AIIB Watch Cases

Status: Proposed
Timeframe: 2025-2027
Area: North Dhaka, Bangladesh
AIIB Investment Amount: 100 million USD
Total Project Cost: 467 million USD
Co-financier: New Development Bank (NDB)

E&S Category: A

Project details: The project will develop a 42.5 MW waste-to-energy (WtE) facility in North Dhaka, processing municipal solid waste aiming to reduce landfill use and generate energy. Located near the Amin Bazar landfill, it includes four incineration lines, two 35 MW turbo-generator systems, a six-kilometer transmission line, and long-term agreements with government agencies for implementation, power purchase, waste supply, and land use.

 

Project Concerns: The project raises serious environmental, social and procedural concerns. Expected to release 8.3 million tons of greenhouse gases over 25 years, the plants emissions surpass those of coal plants and include harmful pollutants like dioxins and heavy metals. 

Dhaka’s waste has high moisture and low calorific value, making energy generation inefficient and increasing methane emissions, which contradicts Bangladesh’s climate commitments. Additionally, Dhaka lacks a reliable waste collection system, creating risks of penalties if waste supply targets are not met. 

Socially, the project places a significant burden on the government, which will pay BDT 25.56 per unit—more than double the current electricity cost—resulting in an additional 2 billion USD in expenses. Despite these concerns, no environmental, social, or economic feasibility studies were conducted before project approval from the government.

The project also requires 30 acres of land, and land acquisition and resettlement are anticipated.

CSO reports: CLEAN factsheet

Organization monitoring: Coastal Livelihood and Environmental Action Network (CLEAN)

Further information: AIIB Page; NDB Page

Last update: 24.02.2025