Summit Group signs purchase deal with PDB
Published : Friday, 15 March, 2019 at 12:00 AM Count : 1338
Summit Meghnaghat II Power Company Limited (SMIIPCL), a subsidiary of Summit Group, signed a power purchase agreement (PPA) with Bangladesh Power Development Board (BPDB) for 22 years on Thursday.
The 583 MW combined cycle power plant (CCPP) is expected to be commissioned by March 2022 at the lowest cost of BDT 2.176 per kwh at current gas price.
Energy Adviser to the Prime Minister Dr Tawfiq-e-Elahi Chowdhury, State Minister for Power, US Ambassador Earl R. Miller, Senior Secretary, Power Division Dr. Ahmad Kaikaus, Secretary, Energy and Mineral Resources Division Abu Hena Md Rahmatul Muneem, Chairman, Petrobangla Ruhul Amin, Chairman, Bangladesh Power Development Board Khaled Mahmood and Chairman of Gas Power, GE John Rice were present at the signing ceremony held at Bidyut Bhaban yesterday. Summit is the largest independent power producer generating around 2 gigawatts (GW) for the national grid and is also the largest infrastructure conglomerate in Bangladesh.
Summit is also implementing a Floating Storage and Regasification Unit (FSRU) off the coast of Moheshkhali, Cox's Bazar with storage capacity of 138,000 mmcfd and regasification capacity of 500 mmcfd. This is expected to be commissioned by mid-April 2019 ahead of contracted schedule. In addition to this Summit, Mitsubishi and GE have planned to invest USD3 billion in Bangladesh for the proposed gas-to-power project.
Taking part in the discussion Summit Group Chairman Aziz Khan said as per Summit's commitment to bringing advanced technology to Bangladesh's power sector we have chosen the world's largest and most efficient heavy-duty gas turbine GE's 9HA fleet to equip SMIIPCL with an efficiency of 63 per cent under ISO condition.
Summit also signed separate contracts on land Lease Agreement (LLA) with BPDB, Gas Supply Agreement (GSA) with Titas Gas Transmission and Distribution Co Ltd (Titas), Fuel Supply Agreement (FSA) with the Bangladesh Petroleum Corporation (BPC) and Implementation Agreement (IA) with Power Grid Company of Bangladesh (PGCB).
Earlier, BPDB, Summit and GE had formed a consortium to set-up SM II PCL.
"The phenomenal growth of Bangladesh in the last decade has established Bangladesh as a role model. Summit is proud to have played a role in it.
With today's 583 MW project, Summit embarks upon investing four billion dollars in the next 5 years to eradicate poverty, create employment and support Bangladesh to achieve SDGs." said Muhammed Aziz Khan, Founder Chairman of Summit Group.
Summit implemented Bangladesh's first IPP of 114 MW in 1998 and over the period has increased its installed capacity close to 2,000 MW reflecting 21 per cent of Bangladesh's total private installed capacity and 9 per cent of Bangladesh's total capacity in 2017.
"Bangladesh's power sector is undergoing a transformational shift as the government takes conducive policy decisions and actions to meet the targeted 40 MW of installed power capacity by 2030," said Deepesh Nanda, CEO, Gas Power Systems, GE South Asia.