Bangladesh's Summit eyes Bhutan power production

DHAKA Sun Nov 4, 2012 6:20pm IST

Related Topics

Stocks

   

DHAKA (Reuters) - Bangladesh's leading privately held electricity provider, the Summit Group of Companies, plans to build a power plant in Bhutan, Chairman Muhammad Aziz Khan said on Sunday.

"At the moment we are surveying to identify the bottlenecks and potentials to set up a power plant in Bhutan with 500 megawatts capacity," Khan told Reuters in an interview.

He said that Bhutan was a potentially rich source of hydro power and added: "If we could reap the potentials, then Bangladesh would be able to meet up its much needed electricity requirements."

Summit plans to produce an additional 750 megawatts of electricity with imported liquefied natural gas over the next three to four years, and produce another 676 megawatts (MW) of electricity by the year 2014.

"We have already signed a deal with Chinese firm First Northeast Electric Power Engineering Company (NEPC) on Engineering, Procurement & Construction for about $220 million for implementation of the Bibiyana 341 MW combined cycle power project," Khan said.

The Bibiyana combined cycle power project will generate 341 MW of electricity by June 2014 at the lowest tariff of 1.90 taka per KW hour, Khan said.

Bibiyana is located at Sylhet, 278 kilometres (174 miles) northeast from the capital city of Dhaka.

The project's gas turbine will be supplied by U.S. firm General Electric (GE.N).

Earlier Summit signed two separate deals with GE and NEPC to install a duel fuel power plant of 335 MW at Meghnaghat, near Dhaka.

Khan said the two the projects would have a combined generating capacity of 676 MW by 2014.

"These will greatly help alleviate the electricity shortage," Khan said.

Summit has invested more than $1 billion in the power sector and is supplying 600 MW of electricity to the national power grid.

Bangladesh suffers from chronic power shortages of up to 1,000 MW per day, which constrains growth and discourages investors.

(Reporting by Serajul Quadir; editing by Jason Neely)

FILED UNDER:
  • Most Popular
  • Most Shared

A Different Past

REUTERS SHOWCASE

Economic Reform

Economic Reform

Long "to do" list for Modi as clock ticks on reform  Full Article | Related Story 

Obama's India Visit

Obama's India Visit

Obama to visit India in January for constitution ceremony, meet with Modi  Full Article 

Power Woes

Power Woes

India to invest $4 billion to tackle power theft.  Full Article 

Japan Politics

Japan Politics

Japan PM seeks referendum on "Abenomics" in snap election.  Full Article 

Bulgari Back in India

Bulgari Back in India

CEO: we shouldn’t have left India so we’re back  Full Article 

Latin Grammys

Latin Grammys

U.S. politics takes center stage at Latin Grammys.  Full Article 

Immigration Reform

Immigration Reform

Obama unveils U.S. immigration reform, setting up fight with Republicans.  Full Article 

Big Boss Bash

Big Boss Bash

India dashes Kardashian’s Bigg Boss plan.  Full Article 

Book Talk

Book Talk

Ten years on, Chetan Bhagat prepared to face critics.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage