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AIIB Funded
Power System Upgrade and
Expansion Project Promotes
Coal & Other Fossil Fuels
Briefing Paper | November 2019 Bwged.blogspot.com | www.cleanbd.org
Background
Bangladesh is one of the highly populated lower middle-income country
which is rapidly trying to be graduated as a middle income country instead
of high climate vulnerability and disparity of income distributions. 82.2%
richest quintiles in rural Bangladesh has access to the electricity while the
percentage of electricity connection is as low as 37.1% among the poorest
quintiles. After winning the general election in December 2008, the Grand
Alliance government (led by the Bangladesh Awami League) planned to
boost electricity generation to promote rapid economic development. The
GOB has deregulated administrative control to attract private investment in
the energy sector.
After policy reformation on energy sector, a number of new bilateral
investors started implementing a number of energy projects besides the
traditional and new multilateral financial institutes including World Bank,
Islamic Development Bank (IsDB), Asian Development Bank (ADB) and
Asian Infrastructure Investment Bank (AIIB). Till November 2019, AIIB has
invested USD 405.00 million in four energy-related projects in Bangladesh.
Power System Upgrade and Expansion Project (PSUEP) in Chattogram zone
is one of the stand-alone projects to be implemented by Power Grid
Company of Bangladesh (PGCB), a state-owned enterprise under
Bangladesh Power Development Board (BPDB).
The project has five components: (i) Anowara to Anandabazar 400 kV
double-circuit transmission line: 20 km long overhead transmission line and
7 km long underground cable; (ii) Hathazari to Rampur 230 kV double-
circuit underground cable at Anandabazar (iii) Madunaghat to Khulshi
230 kV double-circuit underground cable: 16 km long; (iv) 230/132 kV GIS
substation at Anandabazar with two 350/450 MVA transformers; (v)
230/132/33 kV GIS substation at Khulshi with two 350/450 MVA
(230/132kV) and three 80/120MVA (132/33kV) transformers and (vi) two
bay extensions at 230 kV GIS substation at Madunaghat.
Chattogram (formerly Chittagong) on the south east-ern coast is
Bangladesh’s second largest city. The Chattogram zone is an industrial and
commercial hub, contributing around 40% of the country’s industrial output
and 80% of its international trade. It forms part of a coastal stretch with
numerous power plants, including 13 new coal power plants either proposed
or under construction. The AIIB says the project will promote Bangladesh’s
goal to provide electricity for all by 2021. However, available documentation
does not clarify if and how poor communities will benefit (BIC, 2019)
Observations
Link with the Coal Expansion
The objective of the project is contrary. It intends to upgrade and expand the
power transmission system in Chattogram zone to ensure adequate and
reliable power supply. But the reality is 91% people of the zone has already
covered under national grid. So, the
project is obviously not for the
communities in Chattogram. Rather
there is a clear link between AIIB
financed PSEUP and coal power plants
surrounding Chattogram-Cox's Bazar
zone. The PGCB has already signed an
agreement with KEC as EPC Contractor
for 214 km Matarbari-Madunaghat-
Meghnaghat 400 kV transmission line
under JICA funded project while AIIB is
financing for 16 km long Madunaghat -
Khulshi 230 kV double-circuit
underground transmission line which
will only support to transmit the power
generated by the current and future coal
power plants.
Land Acquisition
A total land of 85.42 hectares (211.08
acres) will be taken as Right-of-Way
(ROW) from local inhabitants. Among
the land 36.66% is densely covered by
buildings, 35.72% agricultural land,
17.90% settlements, 6.58% village
orchards and 2.50% Rivers and Khals.
279 families will be affected directly as
the high voltage underground and
overhead transmission line and towers
will be established on their lands. 2,396
trees will be cut and 76 residents will also
be affected by the project directly due to
overhead transmission lines.
The market price for lands are estimated
per decimal (0.01 acre) as BDT 100,000 –
150,000 for agricultural land, BDT
500,000 – 750,000 for homestead land and
BDT 1,200,000 –1,500,000 for commercial
lands which is almost one third of the
actual market price.
Double cropping is practiced in most of
the study area with triple cropping
also being practiced in some areas of
the land which are to be taken by PGCB.
The ESIA report claimed that the
cropping intensity of the overall study
area is about 159 percent, although
other research reports has shown that the
crop intensity is 191-232 percent in the
area. So, the calculation of crop
compensation is around half of the
reality.
Other 823 households and their 426.16
hectares (1,053.06 acres) of land will be
affected indirectly. Among the indirectly affected lands, 37.10% is
agricultural land, 36.39% densely covered by buildings, 18.90% rural
settlements, 3.08% village orchards and 2.66% rivers and khals.
According to the ESIA report, shopkeepers of 96 big, 162 medium and 307
temporary shops will be affected temporarily due to construction works. But
only 14 days of income for 565 shopkeepers are allocated in the
Environmental and Social Management Plan for the project. But according to
the project implementation plan and procedures, it will take at least three
months to complete each segment of the construction.
Carbon Emission
According to the ESIA report, a total of 6.885 million tonnes of carbon-
dioxide (CO2e) will be emitted from the transmission lines, construction sites
and transmission equipment, if they are managed carefully. Among the
emissions, 6.03 million tonnes will be emitted from transmission lines, 0.075
million from construction works and 0.78 million tonnes from circuit
breakers. But there is no plan in the ESMP of the project to reduce carbon
emission or mitigation.
Demands
1. Stop constructing infrastructures which facilitate expansion any fossil
fuel based development including coal, oil and gas and promoting
renewable energy in Bangladesh.
2. Adopt and implement a detail plan for reducing emission from
transmission and construction, and to mitigate the emission in the project
site itself.
3. Allocate adequate compensation for lands as well as the households and
shopkeepers according to the period of interruption and temporary loss
of livelihoods.
4. Ensure compensation for the land owners of Right-of-Way every year as
they will be affected permanently due to the overhead and underground
transmission lines.
5. Prepare a comprehensive livelihood restoration plan for both direct and
indirectly affected people including female smallholders of the area.
6. Initiate a cumulative impact assessment of different power plants and
transmission lines in Chattogram zone
Coastal Livelihood and Environmental Action Network (CLEAN)
4 Mallick Bari Road, Boyra-Rayermahal, Khulna 9000, Bangladesh
Phone: +88 019 7670 2006 | Email: clean.khulna@gmail.com
Web: www.cleanbd.org | https://cleanbd.blogspot.com