1

Siddhirganj Power Project, Credit No. 4508-BD

Implementation Review Mission: September 28 to October 2, 2014

Aide Memoire

1. An implementation review mission1 of Siddhirganj Power Project was carried out during

September 28 to October 22, 2014. The mission met with the officials of Ministry of Power, Energy and

Mineral Resources, External Resources Division of the Ministry of Finance, Power Grid Company of

Bangladesh (PGCB) Limited, Energy Generation Company of Bangladesh (EGCB) Limited, and Gas

Transmission Company Limited (GTCL). Key officials met are listed in Annex-1. This aide memoire

was discussed at a wrap-up meeting chaired by Mr. Monowar Islam, Secretary Power Division,

Ministry of Power, Energy and Mineral Resources on October 19, 2014. At that time it was decided to

classify this aide-memoire as a public document under the Bank’s Access to Information policy.

2. Mission Objectives

The objectives of the mission were to (i) review the implementation of the project specially the 335

MW combined cycle power plant (CCPP) towards achieving the project development objective (PDO);

(ii) review project issues; and (iii) agree on the next steps. Specifically, the mission would review

progress of the construction of the 335 MW CCPP, undertake site visit, track key dates of construction

schedule and assess likelihood of achieving the commercial operations date (COD) of the Simple Cycle

power plant on time. The mission would further review whether the project ratings should be

considered for upgrading on current implementation progress and an extension of project deadline to

enable PDO indicators to be monitored. The mission would further review the borrower’s additional

financing plan in moving forward this high priority power generation project.

3. Key Project Data and Ratings

Project Data Project Performance Ratings

Board Approval Date: 10/30/2008 Summary Ratings: At MTR Now

Effectiveness Date: 03/31/2009 Achievement of Project

Development Objectives (PDO)

MU MU

Original Closing Date: 03/31/2016

Revised Closing Date:

MTR Date

N/A

02/12/2014

Implementation Progress (IP) MU MS

Original Credit Amount:

SDR 222.6 million

($350 million)

Other Ratings:

Financial Management

MS

MS

Amount Disbursed: SDR 116.497 million

($173.085 million)

Project Management S S

Disbursement 52.33% Procurement S S

Performance Trend Deteriorating Improving

Notes: HS= Highly Satisfactory; S=Satisfactory; MS=Moderately Satisfactory; U=Unsatisfactory; MU=Moderately Unsatisfactory;

HU=Highly Unsatisfactory; NA= Not Applicable

4. Achievement of Project Development Objective (PDO)

Increase supply of electricity to Bangladesh grid network: Since May 2014, there is an improved

progress of the construction of the 335 MW CCPP and an overall steady progress of the project. The

commercial operations date (COD scheduled for 13 February 2016) for the CCPP can be achieved

within the project deadline (March 31, 2016), with the current trend of continued construction progress.

1 The mission consisted of Messrs. Md. Iqbal (Senior Energy Specialist and Task Team Leader), Tanvir Hossain (Senior

Procurement Specialist), Yusuf Salauddin (STC, Technical Expert), Bazlul Kadir (STC, Procurement and Contract

Management), Mohammed Atikuzzaman (Financial Management Specialist), Shakil Ahmed Ferdausi (Senior Environment

Specialist), Sabah Moyeen (Social Development Specialist), Md. Faijul Islam (Information Analyst) and Md. Tafazzal Hossain

(Program Assistant). 2 Key executives of the MPEMR were not available to meet. So, the mission was extended a few days after the Eid vacation.

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However, the PDO can’t be achieved as the targeted energy (2.49 billion kWh per annum) can’t be

delivered and monitored within the project deadline. The Project performance in terms of the PDO

level result indicators is as follows (details given at Annex-2).

5. (a) PDO Indicator: Not met

2.49 billion kWh additional electricity delivered to grid (in peak and off-peak period): Not

met. No energy generated yet as the CCPP is still being built.

(b) Intermediate Indicators: Partially met.

(i) 335 MW conventional power generation capacity, constructed under the project- Not

yet built; presently under construction and 50% completed.

(ii) 11 km power transmission lines constructed under the project: Met. 11 km, 230 kV

transmission line and two 600 MVA substations built and under load test.

(iii) 60 km gas supply line constructed under the project: Partially met. 85% of the contract

completed; pre-commissioning of pipeline completed, upstream gas will flow in end-October

2014.

(iv) 218.6 billion MJ projected lifetime fuel saved: Not met. No fuel saved as the CCPP is

still under construction and can’t burn fuel.

(v) O&M contracts budgeted and implemented: Partially met. The O&M for 2x120 MW

peaking units of EGCB is contracted and operating the power plants. The second O&M for the

335 MW CCPP is under procurement. This O&M is expected to be onboard in March/April

2015.

(vi) ERP functional and generating reports: Not met. Two ERPs designed and selection of

vendors is under process.

Based on the above results, there are notable improvements of performance against the Intermediate

Indicators. Therefore, the IP rating has been upgraded to moderately satisfactory (MS). However, the

project is not on track to deliver the PDO by end of the project closing date (March 31, 2016), therefore

the PDO rating will remain moderately unsatisfactory (MU).

6. Implementation Review

The mission reviewed with the Government and the IAs (EGCB, GTCL and PGCB) the present

implementation performance of the project and concluded that steady progress is being made in the

construction of the 335 MW CCPP, the installation of the two small infrastructures (230 kV power

evacuation system and 60 km 30 inch diameter gas transmission pipeline) and the implementation of

the Technical Assistance component. Presently, 90% of the IDA funds have been committed; the rest

($28.50 million) covers outstanding institutional development support that is under procurement. The

project has achieved 63% overall progress of physical infrastructure and the TA is providing steady

institutional development support to the IAs. They are acquiring a wide range of utility improvement

capabilities through this. The mission concluded that an extension of the project closing date by at-least

one year would be required to be able to monitor and measure whether the integrated gas-to-power

project would deliver the targeted 2.49 billion kWh per annum of energy to the grid (and thus achieve

the PDO). However, additional progress (see Annex 3) would be needed before such an extension could

be considered.

7. Progress of Physical Infrastructure

Physical and financial progress of the main project infrastructure works are given below:

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Components: At MTR

Physical

Progress

At MTR

Financial

Progress

Current

Physical

Progress

Current

Financial

Progress

(a) 335 MW CCPP 30% 19.7% 50% 59%

(b) 230 kV Power Evacuation System 98% 84% 100% 95%

(c) 60 km Gas Transmission Pipeline 75% 60% 85% 65%

Overall Progress 46% 34.5% 63% 52.3%

The mission noted the above impressive progress and recognized that these are results of a few positive

steps the Government and EGCB took during and after the mid-term review (MTR) of the project in

January 20143. The mission was informed that since then, Isolux has been responding to the contractual

obligations, expanding volume of construction/erection activities and mobilizing increased resources to

meet the construction schedule. An improved project monitoring, especially on the construction of

CCPP, is in place. Isolux has been submitting informative monthly progress reports elaborating on all

aspects of the EPC; Fichtner has started to forward monthly Owner’s Engineer’s report providing

professional review on various project issues; and EGCB is holding monthly PIC (project

implementation committee) meetings with all stakeholders and providing issue-wise updates and or

decisions. The Power Division is holding PSC (project steering committee, chaired by Power Secretary)

meetings periodically to review and resolve critical issues of the project.

The mission paid a visit to the CCPP construction site and observed an accelerated rate of construction

and erection works. They were pleased to note an increasing activities being performed at the site and

that several construction/heavy erection activities were ongoing at the same time. The gas turbine and

gas turbine generator have been placed onto the GT pedestal and they were in the process of

assembling. This is a major milestone of the CCPP construction works. The storage needs of the CCPP

have exceeded the available storage capacity impeding progress of the erection works. However, Isolux

has been found coordinating the various activities efficiently and mobilizing various resources

effectively to catch up the schedule.

The other two small infrastructure components of the project have also made steady progress; PGCB’s

power evacuation system is 100% complete and is on load test at 132 kV since several months. GTCL

has so far completed 85% of the gas line contract, completed the hydro test and waiting for nitrogen

supply to neutralize the pipe prior to the Gas-In. The Upstream gas is expected to be available in the

Pipeline around October 31. GTCL confirmed that they target to provide metered and regulated gas

from the Siddhirganj gas RMS to the CCPP in March 2015. This coincides with the commissioning gas

flow schedule of the CCPP. The mission noted that Isolux has started some preparatory works to

connect the Siddgirganj RMS.

The mission informed that a few critical activities identified in July 2014 as benchmarks for upgrading

of the project rating have been met (for example, monthly actual construction progress rating of CCPP

(5%) crossed the monthly average of 3.3%; soil consolidation works completed; more than 90% of

piling works completed; more than 30% of concreting completed; GT and GTG have been placed onto

the GT pedestal and are in process of assembling etc.). Consequently the IP rating has been upgraded

from MU to MS (see para 5). The mission is of the opinion that the project implementation is back on

track and the current implementation performance trend is expected to continue.

3 In the MTR, the Government took the right message that unless the CCPP (the central piece of the project and the largest

contract) is back on track there is no point to move this large infrastructure project. They directed EGCB to accelerate the

project implementation and work seriously to achieve the PDO. The three IAs agreed to the CCPP schedule as the baseline for

the integrated gas-to-power project completion and the accomplishment of the PDO. Isolux (EPC for the CCPP) at that time

agreed to a revised construction schedule for the CCPP and restart the construction works in full swing. Simultaneously,

Fichtner (Owner’s Engineer for the CCPP) agreed to mobilize increased resources to the construction site and committed to

provide faster professional review of the contractual issues.

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8. Progress of Institutional Components

The institutional development supports (Part: D Technical Assistance) have been making good

progress. Three Owner’s Engineers are providing technical, supervision and contract/project

management advice to the IAs and NTPC is providing O&M services to EGCB’s 2x120 MW

Siddhirganj peaking units (37% of contracted man-months achieved). Procurement of the rest three

large contracts (an ERP for each of EGCB and GTCL; and an O&M for 335 MW CCPP for EGCB) is

progressing well. These consultants are scheduled to be onboard by March/April 2015, well in time to

interface with commissioning of the Simple Cycle Power plant.

The other institutional progress includes the establishment of an Environment and Social Units (ESU)

in the IAs, to build the relevant capacity. EGCB Board has approved an organogram for EGCB’s ESU,

which includes 4 positions for Environmental, Health and Safety (EHS) Unit with 1 Deputy General

Manager, 1 Manager, 1 Deputy Manager and 1 Assistant Manager. The organogram is waiting for final

approval of Power Division. The mission recommends revisiting the organogram to keep provision of

Laboratory Staff under the EHS for smooth monitoring of the environmental parameters agreed in the

Environmental Management Plan (EMP) under the Environment Impact Assessment (EIA). On the

other hand, PGCB delayed in finalizing the organogram for ESU. This has been prepared and approved

by the PGCB Board in the mission. The organogram includes 5 positions, 1 Deputy General Manager

(Environment and Social) to lead the Unit, 1 Manager (Environment), 1 Manager (Social/Resettlement)

and two Deputy Managers, one for each discipline. PGCB agreed to complete the selection of ESU

positions by January 31, 2015.

With the help of the TA, all the agencies have made good progress in acquiring a range of institutional

capabilities including in contract design and procurement, environmental and social impact assessment

and management action plans, financial management, construction supervision and project

management, and enterprise resource planning and management. The mission informed the IAs about

the scope of training, support for analytical work, and creation of social facilities (EGCB only) included

in the project restructuring in April 2014 and encouraged them to utilize these resources. The mission

elaborated that the Training will finance reasonable costs of training, seminars, workshops, conferences

and study tours conducted locally or abroad, and will cover fees, local/international travel, lodging and

subsistence for both trainers and trainees, rental of facilities, and training materials.

9. Project Issues

The mission looked at the critical path of the integrated gas-to-power project construction schedule and

suggested EGCB to adhere to this rigorously to achieve the Simple Cycle Commissioning and Simple

Cycle PAC (provisional acceptance certificate), scheduled for May 30, 2015. All the Steam Cycle

construction works should go in parallel and as per schedule.

CCPP Construction Schedule and Recovery Strategy: Isolux has been following the revised

construction schedule4 discussed in the 3

rd Project Steering Committee (PSC) meeting on February 12,

2014. The mission noted 47 day delay in this schedule. The Power Secretary confirmed that there is no

scope for rescheduling and any delay should be recorded. In the wrap-up meeting he categorically

requested Isolux to recover the lost days because there will be an increased need for electricity in the

irrigation season in April 2015. The mission suggested that Isolux should not slide or revise the total

schedule every month rather show the exact status of each activity. Fichtner in July opined that the

revised construction schedule is optimistic and has limited floats for time recovery. However, the

mission advised that based on an improved construction management (based on an effective

coordination (both within utility and inter-utility) and continued increased construction trend) the lost

days could be recovered. Fichtner should proactively track the lost days on weekly basis and guide

Isolux and EGCB accordingly.

4 Simple Cycle COD for May 30, 2015 and Combined Cycle COD for February 13, 2016.

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Simple Cycle Installation and Commissioning Plan: The purpose of this Plan is to regularly track the

scheduled activities; identify activities behind schedule; and take timely steps or corrective measures to

accelerate the work for achieving the SC PAC. The mission explained to EGCB, Fichtner and Isolux

the crucial need of the Plan and that without the Plan, the CCPP construction may face an unanticipated

deficiency that can jeopardize the commissioning of the SC as well the PAC. The mission emphasized

that the Plan does not only track the scheduled activities or milestones, but it incorporates factors that

can affect construction of the CCPP and Fichtner’s views on how to address them. The methodology for

preparation of the Plan includes Fichtner’s professional review of the following factors and

recommendations to catch up the schedule and achieve the quality:

i) Present construction trend, its state of affairs, and EPC’s preparedness to achieve the

schedule and quality,

ii) EPC materials on site and shipping schedule,

iii) Availability of construction tools, tackles/equipment; and scheduled deployment to site,

iv) Site productivity,

v) Isolux skills deployment schedule,

vi) Payment schedule vs. progress payments, and

vii) A separate list of activities to achieve PAC for SC.

The Task Team reviewed a draft Plan with Fichtner and EGCB and they have been advised to provide a

final one in terms of the above para, with associated layout drawing showing equipment boundary and

data, for Bank’s review. The Plan must flag also the status of a few critical activities during the next

three months (see below). These should be tracked to find out beforehand if any one of them is or likely

to be behind schedule and take appropriate measures to accelerate:

Circulating Water and Cooling Water Erection works to start from November 2014

Fuel Gas Connection with Siddhirganj Gas RMS to start in October 2014

Fire Fighting System and Clarifier Water Tank Erection to start in November 2014

GT Generator and other scheduled Electrical works to start in November 2014

GT Commissioning to start on February 2, 2015

The mission further urged EGCB and Fichtner to specifically track the following major Milestones to

achieve the SC PAC for May 30, 2015:

Gas Turbine and Auxiliaries Mechanical Completion February 01,2015

First Fire Fuel Gas GT March 23, 2015

GT Commissioning to start February 2, 2015

First Syncronisation of GTG March 31, 2015

Provisional Acceptance Test Simple Cycle May 30, 2015

The mission further suggested that the following technical issues need to be reviewed within Isolux,

Fichtner and EGCB and confirmed by November 15, 2014:

EGCB and Isolux to finalise inclusion of automatic condenser cleaning equipment;

Waste water composition limit to be determined as per the standards of DOE and World Bank’s

relevant Guidelines; and

Water Treatment Plant design to consider quality of DM water and quality river water.

Electrical Substation Availability and Connection with CCPP: The Siddhirganj Substation is

available, and EGCB and PGCB should coordinate to achieve electrical connectivity with the CCPP for

power evacuation. Fichtner and Isolux should work out short-term plan to achieve this and inform

PGCB about the plan, including access to substation and shutdown/isolation of bay.

Gas Supply Availability and Connection with Siddhirganj Gas RMS: EGCB/Fichtner needs to

coordinate the gas supply issue with GTCL and Titas Gas, including RMS connectivity with the CCPP.

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The mission noted considerable delay and inaction in executing the GSA. The mission urged the Power

Secretary to intervene and ensure that Titas Gas and EGCB sign the GSA expeditiously. The Power

Secretary advised EGCB to sit with Titas and GTCL to finalize the issue. The EMR Secretary also

agreed to look into the issue. EGCB informed in the wrap up meeting that they have sent a draft GSA

with revision of clauses (regarding LD clauses) for Bank review. The mission required that the GSA

should be executed no later than December 31, 2014.

O&M Responsibility of Haripur and Siddhirganj Gas RMSs: As per project arrangement, it was

agreed that GTCL would construct the two Gas RMSs (at Haripur and Siddhirganj) with project

funding, and upon completion, would hand over the RMSs to Titas Gas for O&M, as Titas Gas is the

authorized and licensed distributor of natural gas within its franchise territory. GTCL has been

communicating with Titas Gas on this since August 2014. However, Titas Gas has declined to take over

the two RMSs and carry out the O&M. The mission raised the issue with the Energy Secretary and he

agreed that Titas Gas will have to take over the assets as per its mandate and carry out the O&M. The

mission asked Titas Gas to be in touch with GTCL in this regard.

10. Procurement

The mission reviewed the progress of ongoing procurement of three large contracts with EGCB and

GTCL. The bid submission of EGCB’s ERP and O&M are in mid and late October 2014 respectively.

The ERP pre-bid minutes cleared by Bank, have been circulated. GTCL’s ERP bid document has been

revised based on Bank’s review. This is under preparation of an RPM case. The EOI notice is to be

floated in late-October. Implementation of two small contracts on EGCB’s ERP infrastructures

continues. The mission requested both GTCL and EGCB to forward an updated procurement plan for

Bank’s review.

11. Financial Management (FM)

There is an overall improvement in the project FM. However, delays in submission of the FM reports

have remained in some cases. The mission raised non-compliance of a few FM covenants (accounts

receivables for EGCB, and 10-year business plan for all three IAs). The mission suggested PGCB to

strengthen its institutional capacity and fixed asset management. Key actions agreed with PGCB are:

Appointment of Director Finance of PGCB by December 2014;

Appointment of financial consultant (IC) to prepare the 10-year business plan as per the TOR,

by November 30, 2014;

Preparation of TOR for consultant for Fixed Asset valuation, tracking, and audit trail and

submission of a cost estimate of the work upon discussion with an internationally affiliated

firm, by October 31, 2014; and

Submission of a Training proposal on financial modelling work (with skill gap analysis,

training needs, and business benefits) by October 31, 2014.

The mission also noted similar deficiencies in EGCB and GTCL, discussed the need for the 10-year

business plan and urged both to appoint a financial consultant (IC) by November 30, 2014. The mission

conveyed that the costs of the capacity building initiatives in FM for the three IAs have been included

in Part D 6: Technical Assistance, of the restructured project.

12. Disbursement

The current disbursement of the project is $ 173.09 million (52.3%). $ 19.9 million has been disbursed

in FY15 Q1 which is 36.85% of the FY 15 disbursement projection ($ 54 million). The mission noted

that a few contracts (2 O&Ms; 2 ERPs, 1 OE, CCPP EPC) have scheduled payment dates (and end

contract dates) after the IDA Credit closing date. Payments due after the closing date (March 31, 2016)

amount to $46 million, indicating that the most that can be disbursed from the Credit if the closing date

remains unchanged is 85% of Credit proceeds (or about $ 304 million).

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13. Governance Reporting and GAAP

Two IAs (EGCB and PGCB) have submitted the annual governance reporting for the current year on

time. Only GTCL’s reporting is outstanding, which means that the entity is out of compliance with the

Credit legal covenant. The mission urged GTCL to submit it by November 15, 2014. There is no

pending governance reporting of past years. The mission was informed that the IAs were monitoring

the GAAP in procurement and contract execution stages and no alerts or early warnings have been

identified or reported as per Action Plan. The Action Plan however needs an updating as there should

be increased focus on contracts implementation as the current risks of the project arise through contract

execution mainly.

14. Environment and Social Action Plans

Environmental Safeguards

EGCB: The mission reviewed the overall environmental management progress of the power plant

construction. The mission was informed that the EPC contractor has set up a HSE section and has a

full-time International HSE Manager, two Safety Officers and other staff. They have established a

clinic in June 01, 2014 to provide first-aid facility. According to the record up to September 30, 2014,

70 persons including officers, staff and workers have taken first-aid owing to minor injuries and no

major injuries have been recorded. Although the Health and Safety issues have been dealt carefully in

the project, the environmental monitoring has not been recently carried out properly. It has been agreed

and that a tripartite meeting among the EGCB, Owners’ Engineer (Consultant) and EPC contractor was

held during mission to review and finalize the Environmental Action Plan. Actions must be taken for air

quality, water quality and noise monitoring mitigation measures (if the values are above the national

level). The final Environmental Action Plan will be submitted to the World Bank by November 07,

2014. PGCB: The mission requested PGCB to deliver the final environment and social compliance

report of PGCB’s component by November 7, 2014.

GTCL: The mission was informed that the contractor has made reasonable progress on environment

issues through mobilizing environmental teams and periodic monitoring of standard parameters of air,

noise, soil and water etc. at Bangladesh University Engineering and Technology (BUET) laboratory. It

was also informed that at-least 300 trees at different locations of the RoW and RMSs sites will be

planted. It has been agreed that an environmental compliance report will be submitted with analysis of

all monitoring data within one month of the completion of the physical work.

Social Safeguards

EGCB: Since the project activities are well within the power plant compound and there is no

displacement or resettlement related activities or impacts on tribal/indigenous people, neither OP 4.12

nor OP 4.10 has been triggered for the EGCB component. However, keeping the development agenda

in mind the project has initiated a process of identifying specific activities to enhance social benefits

within the power plant. Preliminary discussions with EGCB has led to a focus on improving the school

currently existing within the Siddhirganj compound; not only does the school provide services to the

residents and workers within the plant, but people from surrounding areas also send their children to the

school as it is the only one in the area. The school would benefit from infrastructure improvement and

the addition of a library and computer center. An auditorium could also be added which would help the

schools recreational activities and also be a source of income (be renting out) for maintaining and

improving the premises beyond the project period. EGCB will prepare a preliminary cost estimate of

the proposed social activities for review by the social specialist for finalization. PGCB: The RAP under

this component has been fully implemented; all compensations have been paid and this has been

confirmed in the field by the Bank.

GTCL: The RAP for GTCL has been implemented approximately 85% across the three districts on

average. GTCL has appointed an NGO for the purposes of RAP implementation and for regular

reporting on implementation progress to the Bank. The reports have been received timely and are

satisfactory. The Pipeline works has been completed after payment of due compensation as per RAP.

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Construction of the three gas metering stations (RMSs) is ongoing but all resettlement activities related

to these have been completed. According to the reports, the gap in implementation is attributable to

absence of entitled people; their reluctance to travel to the District Commissioner’s office to collect the

compensations; and mismatch in titles and/or dispute within them. As GTCL and the NGO have

demonstrated sufficient efforts in implementing the RAP, including repeated interactions with the PAPs

and the relevant DC’s offices, it was agreed that the remaining money for resettlement activities will be

available up to December 2014 in a designated account.

15. Additional Financing (AF)

The mission met with ERD, updated them about the accelerated progress of CCPP and the overall

steady progress of the project. The mission discussed with ERD the additional financing of the project

and requirements to process the AF. This includes: i) an enhanced anti-corruption and fiduciary risk

mitigation commitment of Government on the EPC contract for CCPP; ii) a cumulative environment

impact assessment (CEIA) for greater Siddhirganj power hub; and iii) a satisfactory project rating. The

mission noted that Power Cell has undertaken the CEIA work, financed under the TA of RERED-II

project. Power Cell updated that they have received 26 EOIs and are finalizing a short-list. The mission

asked Power Cell to expedite the procurement, to appoint the consultants by December 31, 2014 and to

make the CEIA report available no later than March 31, 2015. ERD recognized that the project will

need an extension of the closing date for the PDO to be monitored within the project life time and to

allow some contracts to be completed. To enable the mission to recommend an extension of the closing

date, some benchmark actions were agreed that the implementing agencies would complete by the end

of December 2014 (see Annex 3). ERD confirmed that they would forward the AF-proposal addressing

the Bank’s requirements by November 15, 2014.

16. Next Steps

a) Submission of Simple Cycle Installation and Commission plan to Bank by November 7, 2014.

b) Soil Consolidation Report of Isolux, certified by Fichtner and endorsed by EGCB, for Bank’s

review by October 31, 2014.

c) Titas Gas to sign the Gas Supply Agreement with EGCB, by December 31, 2014.

d) O&M Responsibility of Gas RMSs: Titas Gas to take over assets and O&M responsibility of both

Siddhirganj and Haripur RMSs, upon commissioning by GTCL, by March 31, 2015.

e) CEIA Consultants for greater Siddhirganj power hub to be onboard by December 31, 2014; the

CEIA report to be available by March 31, 2015.

f) ERD to forward to Bank its AF proposal by November 15, 2014.

g) Appointment of Executive Director (Finance) of PGCB by December 31, 2014.

h) PGCB to complete selection of ESU positions by January 31, 2015.

i) GTCL to submit to Bank annual governance reporting for the current year by November 15, 2014.

j) EGCB to comply with the covenant on accounts receivables not to exceed 3 months of billing, by

March 2015. The three IAs should comply with the covenant on preparing a 10- year business

plan by April 2015.

17. Next Mission

The next mission is scheduled for late-December 2014/early January 2015, to review progress in

meeting the Next Steps and to monitor completion of the Benchmarks agreed for recommending an

extension of the closing date. The mission noted that the benchmarks are feasible to be delivered by

December 2014.

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Annex 1

Siddhirganj Power Project

Implementation Review Mission

September 28 – October 2, 2014

List of Persons Met Ministry of Power, Energy and Mineral Resources Mr. Md. Abubakar Siddique, Secretary, EMR Division Mr. Monowar Islam, ndc, Secretary, Power Division Economic Relations Division Mr. Kazi Shofiqul Azam, Additional Secretary, ERD Mr. Md. Anwar Hossain, Deputy Secretary, ERD Power Cell Mr. Mosaddeque Ahmed, Director (Private Power) Mr. Mohit, Deputy Director Electricity Generation Company of Bangladesh (EGCB) Mr. Md. Mostafa Kamal, Managing Director Mr. Alimuddin Ahmed, Executive Director (Finance) Mr. Santi Ram Roy, Executive Director (Technical) Mr. Md. Nazmul Alam, Project Director Engr. Poritosh Kumar, Manager Mr M. Mustafizur Rahman, Manager Procurement Mr. Kazi M.H.Kabir, Manager Environment Mr. Curd Ettischer, Project Manager, Fichtner GmbH & Co. KG Mr. Mohammad Golam Zillani, Deputy Project Manager, Fchtner GmbH &Co. KG Mr. Arturo Jose Munguia Tirado, Site Manager, Isolux Power Grid Company of Bangladesh (PGCB) Mr. Masum-Al-Beruni, Managing Director Mr Choudhury Alamgir Hossain, Executive Director (P&D) Engr. Pranab Kumar Roy, Project Director Mr. Md. Ismail Hossain, Manager Transmission Mr. Md. Emdadul Islam, Chief Engineer (Transmission) Gas Transmission Company Limited (GTCL) Mr. Jameel A Aleem, Managing Director

Mr Malik Md. Nizamul Hasan Sherif, Director Operations (in-Charge)

Engr. Md. Ainul Kabir, Project Director

Mr.Md. Abdul Azim, Deputy Manager

Mr. Hasnain Ali, Manager HSE

Site Manager, Dorsch International Consultant

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Siddhirganj Power Project

ANNEX 2: RESULTS FRAMEWORK

Project Development Objective

Restructured Project Development Objective: Increase supply of electricity to Bangladesh grid network.

Project Development Objective Indicators

Indicator Name Unit of Measure Baseline Actual (Current) End Target

Annual contribution of at least 2.49 billion kWh

delivered to grid: Peak: 0.624 billion kWh; Off-peak:

1.87 billion kWh

Text Value Shortages of

electricity during

peaking period.

Power shortages

continued, about 1,500

MW of supply gap.

At least 2.49 billion kWh

delivered to grid;

Peak: 0.624 billion kwh; Off-

peak :1.87 billion kWh

Date 01-Apr-2009 16 October 2014 31-Mar-2016

Comment No kWh generated as

project works still under

construction.

Intermediate Results Indicators

Indicator Name Unit of Measure Baseline Actual(Current) End Target

Generation Capacity of Conventional Generation

constructed under the project

Megawatt Value 0.00 0.00 335.00

Date 30-Sep-2009 16 October 2014 31-Mar-2016

Comment 335 MW Siddhirganj CCPP

under construction.

335 MW Siddhirganj CCPP

constructed

11

Indicator Name Unit of Measure Baseline Actual(Current) End Target

Transmission lines constructed or rehabilitated

under the project

Kilometers Value 0.00 11.00 11.00

Date 30-Sep-2009 16 October 2014 31-Mar-2016

Comment Siddhirganj-Maniknagar-

Transmission line with

associated two substations

commissioned; the power

evacuation system under

partial load- test.

Transmission lines constructed under the project Kilometers Value 0.00 11.00 11.00

Date 31-Mar-2009 16 October 2014 31-Mar-2016

Comment 11 km 230 kV Power

evacuation system built,

now under load test.

11 km 230 kV Power

evacuation system built

60 km gas transmission line constructed Kilometers Value 0.00 60.00 60.00

Date 31-Mar-2009 16 October 2014 31-Mar-2016

Comment 85% contract completed;

pipeline pre-commissioning

completed, waiting for

upstream gas flow; other

associated works ongoing.

60 km gas transmission line

constructed

12

Indicator Name Unit of Measure Baseline Actual(Current) End Target

Projected lifetime fuel savings MJ Value 0.00 0.00 218.60 billion MJ

Date 30-Sep-2009 16 October 2014 31-Mar-2016

Comment

O&M Contracts budgeted and implemented Text Value O&M for 2x120 MW

ongoing and O&M for CCPP

under bidding.

EGCB capacity on O&M for

CCPP achieved

Date 30-Sep-2009 16 October 2014 31-Mar-2016

Comment

ERP functional and generating reports Value EGCB’s ERP bids received,

under evaluation; GTCL’s

ERP bid document under

RPM review.

ERP go life

Date

Comment 30-Sep-2009 16 October 2014 31-Mar-2016

13

Annex 3

Benchmarks to be completed by December 31, 2014

Completion of the following benchmarks are required to enable the mission to recommend to Bank

management an extension of the closing date of the project:

1). EGCB to forward to the World Bank the Simple Cycle Installation and Commissioning plan for

review. (Fichtner has drafted a first-hand plan).

2). EGCB to provide a bid evaluation report (BER) of at- least one large contract for Bank review. (2

large contracts are under bidding).

3). EGCB to provide the World Bank with a soil consolidation report certifying that the required soil

consolidations have been achieved. The report is to be certified by qualified experts/engineers of

Isolux; reviewed and accepted by Fichtner, and endorsed by EGCB. The report will contain design,

methodology, soil consolidation results and technical analysis. (Isolux’s draft soil consolidation report

is under review of Fichtner).

4). Circulating and Cooling Water Systems erection works to start in November 2014.

5). Fuel Gas Connection works with Gas RMS to start in October 2014.

6). Fire Fighting System/Clarifier Water Tank erection works to start in December 2014.

7). Titas Gas to sign the Gas Supply Agreement with EGCB by December 31, 2014.