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Dhaka Clean Fuel Project :  Bangladesh :Go to Project Summary

Dhaka Clean Fuel Project :  Bangladesh

Timetable  |  Financing Plan and Loan Utilization  |  Project Outcome  |  Implementation Progress  |  Status of Covenants

Loan Name Dhaka Clean Fuel Project
Country Bangladesh
Loan Number 1942/1943
Project Number 35466- 01
Source of Funding/Amount[Approved]
Asian Development Fund US$42.40  million
Ordinary Capital Resources US$30.20  million
Sector/Subsector Energy / Conventional Energy
Description The objectives of the Project are to (i) improve the ambient air quality in Dhaka; (ii) develop the use of domestic natural gas resources as substitute for imported liquid fuels for the transport sector , thereby improving the foreign exchange position of the country; and (iii) establish a foundation for private sector participation in the future development of CNG-fueled transport.

The Project has following revised scope:

Part A: Construction of a 60 km 20 inch natural gas transmission pipeline between Dhanua and Aminbazar, Savar ad two city gate stations (CGSs) at Ashulia and Savar.

Part B: Construction of 97 km of 16 inch extended natural gas distribution pipelines in Dhaka.

Part C: Establishment of 26 Nos. compressed natural gas (CNG) filling stations of min 500 cm/hr. capacity directly by the private sector for installation along highways leading to Dhaka.

Part D: Purchase of (i) 100 CNG-fueled buses by private sector, & 100 CNG-fueled buses for public sector (NDF funded) ;(ii) 6000 CNG cylinders for petrol vehicles, and (iii) 5000 Nos. CNG conversion kits.

Pat E: Establishment of two new workshops for increasing the capacity of conversion of petrol-fueled cars to CNG fuel, repairs, maintenance as well as to act as referral workshops for those workshops to be established by the private sector.

Part F: Capacity building in the following areas (i) technology development and training for the workshops; (ii) implementation of new safety codes, standards, and regulations related to conversion and the use of CNG equipment for the transport sector; (iii) public consultation and awareness campaign for public safety and benefits of using CNG; and (iv) environmental management.
Project Outcome
Outcome Progress Toward Outcome
Reduce urban vehicle pollution problems in Dhaka and other metropolitan areas. Proceeding generally as planned.
Implementation Progress
Outputs Status of Implementation Progress (Outputs, Activities and Issues)
1. Transmission and distribution gas pipelines
2. New CNG filling stations and workshop
3. Purchase of CNG cylinders
4. Purchase of CNG fueled vehicles
5. Tools and necessary equipment for CNG conversion
6. Replacement of buses, and auto rickshaws, and conversion of petrol cars
7. Improved capacity among EAs staff
All works under Loan 1943-BAN completed within the loan closing date of 30 June 2008. Gas Transmission Company Ltd. (GTCL) commissioned 60 km 20-inch diameter transmission pipeline and two City Gate Stations (CGSs) at Ashulia and Aminbazar. Titas Gas Transmission and Distribution Company Ltd. (TGTDCL) completed construction of 94 km of 16-inch diameter required gas distribution mains . TGTDCL has separately undertaken to complete two river crossings by their own funds, as the original contract with ADB funding was terminated for default of the contractor. Commissioning of transmission and distribution lines has significantly improved supply situation in and around Dhaka city.

Progress under Loan 1942-BAN is generally satisfactory. Delay in declaring the loan effective; difficulties in relending fund for use by BRTC; non-availability of land for workshops; and delay in engaging the consultant led to initial poor progress. Consultant was engaged in May 2005. The Consultant developed (i) specification for CNG cylinders and CNG conversion kits, (ii) plan for workshop and required equipment and tools, (iii) public awareness program plan, (iv) regulatory process program plan, (v) CNG training program plan, (vi) Bangladesh code of practice for CNG refueling stations, and (vii) Bangladesh code of practice for CNG vehicle fuel system. Rupantirita Prakritik Gas Company Ltd. (RPGCL) signed contracts with participating banks/leasing companies for on-lending fund for CNG bus procurement by private sector. RPGCL also signed contracts with two participating banks during June-July 2007 for on-lending fund for CNG filling station by private sector. 135 CNG busses/chasis have been procured and23 CNG filling staions have been installed under the project. Equipment have been procured for expansion of joarshahara workshop and installation of workshop at Dhania. Overseas Training of 51 RPGCL, Petrobangla and Govt. Officers has also been completed within December 2009
Geographical Location Dhanua, Aminbazar Ashulia, Savar, Dhaka, Sherpur, Netrokona, Jamalpur, Madhupur, Chatak, Sylhet
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  Environment B
Responsible ADB Officer Ali Kausar Muhammad Firoz
Responsible ADB Department South Asia Department
Responsible ADB Division Energy Division, SARD
Bangladesh Resident Mission
Energy Division, SARD
Concept Clearance 08 Mar 2002
Fact-finding 28 Jan 2002 to 31 Jan 2002
Board Approval 26 Nov 2002
  1942 : Dhaka Clean Fuel Project
  1943 : Dhaka Clean Fuel Project
2008 Asian Development Bank

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