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The recent rapid economic development of Bangladesh and its growing population require novel solutions to tackle environmental issues in the country. Dhaka is considered one of the most pollution affected cities in the world. Currently, the only way of waste disposal is open-air storage or landfill, which has limited remaining capacity, and the scarcity of land does not allow for construction of new landfills around Dhaka.
To alleviate the situation, the Government of Bangladesh decided to build waste incineration power plants in Dhaka and in 2021 China Machinery Engineering Corporation (“CMEC”) was selected to build, own and operate the first waste-to-energy power plant in the country through the special purpose vehicle – WtE Power Plant North Dhaka Private Limited (WtE Dhaka).
The Project comprises: (i) construction of a 3,000-ton/day waste incineration plant, equipped with a 4*750-tons/day incineration line and 2 sets of 35 MW turbo-generator systems; (ii) construction of a 6-km transmission line from the site to the state-owned substation.
The objective of the Project is to: (i) alleviate environmental pollution in Bangladesh resulting from increasing waste and limited space of existing waste landfill facilities; (ii) contribute towards Bangladesh’s long-term master plan for power sector, which aims to generate 10% of electricity from renewable energy by 2041.
The Project will be implemented by the Borrower, in accordance with laws and regulations in Bangladesh. The WtE power plant will be built by CMEC as the EPC contractor. The Project will utilize incinerators produced by Shanghai SUS Environment Co., Ltd, and waste heat boilers produced by Wuxi Huaguang Environment & Energy Group Co., Ltd. Construction commenced in 2024, and the plant shall reach commercial operation by July 7, 2026.
The Project has been categorized as Category A in line with NDB’s Environment and Social Framework (“ESF”). Potential adverse E&S impacts and risks include economic displacement, loss of livelihoods, and community health and safety risks due to waste incineration, which may include toxic compounds. Proximity to the existing landfill site increases the risk of soil and groundwater contamination. The Project’s E&S impacts and risks will be mitigated by following country system requirements and effective implementation of Environmental and Social Management Plan (“ESMP”), Environmental and Social Monitoring Plan (“ESMoP”) and Environmental and Social Corrective Action Plan (“ESCAP”). The Project, upon fulfilling all those requirements, will be in material compliance with NDB ESF.
Source of Fund | Amount |
NDB | USD 100 million |
Other Sources | USD 357 million |
NDB | Borrower and Project Entity |
Private Sector and Non-Sovereign Guaranteed Transactions
Dmitry Kulesho |
Investment Department, CMEC
Wang Pu |