures, and measurements to calculate technical losses, the allowed commercial losses, and to establish loss targets for the five year window, and prepare the procedure to update the loss targets, to ensure a 5-year loss profile is available at any given time;

(xv) Propose the institutional structure to achieve the above loss calculation and targeting activity, and provide training and exposure to distribution utilities, BERC, and other relevant staff on the procedure; and

(xvi) Conduct a concluding workshop to discuss and disseminate the findings, achievements of the TA, and the way forward with loss assessments and targeting, among the Power Division/Power Cell staff, and the utilities/PBSs.

290. Power Distribution Planning Specialist (national). The power distribution planning specialist (national) will be responsible for coordinating the team of national consultants to provide local inputs and support/act on behalf of the power distribution planning specialist (international) in conducting the above tasks, and actively participate in the information collection and modelling process. The power distribution planning specialist (national) should have a bachelor’s degree in electrical engineering and at least 7 years of experience in the utility industry, preferably in planning.

291. Power Transmission Planning Specialist (international). The power transmission planning specialist (international) should have a degree in electrical engineering, and at least 12 years of working experience in electric utility planning, including transmission planning, and

120 Annex 1

modelling. In particular, tasks of the power transmission planning specialist (international) will include, but would not be limited, to the following:

(i) Review the indicative losses in the transmission network and the methodology by which the planned losses and the actual losses are calculated/reported by PGCB;

(ii) Review how loss allowance is relevant in the tariff calculation process to PGCB and to other utilities;

(iii) Review the meters, metering points, coverage by the SCADA system, to facilitate transmission loss disaggregation into voltage levels and geographic regions;

(iv) Disaggregate transmission losses into technical and metering losses, and commercial losses (if any);

(v) Provide inputs to the TA inception report, to describe the loss levels, definitions, metering points, and the methodology proposed to conduct loss assessment for the reference year (eg FY2017) and for the five year planning window (eg. FY2017-FY2021);

(vi) Working with BPDB, examine the expected dispatches of power plants in each time interval in each season, over the five year planning window, and develop models and a calculation methodology to asses technical losses in transmission for each year of the five year planning window;

(vii) Develop a procedure to benchmark transmission losses against other transmission utilities abroad, and identify features that should be improved in the PGCB network;

(viii) Establish the models, calculation procedures, and measurements to calculate technical losses and the allowed commercial losses, to establish loss targets for the five year window, and prepare the procedure to update the loss targets to ensure a 5-year loss profile is available at any given time; and

(ix) Propose the institutional structure to achieve the above loss calculation and targeting activity, and provide training, and exposure to PGCB, BERC, and other relevant staff on the procedure.

292. Power Transmission Planning Specialist (national). The power transmission planning specialist (national) will be responsible for local inputs and support the power transmission planning specialist (international) in conducting the above tasks, and actively participate in the information collection and modelling process. The specialist should have a bachelor’s degree in electrical engineering, and at least 7 years of experience related to the utility industry.

293. Distribution Modelling Engineers (international, 2 persons). Distribution modelling engineers (international) would assist the power distribution planning specialist (international) and team leader and other members of the TA team to conduct modelling of the distribution network of each utility/entity. They should have a bachelor’s degree in electrical engineering, and at least 5 years of experience related to the utility industry.

294. Distribution Modelling Engineers (national, 2 persons). The distribution modelling engineers would assist the power distribution planning specialist, and other members of the TA team to conduct modelling of the distribution network of each utility/entity, and specifically assist in data preparation, metering, analysis, and field work. They should have a bachelor’s degree in electrical engineering, and at least 3 years of experience related to the utility industry.

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5.5 Energy efficiency of buildings, establishment of a building energy efficiency rating system

a. Scope of Work

295. The project will provide technical support to Sustainable and Renewable Energy Development Authority (SREDA) to (a) establish standards and procedures for energy efficiency rating of buildings, and to (b) facilitate solar PV integration to buildings.

296. The Bangladesh National Building Code 2012, now a mandatory requirement, carries general recommendations on the building envelope that have an indirect impact on building energy efficiency, such as (i) window to wall ratio, (ii) window openings, (iii) shading, and (iv) roof insulation. On energy efficiency improvement requirements, the code carries specific recommendations on (a) day lighting and supplementary lighting systems, (b) lighting power density, (c) occupancy sensors, (d) lifts and escalators, (e) renewable energy options, and (f) heating ventilation and air conditioning (HVAC) systems. Further, the code provides recommendations on water management systems, which too have an indirect impact on building energy efficiency.

297. A study report prepared in 2012 with the support of IFC, developed recommendations for a Green Building Code for Bangladesh, expanding on the energy efficiency components in the National Building Code. This study conducted a baseline survey on existing practices on building design and operations, and developed more specific recommendations to be included in a prospective Green Building Code.

298. Under the technical assistance, a baseline survey of energy consumption in buildings, and practices on energy-related construction in buildings would be conducted, and a comprehensive "Building Energy and Environment Rating (BEER) Tool” for Bangladesh will be developed. The study will also develop a user manual for the rating system, and will conduct at least ten BEER applications through the application, evaluation and certification/rating process. SREDA staff will be engaged in parallel with the consultant’s staff, in the development of the tool, and in evaluation of buildings for BEER. The study will train staff to conduct the evaluations of applications. In addition, the technical assistance will develop an advisory service on building energy efficiency practices in general, and more specifically, the BEER requirements. Once the manual system is established, the consultant would develop a web-based system for submission of applications, and for their assessment by SREDA staff, and to inform the applicant about the results of evaluation, requirements for improvements, if any. Accordingly, the technical assistance will build-up on previous work done, conduct further studies, and then establish and operationalize the new BEER for Bangladesh.

299. The connection of a solar PV system in a building to the grid through the customer’s own electricity connection is not allowed. A discussion paper on potential introduction of feed-in-tariffs, net or gross metering options, for solar PV, and draft regulations are already available. Bangladesh has limited land space to harness solar energy for electricity generation. As solar PV equipment prices become competitive, integration of solar PV systems to buildings would form a part of the country’s strategy for renewable energy development. BEER would provide an additional window, to recognize the provision of renewable energy, in addition to its main thrust: energy efficiency.

122 Annex 1

300. The study will review other country experience and examine specific economic and technical issues related to the use of solar PV systems integrated to buildings, serving the grid. On the basis of the agreed recommendations of the study, the consultant will develop technical standards for grid connection of solar PV systems in buildings, and the process for application, evaluation, testing and connection of such systems, along with a draft agreement between building owner/electricity customer, and the electricity distribution company.


1 Building Energy Efficiency Specialist 5 5 2 Solar PV Systems Specialist 3 3 3 Utility Regulatory/Distribution Specialist 3 3 4 IT Specialists (2 persons)

6


301. Building Energy Efficiency Specialist/Team Leader (international). The international building energy efficiency specialist/team leader will be responsible for the overall quality and implementation of the TA, providing the required support to the executing agency the Power Division and the implementing agency SREDA, all stakeholders to the study, and reporting to an ADB project officer. The international building energy efficiency specialist/team leader should have a degree in engineering, preferably with a postgraduate degree in a relevant discipline, with preferably 15 years of experience in energy efficiency, building energy management systems, and energy auditing. In particular, the tasks of the international building energy efficiency specialist/team leader will include, but would not be limited to, the following.

(i) As the team leader, manage the consulting team, coordinate with other team members to develop a detailed work plan and an implementation schedule, work with the executing agency/implementing agency to oversee the consulting team, and compile, edit, and ensure the quality of reports to be issued under the studies.

(ii) Consult with executing agency/implementing agency counterpart staff and all stakeholders, in relation to the project objectives, design, implementation mechanism, and implementation schedule.


(iv) Review the legal provisions and other regulatory documents/guidelines related to the intended task of establishing a BEER procedure in Bangladesh, and prepare a narrative on any additional regulations/guidelines required to be issued to facilitate the BEER system; prepare drafts of such documents;

(v) Prepare an inception report, clearly identifying the work to be conducted and the timeline, the roles of each consultant in the team, to achieve the objectives of the TA, and to deliver a BEER that align with international best practices and other similar rating systems already in operation in Bangladesh;

(vi) Upon approval of the inception report, lead a survey of buildings in Bangladesh to establish the baseline energy efficiency status, as well as to collect other useful information, that would assist in formulating the BEER system;

(vii) Structure the BEER system, prepare the required draft documentation, discuss the procedure and features of the system with SREDA and all relevant regulatory agencies;

(viii) Conduct a trial rating of at least two buildings, to test the system of rating, assess the results, and make the required revisions; present the proposed BEER, its

Annex 1 123

features and information requirements, procedures, evaluation methodology, and results of trial ratings;

(ix) Prepare the on-line submission formats, and together with IT specialists, implement and operationalize the on-line application and evaluation procedure for applications for BEER;

(x) Conduct at least ten such application procedures and evaluations, and rectify shortcomings, to achieve a fully operational BEER system;

(xi) Propose the institutional structure to continue to facilitate building energy efficiency improvement and the BEER, and provide training and exposure to SREDA and other agency staff, on the procedure; and

(xii) Conduct a concluding workshop to discuss and disseminate the findings, achievements of the TA, and the way forward with BEER system, among the Power Division/Power Cell staff, SREDA and other stakeholder agencies and institutions.

302. The National Building Energy Efficiency Specialist will be responsible for coordinating the team of national consultants to provide local inputs and support/act on behalf of the international building energy efficiency specialist in conducting the above tasks, and actively participate in the information collection and the process to establish and testing the BEER system. The national building energy efficiency specialist should have a bachelor’s degree in engineering and at least 7 years of experience in energy efficiency and related work in buildings, preferably in building energy management systems.

303. Solar PV Systems Specialist (international). The international solar photovoltaic specialist should have a degree in science or engineering, and at least 12 years of working experience in application of solar PV systems in off-grid, grid-connected, and building-integrated systems. Experience in solar energy resource assessment would be an advantage. In particular, tasks of the international solar photovoltaic specialist will include, but would not be limited to, the following:

(i) Assess the work conducted previously and the current level of application of solar PV for both off-grid and on-grid applications, and previous work to enable further development of grid connected solar PV systems through a feed-in tariff, or net/gross metering arrangements;

(ii) Discuss with electricity utilities and the Bangladesh Energy Regulatory Commission (BERC), to establish the technical and economic/financial barriers to a program where solar PV systems would be integrated into buildings that apply for BEER certification, and to use solar energy on the basis of net/gross metering;

(iii) Describe the international best practices, analyze their implications on the Bangladesh utility, regulatory and economic structure, and establish the staged approach to enable solar PV use in buildings;

(iv) Prepare indicative plans for the integration of solar PV to the sample building(s) for which trial BEER certification procedure would be tested;

(v) Prepare codes and guidelines, draft standards, etc., for solar PV systems in buildings;

(vi) Conduct economic and financial evaluation of solar PV systems in buildings, and recommend initiatives to create an enabling environment to integrate solar PV into BEER certified buildings;

124 Annex 1

(vii) Conduct capacity building among building industry and utility/regulatory professionals, and SREDA; and

(viii) Conduct a concluding workshop to discuss and disseminate the findings, achievements of the TA, and the way forward with BEER system in relation to solar PV, among the Power Division/Power Cell staff, SREDA and other stakeholder agencies and institutions.

304. The National Solar PV Systems Specialist will be responsible to provide local inputs to the international solar PV systems specialist in conducting the above tasks, and actively participate in the information collection and the process to establish and test the BEER system. The national solar PV systems specialist should have a bachelor’s degree in science or engineering and at least 7 years of experience in solar PV related work in buildings, both on-grid and off-grid.

305. Utility Regulatory/Distribution Specialist (international). The international utility regulatory/distribution specialist should have a degree in electrical engineering and at least 12 years of working experience in power distribution and associated regulatory work. Experience in grid integration of renewable energy resource-based generation would be an advantage. In particular, tasks of the international utility regulatory/distribution specialist will include, but would not be limited to, the following:

(i) Assess the work conducted previously and the current level of application of solar PV for both off-grid and on-grid applications, and previous work to enable further development of grid connected solar PV systems through a feed-in tariff, or net/gross metering arrangements, along with regulatory assessment on economics and safety;

(ii) Prepare technical guidelines, codes, standards, and testing procedures, to commission the connection of solar PV systems integrated into buildings;

(iii) Prepare advisory documents on integrating solar PV to buildings, as a guide to architects and engineers;

(iv) Conduct capacity building among building industry and utility/regulatory professionals, on technical and regulatory approach to facilitate building-integrated solar PV; and

(v) Actively participate in the trial BEER rating of buildings, conducted within the TA.

306. The National Utility Regulatory/Distribution Specialist will be responsible to provide local inputs to the international utility regulatory/distribution specialist in conducting the above tasks, and actively participate in the information collection and the process to establish and test the BEER system. The national utility regulatory/distribution specialist should have a bachelor’s degree in electrical engineering and at least 7 years of experience/exposure to solar PV related work in distribution utilities.

307. The National IT Specialists (2 persons) would assist the building energy efficiency specialist/team leader and other members of the TA team to develop a web based information system on the BEER rating systems, guidelines. The IT specialist will also develop a web based support system to be used by architects and engineers, on best practices in design of energy efficient buildings. Further develop the web-based application procedure and evaluation by SREDA. IT specialists should have a bachelor’s degree in IT, mathematics, science or engineering, and at least 3 years of experience.

Annex 1 125

5.6. Promoting good governance in power sector to provide better service delivery

308. The technical assistance project would assist Power Cell of the Ministry of Power, Energy and Mineral Resources to conduct (a) a study on impacts of power sector reforms in Bangladesh, and to prepare a way forward to complete the elements of reforms that are yet to be implemented and a road map for implementation, (b) review of technical specifications of the standard tender document for prepaid metering system, (c) review of the tender document for 3rd party vending solution for prepaid consumers (d) review of tender document prepared for procurement of prepaid meters under deferred payment methods, and (iv) review and propose improvements/upgrades to the existing software and hardware for prepaid metering systems.

5.7. Capacity building in energy sector planning and management, to provide better service delivery

309. The technical assistance will cover capacity building for power and energy sector manpower in the field of renewable energy, energy efficiency, LNG, regulatory issues, transmission and distribution planning & modernization, GIS based communication, etc.

People’s Republic of Bangladesh: Bangladesh Power System ......commercial losses and increasing...

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