Govt extends 3 Summit Power Plant deals for 5 years

The new agreement excludes capacity charges and fixed fees, with payment only based on electricity consumption, said a cabinet division secretary

The government has extended contracts with Summit Power Limited for five years for their three gas-based power plants in Ashulia, Madhabdi, and Chandina.

The proposal was approved during a meeting of the cabinet committee on public purchases on Wednesday.

The extension will maintain the electricity tariff at Tk 6.04 per unit for the next five years, resulting in savings of 7 paisa per unit compared to the previous contract, according to Mahmudul Hossain Khan, the Secretary (coordination and reforms) in the Cabinet Division.

Unlike before, the new agreement excludes capacity charges and fixed fees, with payment only based on electricity consumption.

These power plants, with a combined production capacity of 111 MW across six units, were established between 2003 and 2007, initially under an agreement with Summit Oil and Shipping Company Limited, which will now be renamed Summit LNG Terminal Company II.

According to information on Summit's website, these power plants began operations between 2003 and 2007, with a total capacity of 111 MW across six units in three regions.

The previous agreement was with Summit Oil and Shipping Company Limited, which will now be rebranded as Summit LNG Terminal Company II, said the secretary.