Summit Meghnaghat Power Company Limited

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Summit Meghnaghat Power Company Limited (SMPCL), a special purpose vehicle owned by Summit Industrial and Mercantile Corporation (Pvt.) Limited and GE Energy LLC, participated in a bidding process initiated by Bangladesh Power Development Board (BPDB) for development of a dual fuel (natural gas and furnace oil) 335MW (net) CCPP Project at Meghnaghat, Narayanganj in Bangladesh on build, own and operate (BOO) basis and won the concession right out of a total of two bidders. SMPCL would be responsible for developing, implementing, owning, commissioning,operating, insuring and maintaining the project till the end of the agreement term, which was 22-years. All the relevant project agreements, namely Power Purchase Agreement (PPA), Gas Supply Agreement (GSA), Implementation Agreement (IA), Fuel Supply Agreement (FSA) and Land Lease Agreement (LLA) with the respective authorities had already been signed.Fuel suppliers were PetroBangla subsidiaries. Considering the structure of the agreements, the project does not face 'demand risk' since SMPCL would be paid on the basis of 'availability' based on quoted tariff, and this payment was more than sufficient to meet the debt service obligations along with operational expenses of the Com pany. KEPCO Plant Service & Engineering Co. Ltd. was appointed for Plant Operation & Maintenance (“O&M”).The project would incorporate frame GE make 9E gas turbines. Project attained financial closure on 10th April 2014. Financing comprised a US$ 120mn 12-year term loan, a US$ 40mn 8-year term loan, a US$ 30mn 12-year term loan and US$ 130mn sponsor equity. Loans were provided by Standard Chartered, IDCOL, DEG, NFMO, OPEC and CDC Group. Facility agent was Standard Chartered Bank. The plant was expected to achieve commercial operation (COD) in two phases with the simple cycle COD (203 MW - HFO, 220 MW Gas) expected in March 2014 and combined cycle COD expected by August 2014. http://www.thedailystar.net/stanchart-raises-190m-for-summit-power-plant-33506