Summit Group seeks to invest in social business

Company writes to Chief Adviser

FE Team | Published: September 20, 2024 22:16:00

Summit International Power Limited, a Singapore-based power giant, has expressed its intent to significantly increase its investment in Bangladesh, particularly in the power sector and social businesses-a concept pioneered by Nobel Peace laureate Professor Muhammad Yunus, reports UNB.
In a letter addressed to Chief Adviser Prof Yunus, the company recently outlined its ongoing contributions to the country's energy sector and its plans for future investment.
"We seek a favourable business environment to further invest and contribute to alleviating poverty and unemployment," said Mohammed Aziz Khan, Chairman and Managing Director of Summit Group, during a phone interview with UNB on Friday.
Summit Group, one of Bangladesh's largest conglomerates, is responsible for approximately 20% of the country's electricity generation.
Congratulating Professor Yunus on his appointment as chief adviser of the interim government, Khan praised Yunus's philosophy of microfinancing through Grameen Bank, which has facilitated financial inclusion for the poorest and promoted social businesses aligned with the "Three Zeros" goals.
"Inspired by the Chief Adviser's philosophies, we are eager to increase our investment in Bangladesh and social businesses," said Khan. "We aim to create more jobs and help in poverty alleviation."
Khan further affirmed Summit Power International's commitment to ensuring Bangladesh's long-term energy security. "To support the country's journey toward 'Net Zero,' we plan to collaborate with international partners and lenders to attract approximately US$3 billion over the next five years. Our focus will be on projects such as floating storage regasification units (FSRU), onshore LNG terminals, and renewable energy initiatives like wind and solar power, in partnership with Japanese, American, Danish, and Indian collaborators."
Summit, being one of the largest foreign investors in Bangladesh, serves as a beacon for attracting much-needed foreign direct investment, Khan added.
However, the letter, a copy of which is available to UNB, also highlighted several challenges Summit faces.
These include delayed payments from the Bangladesh Power Development Board (BPDB), the sharp depreciation of the Bangladeshi Taka, high interest rates, a liquidity crunch in the banking sector, and recent mob attacks on some of the company's facilities.
Summit's letter also addressed misconceptions about capacity payments in power projects, clarifying what it said media misreporting on the matter has caused confusion.
The company urged relevant authorities, including CID, Bangladesh Bank, BIDA, BPDB, REB, and Petrobangla, to take immediate steps to counter these misunderstandings and establish the facts.