Dhaka signs its biggest power deal
May 12th, 2011 - 12:06 pm ICT by IANS
Dhaka, May 12 (IANS) Bangladesh Thursday signed a mega deal to produce 1,017 MW of power in the next three to four years.
Three formal deals were concluded with the Summit Power Ltd — for the Bibiyana phase 1 and 2 gas-fired power (341 MW each) projects and Meghnaghat dual fuel 335 MW power projects.
This became possible after seven months of negotiations when the government agreed to the company’s stipulation, as also that of the multilateral agencies supporting the project, that they would only go for the British law for arbitration in case of any dispute.
The law ministry had reservations and the final decision was taken by Prime Minister Sheikh Hasina, The Daily Star said.
As the contract signing was being delayed, questions were raised whether the local company would be able to finance the projects. Summit repeatedly said that a number of financiers had assured it of around $800 million investment required for the three projects.
Over a 22-year period, the government would purchase Tk 37,000 crore worth of electricity from these three plants — making these the biggest private sector contracts in the country so far.
Summit Power Limited has set up power plants on a ‘build, own and operate’ basis for generation of electricity and to sell power to the Rural Electrification Board (REB) at Savar, Narsingdi and Comilla.
- US, Japanese firms to build power plants in Myanmar - May 23, 2012
- China eyes Myanmar power sector - May 25, 2012
- Reliance Power places $10-bn equipment order for 32,000 MW - Oct 28, 2010
- Jharkhand to spend Rs.1,600 crore to lay power lines - Feb 26, 2012
- Dhaka seeks $5 bn foreign investment in power sector - Dec 13, 2009
- Iran's Bushehr plant to produce 1,000 MW electricity - Dec 21, 2011
- Tripura to provide electricity in all hamlets by 2013 - Jan 23, 2012
- ONGC to set up n-plant, fertilizer unit, solar projects - Dec 29, 2011
- Indian company to fund Nigerian power plant - Jun 07, 2011
- Honduras signs deal with Chinese firm on hydro plant - Apr 19, 2011
- Jharkhand plans to give rural families power-saver CFLs - Jul 25, 2011
- GVK Energy to set up two thermal power plants in Andhra - Jan 13, 2012
- Shanghai Electric to supply equipment for Haldia plant - Sep 15, 2011
- Three hydel power plants to come up in Mizoram - Jul 18, 2011
- Meghalaya to develop chain of small hydro projects - Jun 05, 2011
Tags: comilla, daily star, dual fuel, final decision, generation of electricity, law ministry, local company, multilateral agencies, mw power, phase 1, power limited, power ltd, power plants, power projects, private sector contracts, reb, rural electrification, seven months, sheikh hasina, stipulation