This is the biggest ever private investment in the power sector till date
Summit Corporation Limited, Mitsubishi and General Electric (GE) signed a $3 billion (about TK24,000 crore) deal on Wednesday, making it the biggest ever private foreign direct investment (FDI) in the power sector in Bangladesh.
The initial agreement was signed by Chairman of Summit Group, Muhammed Aziz Khan, Senior Vice-President of Infrastructure Business division of Mitsubishi Corporation Tetsuji Nakagawa and President and CEO of GE Power Russell Stokes.
The deal is a continuation with an earlier MoU - signed for a joint venture with Mitsubishi Corporation on 13th March in Singapore in presence of Prime Minister Sheikh Hasina.
The project is designed to be completed at a global best tariff by 2023 beginning from 2019. With implementation of this project in 2023, Summit will be doubling its generation capacity, a statement said.
The scope of this project includes four units of 600 MW combined cycle power plants with a total generating capacity of 2,400 MW powered by GE’s flagship 9HA gas turbines. Two units of on-shore LNG terminal with total of 380,000 cubic metre capacity, oil terminals with 100,000 tons capacity and another 300 MW heavy-fuel-based (HFO) power plant.
The deal stipulates that Summit will be the majority owner of the project while Mitsubishi and GE will share the rest of the ownership between them.
GE will be investing in equity and technology in the four 600 MW each combined cycle power plants with a total capacity of 2,400 MW. Mitsubishi Corporation will be the partner for the complete integrated project. The project will be using world’s most efficient and environment-friendly technology. The LNG terminal will be using cutting-edge technology so that there is no boil-off, utilizing all the gas for electricity generation.
Muhammed Aziz Khan, Chairman of Summit at the signing ceremony said: “In support of the Government’s Vision 2021 and 2030, Summit is partnering with GE and Mitsubishi to bring in the largest private FDI to Bangladesh, best technology at world’s lowest tariff to meet increasing demand of people and businesses for energy and power.”
Russell Stokes, President & CEO of GE Power said: “GE Power is navigating customers through an energy transformation with a complete portfolio of fuel choices and innovative technology. In partnership with Summit Power, our HA technology enables unprecedented levels of efficiency to strengthen Bangladesh’s power generation.”
The signing of the MoU was witnessed by Adviser to the Prime Minister on Power, Energy and Mineral Resources Tawfiq e Elahi Chowdhury, State Minister of Power, Energy and Mineral Resources Nasrul Hamid, other senior officials.