Summit wins 300-450mw Bibiyana power plant bid

News Source: http://bit.ly/8XQLXr

The largest local power giant Summit has finally won the Bibiyana 300-450 megawatt (mw) gas-fired combined cycle power plant as it became the lowest bidder Thursday 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).

"It was a very competitive bidding and I am happy that I could complete the selection process," director general of Power Cell Mahboob Sarwar-e-Kainat told reporters.

Malaysian YTL Power International Berhard was the nearest competitor for the Bibiyana power plant, he said.

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.

"We are very glad to be the lowest bidder," Summit Power Chairman Muhammed Aziz Khan said.

"We will utilise the world's most efficient engine from GE of USA to generate extraordinarily low-cost and environment-friendly electricity," he said.

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.

It will also purchase electricity from the sponsor, who will offer to sell electricity at lower rate.

The estimated cost for installing the Bibiyana plant would be over $300 million.

Multilateral donor agency the World Bank is set to provide funding to implement the power plant project.

The plant would generate electricity by consuming natural gas from US oil giant Chevron-operated Bibiyana gas field.

Bibiyana power plant site is located near the town of Sadipur, Habiganj district near Sylhet and approximately 180 kilometres northeast off the capital.

The plant will comprise a complete gas fired combined cycle facility of 330 mw to 450mw with all support facilities required for commercial operation, said a power ministry official.

The main power block shall consist of one or more gas turbines, one or more gas turbine generators, one steam turbine, one steam turbine generator and one or more heat recovery generators.

Summit won the Bibiyana power plant during the second bidding for setting up the plant as independent power producer (IPP).

The government initiated to build the Bibiyana power plant in 2006 but failed to select any bidder.

Summit Power chairman said his company is well positioned for being awarded a substantial number of electricity generation projects shortly.

The company has been already short-listed by the power ministry for setting up three more big power plants-Meghnaghhat dual-fuel 300mw-450mw combined cycle power plant, Bibiyana-2 300mw-450mw combined cycle power plant (unit 2) and Bhola 150mw-225mw combined cycle power plant.

"We look forward to winning all the three big power plant projects," said the Summit chairman.