As per the agreement, the government will purchase electricity over the next 22 years at a levelised tariff of Tk 2.176 per kilowatt hour (each unit) from the plant named Summit Meghnaghat II when it will be using gas as fuel.
But it was not mentioned by the group in its press statement as how much it will cost when the plant will be using petroleum fuel or imported LNG. But an official of the group said each unit of electricity will cost minimum Tk 15-16 when the plant will be running with liquid petroleum.
A Power Development Board (PDB) official said the power tariff will be US 3.69 cents for running with gas while US 6.8109 cents for running with imported LNG and US 15.75 cents for operation with imported HSD (high speed diesel).
He said the project will have to run for maximum time either with imported LNG or diesel as there is no available supply of gas for power plants.
Summit built up a consortium with US-based GE (General Electric) to implement the project which it obtained on unsolicited basis as it had not to compete in any bidding process.
The GE was also awarded the engineering, procurement and construction (EPC) contract for the project at a contract value of $390 million.
For implementation of the project, Summit Group had to sign a number of agreements with different government entities -- power purchase agreement (PPA) and land lease agreement (LLA) with state-owned PDB, gas supply agreement with Titas Gas Transmission and Distribution Limited, fuel supply agreement (FSA) with Bangladesh Petroleum Corporation and implementation agreement (IA) with Power Grid Company of Bangladesh and Power Division.
Prime Minister’s Adviser Dr Tawfiq-e-Elahi Chowdhury, who attended the contract signing ceremony at the Bidyut Bhaban in the city, appreciated the local company’s investment in the country’s power sector.
US Ambassador Earl R Miller also appreciated the US company GE’s joint venture with Summit and said Bangladesh has received highest investment from the US companies.
He said the American companies are bringing the technologies with highest global standard.
Summit Group Chairman Mohammad Aziz Khan, Power Secretary Dr Ahmed Kaikaus and PDB Chairman Khaled Mahmood also addressed the function.