Dhaka, Bangladesh (BBN)- Summit Group signed deals with US and Chinese firms on Thursday to implement 335 megawatts (mw) dual-fuel Meghnaghat power plant.
The local company signed engineering, procurement and construction (EPC) contract with a Chinese consortium of NEPC and CNEEC and equipment supply contract with US-based General Electric (GE).
Under the deals, the Chinese National Electric Power Corporation (NEPC) and the China National Electric Engineering Co (CNEEC) will complete implementation of simple cycle plant and generate 203 mw of electricity by May 2013.
The plant will be operational with 335 mw capacity from its combined cycle power plants within May 2014.
The GE will supply two units of gas turbine, spares parts and shoulder the maintenance work of the Meghnaghat 335 mw dual fuel power plant.
Summit Group's director Faisal Karim Khan and NEPC's Vice president Liu Yanbing inked the EPC deal on behalf of their respective sides.
"This is a wonderful example of partnership among American, Bangladeshi and Chinese companies," visiting US Assistant Secretary of State for South and Central Asia, Robert Blake said during the deal signing ceremony.
Welcoming the deal Mr. Blake said it will not only create jobs and employments, but also play a role in ensuring Bangladesh's energy security.
Drawing attention of the US assistant secretary, Aziz Khan said that besides the Meghnaghat project, Summit has signed contracts for two 341 MW power projects in Bibiyana. The US company GE will supply gas turbines for both the projects worth $250 million.
The World Bank (WB), IFC and other multilateral donors had committed $ 300 million, but the loan is yet to be approved. “As the US is a major stakeholder in the WB, I would urge you to lend us support so that we get this loan soon,” Mr. Khan noted.
Prime Minister's Adviser on energy affairs Tawfiq-e-Elahi Chowdhury expressed his hopes that Summit would overcome all its problems and the government would be fully supportive for implementation of the projects.
Mr. Chowdhury said the government has already added around 3,000 MW 0f power in the last three years. A couple of thousands MW more will be added in the next two years. “We are determined to be successful,” he said.
State Minister for Power and Energy Muhammad Enamul Huq, US Ambassador in Bangladesh Dan W Mozena and CNEEC's President Zhao Ruolin also spoke at the function.
BBN/SSR/AD-17Feb12-2:25 pm (BST)
