China Eximbank provides RMB 1.93 billion government concessional loan for Power Grid Network Strengthening Project under PGCB (Linked to Record ID#92465)

China Eximbank provides RMB 1.93 billion government concessional loan for Power Grid Network Strengthening Project under PGCB In November 2016, the Government of Bangladesh’s National Economic Commission Executive Committee (ECNEC) approved the Power Grid Network Strengthening Project under the Power Grid Company of Bangladesh (PGCB).

Then, On August 11, 2017, China Eximbank reportedly expressed interest in financing the project and invited Bangladesh’s Ministry of Finance to submit a loan application.

On June 7, 2020, China Eximbank and the Government of Bangladesh signed two loan agreements for the Power Grid Network Strengthening Project under PGCB: an RMB 1,930,000,000 ($279.71 million) government concessional loan (GCL) agreement and a $686.571 million preferential buyer's credit (PBC) agreement.

The PBC and GCL proceeds were to be used by the borrower to finance a $1,141,200,116.04 commercial (EPC) contract between PGCB and a consortium consisting of CCC Engineering Ltd, Jiangsu ETERN Co Ltd, and Fujian Electric Power Company, which was signed on October 10, 2016.

According to the Government of Bangladesh’s Economic Relations Division (ERD), the GCL had achieved a disbursement rate of 51.8% (RMB 1,000,101,000 out of RMB 1,930,000,000) as of June 30, 2021, a disbursement rate of 54.2% (RMB 1,047,953,000 out of RMB 1,930,000,000) as of June 30, 2022, and a disbursement rate of 75.7% (RMB 1,461,853,000 out of RMB 1,930,000,000) as of June 30, 2023.

The PBC had still not disbursed as of June 30, 2023. The borrower had not made any repayments under the GCL or PBC as of June 30, 2023.

The purpose of the project is to construct 989.7 kilometers of new transmission lines and install 41 new substations in Dhaka and Mymensingh.

More specifically, the project involves the following components: (a) 400 kV Kaliakoir-Mymensingh transmission line: 100km (b) 230 kV transmission line: 330.20 km (c) 132 kV transmission line: 334.50km (d) Conductor up gradation of existing 132 kV transmission line: 225 km (e) 400/132 kV new Substation: 01 Nos (1x 650 MVA) (f) Construction of new 230/132 kV substations: 12 nos. (total 9200 MVA) (g) Capacity up gradation of existing 230/132 kV substations: 7 nos. (3035 MVA) (h) Construction of new 132/33 kV substations: 28 nos. (7404 MVA) (i) Capacity up gradation of existing 132/33 kV substations: 28 nos.(8044 MVA) (j) Extension of Existing 400 kV Substation: 1 nos (k) Extension of Existing 230 kV Substation: 3 nos (l) Extension of Existing 132 kV Substation: 14 nos (m) Renovation of existing substations: 05 Nos. (n) To construct new Specialized Engineering Facilities: 7 nos.

Components (a) and (b) involve 1. Construction of Kaliakoir - Shambhuganj (Mymensingh) 400 kV double circuit line: 100 km 2. Construction of Barapukuria (New) - Rangpur Substation (proposed) 230 kV double circuit line: 40km 3. Construction of Kaliakoir - Tangail Substation (proposed) 230kV double circuit line: 40km 4.

Construction of Khulna (S) substation - Khulna (Central) 230 kV substation (proposed) double circuit line: 0.2 km 5.

Construction of Mymensingh substation (proposed)- Phulpur AIS substation (proposed) 230kV double circuit line (Initially to be charged at 132kV): 35 km 6. Construction of Barisal(N) - Patuakhali 230kV double circuit line: 55km 7.

Construction of Bibiyana 230 kV substation - Sylhet (S) 230 kV GIS substation (proposed) 230kV double circuit line: 40km 8.

Construction of Sylhet(S) Substation (proposed) - Sylhet (E) Substation (proposed) 230kV double circuit line (Initially to be charged at 132kV): 10 km 9.

Construction of Sylhet (Kumargaon) - Sylhet (S) 230 kV double circuit line (Initially to be charged at 132kV): 16 km 10.

Construction of Sylhet (Kumargaon) - Sylhet (N) substation (proposed) 230 kV double circuit line (Initially to be charged at 132kV): 7km 11. Construction of Bhulta - Jalshiri 230kV double circuit line: 12km (Initially to be charged at 132kV). 12.

Construction of Sylhet (E) substation (proposed) - Sylhet (N) substation (proposed) 230 kV double circuit line: 16km 13. Construction of Kaliakoir - Kabirpur Substation (proposed) 230kV double circuit line: 15km 14.

Construction of four circuit Line In Line Out from Ishurdi - Ghorasal 230 kV double circuit line at new Dhamrai substation: 1km 15.

Construction of four circuit Line In Line Out from Comilla (N) - Meghnaghat 230 kV double circuit line at new Gazaria substation: 1km 16. Construction of four circuit Line In Line Out from Bheramara HVDC - Khulna (S) 230kV Line at Jessore: 8 km 17.

Construction of four circuit Line In Line Out from Bibiyana - Fenchuganj 230 kV double circuit line at new Bibiyana substation: 1km 18.

Construction of four circuit Line In Line Out from Barapukuria - Bogra 230 kV double circuit line at new Barapukuria (N) substation: 10km 19.

Construction of four circuit Line In Line Out from Ghorasal - Rampura 230 kV double circuit line at new Madhobdi substation: 1km 20.

Construction of four circuit Line In Line Out from Barapukuria - Bogra 230 kV double circuit line at new Palashbari substation: 22 km. Components (e) an and (f) involve 1. Construction of 400/132/33 kV AIS Substation with 2x225/325 MVA & 4x20 MVA transformer at Shambhuganj (Mymensingh) 2. Construction of 230 kV AIS Switching station at Barapukuria(N) 3.

Construction of 230/132/33 kV GIS Substation with 2x150 MVA & 2x50/75 MVA transformers at Bibiyana 4. Construction of 230/132/33kV GIS Substation with 2x250/350 MVA & 3x80/120 MVA transformer at Khulna Central 5.

Construction of 230/132/33kV GIS substation with 2x300/450 MVA & 3x80/120 MVA transformer including 50 MVAR Capacitor Bank at 33kV side at Madhobdi 6.

Construction of 230/132/33kV GIS Substation with 2x250/350 MVA & 1x50/75 MVA transformer including 50 MVAR Capacitor Bank at 33kV side at Palashbari 7. Construction of 230/132/33 kV GIS Substation with 2x300/450 MVA & 2x80/120 MVA transformer at Gazaria 8. Construction of 230/132 kV GIS Substation with 2x250/350 MVA transformer atDhamrai 9.

Construction of 230/132 kV GIS Substation with 2x250/350 MVA transformer at Jessore 10. Construction of 230/132 kV GIS Substation with 2x250/350 MVA transformer at Rangpur 11. Construction of 230/132 kV GIS Substation with 3x300/450 MVA transformer at Kabirpur 12. Construction of 230/132 kV GIS Substation with 2x250/350 MVA transformer at Tangail 13.

Construction of 230/132 kV GIS Substation with 2x250/350 MVA transformer at Sylhet (S).

CCC Engineering Ltd, Jiangsu ETERN Co Ltd, and Fujian Electric Power Company are the EPC contractors responsible for implementation. Project implementation officially commenced on February 16, 2021. As of August 2021, the project had achieved an 18.9% completion rate.

By December 2021, land for 72 of the 92 power substations supported by the project had been handed over to the CCCE-ETERN-FEPEC consortium and soil testing was underway for another 17 substations. The project was originally scheduled for completion in June 2024. However, it is running behind schedule due to the Covid-19 pandemic and other factors.

The CCCE-ETERN-FEPEC Consortium was unable to provide the necessary manpower. PGCB was also asked to provide 370 staff members to support the implementation project. It provided only 60 — much lower than the requirement.

Another obstacle has been the lack of funds for compensation to the local people who are being affected by the implementation of the project. Upon completion, the project is expected to add 10,000 MW power transmission capacity to the PGCB network.