Dhaka: Summit, the largest power giant in Bangladesh, has finally won the Bibiyana 300-450 megawatt (mw) gas-fired combined cycle power plant as it became the lowest bidder to construct the plant.With this win Summit has become the first local company to win a big power plant in Bangladesh after offering to sell electricity at a tariff rate of Tk 3.32 per unit (1 kilowatt-hour).
Director General of Power Cell Mahboob Sarwar-e-Kainat told reporters on Thursday (Oct 14).
Malaysian YTL Power International Berhard was the nearest competitor for the Bibiyana power plant.
Four foreign and local firms and their joint ventures including-Shasha Denims and its joint-venture partner MPC Consortium of Meiya Power Company Ltd (Hong Kong) and the Otobi Ltd along with Asian Entech Power Corporation Ltd and their joint-venture partners China National Machinery and Equipment Import and Export Corporation (CMEC) - were qualified primarily by the Power Cell.
Seven firms initially showed interest to install the 300-450mw gas-fired Bibiyana power plant.
Summit Power Chairman Muhammed Aziz Khan said: “We are very glad to be the lowest bidder. We will utilise the world’s most efficient engine from GE of USA to generate extraordinarily low-cost and environment-friendly electricity”.
Summit Industrial and Mercantile Corporation (Pvt) Ltd and its partner GE Energy LLC will build the power plant after signing necessary deals.
Bibiyana power plant, which is also known as Bibiyana -1 power plant, will be implemented on a build, own and operate (BOO) basis pursuant to a 22-year implementation agreement.
The government will provide necessary land and required gas to the selected sponsors for generating electricity.
The estimated cost for installing the Bibiyana plant will be over $300 million. Multilateral donor agency the World Bank is set to provide funding to implement the power plant project.
The plant will generate electricity by consuming natural gas from US oil giant Chevron-operated Bibiyana gas field.
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