Tetsuji Nakagawa, senior vice-president of the infrastructure business division of Mitsubishi Corporation; Muhammed Aziz Khan, chairman of Summit Group, and Russell Stokes, president and CEO of GE Power, hold each other's hands after signing a MoU at the Sonargaon hotel in Dhaka on Wednesday. Tawfiq-e-Elahi Chowdhury, energy adviser, and Nasrul Hamid, state minister for power, are also seen. Photo: Collected
Dhaka, Bangladesh (BBN)- Bangladesh has signed two separate agreements involving US$7.4 billion to generate 6,000 megawatts of electricity largely from liquefied natural gas.
The deals signing ceremonies were held at Sonargaon Hotel and Bidyut Bhaban in the capital respectively on Wednesday.
The projects include 6,000-megawatt (MW) liquefied natural gas (LNG) fired power plant at Moheshkhali in the country’s southeastern Cox's Bazar district.
American conglomerate General Electric Company (GE) inked one memorandum of understanding (MoU) with the state-run Bangladesh Power Development Board (BPDB) for implementing projects worth $4.4 billion, including a 3,600-MW LNG-based power plant, an associated LNG import terminal, and necessary infrastructure under a joint venture (JV).
Bangladesh’s Summit Group, Mitsubishi and GE signed a preliminary agreement at an event held in the capital's Sonargaon hotel to invest $3 billion to establish five power plants, two LNG terminals and one oil terminal.
These projects include a 2,400-MW combined cycle power plant, two units of on-shore LNG terminal having a total capacity of 380,000 cubic metre, oil terminals having 100,000 tonne capacity, and another 300-MW furnace-oil based power plant under a JV.
Summit will be the majority owner of the project, which is considered the largest private sector foreign direct investment (FDI) in Bangladesh, while Mitsubishi and GE will own the remaining.
On the other hand, BPDB will be the lead partner having 51 per cent equity, while GE will have 30 per cent equity, according to officials.
The remaining 19 per cent equity will be provided by another strategic investor for implementing the 3,600-MW power plant and associated facilities.
“This is one of the biggest investments in the private sector in Bangladesh,” said Nasrul Hamid, state minister for power, energy and mineral resources.
The state minister, in his speech, also said Bangladesh will engage private sector in electricity transmission to meet the country's growing need.
“The project will use the world's most efficient and environment-friendly technology and the LNG terminal will use cutting-edge technology so that there is no boil-off, utilising all the gas for electricity generation,” Muhammed Aziz Khan, chairman of Summit Group, said.
Currently, more than 90 percent people have access to electricity, said Tawfiq-e-Elahi Chowdhury, energy adviser to the prime minister, at the event in Sonargaon hotel.
“Hopefully, all of the people in Bangladesh will come under electricity coverage by next year,” he noted.
US Ambassador to Bangladesh Marcia Stephens Bloom Bernicat were the special guests at the functions.
The US ambassador said her country is proud, as Bangladesh has chosen GE, the global leader in its field, to implement the projects here.
The US is the largest source of FDI, the largest consumer of Bangladeshi goods, and it is pleased to be associated with the country's progress, she noted.
"In partnership with Summit Power, our technology enables unprecedented levels of efficiency to strengthen Bangladesh's power generation," GE Power President and Chief Executive Officer (CEO) Russell Stokes explained.
He also said GE Power is navigating customers through an energy transformation with a complete portfolio of fuel choices and innovative technology.
BBN/SSR/AD