Connect with us

News

ADB to Support Reliance LNG Terminal, Power Project in Bangladesh

Published

on

The Asian Development Bank’s (ADB) Board of Directors has approved debt financing and partial risk guarantees totaling $583 million to develop the Reliance Bangladesh Liquified Natural Gas (LNG) and Power Project.

The project, which includes a power generation facility to be located in Meghnaghat, near the capital city of Dhaka, and an LNG Terminal, near Kutubdia Island south of Chittagong, will significantly increase power generation and improve energy infrastructure in Bangladesh.

ADB’s financing package includes loans and partial risk guarantees for the power generation facility, as well as for the LNG terminal. The total project cost is approximately $1 billion.

“ADB’s partnership with Reliance Power will help Bangladesh scale up its energy infrastructure to sustain and support the country’s economic growth,” said Michael Barrow, Director General of ADB’s Private Sector Operations Department. “ADB’s role as a direct lender and guarantee provider will enable Reliance Power to mobilize much needed long-term debt financing and help attract new lenders to Bangladesh.”

Diversifying Bangladesh’s sources of energy is critical for the country as demands for natural gas have placed significant pressures on the country’s domestic gas reserves. New LNG import facilities will enable the country’s existing gas-dependent infrastructure to remain viable while opening the country to access natural gas from global markets.

ADB’s support will help Reliance Power Limited to develop an initial approximately 750 megawatts (MW) of gross power generation capacity and terminal facilities for LNG import. Reliance Power plans to increase its power generation capacity to around 3,000 MW in Bangladesh. Energy from the power plant will be sold into the country’s electricity grid under a long-term power purchase agreement with the Bangladesh Power Development Board.

“Reliance Power has achieved a major and important milestone of approval of financing for its landmark project in Bangladesh. This is an important step in helping Bangladesh achieve energy security,” said Venugopala Rao, CEO of Reliance Power. “ADB’s leadership in financing will help us to develop this clean and reliable LNG-based power project in Bangladesh.”

ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, ADB is celebrating 50 years of development partnership in the region. It is owned by 67 members—48 from the region. In 2016, ADB assistance totaled $31.7 billion, including $14 billion in cofinancing.

Reliance Power Limited, a part of the Reliance Group, is India’s leading private sector power generation company. The company has the largest portfolio of power projects in the Indian private sector, based on coal, gas, hydro, and renewable energy, with an operating capacity of 5,945 MW.

Continue Reading
Comments

Energy News

Global transformation of the electricity sector requires greater efforts to ensure security of supply

Published

on

The electricity sector, which plays a large and growing role in energy systems around the world, is undergoing its most dramatic transformation since its creation more than a century ago. The importance of electricity is only set to increase in the years ahead, calling for a more comprehensive approach to electricity security to meet evolving challenges such as cyber threats, extreme weather events and rapidly growing shares of variable electricity generation from wind and solar power, according to a new report by the International Energy Agency.

The report, Power Systems in Transition, is the first major global study to examine in depth these three key areas for the future of electricity security at the same time and offer recommendations for addressing them in a way that supports the acceleration of clean energy transitions globally.

“Energy security is at the heart of the IEA’s mission because it is critical for social wellbeing, economic prosperity and successful clean energy transitions. We are dedicated to helping countries around the world ensure that all their citizens have access to clean, reliable and affordable energy,” said Dr Fatih Birol, the IEA Executive Director. “Electricity is essential for the functioning of modern societies – as the Covid-19 crisis has highlighted – and for bringing down global emissions. This is why we are continuing to expand and deepen our work on electricity security.”

The report is being launched today at the 2nd Global Ministerial Conference on System Integration of Renewables, which is co-hosted by the IEA and the Singapore government. The event will bring together Ministers, industry CEOs and thought leaders from around the world for discussions on the theme of “Investment, Integration and Resilience: A Secure, Clean Energy Future.”

Electricity accounts for one-fifth of global energy consumption today, and its share is rising. It is set to play a bigger role in heating, cooling and transport as well as many digitally integrated sectors such as communication, finance and healthcare. In pathways towards meeting international energy and climate goals, such as the IEA Sustainable Development Scenario, the trend will accelerate. In that scenario, electricity could surpass oil as the world’s largest energy source by 2040. Wind and solar’s share of global electricity generation would rise from 7% to 45%, with all renewables combined generating more than 70% of the total.

Many countries today enjoy a high level of electricity security thanks to centrally controlled systems, relatively simple supply chains, and power plants that can supply electricity whenever needed. But recent technology and policy developments are now radically changing the sector and with it, the electricity security model that has prevailed for the past century. These developments include steep declines in the costs of variable renewables, the trends of decentralisation and digitalisation, and the impacts of climate change.

The challenge for governments and utilities is to update policies, regulations and market designs to ensure that power systems remain secure throughout clean energy transitions. The new IEA report maps out key steps for achieving this. An essential goal is to make systems more flexible so they can smoothly accommodate the variable electricity production from wind and solar. This includes making the best use of the flexibility on offer from existing power plants that can generate electricity when required, as well as increasing investments in grids and other sources of flexibility such as demand-side technologies and storage resources. However, global investment in these areas is declining, a trend that has been exacerbated by the Covid-19 crisis. An increase in investments should be facilitated by better-designed markets that reward power system resources that deliver flexibility and capacity.

The growing digitalisation of electricity systems, the rise of smart grids and the shift to a wider distribution of generation resources offers many opportunities and benefits. But with cyber threats already substantial and growing, it is imperative to strengthen cyber resilience measures and make them a central part of the planning and operation of power systems. Governments can achieve this through a wide range of policy and regulatory approaches – from highly prescriptive ones to framework-oriented, performance-based ones.

The effects of climate change mean that electricity systems need to become more resilient to the impacts of changing weather patterns, rising sea levels and more extreme weather events. This can be accomplished by giving a high priority to climate resilience in electricity security policies and establishing better standards to guide the necessary investments. Enhancing the resilience of electricity systems to climate change also brings multiple benefits.

The new IEA report identifies best practices and lessons learned from around the globe. It also provides a set of recommendations for institutional frameworks that establish clear responsibilities, incentives and rules; measures to identify, manage and mitigate risks; and protocols to monitor progress, respond and recover, including through emergency response exercises.

“The IEA is the world’s energy authority where governments and industry leaders can share experiences and expertise to help move the world towards a more secure and sustainable energy future,” said Dr Birol. “This report is the reference manual for policy-making on electricity security now and for years to come.”

The IEA’s expanding work on energy security challenges will next year include a special report providing a forward-looking assessment of the global supply of critical minerals for clean energy technologies.

Continue Reading

Finance

World Bank Group Sanctions Two Chinese Engineering Companies for 18 months

Published

on

The World Bank Group today announced the 18-month sanctions of China National Electric Engineering Company Limited (“CNEEC”) and its wholly owned subsidiary, China Electric Design and Research Institute Company Limited (“CEDRI”), both international engineering companies, in connection with fraudulent practices as part of the Lusaka Transmission and Distribution Rehabilitation Project in Zambia.

CEDRI has been sanctioned with debarment with conditional release, which makes the company ineligible to participate in projects and operations financed by institutions of the World Bank Group. The debarment is part of a settlement agreement under which CEDRI admits responsibility for the underlying sanctionable practices and agrees to meet specified corporate compliance conditions as a condition for release from debarment.

CNEEC has been sanctioned with conditional non-debarment, which means that it remains eligible to participate in projects and operations financed by institutions of the World Bank Group as long as it complies with its obligations under the settlement agreement. Otherwise, the conditional non-debarment will convert to a sanction of debarment with conditional release, and the company then will become ineligible to participate in World Bank Group projects and operations until the conditions for release set out in the settlement agreement are met.  

The project was designed to increase the capacity and improve the reliability of the electricity transmission and distribution system in Lusaka, Zambia. According to the facts of the case, CEDRI engaged in fraudulent practices by failing to disclose a conflict of interest and by presenting false documents with CNEEC’s company name in order to meet the requirements of a contract under the project. CNEEC, as a controlling affiliate of CEDRI, failed to oversee CEDRI’s misconduct.

The settlement agreement provides for reduced periods of sanction in light of both companies’ cooperation. As a condition for release from sanction under the terms of the settlement agreement, the companies commit to developing an integrity compliance program consistent with the principles set out in the World Bank Group Integrity Compliance Guidelines. CNEEC and CEDRI also commit to continue to fully cooperate with the World Bank Group Integrity Vice Presidency. 

The debarment of CEDRI qualifies for cross-debarment by other multilateral development banks (MDBs) under the Agreement for Mutual Enforcement of Debarment Decisions that was signed on April 9, 2010.

Continue Reading

Development

World Bank Announces ‘Mission Billion Challenge’ Winners

Published

on

Leaders from around the world—including H.M. Queen Máxima of the Netherlands in her capacity as UNSGSA, the President of Estonia, and Ministers from Indonesia, Nigeria, Sierra Leone and Togo—called on countries to prioritize development of inclusive and trusted digital ID systems as part of a resilient recovery from the COVID-19 pandemic at the World Bank and IMF Annual Meeting event on October 21. The event also announced the winners of the ID4D Mission Billion Innovation Challenge to remove barriers to accessing and using such digital platforms.

Panelists highlighted how digital ID systems, together with a broader set of foundational digital infrastructure such as digital payments and platforms for trusted data sharing, can help build more resilient digital economies and societies when they are designed inclusively and with people at the center. Countries that had this infrastructure in place and accessible to people before the pandemic have been able to deliver emergency cash assistance to mitigate the impacts of COVID-19 more quickly and effectively, and maintain better continuity in services by shifting from physical to online delivery during lockdowns and quarantines. 

 “Now is the time for accelerated action: to get every person a digital ID that enables their access to services and ensures their privacy; and to have all countries prepared not only to respond better to the next crisis but to take advantage of the new opportunities being created by the digital economy,” said Dr. Mari Pangestu, World Bank Managing Director for Development Policy and Partnerships.

 “The crisis has created momentum in many countries to implement new ID systems, or boost coverage and strengthen the capabilities of existing ones. Sequencing and coordination are particularly important as the urgency of the pandemic might result in decisions not always being aligned across the government or with global best practices,” said Queen Máxima, the United Nations Secretary-General’s Special Advocate for Inclusive Finance for Development (UNSGSA). 

Winners of the World Bank Group’s Mission Billion Innovation Challenge were revealed, with a total of $150,000 in prize money and the opportunity to work with World Bank teams to further develop, pilot and scale their ideas. Given how the crisis has highlighted the critical need for digital ID systems and other platforms to work for all people, the theme of this year’s Challenge was inclusion:

  • The Global prize sought new ways to enable vulnerable populations—such as people with limited digital access and marginalized women and girls—to obtain digital IDs and use them to verify their identities and access remote services. The top winners announced by Makhtar Diop, World Bank Vice President for Infrastructure, were Kiva Protocol, Mobile Vaani, and Special Olympics Nigeria, all three sharing first place and together addressing inclusion across the full identification lifecycle.
  • The WURI West Africa prize called for solutions to facilitate contributions to social insurance programs, such as pensions and savings accounts, by informal sector workers. The winners, announced by Mamta Murthi, World Bank Vice President for Human Development, were Naa Sika in first place and Tonti+ in second place.

About the Identification for Development (ID4D) Initiative

The World Bank Group’s Identification for Development (ID4D) Initiative helps countries realize the transformational potential of digital identification. ID4D works with countries and partners across sectors to enable all people to exercise their rights and to access services by closing the gap in identification for the estimated 1 billion people currently without any proof of identity, and improving the quality and utility of digital identification and civil registration systems in line with the Principles on Identification for Sustainable Development. ID4D has three pillars of activity: country and regional engagement; thought leadership; and global convening and platforms. ID4D is supported by the Bill & Melinda Gates Foundation, the UK Government, the French Government, and the Omidyar Network.

About the Mission Billion Challenge

In its second year, Mission Billion, supported by MIT Solve platform, aims to spur practical and innovative solutions to challenges developing countries face in implementing digital ID systems. It is hosted by the World Bank Group’s Identification for Development (ID4D) Initiative and supported by the Bill & Melinda Gates Foundation, the UK Government, the French Government, and Omidyar Network. This year attracted 370 solutions from academics, entrepreneurs, scientists, and technologists based in 59 countries. The 2019 edition focused on privacy and user empowerment of their identification.

Continue Reading

Publications

Latest

Americas39 mins ago

Israel, the Middle East and Joe Biden

How will a Biden Administration change American policies on Iran, the Palestinians and Israel’s tightening relationships with Arab states? Some...

Diplomacy3 hours ago

Nuclear Weapons and Coercive Diplomacy- Book Review

In Nuclear Weapons and Coercive Diplomacy, Todd S. Sechser and Matthew Fuhrmann create both a thorough qualitative and meticulous quantitative...

Energy News5 hours ago

Global transformation of the electricity sector requires greater efforts to ensure security of supply

The electricity sector, which plays a large and growing role in energy systems around the world, is undergoing its most...

Finance7 hours ago

World Bank Group Sanctions Two Chinese Engineering Companies for 18 months

The World Bank Group today announced the 18-month sanctions of China National Electric Engineering Company Limited (“CNEEC”) and its wholly...

Africa9 hours ago

Used vehicles get a second life in Africa – but at what cost?

John Mwangi’s 22-year-old car is his lifeline. His run-down Toyota saloon not only ferries him around the streets of the...

Development11 hours ago

World Bank Announces ‘Mission Billion Challenge’ Winners

Leaders from around the world—including H.M. Queen Máxima of the Netherlands in her capacity as UNSGSA, the President of Estonia,...

Development13 hours ago

A framework agreement of cooperation between IsDB and Standard Chartered Bank

IsDB President Dr. Bandar Hajjar and M. Sunil Kaushal, CEO for Africa and Middle East, Standard Chartered Bank (SCB), signed...

Trending