2014 Clean Energy Investments

Project Summaries

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• Publisher: Asian Development Bank
• Year: 2015
• Print ISBN: 9789292549633
• eBook ISBN: 9789292549640
• Topic: Business
• Subtopic: Energy Industry
• Index: Business

This report summarizes the investments in clean energy made by the operations departments of the Asian Development Bank (ADB) in 2014, condensing information from project databases and formal reports in an easy-to-reference format. This report was prepared by ADB's Clean Energy Program which provides the cohesive agenda that encompasses and guides ADB's lending and nonlending assistance, initiatives, and plan of action for sustainable growth in Asia and the Pacific.

Private Sector Operations Department

Investment Number: 7436/3236-BAN

Project Number: 44951-014

Summit Bibiyana II Power (Bibiyana II Gas Power Project)

Rationale

In Bangladesh, about 62% of the population had access to electricity as of May 2014. Many industrial and commercial establishments depend on expensive and inefficient captive power generation (burning diesel or heavy oil) during power interruptions. Bangladesh faces the challenge of increasing access to electricity and removing power-related constraints on economic development. The government has embarked on a program of fast-track measures to develop power generation capacity, including developing new gas supply facilities and dual-fuel and coal-based power plants to generate 15 gigawatts of power capacity by 2016.

The consortium of Summit Industrial & Mercantile and GE Energy was awarded the Bibiyana II project in November 2010. After being formally awarded the project, the consortium approached ADB to discuss financing for the project, given ADB’s pioneering role and experience in financing the Meghnaghat gas power independent power producer project, one of the first major private sector independent power producer projects in Bangladesh, and its strong support for the power sector through sovereign lending.

Description

The project involves design, engineering, construction, and operation of a 341 megawatt combined-cycle, gas-fired power plant to be located on the south bank of the Khushiyara River about 180 kilometers (km) northeast of Dhaka and 30 km southwest of the town of Sylhet in the district of Habiganj. The project comprises one combined-cycle equipment train and utilizes a single General Electric 9FA combustion turbine generator, coupled to a heat recovery steam generator and a single steam turbine generator, as well as other plant and equipment. Gas will be supplied to the project through an 8.8 km long, 50.8-centimeter high-pressure pipeline from the existing Bibiyana gas field. Power will be evacuated from the power plant by means of 230 kilovolt or 400 kilovolt transmission lines.

Total Loan Amount: $75.00 million (OCR)

Clean Energy Investment: $22.83 million

Project Category: Supply-side energy efficiency

Energy Savings: 7,799 terajoules/year

Greenhouse Gas Emission Reduction: 437,500 tCO₂e/year

Board Approval: 5 December 2014

Project Life: 30 years

Impacts	• Improved access to electricity in Bangladesh • Increased investments by the private sector in power generation in Bangladesh
Outcome	Increased combined cycle power generation
Output	Construction and operation of a power plant running on indigenous gas
Division	Infrastructure Finance Division 1, PSOD
Project Team
Team Leader	H. Hoshi, Senior Investment Specialist, PSOD
Team Members	I. Chauche, Investment Specialist, PSOD
	E. David, Associate Investment Officer, PSOD
	J. Gomez, Safeguards Officer, PSOD
	M. Greenhow, Senior Counsel, OGC
	S. Noda, Senior Safeguards Specialist, PSOD
	B. Quang, Safeguards Specialist, PSOD
	S. Rahman, Project Officer, Bangladesh Resident Mission, SARD
	R. Samiano, Safeguards Officer, PSOD
	K. Taniguchi, Senior Economist, PSOD

Investment Number: 7407/3130-GEO

Project Number: 47919-014

Adjaristsqali Georgia (Adjaristsqali Hydropower Project)

Rationale

Georgia has made significant progress in its energy sector, going from chronic power shortages and poor financial condition of electricity and gas companies to becoming an electricity exporter in 2007 thanks to the Government of Georgia’s effort to increase the generation capacity of hydropower plants. While Georgia imports electricity in winter when supply is low, it has significant excess generation in summer, and the volume of exports is increasing each year. In view of its rich but underdeveloped hydro resources, Georgia has set a strategic goal to become a regional energy hub by trading energy with neighboring countries. The proposed project is the second private hydropower plant designed for energy export and the first to be financed on a limited recourse basis.

In March 2013, Tata Power and Clean Energy Invest (CEI and, collectively with Tata Power, the sponsors), approached the Asian Development Bank (ADB) to request a loan for the project. Such request was made based on ADB’s long partnership history with Tata Power and the International Finance Corporation, and ADB’s experience in financing private hydropower projects. The project team also had a preliminary discussion with the European Bank for Reconstruction and Development, which was also approached by the sponsors. Through these initial discussions, the Private Sector Operations Department believed that the project possesses sound fundamentals, ADB’s participation will bring significant developmental benefits and demonstration impact, financing from ADB is absolutely necessary to make the project happen, and the success of the project will send an important signal to the market and help build confidence for private sector participation in Georgia’s hydropower development and cross-border energy trade.

Description

The project involves the const...

Table of contents

• Front Cover
• Title Page
• Copyright Page
• Contents
• Figures
• Abbreviations
• Executive Summary
• Central and West Asia Department
• East Asia Department
• Pacific Department
• Private Sector Operations Department
• South Asia Department
• Southeast Asia Department
• Appendixes
• Back Cover