Bangladesh’s power producer Summit has signed a memorandum of understanding (MoU) with a team of GE and Mitsubishi to invest approximately $3bn for setting up a 2,400MW thermal power plant in the country.
Image: Officials from Mitsubishi and GE among others. Photo: courtesy of Summit Power International Limited.
As part of the cooperation, Summit will form a joint venture with GE and Mitsubishi to build the power plant as well as related oil and liquefied natural gas terminals.
GE will be responsible for investing in equity and technology in the four combined cycle power plants, each with 600MW, whereas Mitsubishi will be the partner for the complete integrated project.
Summit, however, will be the majority owner of the project holding 55% equity stake while Mitsubishi and GE will own 25% and 20% stakes respectively.
The project scope includes installation of four units each powered by GE’s 9HA gas turbines, two units of on-shore LNG terminal with total of 380,000m³ capacity, oil terminals with 100,000 million tons (MT) capacity and another 300MW HFO-based power plant.
Summit chairman 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.”
The Bangladesh firm expects the project, which is planned to be completed at a global best tariff by 2023 beginning from 2019, to double its generation capacity.
GE Power president and CEO Russell Stokes said: “GE Power is navigating customers through an energy transformation with a complete portfolio of fuel choices and innovative technology.
“In partnership with Summit Power, our HA technology enables unprecedented levels of efficiency to strengthen Bangladesh’s power generation.”
Separately, General Electric and state run Bangladesh Power Development Board (BPDB) have also agreed to form a joint venture to develop a 3,600MW LNG to gas-based combined cycle plant.
BPDB director Saiful Hasan Chowdhury was quoted by Reuters as saying: “This will cost $2.8 billion and BPDB as lead partner will invest 51 percent while GE will invest 30 percent and the remaining 19 percent stake will be invested by a strategic partner.”