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Summit Power buys 64% stake in Ace Alliance Power

  • Published at 12:25 am September 22nd, 2016
Summit Power buys 64% stake in Ace Alliance Power
Summit Power Limited, a subsidiary of Summit Group and the first Bangladeshi Independent Power Producer in Bangladesh in private sector, has bought 64% stake in Ace Alliance Power Limited. After purchasing shares of Ace Alliance from Sri Lankan firm Aitken Spence PLC, the local power generator became a leading operating member of 149MW duel fuel (HFO/Gas)-fired project, said the company in a filing with the Dhaka Stock Exchange yesterday. Another local firm Alliance Holdings Ltd, which accounted for 36% of Ace Alliance is another consortium member of the power project to be implemented at Kodda in Gazipur. On September 8, 2016, Bangladesh Power Development Board and Board of Directors of the Summit Power gave consent to incorporating the changes of ownership of the project. The facility will be implemented on build, own and operate basis for a period of 15 years from the commercial operation date. On July 11, 2011, the cabinet committee on public affairs had allowed the consortium of Aitken Spence PLC, Sri Lanka and Alliance Holdings Limited to implement the power project. Earlier, Summit had submitted its letter of Interest (LoI) and proposed to acquire land on its own and build necessary infrastructure following complexity over the site selection for setting up the duel-fuel project. In 2010, Bangladesh Power Development Board (BPDB) signed a memorandum of understanding with the Bangladesh Telecommunications Company Ltd (BTCL) to set up a power plant at BTCL’s unused land. BTCL did not allow the BPDB to transfer its unused land to other firm or person and the hi-tech park authorities also disagreed to allow any power plant inside the park. Since an exceptional long duration elapsed for launching the project, Aitken Spence became anxious and informed the BPDB that it was not in a position to arrange land and develop a power plant. Alliance Holdings Limited wrote to the BPDB for inclusion of the Summit Power replacing Ace Alliance to implement the power project.