The fate of Bibiyana 341MW power plant project 1 will be decided at a joint meeting between the government and Summit Group on June 20.
The decision was taken at a meeting yesterday, an official of power division confirmed the Dhaka Tribune.
According to the official, the prime minister’s energy adviser Tawfiq-e-Elahi Chowdhury, State Minister for Power and Energy Muhammed Enamul Huq, Power Division Secretary Manowar Islam, Director General of Power Cell Mohammad Hossain and Summit Group Chairman Muhammed Aziz Khan are said to visit the project area on that day. They are also set to hold a meeting there.
Summit Group signed the Power Purchase Agreement (PPA) with state-owned Bangladesh Power Development Board (BPDB) on May 12, 2011. Summit Power Limited, a local company, and GE LLC, USA was supposed to build the 341MW combined cycle gas-based power plant at Bibiyana of Sylhet. The simple cycle of the plant was scheduled to be commissioned in December last year and the combined cycle in December this year.
The company has already deposited the proposed security money of $3m for the Bibiyana 1 project.
As per the request of the sponsor, the government has given several time extensions to the local company to mobilise funds for the project. The latest deadline was April 30.
Summit has sought three to four more months to mobilise the fund in implementing the project.
The firm will be responsible for the plant’s building, owning, commissioning, operating, and maintaining the facilities till the end of the agreement term.
The government will purchase electricity from the projects for the next 22 years.
Summit Bibiyana 1 Power Company Limited (SBPCL 1) was incorporated in Bangladesh on December 9, 2010 as a joint-venture of Summit Industrial and Mercantile Corporation (Pvt.) Limited and GE Energy LLC, a wholly-owned subsidiary of General Electric Company.
Summit obtained three independent power producer (IPP) projects: Bibiyana 1, Bibiyana 2 and Meghnaghat 2 – each having capacity of generating 335-341MW.
Under the terms of the agreement, the BPDB will purchase power from Bibiyana 1 at 3.33 cent, at 3.39 from Bibiyana 2 and 3.91 cent from the Meghnaghat plant. Power Cell of the energy ministry is supervising the Bibiyana 1 project while the others being overseen by the BPDB.
The Power Cell recently sought permission from the government to encash the security deposit of the firm as it failed to comply with the terms of its agreement with the government.
The firm earlier said it would implement the project with the support of the World Bank, but the global lending agency did not extend its support.
Now the Summit Group is trying to collect the fund from the domestic banks and other international lending agencies.