Public Disclosure Authorized SOUTH ASIA Bangladesh Energy & Extractives Global Practice IBRD/IDA Investment Project Financing FY 2009 Seq No: 19 ARCHIVED on 20-Dec-2017 ISR30643 Implementing Agencies: Government of Bangladesh, GTCL, Power Grid Company of Bangladesh (PGCB), Economic Relations Division, Ministry of Finance, Govt. of the People's Republic of Bangladesh, Electricity Generation Company of Bangladesh (EGCB) Public Disclosure Authorized Key Dates Key Project Dates Bank Approval Date:30-Oct-2008 Planned Mid Term Review Date:18-Dec-2013 Original Closing Date:31-Mar-2016 Project Development Objectives Effectiveness Date:31-Mar-2009 Actual Mid-Term Review Date:21-Jan-2014 Revised Closing Date:30-Jun-2018 Public Disclosure Authorized Project Development Objective (from Project Appraisal Document) The primary development objective is to support investments in peaking power supply capability in Bangladesh such that unmet demand for energy is reduced by 1-billion kwh per year. Unmet demand has an economic cost of at as much as 2% of GDP. A secondary development objective is to build capacity among the implementing agencies: Elctricity Generation Company of Bangladesh, Power Grid Company of Bangladesh, and Gas Transmission Company Limited (GTCL). Has the Project Development Objective been changed since Board Approval of the Project Objective? Yes Board Approved Revised Project Development Objective (If project is formally restructured)phrpdodel Increase supply of electricity to Bangladesh grid network. Public Disclosure Authorized Components Name 335 MW Combined Cycle Power Plant (CCPP) including price and physical contingencies:(cost $457.75 M) 230 kv Power Evacuation System:(Cost $39.50 M) 60 km, 30-inch gas transmission line including price/physical contingencies:(cost $99.25 M) Technical Assistance and MIS:(Cost $56.00 M) Exchange rate loss Overall Ratings Name Previous Rating Current Rating 12/20/2017 Page 1 of 11
Progress towards achievement of PDO Unsatisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions The project is back on track. Construction and commissioning of the 335 MW CCPP has resumed in September. The other components of the project such as, the gas and power transmission lines are complete and functional and implementation of the TA continues. The EPC contract for the 335 MW CCPP is amended on September 13. Isolux is dropped, Samsung has taken over the site. They are working and made necessary mobilization. The Owner's Engineer (Fichtner) is providing necessary guidance/supervision. EGCB has a full set up at site and is providing active support. Samsung has deployed an able and diligent team, their approach to work is based on good engineering practice. They are committed to completing the whole facilities as early as possible and delivering the CCPP in a safe and reliable operating condition. Samsung is doing their best to address the defects of installation and materials that were lying at site for several months without preservation and care. In some cases, there were lack of records and there is a need to replace few parts or components. To make the Gas Turbine ready for commissioning, Samsung has brought to the site various technical advisors (TAs) from vendors/ original equipment manufacturers (OEMs) to inspect and provide necessary remedial services to the affected parts. Now the GT is ready for commissioning and it is undergoing necessary start-up tests and trial operations. The TAs continue to arrive a site and are providing necessary technical supports to both Gas Turbine and Steam Turbine. Samsung has simultaneously made fresh orders of few components (mainly one instrument air compressor and Gas Turbine batteries) that will arrive in December. They have airlifted few small but critical parts of Gas Turbine and is ordering repair of an auxiliary transformer. With all these difficulties, Samsung is in the process of commissioning the Gas Turbine (GT). They have made an interim arrangement for GT firing and power generation. The GT firing is done on December 14, 2017. The reliability test run and Commercial Operation Date (COD) will follow and are likely to be achieved by end of January 2018 after all materials arrive at site. They are scheduled to receive GT batteries and an instrument compressor by end of December 2017 and repaired GT auxiliary transformer by end of February 2018. This transformer will be fixed at plant shutdown time to be agreed with EGCB. The Task Team raised with EGCB/ Fichtner to clarify if the repaired transformer is acceptable. Samsung is still collecting information on the Steam Turbine (ST) power plant. The Technical Advisers (TA) for Heat Recovery Steam Generator ( HRSG) has arrived. The HRSG will require work before hydro test. The steel structure of the ST Building will arrive at end of December 2017 when they can start the ST building, EOT crane and piping works. Samsung is to start pending activities of cooling tower, water treatment plant, steam turbine, ST condenser etc. and is yet to provide a schedule for the Steam Turbine power plant. Eighty percent of physical progress of the gas-to-power infrastructure is complete. Construction of CCPP is 75% complete, and the gas transmission line and the power evacuation system are 100 % complete. Both systems are functional. The power evacuation is transferring 250 MW from Siddhirganj power hub to greater Dhaka region and the gas line is transferring 250 million standard cubic feet per day (mmcfd) of gas from Bakhrabad to Siddhirganj power hub. Implementation of the TA continues except the O&M for 335 MW CCPP (a major contract). A consultant for EGCB's Business Plan and few small contracts for the School Building are under procurement. Construction of the School Building is going on smoothly (40% complete). GTCL's Enterprise Resource Planning (ERP) system is at final stage, the Go-Live event is launched. EGCB's ERP is under implementation. They are recruiting a Project Management (PM) consultant to help supervise the ERP. 12/20/2017 Page 2 of 11
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Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- Substantial Substantial Macroeconomic -- Moderate Moderate Sector Strategies and Policies -- Moderate Moderate Technical Design of Project or Program -- Low Low Institutional Capacity for Implementation and Sustainability -- Substantial Substantial Fiduciary -- Substantial Substantial Environment and Social -- Low Low Stakeholders -- Low Low Other -- -- -- Overall -- Substantial Substantial Results Project Development Objective Indicators PHINDPDOTBL Additional annual electricity delivered to grid (in billion kwh): peak and off-peak: 2.49 (Text, Custom) Value 0.00 0.00 0.00 At least 2.49 billion 12/20/2017 Page 7 of 11
kwh delivered to grid. Peak:0.624 bilion kwh Off-peak :1.87 billion kwh Date 01-Apr-2009 08-Jun-2017 30-Nov-2017 30-Jun-2018 Overall Comments The plant is expected to achieve conditional PAC of Gas Turbine in January 2018. This will generate partial energy for the PDO indicator. Intermediate Results Indicators Generation Capacity of Conventional Generation constructed under the project (Megawatt, Custom) Value 0.00 0.00 0.00 335.00 Date 01-Apr-2009 08-Jun-2017 30-Nov-2017 31-Dec-2017 Transmission lines constructed or rehabilitated under the project (Kilometers, Custom) Value 0.00 11.00 11.00 11.00 Date 01-Apr-2009 08-Jun-2017 30-Nov-2017 31-Mar-2016 Transmission lines constructed under the project (Kilometers, Custom Breakdown) Value 0.00 11.00 11.00 11.00 Date 01-Apr-2009 08-Jun-2017 30-Nov-2017 31-Mar-2016 12/20/2017 Page 8 of 11
60 km gas transmission line constructed (Kilometers, Custom) Value 0.00 60.00 60.00 60.00 Date 01-Apr-2009 08-Jun-2017 30-Nov-2017 30-Jun-2016 Projected lifetime fuel savings (Mega Joules (MJ), Custom) Value 0.00 0.00 0.00 218.60 Date 01-Apr-2009 08-Jun-2017 30-Nov-2017 30-Jun-2018 O&M Contracts budgeted and implemented (Text, Custom) Value Limited O&M capacity of EGCB O&M for Siddhirganj 2x120 MW peaking units is providing O&M service to EGCB. It is still constrained to deliver annual energy targets due to shortage of gas from connecting line. Contracting of the other O&M for the 335 MW CCPP has failed twice. EGCB is redesigning the contract and intends to adopt other procurement method so that they can contract an OEM of power plants. This is subject of Bank's review and approval of APM. O&M for Siddhirganj 2x120 MW peaking units is providing relevant services. It is still constrained to deliver annual energy targets due to low pressure of gas. Contracting of the other O&M for the 335 MW CCPP has failed twice. EGCB is redesigning this contract and intends to adopt other procurement methods such as, SSS to hire an OEM to build capacity in O&M. This is subject of Bank's review/ approval. EGCB is also reviewing whether an LTSA signed with GE, can meet the O&M capacity building. EGCB runs the 335 MW CCPP on global O&M protocols. Date 01-Apr-2009 08-Jun-2017 30-Nov-2017 31-Dec-2019 12/20/2017 Page 9 of 11
ERP functional and generating reports (Text, Custom) Value Information based on past data and records Both EGCB and GTCL have earned knowledge in ERP design. Selection of two separate ERP Vendors (EGCB and GTCL) is complete. FPT, Vietnam is selected in both cases and contracts signed. GTCL's implementation is at an advanced stage; business process is finalized and GTCL is in configuration/ realization phase. User Acceptance Test is continuing. A global project management consultant is helping GTCL to implement the ERP. In EGCB, the ERP work has started since few months.. Both EGCB and GTCL have earned knowledge in ERP design. Two separate ERP Vendors are working in EGCB and GTCL. GTCL has just launched the Go- Live in its HQ. A global project management consultant is helping GTCL implement the ERP. In EGCB, the ERP work is ongoing and it is in process of hiring a PM consultant also. ERP go live and is generating reports. Date 01-Apr-2009 08-Jun-2017 08-Jun-2017 30-Jun-2018 Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P095965 IDA-45080 Effective USD 350.00 350.00 0.00 299.98 27.42 86% P095965 IDA-57370 Effective USD 176.71 176.71 0.00 34.72 142.95 20% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P095965 IDA-45080 Effective 30-Oct-2008 13-Nov-2008 31-Mar-2009 31-Mar-2016 30-Jun-2018 12/20/2017 Page 10 of 11
P095965 IDA-57370 Effective 13-Nov-2015 27-Dec-2015 15-Jun-2016 30-Jun-2018 30-Jun-2018 Cumulative Disbursements Restructuring History Level 1 Approved on 15-Apr-2014,Level 2 Approved on 15-Apr-2015 Related Project(s) P154127-Siddhirganj Power Project Additional Financing 12/20/2017 Page 11 of 11