i. To evacuate power from the proposed 225MW power plant at Sikalbaha

ii. To Provide reliable power to Chittagong city through Rampur & Sikalbaha

iii. To Meet the growing load demand of the areas under the proposed new 132/33 kV substations at Agrabad (Chittagong).; Chouddagram, Ramganj, Bhaluka (Mymensingh), Baroirhat (Chittagong), Benapol, Shariatpur, Barisal-(N), Mahastangarh (Bogra), Jaldhaka (Nilfamari) & Rajshahi-2

1) 230 kV double circuit Transmission Line : 69 km

2) 230 kV u/g Line : 8 km

3) 132 kV Four Circuit In Out Underground Line : 3 km

4) 132 kV u/g Line : 6 km

5) 132 kV double circuit interconnecting line : 139 km

6) 132 kV LILO line : 14 km

7) 230/132 kV Substation: 2 nos.

8) 132/33 kV Substation: 11 nos.

9) Bay Extension of existing Substations - a. 230 kV: 4 nos. b. 132 kV: 9 nos.

Total: BDT 242660.82 Lakh GoB: BDT 37832.66 Lakh Project Aid: BDT 176752.59 Lakh (220.94 m USD) PGCB: BDT 28075.57 Lakh

JICA, GoB & PGCB

Physical : 55.15%

Financial : 49.33%

January, 2013 to June, 2019

Project Director: Mahbub Ahmed, Chief Engineer

Address: 17 Mohakhali, Red Crescent Concord Tower (6th floor), Dhaka-1217.

Mobile: +88-01713-041-482

E-mail: pd-nptndp@pgcb.org.bd

dpd1-nptndp@pgcb.org.bd (DPD); dpd2-nptndp@pgcb.org.bd (DPD)

Chattagram being the second load center of the country, it's electricity demand is growing very rapidly. At present the only one 230/132 kV substation at Hathazari having capacity of 4x150 MVA is supplying electricity to the 132 kV network of Chattagram. It is to be noted here that, all the generating units of Kaptai Hydro Station (connected to 132 kV bus) can not be run at their full load in most of the time of the year due to insufficient water level. On the other hand, all the machines of Sikalbaha Power Plant can not be available at a time due to aging as well as due to lack of adequate gas supply. So, to meet the demand of greater Chattagram area, the 230 kV transmission network of Chattagram along with 230/132 kV S/S at Hathazari plays the vital role. As such, for meeting the growing demand of Chattagram in the near future, new 230/132 kV substations with associated transmission lines will be needed.

It may be noted that a big coal fired power plant of capacity 1320 MW is going to be installed at Anowara and a part of this power will need to be supplied to the Chattagram city. Draft contract has been signed for a private 282 MW coal power plant. Besides this, tender has been invited for 225 MW power plant at Sikalbaha by middle east base development partner Kuwait, Saudi, Abudhabi etc. So, to fulfill all the above requirements, Hathazari – Sikalbaha-Anowara 230 kV transmission line with 230/132 kV Substations at Sikalbaha & Hathazari-Rampur 230 kV line with 230/132 kV GIS S/S at Rampur will be essential. As per Power System Master Plan if new big power plants are constructed at Sikalbaha, this transmission network will also be suitable for power evacuation. To get required land near Rampur for constructing 230/132 kV substation is very difficult. So, 230/132 kV GIS S/S is recommended in place of regular type substation at Rampur.

To meet the growing electricity demand & to minimize the sufferings of load shedding Government has taken massive program for installing Power plants throughout the country. The installation works of new Power plants are going on in full swing. At the same time PGCB is also building up the power evacuation facilities as needed. It is obvious that these additional power will be supplied to the consumer through the 132/33 kV substations. So the existing substations will be loaded more. In Power System Master Plan it has also been recommended that new 132/33 kV substations be constructed for sharing the load of highly loaded substations. So, expansion of capacity of the existing substation as well as construction of new substations should be a continuous process. As a part of this process an in house study has been conducted to find out the suitable locations for construction of new 132/33 kV substations.

During the study the present demand and the capacity (along with expansion plan) of the existing 132/33 kV substations, capacity of the substations under construction & planned have been considered. Moreover, taking 10% as the growth rate of future demand of all the substations have been forecasted upto the year 2015.

After studying the Demand (Present & Future) of all grid substations, eleven of them have been identified as heavily overloaded & their loads need to be shared with new ones. Keeping all these in mind ten locations have been identified for new 132/33 kV substations to share the load of above highly loaded substations. The ten new locations are Chouddagram, Ramganj, Bhaluka (Myn), Baroiarhat (Ctg), Benapol, Shariatpur, Barisal-(N), Mahastangarh (Bogra), Jaldhaka (Nilfamari) & Rajshahi-2. PGCB was seeking Foreign Financing for the project through ERD from last 3 years. Accordingly, JICA responded ( Sept, 2011) and sent two member Fact Findings Mission (16 -20 Oct, 2011). Finally JICA sent Detailed Fact Findings Mission in Dec, 2011.

The Mission had discussions during 11-22 Dec, 2011 with officials of GoB including ERD, MoPEMR and PGCB to study the feasibility of the project. The Mission had signed a Minutes of Discussions (MOD) with GOB & PGCB on 22.12.2011. Moreover, Japan Govt. pledges to sanction 18736 m Yen for this project and the loan negotiation meeting was held on 10-12-12 in ERD and Project Memorandum (Page: 138-178) prepared by JICA was finalized. However, salient features of Project Memorandum are given in Page: 161-165 and some of them are mentioned below:

1) The eligible portion for JICA financing is JPY 18,736 million (equivalent BDT 176752.59 Lakh ). (page- 154 of DPP)

2) The Loan Agreement (L/A) is expected to be signed by January’ 2013, if the loan to the project is officially approved by Govt. of Japan (GOJ). (page- 171 of DPP).

3) DPP must be approved by January' 2013. (page- 171 of DPP).

4) The JICA mission and GOB agreed on the project implementation schedule. (page- 141 of DPP).

Objective Following objectives will be fulfilled after implementation of the project:

1) Evacuate power from the proposed 225MW power plant at Sikalbaha.

2) Provide reliable power to Chittagong city through Rampur & Sikalbaha.

3) Meet the growing demand of the areas under the proposed new 132/33 kV substations at Agrabad (Ctg).; Chouddagram, Ramganj, Bhaluka (Myn), Baroirhat (Ctg), Benapol, Shariatpur, Barisal-(N), Mahastangarh (Bogra), Jaldhaka (Nilfamari) & Rajshahi-2.

4) Relieve the existing substations adjacent to the new eleven substations.

The scope of works of the project are as follows:

1) Construction of 230 kV Hathazari- Sikalbaha-Anowara d/c TL-45 km.

2) Construction of 230 kV Hathazari- Rampur d/c TL-24 km.

3) Construction of of 230 kV Hathazari- Rampur d/c u/g line-8 km.

4) Four circuit In Out underground line of existing 132 kV Khulshi-Halishahar line at new Rampur 132/33 kV GIS Sub-station-3 km.

5) Construction of 132 kV Rampur-Agrabad underground line-6 km.

6) Construction of 132 kV double circuit interconnecting line-139 km (Jessore-Benapole: 32km, Madaripur-Shariatpur: 24km, Saidpur-Jaldhaka: 38km, Mymensingh-Bhaluka: 45km).

7) Construction of 132 kV Loop In Loop Out line-14 km.

8) 230/132 kV, 2x225/300MVA GIS Substation at Rampur, Ctg.

9) 230/132 kV, 2x225/300 MVA AIS S/S at Sikalbaha, Ctg.

10) 132/33 kV , 2×80/120 MVA GIS Substation at Agrabad, Ctg.

11) 132/33 kV , 2×50/75 MVA Substation at Chowddagram.

12) 132/33 kV , 2×25/41 MVA Substation at Benapol.

13) 132/33 kV , 2×25/41 MVA Substation at Shariatpur.

14) 132/33 kV , 2×25/41 MVA Substation at Ramganj.

15) 132/33 kV , 2×25/41 MVA Substation at Baroirhat, Ctg.

16) 132/33 kV , 2×25/41 MVA Substation at Bhaluka, Mymensingh.

17) 132/33 kV , 2×25/41 MVA Substation at Barisal-(N).

18) 132/33 kV , 2×25/41 MVA Substation at Mahastangarh (Bogra).

19) 132/33 kV , 2×25/41 MVA Substation at Jaldhaka (Nilfamari).

20) 132/33 kV , 2×50/75 MVA Substation at Rajshahi-2.

21) 230 kV GIS bay extension of existing 230/132 kV substation at Hathazari - 4nos.

22) 132 kV GIS bay extension of existing 132/33 kV substation at Khulshi -1no.

23) 132 kV bay extension of existing 132/33 kV S/Ss at Jessore, Madaripur, Saidpur & Mymensingh (2 line bays each)- total 8 nos.

Whether any Pre-appraisal/pre-investment study was done before formulation of this project? If so, attach summary of findings & recommendations.

Yes, a in house study has been done by PGCB engineers, copy is attached in the DPP (page no. :89-137).

Mention the following ( Financial & Economic ) :

(a) Net Present Value (NPV), (b) Benefit Cost Ratio, (c) Internal Rate of Return (IRR)

Attach Calculation Sheet, Calculation is given in Page-79-85.

Since the investment cost of the project is a bit higher, the cost-benefit-analysis (based on the prevailing wheeling charge @Tk. 0.23/unit) yields a negative NPV indicating the non-viability of the project. However, the outcome of the project will contribute to poverty reduction both directly and indirectly through electricity use for agricultural production,industrialization,business and commercial activities, education, health etc. Consequently the project will be a economically viable one.

Nevertheless, the project could be made financially viable if wheeling charge is increased by 8% every five years. This could be seen in the following table.

(a) Net Present Value (NPV) (Taka in Lac)

(b) Benefit-Cost Ratio (BCR)

(c) Internal Rate of Return (IRR)

Financial Economic Financial Economic Financial Economic

9379.53 65705.31 1.067 1.491 12.69% 16.63%

However, the rate of enhancement of the wheeling charge may be required to be less than 8% in the future, when plenty of energy will be transmitted (due to ensuing new generating plants) through the existing grid system & consequently the huge revenue earning will cover up the additional cost to be invested in the proposed project.