Singapore-based Sembcorp Industries said that its subsidiary Sembcorp Gayatri Power (SGPL) has prevailed in a tender held by Bangladesh Power Development Board (BPDB) to supply 250MW capacity to Bangladesh for 15 years.
In this regard, BPDB has issued letters of intent to the Sembcorp subsidiary with the power supply expected to begin after completion of procedural requirements and securing of necessary government approvals.
Sembcorp owns SGPL through its Indian power arm Sembcorp Energy in which it holds a stake of 93.73%.
SEIL managing director said: “We are pleased to have emerged as the successful bidder in this tender, and look forward to commence supply of power under a tariff that is competitive for Bangladesh and sustainable for our company.
“Our participation and success in this bid fits into SEIL’s strategy of providing cost-competitive and reliable power, while prudently contracting our balance open capacity at viable tariffs.”
Sembcorp said that the outcome of the tender is not likely to have a material impact on the earnings per share and net assets per share of the company for the financial year ending 31 December, 2018.
In February 2017, SGPL completed construction of a 1,320MW thermal plant near Nellore in the south Indian state of Andhra Pradesh. The power plant was declared to have entered into full operations following the completion of its Unit 2, which has a capacity of 660MW.
The Nellore thermal power complex owned by SGPL has a total installed capacity of 2640MW coming from two two supercritical power plants, each of 1,320MW capacity.
Overall, SGPL’s owner SEIL has a portfolio of thermal and renewable energy assets, with a total capacity of 4.37GW.
Apart from the new contract bagged from BPDB, Sembcorp Group is also engaged in the construction of the 426MW Sirajganj Unit 4 power project in Bangladesh as part of a consortium.
Sirajganj Unit 4 is slated to commence open-cycle operations later this year and reach full commercial operations in 2019.