Document of

The World Bank

FOR OFFICIAL USE ONLY

Repot No. 9159

PROJECT COMPLETION REPORT

BANGLADESH

GREATER KHULNA POWER DISTRIBUTION PROJECT(CREDIT 934-BD)

NOVEMBER 30, 1990

Industry and Energy DivisionCountry Department IAsia Region

This document has a restricted distribution and may be used by recipients only in the performance oftheir official duties. Its contents may not otherwise be disclosed without World Bank authorization.

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GLOSSARY OF ABBREVIATIONS

ADB - Asian Development BankBPDB - Bangladesh Power Development BoardEIRR - Economic Internal Rate of ReturnGKPDP - Greater Khulna Power Distribution ProjectICB - International Competitive BiddingGOB - Government of BangladeshPPF - Project Preparation FacilityREB - Rural Electrification BoardROR - Rare of ReturnWTP - Willingness to Pay

kWh - Kilowatt hourkV - KilowattMVA - Megavolt-Ampere

TPE WORAD BANk FOR OFFICIAL USE ONLYWASheIton DC 20433

U.S A

Office of Director-amo.ralOperatias zvaluatLs

November 30, 1990

MEMORANDUM TO THE EXECUTIVE DIRECTORS AND THE PRESIDENT

SUBJECT: Project Completion Resort on BangladeshGreater Khulna Power Distribution Project (Credit 934-BD)

Attached, for information, is a copy of a report entitled "ProjectCompletion Report on Bangladesh - Greater Khulna Power Distribution Project(Credit 934-BD)" prepared by the Asia Regional Office. No audit of this projecthas been made by the Operations Evaluation Department at this time.

Attachment

This oacument hKu a ratd ddmtnbutuon and may be OMed by ,apwnu o in toU Poos ceot their official duuIn w entr may not othowa be ducc. without Woid Set e nuin

FOR OFFICIAL USE ONLY

BANGLADESH

GREATER KHULNA POWER DISTRIBUTION PROJECT(CREDIT 934.BD)

PROJECT COMPLETION REPORT

Table of Contents

Page No.

Preface . ....................................................... iEvaluation Summary ............................................. ii

PART I: Project Review from Bank's Perspective

Project Identity .................................... . 1

Background .................................... 1

Project Objectives and Description ..... .............. . 2Project Objectives ....... ................. . 2Project Description .................................. . 2Donor Coordination ....... .................. . 3Project Design and Organization ..... .............. . 4

Project Implementation ..................... 5Loan Effectiveness and Project Set-Up ................ . 5Implementation Schedule ...... ................ . 5Procurement ................................... . 6Project Costs ................................... . 6Disbursements .................................... . 7Credit Allocation .................................... . 7

Project Results ................................... . 7Project Objectives ....... ................. . 7Physical Results ........ ................. . 7Financial Performance ....... ............. - 7Impact of Project ........ ................. . 9

Profit Sustainability .... 9

Bank Performance ........................................... 9

Borrower Performance ........ .............. ................ 10

Project Relationship ...................... ................ 11

Consulting Services ........ ............... ................ 11

Project Document and Data ....... ............. ............. 11

This document has a restricted distribution and may be used by recipients only in the performanceof their official duties. Its contents may not otherwise be disclosed without World Bank authorization.

TABLE OF CONTENTS (Cont.)

Page No.

PART III: Statistical Information

Related Bank Credits ...................................... 12

Project Timetable ......................................... 13

Credit Disbursements ...................................... 14

Project Costs and FinancingProject Costs .......................................... 15Project Financing ..................................... 16

Status of Covenants ....................................... 17

Hissions .................................................. 18

System Losses ............................................. 19

ANNEXES

Annex 1: Bangladesh Historical Growth in Demand, EnergyGeneration and Sales ............................. 20

Annex 2: BPDB Income Statements ........................... 21

ATTACHMENT

Comments from the Cofinancier ............................. 24

BANGLADESH

GREATER KHULNA POWER DISTRIBUTION PROJECT(Cr.934-BD)

PROJECT COMPLETION REPORT

PREFACE

This is the Project Completion Report (PCR) for the Greater KhulnaPower Distribution Project in Bangladesh, for which Cr.934.BD in the amountof US$28 million was approved on June 14, 1979. The credit was closed onJune 30, 1986, two years behind schedule. It was fully disbursed and thelast disbursement was in February 1987. Cofinancing of US$8.5 million wasprovided by the OPEC Special Fund and was fully utilized. The PCR wasprepared by the Industry and Energy Division, Country Department 1, AsiaRegion (Preface, Evaluation Summary, Part I and and Part III). No commentshave been sought from the Borrower under Part II in view of the specialprocedure for delayed PCRs. A report on project completion was receivedfrom the Borrower in May 1987.

Preparation of this PCR is based, inter alia, on the StaffAppraisal Report, the Credit and Project Agreements, supervision reports,correspondence between the Bank and the Borrower, and internal Bankmemoranda.

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BANGLADESH

GREATER KHULNA POWER DISTRIBUTION PROJECT(Cr.934-BD)

PROJECT COMPLETION REPORT

EVALUATION SUMMARY

Introduction

1. In the late 1970s major investments were needed in Bsngladesh'spower sector to provide adequate power supply and sustain economic develop-ment. The Greater Khulna Power Distribution Project (GKPDP) (Cr.934-BD,1979 for US$28 million) was the B :k Group's first lending operation toBangladesh's power sector. Cofinri. .ng of US$8.5 million was provided bythe OPEC Special Fund. The Bangladesh Power Development Board (BPDB),which is responsible for generation, transmission, and distribution, excepttn rural areas, was the Executing Agency.

Objectives

2. The project achieved its principal objectives of improving thequality of power supply and expanding the system to meet the load demand upto 1989/90 in the west zone urban areas and the adjoining industrial beltsof Khulna, Bagerhat, Satkhira and Mongla Port. The project also providedtraining facilities for BPDB in Khulna, for the engineering, erection andmaintenance of distribution systems.

Implementation Experience

3. The project was completed with a three year delay (para. 5.02)mainly due to:

(a) The discovery in 1980, one year after project start up, that theplanned expansion of the existing 132/33 kV substation at theKhulna power station was neither technically nor economicallyfeasible. A site for a new 132/33 kV substation had to be found,the necessary land purchased and a 132 kV double circuit lineconstructed to connect the substation to the 132 kV grid. The newsite was made available to the contractor only by mid-1983.

(b) BPDB's project unit did not deliver the mapping survey and fielddata necessary to enable expatriate consultants to carry out theplanning of the distribution network. Eventually, localconsultants were appointed in 1981 to carry out the necessaryfield work.

(c) Excessive delays in approving contract awards; on average morethan a year elapsed between the bid opening and contract award.

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4. Despite the delays in project implementation and changes inproject scope, the project cost expressed in Dollars was about the same asthe SAR estimates (US$44.2 million actual, compared to US$44.01 million inthe SAR). However, expressed in local currency the total cost was aboutdouble because of the depreciation of the Taka.

5. The closing date was extended by two years. Disbursements laggedabout three years behind the original schedule.

6. The training component was completed with a delay of about threeyears.

Results

7. The project's physical targets were substantially achieved asplanned. The load increase anticipated for 1989/90 could be suppliedwithout any special difficulty and there has been a dramatic improvement inthe quality of power supply in the project areas.

8. The project also provided training facilities and instructors inthe field of distribution engineering, erection and maintenance of distri-bution equipment.

9. BPDB's financial and institutional performance has been dis-appointing, and most of the Credit covenants have not been complied with.

Sustainability

10. The rphabilitation and expansion of the distribution system werefully justified and produced significant benefits. The project has:(a) increased the quality and coverage of power supply in the Khulna areswhich has a major industrial base; (b) strengthened BPDB's planning anddesign capabilities for the implementation of subsequent projects; and(c) provided facilities to train about 300 staff per year in subjectsrelated to power distribution.

Findings and Lessons Learned

11. The main lessons to be learned from the project ares

(a) qualified consultants should be utilized during project prepara-tion to avoid subsequent changes in project scope and delays;

(b) it would be preferabie to use local consultants for distributionplanning work and field survey rather than BPDB staff;

(c) the procurement process should be streamlined and deadlines shouldbe set for the approval of contract awards;

(d) BPDB should adopt uniform standards for distribution equipment;and

(e) loss reduction programs need careful preparation and monitoring.

BANGLADESH

GREATER KHULNA POWER DISTRIBUTION PROJECT(Credit 934-BED)

PROJECT COMPLETION REPORT

Part I: Project Review frcm Brnk's Perspective

1. Project Identity

Name : Greater Khulna Power Distribution Project

Credit Number : 934-BD

RVP : Asia Region

Country : Bangladesh

Sector : Energy

2. Background

2 01 Electricity supply in Bangladesh rests with two state-ownedorganizations: the Bangladesh Power Development Board (BPDB) created in15S72, wbich is responsible for the generation, transmission, and distri-bution of electricity, except in rural areas; and the Rural ElectrificationBoard (REB) created in 1977, which is responsible for electricity supply inrural areas through consumer-owned cooperatives. BPDB supplies thecooperatives at 33 kV.

2.02 In the late 1970s Bangladesh faced serious development problen.sbecause of its large population, small infrastructure base, recurringdamaging floods, and high oil prices. Apart from limited hydro resourcesin the eastern hills, the only indigenous commercial energy resource wasnatural gas in the country's east zone. The power sector's role ineconomic development was limited, providing neither sufficient nor reliablesupply to meet the country's needs. The rate of electrification was verylow and the annual per capita consumption was 15 kWh (140 kWh in neigh-boring India and 147 kWh in Pakistan). Power cuts for varying lengths oftime were frequent, mainly due to worn out equ.pment, insufficient main-ter.ance and heavily loaded distribution networks. System losses were high,reaching 37% in 1979. Further, BPDB's power system was divided intG theeast and west zones by the Brahmaputra/Jamuna river system. Until thecommissioning of the first 230 kV double circuit interconnector in December

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1982. indigenous gas-fired generation in the east zone could not be trans-ferred to the west zore which relied solely on oil-fired generation. Onthe institutional side, BPDB was over-staffed and had major deficiencies inits operations and finances. The need to upgrade and expand the electri-city supply for productive uses was widely recognized and more than Tk 15billion was allocated to the sector in the Second Five Year Plan FY81-85.

2.03 The Greater Khulna Power Distribution Project (GKPDP) (Cr.934-BD,1979, for US$28 million) was the Bank Group's first lending operation tothe power qector. The project was cofinanced by OPEC Special Fund to thelevel of US$8.5 million. Concurrently with IDA financing thie GKPDP, the UKprovided financing for the Greater Dhaka Distribution Project; ADB for theGreater Chittagong Distribution Project; and Kuwait Fund/Abu Dhabi Fund forthe First East-West Interconnector.

2.04 Subsequently, during the 1980s IDA has supported a number of powersector investments: Ashuganj Thermal Power Project (Cr.1254-BD, US$92million) in 1982; Rural Electrification Project (Cr.1262-BD and 1504-3-BDof US$40 million and US$8 million respectively) in 1982; Second RuralElectrification Project (Cr.1633-BD, SDR 76.3 million) in 1985; and PowerTransmission and Distribution (14 Towns) Project (Cr.1648-BD, SDR 52.3million) in 1985. More recently, an Energy Sector Adjustment Credit(SDR 137 million) and a Power Distrib:ttion (16 Towns) Project (Cr.2016-BDSDR 64.7 million) were approved during FY89. At present, the Ba-1 Group isconsidering the financing of additional projects in the power seccor tomeet the continuing increase in the demdnd for electrical energy (ThirdRural Electrification Project (FY9OL) and proposed Power Rehabilitation andDistribution Project (FY91S)).

3. Project Objectives and Description

3.01 Project Objectives. The objectives of the GKPDP were to: (a) meetthe rapidly growing power demand through the rehabilitation, reinforcement,anid expansion of the distribution networks located within the west zoneurban areas and the adjoining industrial belts of Khulna, Bagerhat,Satkhira and Mongla Port; (b) increase the supply of trained staff,especially in distribution, by providing training facilities and teachersfor BPDB's training center in Khulna; and (c) support institution buildingefforts through strengthening BPDB's planning capabilities and improvingits financial situation.

3.02 Project Description. The major physical components defined in theSAR and executed within the project were:

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A. Distribution Facilities:

SAR Actual ProlectNew Renov. New Renov.

Lines (km)(a) 132 kV, double cirruit - - 2 -(b) 33 kV 130 ) 88 59(c) 11 kV 500 ) 59 70(d) iI/0.415 kV and 11/0.24 kV ) 320 212 122(e) 0.415 and 0.24 kV lines ! 128 391

Substations (No.)(a) 132/33 kV, 3 x 48/64 MVA 1 1(b) 33/11 kV 8 5 4

(60 MVA) (130/170 MVA)(c) 33/0.415 kV 105

(14 MVA)(d) 11/0.415 (100 and 250 KVA) 520 448

(80 MI1) (80 MVA)(e) 11/0.230 (10 to 50 KVA) - 168

(3.6 MVA)

Cables (km)(a) 11 kV underground cable ) 36(b) 0.415 underground cable ) 150 8(c) 11 kV aerial cable ) 43.5

11 kV Switching Stations - 3

Service Connections (No.)Single phase ) 33,000 20,000 10,000 27,000Three phase 2,000 3,600

B. Ci il Works

Residential - 3,285 m2

Non residential 2,000 m2

Training Center with 2,190 m2

Hostel and Workshop

3.03 Donor Coordination. In the context of four previous loans, ADB financedand supervised the preparation of a major rehabilitation program and a financialrecovery plan for BPDB. This included, in particular, the restructuring ofBPDB's debt to the Government, the reduction of system losses and accountsrecei.vable, the execution of planning studies, and the introduction of a modemnaccounting system. During this first operation IDA reviewed the financialrecovery plan and, aft?r adjusting some over-ambitious targets, endorsed andsupported the program in coordination with other donors.

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/4. Project Design and Organization

1.01 The GKPDP w;as designed mainly to provide adequate and reliablepower supply to major distribution centres and industries in the WesternZone of Bangladesh. Similar investmenits in Dhaka and Chittagong werecarried out tunder financing from other donors. Further, the projectprovided facilities at Khulna needed to respond to BPDB's training needs indistritbution engineering.

4.02 BE'DB prepared the feasibility study for the project on the basisof' preliminary ;urieys by BPDB staff and Bank appraisal of the project inFe!bruary 1979 was based an this preliminary work. In accord with the DCA,BPDB had to appoint expatriate consultants for the project design, draftingof specitications, bidding documents and contracts, and construc- tionsupervision; these consultants would develop the capabilities of BPDB's ownstaff .hrough transfer of knowledge during project implementation. BPDBwas to establish a project unit in liulna headed by a full t5ne engineer(project manager) with adequate experience in network plann'n:g and con-struction. The project unit was expected to carr; out the initial fieldsurvey and pr)vide tne expatriate consultants with the basic data forprcject design.

4.03 While the selection of the consultant -.as a condition of crediteffectiveness, the role of the consultant within the project unit was notclearly defined. Furthermore, logistical and administrative problemsdk:layu-d thF consultant's actual mob4lization uncil April 1980. At the same1.imle, BPIDB experienced major difficulties in appointing and maintainingsenm`-r staff at Khulra because of its inadequate compensation and personnelpolicies, and the project unit fell short on the delivery of thp rnecessaryda a from field survey needed for the distribution system planning.C(oii;ecjuently, local consultants had to be appoii.ted, but only in 1981, tocarry out field mapping and distribution planning under the supervision ofthe 4exparriaLe consultant. They were appointed again in 1904 for thestaking of lines before construction could begin.

4.04 During the design phase significant changes had to be made in thescope of the original project. The most notable change was the relocationuf the 1i32/33 kV substation when the expatriate consultant found thatextension of the existing 132/33 kV substation at the Khulna power stationwas technically and economically unfeasible. Therefore, a site for a new132/33 kV substation had to be found and the necessary land purchased,which contributed to major delays in project implementaFio&i.

4.05 In retrospect, the appointment of qualified consultants to assistin project preparation might have avoided these changes in project scopewhiclh weLe necessary late in the project implementation process. Also,B2DB ajid Bank staff over-estimated BPDB's project preparation capabilities.

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5. Project ImplementLtion

5.01 Loan Effectiveness and Project Set-Up. The IDA credit wasapproved on June 18, 1979 and declared effective on November 20, 1979; theloan from the OPEC Special Fund, was approved on August 28, 1979 and becameeffective on January 9, 1980. The expatriate consultant, Motor ColumbusConsulting Engineers (Baden, Switzerland), was appointed on February 20,1980 but logistical and administrative problems delayed its actualmobilization to April 1980. Field mapping started in January 1981 usinglocal consultants. Four other local consultants were appointed in October1981 for distribution planning. Significant revisions to the project scopehad to be introduced by the consultant, which contributed to delays inproject implementation as detailed below.

5.02 Implementation Schedule. The project was originally scheduled tobe completed on June 30, 1983. In fact, most of the project's constructioncomponent was not even started by this date, and the project was notcompleted until June 30, 1986. The main reasons for the delays were:

(a) the discovery in 1980 that the envisaged expansion of the existing132/33 kV substation at Khulna power station in the project wasnot feasible (para. 4.04). A suitable location for a 132/33 kVsabstation was .ound about 2 km away from the Khulna powerstation, but this required purchase of land at the new site andconstruction, not originally planned, of a 2 km 132 kV doublecircuit line to connect the substation to the 132 kV system. Thenew site was made available to the contractor only by mid 1983.Moreover, during construction, it was discovered that additionalearth filling was necessary to raise the ground level; thisfurther delayed project execution. The substation was finallycompleted in May 1986, with a delay of about ten months in thecontractual completion date;

(b) extended bid evaluation and contract award reviews; on average, ittook over one year from the receipt of bids to Government approvalof contract awards, because of bureaucratic procedures in reviewand approval of contract awards;

(c) the inordinate time required by the University of Engineering toreview the drawings for the civil works;

(d) the time needed to contract local consultants for distributionplanning in October 1981 when it was realized that BPDB's projectunit could not deliver the work. The material requirements forinternational procurement could not be defined until theconsultants' reports were received eight-ten months later. Thesame consultants were reappointed in June 1984 to carry out fieldstaking prior to line construction;

(e) the lengthy delivery periods for some items of imported equipment;

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(f) the need to change the foundation design for LV poles to resistflooding (concrete instead of compacted earth) during the erectionof poles by local contractors. Poles already erected had to beuprooted and their foundations rebuilt;

(g) the inexperience of local contractors and the lack of skilledlabor and financial capacity to carry out the work; and

(h) the understaffing of the BPDB project unit which could not meetthe volume and nature of work.

5.03 Procurement. The procurement of equipment and materials was amajor time consuming task perfor-ed after field survey and detailedengineering. Originally tha equipment and materials needed for all theproject components were to be procured under ICB, while construction anderection work were to be let under local competitive bidding. BPDB foundlater that the high voltage component (132/33 kV substation and 132 kVtransmission line) would be executed more efficiently under a turnkeycontract. The bidding documents for the turnkey contract and for the maindistribution items were issued in August 1981, and bids received in January1982. Approval of the contract award took about a year, and the variousorders were placed between December 1982 and April 1983. Following thecompletion of detailed planning work, additional items were identified forprocurement; bidding documents were issued in December 1983 and bidsreceived in April 1984. Considerable time was wasted in the bid evaluationprocess, and contract award was approved only in January 1985. Procurementof 11 kV switchgear met #ith several setbacks. While it was originallyanticipated that switchgears available in BPDB stores could be used, it waslater discovered that they were not technically suitable. Bidding docu-ments were issued in July 1984 but again, because of the lengthy process otbid evaluation and approval, the contracts were not awarded until November1985.

5.04 Procurement action proceeded satisfactorily once the contractswere awarded. In general, the procurement procedures followed the Bankguidelines. However, the delays taken to approve contract awards wereunusually long for such equipment and contributed largely to the delays inproject implementation.

5.05 Project Costs. The completed project cost of about US$44.0million was in line with the appraisal estimate of US$44.2 million.However, the actual foreign/local cost balance was significantly differentfrom that forecast. The actual foreign cost of US$30.4 million was 50Zhigher than the estimated foreign cost of US$20.4 million (Table 4A,Part III) due to the increase in the number and capacity of HV substations,the addition of a 2 km double circuit 132 kV line, and additional distri-bution lines and substations. The local Taka costs were about the same asthat projected in the SAR; however, when expressed in US Dollars it wasmuch lower because of the depreciation of the Taka against the US Dollar(US$1 = Tk 15.50 in 1979, and US$1 = Tk 30 in 1986). Conversely, theproject cost expressed in Taka was almost double the SAR estimate, and arevised Project Proforma (increase from Tk 698.5 million to Tk 1,334million) had to be submitted for approval to the Planning Energy Commissionin February 1985.

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5.06 Disbursements. The estimated and actual disbursenments are givetiin Table 3, Part III. As of June 30, 1982, three years after the projectstart up, only 5Z of the credit had been disbursed. The bulk of thedisbursements of the Credit occurred in 1984, 1935 and 1986. The Creditwas fully disbursed in February 1987. The original closing date wasJune 30, 1984, but after a two-year extension of the credit closing date,the Credit was closed only on June 30, 1986.

5.07 Credit Allocation. The original and revised allocations andactual disbursement are shown in Table 4B, Part III. The original allo-cations were revised in June 1983 and in September 1985 to take account ofrevisions in the project scope.

6. Project Results

6.01 Project Objectives. Overall the project was successful inachieving its principal objectives of improving the quality of power supplyand expanding the system to meet the load growth up to 1989/90. Afterproject implementation the expected quality of supply improved signifi-cantly. The project also trained six instructors for BPDB in distributionengineering and also improved BPDB's training facilities. Khulna is now

one of BPDB's main training centers in distribution engineering. It isplanned to add training in live line working under the ongoing PowerTransmission and Distribution Project (Cr.1648-BD).

6.02 Physical Results. The project's physical targets were achieved,substantiallv as planned. The load increase anticipated for 1989/90 couldbe supplied without any special difficulty. Annex 1 gives historica'1 darr

on load demand in Bangladesh which shows high rates of growth.

6.03 Financial Performance. The financial statements, including bothappraisal estimates and actual results for FY79-85, are given in Annex 2.Early in project preparation it was recognized that the most difficultproject issue involved establishing BPDB on a sound financial basis.BPDB's finances were in a deplorable state and deteriorating rapidly withhigh losses, excessive payroll, doubtful accounting, low tariffs and non-billing for about 67Z of customers. A financial recovery plan was preparedand agreed between GOB and ADB under the Greater Chittagong PowerDistribution Project which included, in particular, the restructuring ofBPDB's debt to GOB. With IDA's involvement, a priority program was estab-lished, and a set of urgent actions were defined in the areas of lossreduction, power system rehabilitation, management improvement and tariffs.As part of the recovery plan, IDA also agreed on soft onlending terms forthe GOB loan to BPDB (25 years, including 5 year grace period and 5Zinterest rate). To monitor the program's effectiveness, a financialcovenant in the form of operating ratio targets was agreed (FY80: 1352,FY81: 120?, FY82: 1002). Further, specific targets for system losses wereagreed in a side letter (reduction from 37Z in FY79 to 23? in FY85). Undersubsequent Credits, the targets for loss reduction were revised upward, andthe financial covenants were changed to internal cash generation(Cr.1254-BD) and to rate of return (ROR) on revalued assets (Cr.1648-BD andCr.2016-BD).

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6.04 BPDB's financial situation as it developed from FY79 to FY87 issummarized below:

Operating Ratio Net Internal Cash GenerationFY Percentage Rate of Return !/ As a Percentage of Investment Debt/Equity Ratio

(8-year average)

SAR k/ Actual SAR Actual SAR O/ Actual SAR Actual

78 - 147 61:3979 160 130 63:87 67:4380 lS 118 69:41 69:4181 99 114 72:28 63:3782 8a 112 386 (4.5) a (6.8) 72:26 438:78a 79 82.6 8.8 6.6 9 1 72:28 44:6684 70 88.1 6.9 6.2 18 8.8 70:30 43:6785 se 90.8 6.8 2.6 84 24.1 69:81 47:6388 100 0.0 80.1 61:4987 91.2 2.0 38.9 68:44

*/ On average, revalued not fixed assets in operation.

/ The figures in the SAR for not internal cosh generation and operation ratio have bencorrected to be consistent with tho definition in OMS 2.22.

The average annual increase in electricity sales of 13%, coupled with anaverage annual tariff increase of 182, resulted in a substantial increasein sales revenue from Tk 629 million in FY79 to Tk 6,019 million in FY87,an average annual increase of about 33Z. However, operating expensesincreased about by 27Z p.a., thereby offsetting most of the much neededimprovements in financial viability that BPDB would have otherwiseachieved. The ROR on revalued net assets improved from a negative 4.7% inFY79 to 2.5Z in FY85. The operating ratio improved from !30% in FY79 to90Z in FY85, against 661 projected in the SAR. The net internal cashgeneration as a percentage of investment was projected to be 34% in 1985,but was actually 24Z.

6.05 No agreement was sought under the project on target levels forBPDB's accounts receivable. This was subsequently realized to be a keyomission for the improvement of BPDB's financial viability and introducedinto subsequent projects, beg;nning with the FY82 Ashuganj Thermal PowerProject. Accounts receivable peaked at 7.4 months' average monthlybillings in FY87 and were reduced to 3.5 months' billings in September1989. Accounts payable were on average 9.4 months' overdue, reflecting adeteriorating liquidity position. At the same time, while the billing ratehas improved, system losses in 1985 were 37Z comparel to 23% projected inthe SAR, and 38% in FY87. Reducing losses and improving billing andcollection rates still remain a challenge for BPDB.

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6.06 In late 1988 IDA learned that BPDB was making interest paymentsand repayment of principal on the same terms as the Government payments toIDA, rather than in accordance with the subsidiary loan agreements. Underthe Energy Sector Adjustment Credit (Cr.1999-BD) and the Power Distribution(16 Towns) Project (Cr.2016-BD) this anomaly was corrected with the conver-sion of arrears into equity ind agreement by July 1, 1989 the SLA agree-ments would be implemented.

6.07 The SAR noted that, since the project was part of BPDB's rehabili-tation and expansion program, it was not appropriate to estimate a projecteconomic internal rate of return (EIRR). Instead, the EIRR for the FY79-83"time slice" of BPDB's total investment program was calculated. Usingtariffs as a measure of benefits, this was estimated to be 8Z. However, inretrospect, the project EIRR could have been computed using projectedincremental sales from the project and measuring benefits in terms ofconsumers' willingness to pay (WTP). Using this methodology the projectEIRR would have been much higher than the 12Z opportunity cost of capital.This methodology has recently been used for the economic evaluation of theGreater Khulna Phase II distribution component of the proposed PowerRehabilitation and Distribution Project (FY9lS); its EIRR is 17Z withbenefits measured in terms of FY90 tariffs and 23Z on the basis ofconsumers' WTP.

6.08 Impact of Project. Despite the three year delay in project imple-mentation, the project made a major impact in improving the quality cfsupply in the Khulna area. BPDB staff and the local consultants involvedin the project execution benefitted considerably from the transfer ofexperience from the expatriate consultants. Also there will be long-lasting impacts through the training of BPDB personnel in the KhulnaTraining Center. The project established a working relationship betweenBPDB and IDA and therefore provided a basis for subsequent operations.

7. Project Sustainability

7.01 The project had the following significant benefits:

(a) increasing both the quality and coverage of power supply in theKhulna area, which has a major industrial base;

(b) strengthening BPDB's planning and design organization for theimplementation of subsequent projects; and

(c) training about 300 staff per year in erection and maintenance ofdistribution equipment.

8. Bank Performance

8.01 The project was the first Bank power sector peratton inBangladesh and started a dialogue with GOB/BPDB on the power sector'sphysical and institutional development, which has continued during sub-sequent operations. The following lessons can be learnt from theexperience gained under the project:

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(a) project preparation by BPDB was inadequate, and Bank staff shouldhave insisted on BPDB appointing consultants, possibly financedunder a PPF, to better prepare the project before appraisal.

(D) BPDB had to implement a major investment program and did not havethe necessary resources to contribute effectively to the project'sdesign and execution. Retrospectively, the Bank should haveinsisted on BPDB appointing local consultants at an early stage ofproject execution. This requirement has been enforced for subse-quent IDA-financed projects;

(c) considering BPDB's large and growing investment program in distri-bution, more attention should have been devoted to developinguniform standards for distribution equipment instead of havingeach consultant provide its own;

(d) before setting specific target figures for loss .eduction, thesources of losses need to be carefully studied and an actionprogram defined; and

(e) delays in the approval of contract awards were unusually long forthis project. Although endemic bureaucratic problems still existin Bangladesh, the Bank should have been more forceful inpersuading GOB/BPDB to streamline the decision-making process inprocurement actions.

9. Borrower Performance

9.01 Except for 1983/85, BPDB's overall financial performance has beenunsatisfactory, and most of the credit covenants were not complied with.BPDB made some progress in a relatively short time in project management,accounting and commercial operation, but there is still scope for furthersubstantial improvements. The project was not adequately prepared, andBPDB and the Bank over-estimated the project unit's capacity to contributeto project execution. Local consultants had to be hired at a later stageto carry out tasks originally assumed by the project unit. The delays inthe procurement process could have been reduced if better procedures wereadopted for contract approval and award. The main lessons to be learntfrom the project are that:

(a) to undertake a major investment program BPDB needs to employqualified consultants, especially during the preparation phase;

(b) BPDB should adopt uniform standa.ds for distribution equipment toimprove project implementation, and facilitate operations andmaintenance;

(c) procurement pro'edures need to be streamlined and deadlinesadopted for the evaluation and approval of contract awards; and

(d) local consultants should be hired for project planning at an earlystage of project implementation.

-11-

10. Project Relationship

10.1 IDA's relationship with Government and BPDB has been generallygood.

11. Consulting Services

11.01 BPDB engaged Motor Columbus (Switzerland) with local consultantsto implement the physical component and EDF (France) to assist with thetraining component. Motor Columbus carried out project design, drafting ofspecifications and bid documents, and supervision of project implemen-tation. The HV component was satisfactorily completed despite the threeyear delay. The setbacks faced in the implementation of the distributioncomponent could be attributed to the lack of continuity of expatriateconsultant staff, particularly the Project Manager, and hasty preparationof bid documents. Local consultants carried out field surveys and distri-bution network planning under the supervision of Motor Columbus. EDFdesigned the training program for the Distribution Training Center, trainedsix of BPDB's instructors abroad, and assisted BPDB in procuring thenecessary training aids satisfactorily. The consulting cell of theEngineering University, Dhaka, and some other local consultants renderedservice in the design of civil works. Overall, the performances of theconsultants were satisfactory.

12. Project Document and Data

12.01 The Credit Agreement for Cr.984-BD was adequate and appropriatefor achieving project objectives in the key organizational and financialareas. The SAR provided a useful framework for both the Bank and BPDB forproject implementation. BPDB provided a draft project completion report.

-12-

BANGLADESH

GREATER KHULNA POWER DISTRIBUTION PROJECT(Credit 934-BD)

PROJECT COMPLETION REPORT

Part III: Statistical Information

1. Related Bank Credits

Credit Project Year of StatusNo. Approv I

12544D Ashuganj Thermal Power 1962 Project almost completed

1262-60 Rural Electrification 1982 Project almost completed

1683-9D Second Rural Electrification 1986 Under execution

1648-6 Power Transmission and Diotribution 1985 Under execution

1999-8D Enorgy Sector Adjustment Credit 1989 Firat tranche disburnedin May 1989

2016-8D Power Distribution (16 Towns) 1989 Detail ed planning

-13-

2. Project Timetable

Item Date .-lanned Date Revised Date Actual

Identification 07/78

Preappraisal 11/78

Appraisal 02/79

Negotiations 05/16/79

Board Approval 06/14/79

Credit Signature 06/18/79

Credit Effectiveness 11/20/79 11/20/79

Credit Closing 06/30/84 06/30/86 /1

Project Completion 06/30/83 11/30/86

/1 The final disbursement was made in February 1987

-14-

3. Credit Disbursements

Disbursemnts in US8 Million (Cr.934.BD)Bank Fiscal Year Quarter Eat)&- Actual Actual X of

Cumulative Cumulative Estimated

1979/80 1 _2-a 0.404 2.60 0.109 4

1980/81 1 5.00 0.206 42 7.20 0.332 68 9.70 0.401 44 12.00 0.623 4

1981/82 1 13.00 0.63 42 16.80 0.690 4a 19.aO 0.885 64 21.00 0.945 6

1982/83 1 22.60 1.085 62 23.80 1.147 63 26.60 1.300 64 26.80 1.404 6

1983/84 1 27.60 6.56 242 28.00 10.241 373 13.687 494 16.624 59

1984/86 1 18.136 662 20.741 743 21.628 774 23.432 84

1986/86 1 23.680 842 24.271 873 24.846 894 26.430 91

1986/87 1 25.928 932 27.899 993 20.000 /1 100

/1 The last payomnt was mde on February 8, 1987.

-1S-

4. Project Costs and Financing

A. Project Costs

Arlcal EsblFto Actual /1Foreign -orein

Local Exchange Total Local Exchange TotalCosts Costs Costs Costs

(USS M) (USS M)

Substations 0.50 4.70 5.20 2.81 10.00 12.31

Overhead Lines 8.30 6.60 3.90 4.85 15.80 20.15

Cables 0.20 3.80 4.00 0.40 0.80 1.20

Consumer Services 1.70 0.50 2.20 0.40 1.60 2.00

Service Vehicles andComunications Equipment - 0.40 0.40 0.10 0.30 0.40

Buildings 2.80 - 2.80 1.92 - 1.92

Local Freight 1.30 - 1.80 0.16 - 0.16

Engineering 0.20 0.80 1.00 0.52 1.60 2.32

Training 0.40 0.70 1.10 0.18 0.30 0.48

BPDB Administration 2.80 - 2.80 1.86 - 1.38

13.60 16.10 29.70 11.90 80.40 42.30Contingencies:Physical 1.00 1.60 2.60Price 5.30 2.80 3.10

Total Project Price beforeDuties and Taxes 19.90 20.40 40.80 11.90 80.40 42.30

Duties and Taxes 8.90 - 8.90 1.71 - 1.71

Total Project Cost 23.80 20.40 44.20 18.61 30.40 44.01

/ Exchang- rate of Taka to US Dollars as of June 30 of corresponding years.

-16-

B. Project Financing

Planned(Cr934D0)

Source Aare m nt Revision 1 Revision 2 Final(US*'OOO) (USl'O C O) VTPMU(UMP' 7 00)

IDA

Expenditure Categories

Civil Works 4,000 260 650 974

Equipmnt, Vehicles andSpare Parts 16,200 20,800 19,950 19,483

Installation of Equipment 8,000 3,400 4,400 6,219

Training 1,^00 1,200 1,000 311

Engineering and ConsultantsSrvicess 1,200 1,200 1,800 1,856

Local Freight 2,000 860 200 158

Unallocatod 1,400 200 s0 168

Total IDA 28,'-0 28,000 28,000 28,000

Cofinancing

Institution:

OPEC Fund 8,600 8,600 8,600 a,600Government/BPD8 /1 7,700 7,700 7,700 7,610

TOTAL 44,200 44,200 44,200 44,010

/1 Estimted Values

ii~~~~~~~~~~~~~~~~~~~~~~~~~~~~i

-17-

5. Status of Covenants

Brlof Description of Covenants Section Compliance RemarksAppi cable

1. BPDB to furnish to IDA no later PA 4.02 Tho period was Increased to ninothan six months after end of each months under Cr.1264-BD.FY:

(a) Cortiflid copies of No Auditors' roport rocoived onlyfinancial stat; ents; in FY87.

(b) Auditors' report on thosestatements.

2. BPDB to take action to achievo:

(a) Operating ratios of at loast PA 4.03 No Target not achieved, pa-tly as a136X in FY80, 120X in FY81 result of excessive losses andand 100X in FY82; poor collections.

(b) A reasonable rate of return in PA 4.04(a) No The rate of return was ax in FY86.FY83 and thereafter.

S. Bulk supply tariff to rural PA 4.04(b) yes The rate was Incrase d fromconsumers to cover BPDB's full Tk 0.78/kWh to Tk 0.96/kWh incosts at point of supply plus September, 1986. It was sub-adoquato rate of return. soquently increased to Tk 1.14/

kWh in January 1987.

4. BPDBs obligations under tho PA 2.06 No BPDB failed to pay to G08 aboutSubsidiary Loan Agreement. DCA 8.01(a) Tk 186 million capital and

Tk 122 million Interest underthe SLA. This outstandinq debthas been converted to equity asof Way 24, 1989.

6. Missions

PerformanceStag9 of Month/ No. of SW Speclialaation Rating Type of Problem

Project Cycle Year Porsono In Flold Repr-sneted Status

Throuch ApOraisal

Identification/Proparation 07/7S 1 1 Enginoor

Preappralsal 11/7S 2 6 EnginoorFinancial Analyst

Appraisal 02/79 2 6 EngineerFinancial Analyst

Supervision

Supervision 1 06/89 2 6 Enginoor 1Financial Analyst

Sur;rvision 2 02/81 1 1 Finalcial Analyst I

Supervision 3 09/81 1 2 Engineer 2 Management

Supervision 4 06/82 3 4 Enginoor 1Financial AnalystProcurement Officer

Supervision 5 11/82 1 2 Financial Analyst 2 Fliancial Management

Supervision 6 06/83 a 4 Engineer 2 Financial ManagemntFinancial AnalystProcuremsnt Officer

Supervision 7 02/84 1 1.6 Financial Analyst 2 Financial Management

Supervision 8 07/86 2 1.6 Enginoer 2 Financial ManagemntFinancial Analyst

Supervision 9 02/86 2 1 Engineer 1

Supervision 10 05/86 2 1 Financial Analyst 1

Supervision 11 12/8U 2 1 Engineer 1Financial Analyst

-19-

7. System Losses(Z of Gross Generation: Includes Station Consumption)

TarRet Agreed Under l

Fiscal Year Cr.934-BD Cr.1254-BD Cr.1648-BD j Actual Losses

79 (Actual) 37 37

8o 34 40

8l 31 35

82 29 33

83 27 36

84 25 34

85 23 23 37

86 36 32

37 - 38

88 32 36

89 10 35

90 20 28

91 26

92 24

93 22

BANGLADESH HISTORICAL GROWTH IN DEMAND, ENERGY GENERATION AND SALES

< ----------------------------- ac tu a l ------------------------------ >'ISCAL YEARS 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989

GENERATED ENERGY GlIh 1C85.6 1265.4 1322.1 1459.8 1618.6 1912.9 2122.3 2353.3 2661.8 3036.5 3432.7 3960.5 4528.4 4800.3 5587.0 6541.4 7114.8

EASiERN ZONE REQUIREMENT GWh 856.8 982.4 1022.0 1115.7 1224.4 1444.4 1603.3 1744.5 1978.3 2292.1 2485.3 2847.6 3183.5 3365.0 3994.7 4573.0 5098.5WESTERN ZONE REQUIREMENT GWh 228.8 283.0 300.1 344.1 394.2 468.5 519.0 608.8 683.5 744.4 947.4 1112.9 1344.9 1435.3 1592.3 1968.4 2016.3

TRANSFER EAST-WEST GWh 477.4 222.3 797.8 1179.5 1435.4

TRANSFER WEST-EAST GWh 20.6 106.4 10.9 - -E-W INTERCONNECTOR LOSSES GWh 22.4 12.1 42.7 90.2 106.2

PEAK DEMAND MW 221.6 250.1 266.1 301.3 342.3 395.6 436.5 461.9 545.2 603.7 709.0 761.0 887.0 883.0 1083.0 1316.8 1390.0EAST ZONE HW 174.4 184.8 198.0 219 9 254 0 287.0 331.3 337.6 399.1 450.7 505.8 552.0 651.0 613.0 743.0 925.4 980.0

WEST ZONE MW 47.2 65.3 671.3 814 88 3 108 6 105.2 124.3 146.1 153.0 203.2 209.0 236.0 270.0 340.0 391.4 410.0

SYSTEM LOAD FACTOR X 55.91 57.82 56.72 55.3X 54.02 55.2X 55.52 58.22 55.72 57.42 55.32 59.42 58.3Z 62.1X 58.91 56.72 58.41EAST ZONE SYSTEM LOAD FACTOR 2 56.12 60.72 58.72 57.91 55.02 57.52 55.22 59.02 56.61 58.12 56.11 58.92 55.82 62.7X 61.4X 56.42 59.41WEST ZONE SYSTEM LOAD FACTOR 2 55.31 49.52 50.92 48.32 51 01 49.22 56.32 55.92 53.42 55.52 53.21 60.81 65.1X 60.71 53.51 57.42 56.11

RED Sr.LES GWH 13.0 44.6 87.8 142.6 182.9 232.9 294.6 372.0REB LOSSES GWH 19.4 19.2 30.4 55.4 61.1 69.6 91.0REB PURCHASES GWH 64.0 107.0 173.0 238.3 294.0 364.2 463.0 1TOTAL SALES GWH 623.9 828.2 835.2 932.0 1013.0 1204.5 1381.3 1406.3 1740.4 2029.1 2283.0 2608.4 2842.0 3306.8 3485.3 3772.7 4695.1 raLOSSES 11. GWH 461.7 437.2 486.9 527.8 605.6 708.4 741.0 947.0 921.4 1007.4 1149.7 1352.1 1686.4 1493.5 2101.7 2768.7 2419.7 0

X 42.51 34.62 36.82 36.2X 37.42 37.02 34.92 40.2X 34.62 33.2X 33.51 34.11 37.2X 31.12 37.62 42.32 34.01

CONSUMERS: BPDB '000 258.2 281.8 280.0 305.0 348.4 402.6 450.8 521.2 568.4 645.1 669.2 727.6 803.7 888.6 963.1 1,038.3 1,151.6

CONNECTIONS: RED '000 8.9 20.6 70.3 103.9 153.8 196.9 269.3 325.3 396.1CONSUMPTION 21. KWH/CON2416.1 2939.1 2982.5 3055.8 2907.7 2991.5 3064.3 2698.4 3061.9 3145.5 3411.5 3585.1 3536.0 3721.5 3619.0 3633.4 4076.9

CONSUMPTION 21. KWH/CONN 630.5 634.7 845.2 927.1 928.8 864.8 905.6 939.1LES VOLTAGE WISE

LV: .231.4 kv GWH 136.2 187.8 183.3 268.6 381.3 517.5 611.0 614.6 762.4 825.1 944.0 1133.4 1379.0 1662.4 1811.9 1936.2 2299.6KV: 11 kV GWH 487.7 640.4 651.9 663.4 631.7 687.0 770.3 791.7 875.0 1025.0 1133.0 1208.0 1129.0 1244.9 1213.7 1285.1 1766.1

NV: 33 kV GWH 103.0 179.0 206.0 267.0 334.0 399.5 459.7 551.4 629C CONSUHPTIONSBPDBILV(.4kv) KWHICON 527.4 666.5 654.6 880.7 10q4.5 1285.3 1355.5 1179.3 1341.3 1279.1 1410.6 1557.8 1715.7 1870.9 1881.4 1864.7 1996.8REBILV(.4kv) KWHICONN. 630.5 634.7 845.2 927.1 928.8 864.8 905.6 939.1

BPDBIMV(llkv) MWHICONS. 865.5 675.7 740.0 745.7 686.7 697.8 633.5 676.0 882.6BPDBIMV(33kv) GWH/CONS. 7.2 7.3 7.8 7.3 7.7 7.4GROWTH RATES

TOTAL BPDB SALES -12.32-----------------><--------- 16.72-------------><------------- 13.4X--------------->

TOTAL LV SALES --------------------------- 24.02-----------------><--------- 16.52-------------><------------- 13.62--------------->

(OUT OF WHICH RESIDENTIAL) <--------- 21.01--31---------><------------- 13.32--------------->

TOTAL llkV SALES <- 7.2------------ 11.1-------------><------------- 11.82--------------->

TOTAL 33kV SALES <--------- 37.41--3!---------><------------- 17.2X--------------->

11. System losses do not include R.E.B. losses.

21. CONS - Consumer(s): CONN - Connection(s).

31. Period FY1981 - FY1984 only, due to a cha.age in tariff categories durLng FY1980.

X

BANGLADESH

BANGLADESH POWER DEVELOPMENT BOARD

Greater Khulna Power Distribution Project

PROJECT COMPLETIOh REPORT

Income Statements

7k. Million

Fiscal Year ending 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987

June 30 Apr. Act. Apr. Act. Apr. Act. Apr. Act. Apr. Act. Apr. Act. Apr. Act. Apr. Act. Act. Act.

Sates of Electricity (Gdh) 1205 1173 1344 1330 1541 1382 1768 1740 2027 2028 2322 2399 2660 2703 3047 2841 3307 3484System Loss (X) 37 37 34 31 35 29 33 27 30 25 32 23 37 37 37Av. Revenue (Tk/krxh) 0.45 0.46 0.45 0.47 0.65 0.67 0.78 0.94 0.92 1.00 0.92 1.28 1.00 1.29 1.00 1.40 1.66 1.73

Revenues

Sale of Electricity 538 538 600 629 1002 934 1379 1636 1854 2024 2124 3061 2660 3481 3047 3970 5486 6019

Other Operating Income 12 12 15 21 17 32 19 48 20 55 21 137 22 151 24 153 192 263

Total Operating Revenues 550 550 615 650 1019 966 1397 1684 1873 2079 2146 3198 2683 3632 3071 4123 5678 6282

Expenses

Fuel Cost 393 393 441 421 573 671 714 1362 780 1699 810 1710 884 1920 945 2253 3212 2576

Persorwiel 138 121 145 143 155 199 166 230 178 130 190 270 204 317 218 460 644 759

Operation, Maintenance Z A 129 146 184 130 202 97 223 130 238 292 255 329 273 353 292 438 986 1248

Depreciation 150 149 215 153 239 173 283 189 350 214 442 329 519 429 582 574 836 1143

Total Operating Expenses 809 809 986 847 1169 1139 1386 1911 1546 2336 1697 2637 1880 3019 2037 3724 5677 5727

Net Operating Revenue -259 -259 -371 -197 -150 -173 11 -227 327 -257 449 561 803 613 1034 398 1 556

Other Revenues 4 4 7 4 8 4 8 0 9 0 10 0 11 0 13 0 0 0

Interest Expenses

Total Interest 145 69 208 191 283 282 378 146 492 134 620 289 715 321 799 311 515 687

Less: Interest Capitalised 75 0 69 91 94 147 126 0 164 0 207 146 239 161 266 111 229 303

Interest charged to Operat 69 69 139 101 189 135 252 146 328 134 414 144 477 161 533 200 286 384

Total Income -325 -324 -503 -294 -331 -304 -233 -373 8 -391 45 417 337 453 514 199 -285 172

Dividend Payment to G08 0 0 0 0 0 0 0 0 0 0 0 50 0 0 0 0 0 0

Prior Year's Adjustment 0 0 0 0 0 0 0 -1 0 23 0 -5 0 -60 0 -46 -224 -335

Net Income -325 -324 -503 -294 -331 -304 -233 -374 8 -368 45 362 337 393 514 153 -509 -163

Av. Current Net Value of Assets 5901 4218 6403 4603 7525 5211 9300 5683 11778 8683 13722 11854 15131 15964 21725 27959

Rate of Return (S) -6.3 -4.7 -2.3 -3.8 0.2 -4.4 3.5 -4.5 3.8 6.5 5.9 5.2 6.8 2.5 0.0 2.0

Operating Ratio (X) 147.2 147.2 160.3 130.3 114.7 117.9 99.2 113.5 82.5 112.4 79.1 82.5 70.1 83.1 66.3 90.3 100.0 91.2

Note: Appraisal figures upto FY 85 have been taken from the Greater Khulna Power Distribution Project Staff Appraisal Report.Actual figures for fiscal years 1978 - 1980 have been taken from Ashuganj Therml Project ,for fiscal yr. 1981 from Power Trans. 4 Distr. Project

and for fiscal years 1982 - 1987 from Power Distribution Project (16 Towns) Staff Appraisal Reports.

0i

a=0

BANGLADESH

BANGLADESH POWER DEVELOPMENT BOARD

Greater Khutna Power Distribuition Project

PROJECT COMPLETION REPORT

Souirces and Applications of Funds Statements

Tk. M4ilLion

1918 19719 1980 1981 1982 1983 1984 1985 1986 1987

Sources Apr. Act. Apr. Act. Apr. Act. Apr. Act. Apr. Act. Apr. Act. Apr. Act. Apr. Act. Act. Act.

InternaL Sources

Net lIncome before Interest -255 -364 -193 -142 -169 19 -22? 336 -25? 459 561 814 613 1047 398 1 556

Depreciation 149 215 153 239 173 283 189 350 214 442 329 519 429 582 574 836 1143

Total Internal Sources -106 -149 -40 96 4 302 -3? 686 -43 901 890 1334 1043 1629 912 836 1699

Adj. from prey. yrs. 90 0 -Ti 0 841 0 -1 0 23 0 -5 0 -60 0 -46 -224 -335

External Sources

G.O.B.Equity(Grants & Subsidy) 272 659 512 488 764 545 662 1013 1080 873 823 672 90? 909 622 542 1014

Consumner Contribuition 0 0 0 0 0 0 22 0 26 0 38 0 1? 0 16 38 21

Asset Revaluation Reserve 0 0 0 0 0 0 0 0 655 0 1193 0 1307 0 1444 2234 311)3

Empioyees Funds(Gr. &P.F.) 0 0 0 0 0 0 0 0 34 0 37 0 50 0 62 83 87

Consumers Deposits(Net) 0 0 0 0 0 0 0 0 29 0 24 0 30 0 49 63 90

Borrowings

Foreign Loan 395 551 693 1323 2075 1319 1146 1942 1159 1999 1425 1594 2864 2276 2476 5242 8131

Goverrwnent Loan 393 30? 502 680 393 600 563 770 753 520 650 0 768 0 410 1028 919

Issue of Debenture 0 0 0 0 0 0 0 0 0 0 0 0 0 0 645 150 200

Total Borrowings 788 858 1195 2003 246? 1919 1710 2712 1912 2519 2075 1594 3633 2216 3531 6420 9250

Total External Souirces 1060 1517 170? 2491 3232 2464 2393 3124 373? 3392 4189 2265 5944 3185 5724 9379 13572

Forgn. Loan Rev. 0 0 0 0 0 0 0 0 658 0 324 0 39 0 689 178? 1121

Total Sources 1044 1368 1656 2588 4076 2767 2356 4411 4375 4293 5398 3599 6966 4813 7339 11779 16057

Applications

Capital Investments 805 1068 1555 2299 3174 2409 2471 396? 2934 3707 2821 2878 4653 3959 4882 7808 11353

Other Investments 0 0 0 0 0 0 0 0 33 0 7 0 14 0 24 6 1?

CapitaLised Interest 0 0 0 0 0 0 0 0 0 0 146 0 161 0 ill 229 303

Inc.in InvAdue to Ex. Rate var. 0 0 0 0 0 0 0 0 432 0 -19 0 -32 0 329 696 541

Total Investment Program 805 1068 1555 2299 3174 2409 2471 396? . 3399 3707 2954 2878 4795 3959 5346 8739 12214

Asset Revaluation 0 0 0 0 0 0 0 0 655 0 1193 0 130? 0 1444 2,234 3110

Dec.in ApixSurp.duetoExch.Rate Var. 0 0 0 0 0 0 0 0 226 0 343 0 71 0 36tU 1092 580

Debt Service

Anwmortization 86 57 74 59 74 62 124 68 181 122 176 190 274 279 363 651 752

Interest Paymnent 69 139 101 189 135 252 146 328 134 414 144 477 161 533 200 286 384

Total Debt Service 156 19? 175 248 209 314 270 397 315 535 320 667 434 811 563 936 1135

Dividend Payment to G.O.B. 0 0 0 0 0 0 0 0 0 0 50 0 0 0 0 0 0 1

Net Change in working CapitaL 84 103 -74 4.1 692 43 -385 47 -220 51 538 54 359 43 -373 -1221 -982 0zQ

Total Applications 1044 1568 1656 2588 4076 276? 2356 4411 4375 4293 5398 3599 6966 4813 7339 11779 160570fl

[Lent Se,~t' i C&vetaqge Ra.tio (inc - I.DLC) -3.8 -0.2 0.4 0-0 hO0 -0.1 1.7 -0.1 1.? 2-8 2.0 2-4 2.0 1.? 0.9 1.5 N

(ihLi-ri--i. ii lnvr-liit,wni(3 yr. ave.) 6,0 9-7 36.1 In 2.7 7.6 -5.8 9.3 1.0 18.0 8.3 34.3 24.1 30.1 36.9

BANGLADESH

BANGLADESH POWER DEVfLO0MENT BOA

Greater Khulna Power Dis~tribution Project

PROJECT COMPLETION REPORT

Balance Sheets------------- T~~ ~~~~~~~~~k. Million

1978 1979 1980 1981 1982 1983 1984 1985 1986 1987Assets Apr. Act. Apr. Act. Apr. Act. Apr. Act. Apr. Act. Apr. Act. Apr. Act. Apr. Act. Act. Act.

Fixed Assets

Gross Fixed Assets 6641 4896 6817 4992 8099 5991 9582 6571 1)282 7339 15330 13113 17130 14440 19250 22337 31097 40982Less: Acc. Depreciation 720 650 936 803 1174 975 1457 1165 1807 1379 2249 1708 2768 2137 3350 2711 3547 4690

Net Fixed Assets 5921 4247 5881 4190 6925 5016 81215 5406 104/5 5960 13081 11405 14362 12303 15900 19626 27550 36292Work in Progress 1929 1816 2821 5335 38339 5511 4/65 7415 6032 10669 6691 9034 7168 13796 9608 12665 14872 20293Other Investment 0 0 0 0 0 0 LI 1 0 33 0 40 0 54 0 78 84 100

Current Asset%

Cash & Bank Balance 187 187 192 439 198 470 206 387 218 309 231 300 251 357 257 301 281 676Inventories 195 194 230 52 232 922 234 953 236 988 256 1004 296 1131 300 1257 1181 1145Accounts Receivable 255 125 267 98 280 232 385 46? 530 480 563 1128 725 1678 810 1711 2880 3715Other Assets 263 391 266 387 288 159 290 235 291 568 306 449 336 426 340 377 304 -138

Toata Current Assets 900 898 955 976 998 1782 1115 2042 1215 2346 1356 2882 1608 3592 1707 364.5 4645 5397

Total Assets 8749 7021 9658 8501 11761 12309 14005 14864 17782 19008 21128 23361 23739 29745 27215 36014 47151 62083

Equity & Liabilities

Equity

Govt. Equity & Grants 3630 3630 4289 4142 4777 4706 5322 5269 6335 9905 7208 10128 7819 125?? 8788 13199 15380 16394Consumner Contribution 0 0 01 0 0 0 0 0 0 69 0 106 0 123 0 139 17? 199Retained Earnings -448 -431 -951 736 -1282 1 -1515 -264 -1507 -632 -1462 -270 -1124 123 -610 276 -233 -396Asset Revaluat ion Surplus 0 0 0 0 0 0 0 Li 0 430 0 1280 0 2516 0 3601 4743 7272

Total Equity 3182 3199 333? 3406 3495 4701 3807 5005 4828 9712 5746 11844 6755 15340 8178 17215 20061 23469

Total Long Term Debt 5001 3314 5801 4435 7745 6828 9602 8412 12245 7245 14643 9461 16046 11552 18043 15343 20869 30129Eiipl.fund&Cons.Sec. Deposi 0 0 0 0 0 0 0 42 0 358 0 420 0 500 0 611 757 933

Current Liabilities 567 508 519 660 522 774 596 1405 709 1633 739 1630 937 2352 993 2844 5459 7551

Total Equity & Liabilities 8749 7021 9658 8501 11761 12309 14005 14864 17782 19008 21128 23361 23739 29745 27215 36014 47151 62083

Debt as a It of Debt - Equi 61 51 63 57 69 59 12 63 72 43 72 44 70 43 69 47 51 56Acts. Receiv. tno. of Mont 5.7 2.8 5.3 1 9 3.4 3.0 3.4 3.4 3.4 2.8 3.2 4.4 3.3 5.8 3.2 5.2 6.3 7.4

DI

0

-24-ATTACHMENT

iORLIIBANK TMi3S

ZCZC OERF0706 S JEW0O90i7OX OEDD2

TCOF FCA

t OEDI' :4:

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