Summit Group is set to roll out the country’s largest-ever private foreign direct investment in power, oil and LNG to the tune of $3 billion in a joint venture with Mitsubishi and General Electric.
The investment aims at injecting funds in the setting up of power plants, LNG and oil terminals.
Summit will be the majority owner of the project, while Mitsubishi and GE will own the remaining part of the equity.
In continuation of an earlier MoU, Summit signed an agreement to this effect with Mitsubishi and GE, at Pan Pacific Sonargaon Hotel in Dhaka on Wednesday. Senior Vice-President of Infrastructure Business Division of Mitsubishi Corporation Tetsuji Nakagawa, Summit Group’s Chairman Muhammed Aziz Khan and President and CEO of General Electric (Power) Russell Stokes inked the agreement on behalf of their respective sides.
Prime Minister’s Advisor to the Power, Energy and Mineral Resources Dr Tawfiq-e-Elahi Chowdhury, State Minister for Power, Energy and Mineral Resources Nasrul Hamid, Secretary to the Power Division, Dr. Ahmad Kaikaus, Secretary to Energy & Mineral Resources Division, Abu Hena Md Rahmatul Muneem, BPDB Chairman, Khaled Mahmood, and other senior officials were present.
On March 13, 2018, Summit signed a joint venture with Mitsubishi Corporation in Singapore, in the presence of Prime Minister Sheikh Hasina.
Under the agreement, GE will invest in equity and technology in four 600MW each, combined cycle power plants with a total capacity of 2,400 MW, while Mitsubishi Corporation will be the partner for the complete integrated project.
The project is designed to be implemented at a global best tariff during a period from 2019 and 2023. With implementation of this project in 2023, Summit will be doubling its generation capacity, officials said.
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, they added.
Muhammed Aziz Khan 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.”
“GE Power is navigating customers through an energy transformation with a complete portfolio of fuel choices and innovative technology,” says Russell Stokes, adding that “In partnership with Summit Power, our HA technology enables unprecedented levels of efficiency to strengthen Bangladesh’s power generation.”