PROJECT

Projects

Environmental & Social Review Summary

Project Number

33479

Company Name

UNITED ASHUGANJ ENERGY LTD

Date ESRS Disclosed

Dec 21, 2015

Country

Bangladesh

Region

South Asia

Last Updated Date

Jun 12, 2021

Environmental Category

A - Significant

Status

Completed

Previous Events

Approved : Jan 19, 2016
Signed : May 17, 2016
Invested : Jan 30, 2017

Sector

Gas - Thermal Power Generation

Industry

Infrastructure

Department

Regional Industry - INF Asia & Pac

Project Description

United Ashuganj Energy Limited (“UAEL” or the “company”), a subsidiary of United Enterprises & Co. Ltd. (“sponsor” or “United Group”), has established a 195 MW (net generating contracted capacity) combined cycle gas fired reciprocating engine power plant within Ashuganj Power Station (APS) complex (the “project”). While planning and preparatory work commenced in January 2013, construction on the project began in February 2014 and the project was commissioned in May 2015; its operations and maintenance (O&M) is being carried out by United Engineering & Power Services Ltd (UEPSL), another subsidiary company of United Enterprises. IFC is considering extending a project loan to the company including an equity investment in UAEL. The International Development Association (IDA) funded Investment Promotion and Financing Facility (IPFF) is also considering support to United and International Bank for Reconstruction and Development (IBRD)/IDA staff are conducting due diligence on the project. IFC has been coordinating the E&S review of this project with World Bank.
The APS complex is located on the banks of Meghna River in the Sonaram Mouza of Ashuganj Upazila, Brahmanbaria District, about 90 km North East of Dhaka in Bangladesh. The APS complex has a number of existing gas fueled power generating units with a total de-rated generation capacity of 1070 MW including the project. Further, there are also four more combined cycle gas turbine (CCGT) power plants with a total capacity of 1,525 MW currently under construction or proposed in the near future within the APS complex. However, 128 MW of existing operating power plants within the APS complex will be retired upon commissioning of the under construction or proposed CCGT plants.

The project includes the main plant, which is comprised of 20 gas reciprocating engine generators (9.73 MW each), 20 waste heat recovery boilers (WHRB) and one steam turbine-generator (16.1MW). The reciprocating engines use lean burn technology for low NOx emissions. The engines are housed within an acoustically treated building. Each of the 20 engines has a 30 m high stack. Natural gas for the UAEL power plant is being supplied by Bakhrabad Gas Distribution Company Limited (BGDCL) from the Gas Transmission Company Limited’s pipeline which is also located within APS Complex about one km from the UAEL project site. The gas is being supplied through a dedicated 10 inch high-pressure buried pipeline, approximately one km in length laid along internal roads within APS complex to the gas Regulating and Metering Station (RMS) on the project site. The power generated by the project is being evacuated to the existing APS subs station located about 0.9 km from the project site, which required construction of four transmission towers, all located within the APS complex. Other significant components of the project include raw water intake and effluent outfall, generator switch gear, water treatment plant (reverse osmosis process for demineralization), sewage pipelines, storm water lines, fire prevention, detection, control and fighting systems, water storage tanks including for firefighting system (which will be upgraded), stores and hazardous materials storage facilities.
Once through condenser cooling and closed circuit cooling system are in place. Groundwater at10.63 m3/h from a deep tube-well is being used for the closed cooling system. For the once through (condenser cooling system), 6000 m3/h water is being pumped from Meghna river, via a 600 m pipeline. The barge mounted water pumping station is 55 m into the stream from the river bank and no barrage is provided. The condenser cooling water, mixed with boiler blow down, is discharged into a common channel that carries condenser cooling water from the other existing/operating power plants in APS complex to the Meghna River While the project’s condenser cooling water to be discharged is at 9.5 degree Celsius above intake water temperature, the condenser cooling water from the other operating power plants is at 7 degree Celsius above the receiving river water. The resulting temperature of the composite flow is expected to be 7.1 degree Celsius above the temperature of the receiving river water. The power plant is situated on a plot measuring 6.43 acres within the APS complex, which is owned by APS and has been leased to UAEL

Overview of IFC's Scope of Review

IFC’s review consisted of appraising technical, environmental, and social information submitted by the sponsors and the company including: environment impact assessment (EIA) and Social Impact Assessment (SIA) for the project; Environmental and Social (E&S) compliance review dated May 2015 by the Lenders’ E&S Advisor; and environmental permits. The review also included: discussions with the Sponsor, the company’s management team, EPC and O&M contractors’ senior managers, consultations with affected communities and visit to the Project site on January 6-8, 2015.

E & S Project Categorization and Applicable Standard

Environmental and Social Mitigation Measures

Stakeholder Engagement

Broad Community Support

Environmental & Social Action Plan