Bangladesh-headquartered independent power producer (IPP) Summit and New York-listed General Electric (GE) have signed an agreement to jointly develop Summit Meghnaghat II, a 583-megawatt combined cycle gas power plant near Dhaka.
The companies entered a service agreement in 2018 after GE won the project's engineering, procurement, and construction (EPC) contract in 2017, with agreements having a combined value of $390m.
Under the agreement, GE will deliver a 9HA.01 gas turbine; a heat recovery steam generator; a steam turbine generator; condenser and associated systems; and balance of plant systems for the project.
Summit Meghnaghat II Power Company Limited (SMIIPCL), a subsidiary of Summit Group, and Bangladesh Power Development Board (BPDB), have signed a 22-year power purchase agreement related to the plant.
SMIIPCL also signed various deals the Government of Bangladesh, Power Grid Company of Bangladesh, Bangladesh Petroleum Corporation, and Titas Gas Transmission and Distribution Company Limited.
In a statement released by GE, it was revealed that plant is expected to be operational by 2022 and generate enough electricity to power 700,000 homes in Bangladesh.
Muhammed Aziz Khan, founder and chairman of Summit Group, said the company would “invest up to $4bn in the next five years in a move to create more employment opportunities, eradicate poverty, and support the country’s sustainable development goals” through the Meghnaghat plant.
Deepesh Nanda, chief executive officer of gas power systems at GE South Asia, said the power plant to contribute to proviidng "uninterrupted access to electricity" for households, businesses, and industries in BAngladesh.
GE’s HA technology has been adopted by Sharjah Electricity and Water Authority for an upcoming 1.8-gigawatt independent combined cycle power project in Hamriyah.