Private Sector Investment Finance

Ex-Ante Evaluation
1．Name of the ProjectCountry: The People's Republic of Bangladesh
Project: Sirajganj Combined Cycle Power Plant Project
Loan Agreement: March 29, 2017
Borrower: Sembcorp North-West Power Company Ltd (This company is SPC which
was established for this project)
2．Background and Necessity of the Project
While Bangladesh has been confronting the surge of power demand (annual average
growth 9% between 2005 and 2014) amid the recent stable economic growth (6%between 2005 and 2015), energy supply availability is still less than the demand. Even
though the peak demand is 10,238 MW in 2014, actual achievement rate remains
7,817 MW which means that the peak demand merely covers only 76%.
According to Power System Master Plan 2010, the demand for power in Bangladesh
will increase 10% annually. Therefore power development is one of critical issues toaddress. In addition, in order to deal with the shortage of domestic natural gas as wellas importing LNG for near future, the country needs to urgently improve generation
efficiency through introducing high efficiency equipment of power system.
In the nation’s “Seventh Five-year Plan (2016-2020)”, Government of Bangladesh(GoB) has designated the energy sector as one of the crucial sectors for economic
growth, and sets a goal that generation of electricity to be increased to 23,000 MW by2020. Moreover, GoB has set a target of reducing greenhouse gas emission by 5%
below BAU (Business As usual) by 2030 in COP 21, and in order to meet this target,
GoB puts the priority on the construction of combined cycle power plant in action plan.
Bangladesh Climate Change Strategy and Action Plan also points that infrastructuredevelopment for improving generating power as well as transmission power
distribution has been put in place to evolve low carbon development.
Japan’s Country Assistance Policy for the People's Republic of Bangladesh (June,2012) identifies “Accelerate inclusive economic growth and eradicate poverty toward
a middle-income country” as one of the priority areas. In order to ensure sustainable
power supply, Government of Japan puts emphasis on assisting in developing new
power generations and proper maintenance and rehabilitation of existing power
stations and transmission/distribution facilities. JICA's Country Analysis Paper for thePeople's Republic of Bangladesh (April, 2013) identifies “Economic InfrastructureDevelopment” as one of the priority areas, and indicates that JICA will work on thepower development with a purpose of solving the power demand gap.
As discussed above, to support GoB efforts, this Project is in line with policies ofBangladesh and the development issues as well as the assistance policies of Japanand JICA. In addition, this will also contribute to Sustainable Development Goals

(Industry, innovation and infrastructure) therefore, it is highly necessary for JICA toimplement this Project.
3．Project Description(1) Project Objective
The objective of this Project is to achieve stable power supply by constructing acombined cycle power plant in Sirajganj, thereby mitigating the severe power
shortage as well as contributing sustainable economic growth in Bangladesh.
(2) Project Site/Target Area
Sirajganj District in the Division of Rajshahi, Bangladesh(3) Project Component (s)This Project consists of the construction and operation of a combined cycle power
plant (414 MW) and affiliated facility.
(4) Schedule
Project Approval has been achieved in March, 2017, and Completion andCommercial Operation will be started in 2019 (scheduled)(5) Environmental and Social Consideration / Poverty Reduction / Social Development
1) Environmental and Social Considerationa) Category: Ab) Reason for Categorization: The project falls into the thermal power sector
under the JICA Guidelines for Environmental and Social Considerations (April,2010).
2) Promotion of Poverty Reduction: None
3) Promotion of Social Development: None
(6) Collaboration with Other Donors: co-finance with IFC(7) Other Important Issues: None
4. Targeted Outcomes
As quantitative effects maximum power (MW), availability factor (generating end) (%)
power generation efficiency (%) and power generation at sending end (GWh/year) will
be monitored. As qualitative effects, stimulation to the economic activity is expected
as a result of improving access to power.
5. External Factors and Risk Control
None
6. Lessons Learned from Past Projects(1) Lessons Leaned from Past Projects
The ex-post evaluation of “Mombasa Diesel Generating Power Plant Project” in Kenya
demonstrates that appropriate supports from the manufactures enhance thesustainability of power projects.
(2) Application on Lessons Leaned to the ProjectIn this Project, the Long Term Service / Supply Agreement (LTSA) by main supplier ofpower plant would be provided for efficient maintenance and support system.

7. Plan for Future Evaluation(1) Indicators to be used
1) Maximum Power (MW)2) Availability Factor (generating end) (%)3) Power Generation Efficiency (%)4) Power Generation at Sending End (GWh/year)5) FIRR(2) Timing: 2 years after project completion
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