Muhammed Aziz Khan, Chairman of Summit Group on Sunday said that his company is going to invest $3 billion dollars in the country’s power sector in the next few years.
He was speaking at a session at the ongoing Bangladesh Investment and Policy Summit, organized by the Board of Investment (BoI) at a city hotel, which will run for two days.
The session titled “Business Session: Investment Opportunities in Economic Zones, Tech Parks, Energy & Power Sectors and PPPs” of the ongoing event was moderated by the Honourable State Minister Nasrul Hamid MP, Ministry of Power, Energy and Mineral Resources.
During the session, the Chairman of Summit Group, said that Summit Group is already producing 1200 MW of electricity in Bangladesh and it plans to increase its production capacity in the upcoming years.
He said that the cost of setting up power plants has decreased and the prices of all the materials needed to establish power plants are decreasing across the world.
“And of course the price of gas and oil is very low now. So this is the best time to invest in the power and energy sector,” he said.
Aziz said that Bangladesh is a very good place for investment in the power sector. The Internal Rate of Return (IRR) for investment in power and energy sector here is around 15-20%.
“Also, there is no apprehension of political uncertainty,” he said.
He also said that Bangladesh needs to buy coal mines, oil fields outside of the country to ensure energy sources for the future. “We have to look beyond our boundaries to provide energy security”, he added.
Speaking on the occasion, State Minister for Power, Energy and Mineral Resources Nasrul Hamid said that Bangladesh is going to unearth a large gas reserve within the next six months.
“I am not revealing any detailed information, but within the next six months, we are hoping to find out a large gas reserve in our country,” Nasrul said.
He said that the gas reserve of the country is quickly beingdepleted. “We have taken some aggressive plans to discover gas. A total of 110drillings will start taking place from this year.”
The state minister said that within the next month, they are going to sign a deal for establishing Floating Storage and Regasification Unit (FSRU) plant.