Cabinet body okays awarding Bibiyana plant to Summit

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FE Report
The cabinet committee on government purchase Sunday approved awarding of Bibiyana 300-450 megawatt (mw) gas-fired combined cycle power plant to the largest local power giant Summit.
"The Bibiyana power plant has been sanctioned in
favour of the local Summit," Finance Minister AMA Muhith told newsmen after the meeting of the cabinet committee.
Summit quoted a levelised tariff rate of 3.322 US cents per unit (1 kilowatt-hour) to become the lowest bidder to win a big power plant as a local company in Bangladesh.
"The tariff rate is fabulously cheap," said the finance minister, who chaired the meeting.
"We are privileged and honoured to be the first Bangladeshi company that would be implementing and owning such a large project of Tk 25 billion," Summit Power Chairman Muhammed Aziz Khan said in an immediate reaction.
He said Summit has planned to implement the project on schedule.
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.
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 in 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 450 mw 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.
In Sunday's meeting the purchase committee also approved awarding of 130-150 mw gas fired rental power plants to British Aggreko and approved running those for one year.
Electricity tariff for three years would be Tk 4.80 per unit, while it would be Tk 4.75 per unit for the fourth year.
The committee, however, sent back Ghorashal 200-300 mw dual fired power plant and asked to place it again to the purchase committee.
Sunday's meeting also approved construction of a 1.66-kilometre flyover at Bahaddarhat at the cost of Tk 864 million.
It has also decided to purchase 100,000 tonnes of urea at the cost of Tk 2.69 billion.