Biggest US investment in Bangladesh: GE signs 7.4 bn power, LNG deals

GB news 24 desk//

US company General Electric (GE) on Wednesday signed two separate deals – one with state-owned PDB and another with Summit Group, a local business house – to implement a number of power and energy projects worth about $7.4 billion in joint venture in Bangladesh.

Japanese firm Mitsubishi Corporation is also a partner in the GE-Summit initiative.

Under the deals, GE-Summit-Mitsubishi will set up a gas-fired 2,400 MW power plant, having four combined cycle units of each 600 MW and also two units of LNG onshore terminals with total 380,000 cubic meter capacity, oil terminals with 100,000 MT capacity and 300 MW HFO-based power plant.

The GE-Summit-Mitsubishi joint venture will invest $3 billion for their projects.

Under GE-PDB deal, there will be 3,600 MW gas-based combined cycle power plant and associated LNG import terminal and infrastructures in Moheshkhali of Cox’s Bazar.

In the GE-PDB joint venture project, PDB will have 51 percent equity investment while GE will hold 30 percent equity and the remaining 19 percent equity will be offered to a strategic partner which will be selected jointly.

Welcoming the GE-PDB and GE-Summit deals, State Minister for Power and Energy Nasrul Hamid said this has been the biggest ever investment by an American company.

He urged US companies to invest more in power and energy sectors.

Prime Minister’s Energy Advisor Dr. Tawfiq-e-Elahi Chowdhury, who was present as chief guest in both the signing ceremonies held separately in the city, urged the GE to come forward with advanced technology and focus on improvement of the efficiency of the country power and energy sector.

US Ambassador in Bangladesh Marcia Stephens Bloom Bernicat said the GE’s deals with Bangladesh public and private companies will further strengthen the commercial cooperation between the two countries and help grow Bangladesh in economic field.

The GE-Summit-Mitsubishi deal signing ceremony, held at Sonargaon Hotel, was also addressed by Summit Group Cairman Mohammed Aziz Khan, Pesident and GEO of GE Power Russell Stokes, while GE-PDB deal signing ceremony held at Bidduyt Bhaban was also addressed by Power Secretary Dr. Ahmed Kaikaus, and PDB Chairman Khaled Mahmood.

Implementation of the GE-Summit-Mitsubishi projects will start in 2019 and will be completed by 2023.

However, share of equity in the investment by partners of GE-Summit-Mitsubishi JV and their project locations were not disclosed in the signing ceremony.

Under the GE-PDB Joint venture, the 3,600 MW power plant, having three 1200 MW units, and LNG will be set up in Moheshkhali on a land of 5600 acres where power plant will require 100 acres.

In the projects, land development will need $1.6 billion while power plant and other infrastructures will require $2.8 billion.