Summit Group has revealed plans to raise $1 billion from the country’s stock market to implement more power plant projects in the coming days.
“Our next step is to collect $1 billion from the local stock market as equity for future green field power plant projects,” Ayesha Aziz Khan, finance director of the Summit Group, said Thursday while briefing reporters about the state of implementation of the two large base load power plants the group is currently working on.
The two plants are 337 MW Meghnaghat combined cycle dual-fuel power plant and 341 MW Bibiyana-II gas-fired combined cycle power plant.
The local conglomerate has so far implemented a number of power plants as independent power producer (IPP) having capacity of more than 700 MW. After implementation of the two plants, the total capacity of the power plants built by Summit will reach 1262 MW.
Summit Group’s two senior officials Tariqur Rashid and Karishma Jahan were present at the press briefing at Summit Centre in the city.
Ayesha Aziz informed that among the two power plants, Meghnaghat has already started commercial operation of its simple cycle and its combined cycle will come into operation shortly. The Bibiyana plant’s simple cycle will also start commercial operation soon.
She said that her group will sign contract will lenders for making financial closing of Bibiyana-II power plant on June 2 under which different international financiers will provide $210 million.
Of these, World Bank’s private commercial window IFC will provide $75 million, Asian Development Bank (ADB) $75 million and the Islamic Development Bank (ASDB) $60 million.
About the plan on collecting funds from local stock market, Ayesha Aziz said that the country’s local market’s strength is greater than people may expect.
“After successful completion of a number of power plants, we’re very much confident about our local markets for funding the green field power projects,” she said, adding that the group is eager to produce 20 percent of the country’s total power generation.
Responding to questions on the government’s thinking behind allowing Indian private sector investment in Bangladesh power sector, she said Bangladeshi entrepreneurs should equally be allowed to avail the same scope in India.
“We’re working with many of the interested Indian companies to invest in India. We’re also working on the Indian regulation in this regard,” Ayesha Aziz said.
She also demanded a level playing field for local investors in Bangladesh to compete with the foreign companies.