Project Data Sheet

Project Data Sheets (PDS) contain summary information on the project or program: Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

PDS Creation Date
PDS Updated as of 14 Apr 2015

Country Bangladesh
Project/Program Number 31909-014
Status Approved
Geographical Location Meghnaghat, Southeast of Dhaka
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
Sector Energy
Subsector Conventional energy generation
Strategic Agendas
Drivers of Change
Gender Equity and Mainstreaming Categories

Project Sponsor

Pendekar Energy (L) Ltd


Type/Modality of Assistance Approval Number Source of Funding Approved Amount (thousand)
PS7165/1793Complementary Financing SchemeUS$ 20,000
PS7165/1793LIBOR Based LoanUS$ 50,000
PS7165/1793Political Risk Guarantee with Govt GuaranteeUS$ 70,000

Safeguard Categories

For more information about the safeguard categories, please see

Environment A

Summary of Environmental and Social Aspects

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples

Stakeholder Communication, Participation and Consultation


Located in southeast of Dhaka, on the northern bank of Meghna river, the Project entails the construction and operation of a 450 MW, combined-cycle, gas-fired power station. Meghnaghat Power Limited (MPL) will build, own, and operate the power plant in accordance with an Implementation Agreement between the Government and MPL, and a Power Purchase Agreement (PPA) with Bangladesh Power Development Board (BPDB). The PPA is for 22 years and BPDB will take or pay for all electricity generated up to a plant load factor of 85 percent. At this level of production, MPL will recover its full capacity and variable costs and generate a return on equity. The Project was conceptualized and developed by ADB as part of ADB's assistance to the sector.

Objectives and Scope

The Project is part of the least-cost expansion program and will provide additional base-load capacity to mitigate the current and forecast power shortage in Bangladesh. The Project will provide reliable power supply to domestic consumers as well as to agriculture and industry. The primary beneficiaries are domestic consumers that use approximately 40% of the total electricity consumption and who are subjected to daily power outages due to load shedding. The project also provides increased capacity to improve the supply and availability to poor households. The benefits of electrification to the poor include savings, improved quality of life, improved status of women and children, and more reliable irrigation systems.

Project Rationale and Linkage to Country/Regional Strategy

The overall objective of ADB's operational strategy for Bangladesh is to reduce poverty by promoting faster economic growth, creating better development opportunities for the poor, improving human development, and protecting the environment. The Project is one of the key components of the Government's efforts to promote foreign investment, and is in line with the country operational strategy and the Partnership Agreement on Poverty Reduction between ADB and the Government. The project is in compliance with ADB's strategy for the energy sector and private sector operations in Bangladesh.

Outputs and Implementation Progress

Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Status of Development Objectives
Status of Operation / Construction
The project was operating satisfactorily since commercial operations in November 2002 until an explosion in the steam generator occurred on 21 April 2014. The subsequent damages have caused the plant to be out of operation for a prolonged time period.
Material Changes
The Meghnaghat power plant has gone through several changes of ownership since the inception of the project. The project is currently majority owned by the Powertek Energy Group, which in turn is wholly owned by 1Malaysia Development Berhad, a Malaysian government-owned strategic development company.

Business Opportunities

Date of First Listing
Consulting Services
Procurement and Consulting Notices


Concept Clearance 02 May 1997
Due Diligence Mission 15 May 1999 to 19 May 1999
Investment Committee Meeting 21 Jul 1999
Approval 05 Dec 2000

Contacts and Update Details

Responsible ADB Officer Juliette N. Leusink (
Responsible ADB Department Private Sector Operations Department
Responsible ADB Divisions Infrastructure Finance Division 1


Project Website
List of Project Documents