The World Bank Report No: ISR1575 Implementation Status & Results Bangladesh Public Disclosure Copy Siddhirganj Peaking Power Project (P095965) Operation Name: Siddhirganj Peaking Power Project (P095965) Project Stage: Implementation Seq.No: 6 Status: ARCHIVED Last Modified Date: 08-Dec-2010 Country: Bangladesh Approval FY: 2009 Product Line: IBRD/IDA Region: SOUTH ASIA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Power Grid Company of Bangladesh (PGCB), Gas Transmission Company Ltd (GTCL), Electricity Generation Company of Bangladesh (EGCB) Key Dates Board Approval Date 30-Oct-2008 Original Closing Date 31-Mar-2016 Planned Mid Term Review Date 31-Dec-2010 Last Archived ISR Date 29-Jun-2010 Effectiveness Date 31-Mar-2009 Revised Closing Date 31-Mar-2016 Actual Mid Term Review Date Project Development Objectives 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? Yes No Component(s) Component Name Component Cost 300 MW power plant 195.90 11 km, 230 kV power transmission line 53.90 Public Disclosure Copy 60 km, 30-inch gas transmission line 104.30 Technical Assistance and MIS 33.90 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Satisfactory Overall Risk Rating Implementation Status Overview Implementation of the project is on track. There is impressive progress on power plant procurement since August besides the other nine contracts are moving well. The companies Page 1 of 5 The World Bank Report No: ISR1575 are achieving good progress across a range of areas in developing their institutional capabilities, that include governance reporting, FM reporting, preparation of MIS bid documents, environmental and social impact management capacity, and finance, accounting and audit enhancements. Public Disclosure Copy Results Project Development Objective Indicators Indicator Baseline Current End Target Indicator Name Value Value Value Meeting peak demand for energy: - Annual contribtn of at least 1-billion In the implementation phase of the kWh delivered to consumers; - Power & gas transmn assets utilized by project, the monitoring focuses on Date Date Siddhirganj 300 MW peak power plant & other users. contracting, construction and operations progress. Type Unit of Measure Comment Comment Custom Indicator Text Tendering is underway and implementation progress is roughly 20 months behind the projected pace estimated in the PAD. The project has total 10 contracts. GOB expanded the 300 MW peaking units to 450 mW CCPP and this is under procurement; Major 3 contracts are under procurement, 3 on power evacuation are awarded, 2 on MIS under bid preparation and rest 2 (OEs of PGCB and GTCL) are under implementation. Date 04-Dec-2010 Comment Power plant procurement suffered Public Disclosure Copy 16 months delay due to Bank-wide Siemens issue and bid evaluation deficiency of EGCB. OPRC did notconcur with EGCB's award recommendations. GOB relaunched the rebidding for 450 MW CCPP and established a solid oversight mechanism to accelerate project implementation and procurement of power plant within 141 day. Good progress has been made on the other contracts. Page 2 of 5 The World Bank Report No: ISR1575 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Strengthng operations & governance of the implemtng agencies: - Sept. 2009 Governance reporting Timely implementation of the proj components; - Clear & received, albeit with delay. PGCB Date Date transparentreprtng on governance, finncl perfmnc, & env & social and EGCB are in full reporting impact mgnt. compliance but GTCL is yet to Type Unit of Measure Comment share their corporate governance Comment Custom Indicator and HRD reports. Quarterly project Text reporting has now been initiated. Reports from entities and their owner's engineers are satisfactory. Sept. 2010 governance report is pending. Date 04-Dec-2010 Comment The entities demonstrated uneven pro-activity in preparing the governance reporting. They reported continued satisfaction with working with the respective owner's engineers; have given positive feedback on learning processes related to procurement, environmentaland social impact management, and are seeing value in the governance reporting exercises. Intermediate Results Indicators Public Disclosure Copy Page 3 of 5 The World Bank Report No: ISR1575 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value (a) Contribute to meeting peak demand for energy 1-billion kWh delivered annually to Procurement of all project Years 1-3: Annual governance help reduce heavy annual load components on track; all major reporting; shedding; monitoring of output will components are likely to be Years 4-8: -- 1 billion kWh begin when plant comes into contracted in FY 2011. delivered to grid substations per Type Unit of Measure operation Date annum, -- Annual governance Custom Indicator Text Date reporting 04-Dec-2010 31-Jan-2012 Date Comment Comment 31-Jan-2012 Tendering of all major components is underway including the new 450 Comment MW CCPP. 3 contracts on power evacuation are executed/under implementation; bid evaluation of O&M contract under IDA review. The gas pipeline bid document cleared by IDA and GTCL has invited bidsand deadline is mid of December. Indicator Baseline Current End Target Indicator Name Value Value Value (b) Strengthen governance of the implementing entities Inadequate corporate governance The First annual governance Years 1-3: Annual governance reporting reporting relating to human reporting; Years 4-8: -- 1 billion Date resources development, kWh delivered to grid substations procurement, and corporate per annum, -- Annual governance Type Unit of Measure 30-Sep-2009 governance received and reporting Custom Indicator Text Comment reviewed; Two entities published Date them in website. Reports are due by end-September of each year. 30-Sep-2009 Public Disclosure Copy The current report is pending. Comment Date 04-Dec-2010 Comment Boardening involvements of the respctive board committees on governance reporting requird to demonstate more ownership. Data on Financial Performance (as of 02-Dec-2010) Financial Agreement(s) Key Dates Page 4 of 5 The World Bank Report No: ISR1575 Project Loan No. Status Approval Date Signing Date Effectiveness Date Closing Date P095965 IDA-45080 Effective 30-Oct-2008 13-Nov-2008 31-Mar-2009 31-Mar-2016 Public Disclosure Copy Disbursements (in Millions) Project Loan No. Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P095965 IDA-45080 Effective XDR 222.60 222.60 0.00 0.76 221.84 0.00 Disbursement Graph Key Decisions Regarding Implementation The client has expanded the the 300 MW peaking power plant to 450 MW combined cycle technology for greater development effectiveness. They have also taken solid steps to Public Disclosure Copy improve performance of EGCB's bidding process and complete the power plant procurement within a tight time line for contract award. They have sought additional financing of the World Bank to cover the capital cost of the power plant. This is presently under World Bank's review. Restructuring History There has been no restructuring to date. Related Projects P124724-Siddhirganj Power Project AF Page 5 of 5