Distribution System and Expansion Project

Distribution System Upgrade and Expansion

Bangladesh

2016 - 2019

E&S-Category: B

Status: Approved

Timeline

April 21, 2016

CONCEPT REVIEW

May 16, 2016

FINAL REVIEW

June 24, 2016

FINANCING APPROVAL

September 2021

LATEST FIELD VISIT

December 31, 2019

LOAN CLOSURE

US$ 165 million

AIIB

Total Project Costs

US$ 262.29 million

Executive Agencies

US$ 17.89 Mio

Government of Bangladesh

US$ 79.4 Mio

Safeguard Concerns: Land acquisition and involuntary resettlement

Due to the construction work more than 5,000 hawkers were displaced from an area, but they never received compensation since the area was not listed in the E&S review.

Persons with disabilities

AIIB failed to consider project impacts and benefits with respect to people with disabilities.

Safeguard Concerns: Stakeholder engagement, public consultation and information disclosure

• Lack of information: community members were unaware of basic project details, including the AIIB ́s involvement.

• While AIIB points to the Bangladesh government’s target to provide electricity to all by 2021 in project documentation, the connections to rural people are focused on areas where distribution lines have already been constructed rather than those who are genuinely energy poor without access to the grid – the so called ‘last mile’ communities.

Safeguard Concerns: Community health and safety

• Residents in the Dhaka region claim that new meters have more than doubled the unit price of electricity.

• Missing health security related to high voltage power lines: Any power leakages from cables during flooding (Dhaka is located in a highly flood-prone area and is submerged almost every year, and the project is situated in the lowest area in the city) would pose a significant risk to people's lives.

Further Information