SM2PCL

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Summit Meghnaghat II Power Company Limited (hereinafter referred to as “SM2PCL” or the “Company”), a wholly owned subsidiary of Summit Corporation Limited (“SCL” or the “Sponsor”), is proposing to set up a dual fuel fired combined cycle power project with net generation capacity of 589.750 MW on Re-gasified Liquid Natural Gas (RLNG) (to be set-up as base load plant with annual power generation output of 4650 GWh) and 541.220 MW on High Speed Diesel (HSD) (to be used as back-up fuel only incase of gas interruption) at Meghnaghat Power Hub (hereinafter referred to as the “Project”), in Narayanganj District of Dhaka Division, Bangladesh. SCL is a subsidiary of Summit Power International Pte. Ltd (SPIPL), an existing IFC client, and the largest private sector power generation company in Bangladesh with an installed capacity of 1,423 MW. The project site is located approximately 30 km south-east of Dhaka on the right bank of River Meghna. The project site is accessible from Dhaka-Chittagong highway (N1) near the Meghnaghat toll plaza through an access road of about 2 km. The Meghnaghat power hub is surrounded by Meghna River in the north, west and south directions. The river creates a buffer between the Meghnaghat power hub and nearby villages. The nearest village to the project site is Dudghata which is about 0.95 km north- west of the site and is located on other side of the Meghna river. The Meghnaghat power hub currently has three operating power plants with total capacity of 887 MW: (i) 450 MW Combined Cycle Power Plant (CCPP) operated by Power Tech, Pendekar (gas based); (ii) 100 MW engine based plant operated by Orion Power (Heavy Furnace Oil based); and (iii) 337 MW CCPP operated by Summit Meghna Power Co. Ltd. (referred to as M1 and currently operating on HSD). There is proposal for another RLNG based 750 MW CCPP to be developed by Reliance Power within the same power hub and another 650 MW coal based power plant at Char Balaki near the power hub. The Meghnaghat Power Hub is part of the Meghnaghat North industrial cluster which includes various other industries such as cement grinding mills, pulp and paper mills, ship building yards and food processing industries mostly of the Meghna Group of industries.  The Project will have 1 gas turbine (GT), 1 heat recovery steam generator (HRSG) and 1 steam turbine (ST) (i.e. 1+1+1 configuration). Total gas requirement for the Project is about 70,904 kg/hr @ 100% load, which will be supplied from national gas grid pipeline to be constructed by Gas Transmission Company Limited (GTCL) – a company of Petrobangla. The new gas transmission pipeline will be provided between Kutumbapur in Comilla and Meghnaghat in Narayanganj and will provide natural gas to the commissioned and proposed power plants, including M1 project which is currently running on HSD due to gas supply constraint. The Project will connect to common point of delivery of GTCL to be constructed within the Meghnaghat power hub by a high-pressure gas transmission system (underground) comprised of approximately 200 – 300 m long pipeline and Regulating and Metering Station (RMS) will be installed by the Company to control the gas flow to the Project. HSD will be supplied by Bangladesh Petroleum Corporation (BPC) at pontoon of existing Summit M-1 project. HSD storage will be maintained at existing fuel tanks of Summit M-1 project and will be supplied to the proposed project, if required.  Power Grid Corporation of Bangladesh (PGCB) currently has a 230 kV grid sub-station within the Meghnaghat power hub for the existing power plants. To support the proposed power plants within the Meghnaghat power hub, PGCB plans to set up a 400 kV grid sub-station (GSS) located close to the project boundary (within 80 m) and for which land is already earmarked by BPDB within the power hub. Only 300-400 m power evacuation line will be required to be laid for connecting to the 400 kV GSS. As the GSS is not exclusive to the Project, it is not considered as an associated facility.  The power plant will be operated with a closed-loop water cooling system and may have a pump house on pontoon of Meghna River for abstraction of raw water (located adjacent to project boundary on south side). Treated effluent including cooling water blow down from the plant will be discharged into Meghna River (west of the project site) through a buried pipe line of 0.5 km length which will be constructed along the site access road. It is to be noted that the discharge will not be continuous and blow down will be retained at central monitoring basin along with other treated effluent from the plant and will be tested for water quality including temperature before discharge into the Meghna River.  Total land available for the Project is 14.28 acres, which is owned by the Bangladesh Power Development Board (BPDB). This land parcel is part of the Meghnaghat Power Hub, for which land was acquired by BPDB back in 1997-98. In addition to the main plant, a temporary construction lay-down area of about 6 acres and workers’ accommodation of around 3 acres will be set up within the power hub itself. This land will be returned to BPDB upon completion of project construction. This access road was completed by the BPDB in August 1999. The Project cost is estimated to be around 498 million USD. The proposed IFC investment involves a debt of up to USD [120] million.