Summit Power IPPs

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Summit Power Limited (SPL) developed four small independent power producers (IPPs) with a combined capacity of 110 MW. The small IPPs were a 33 MW plant Maona (in Gazipur), a 33 MW plant at Rupganj (in Narayanganj), a 33 MW plant at Jangalia (in Comilla) and a 11 MW plant at Ullapara (in Sirajganj). The greenfield plants were established on a build, own and operate (BOO) basis. The four plants were awarded to SPL by the Cabinet Committee on Public Purchase, as part of a tender in which ten small IPPs were offered. Power Cell, the implementing agency, announced a tender for 10 small IPPs in April 2007. 37 companies submitted bids by the deadline of June 4, 2007. SPL was deemed to have offered the lowest tariff for four of the ten IPPs. Accordingly, in July 2007, the Cabinet Committee on Public Purchase awarded the contracts for these four IPPs to SPL, a wholly owned subsidiary of Summit Mercantile and Industrial Corp. In October 2007, the Implementation Agreement, Land Lease Agreement, Power Purchase Agreement (PPA) and Gas Sales Agreement were signed. Under the PPA, the Rural Electrification Board and the Bangladesh Power Development Board were to buy all the electricity produced by the plants for a 15-year period commencing from the date of the plants' commissioning. The project was financed with a debt-equity ratio of 80:20. The project reached financial closure in July 2008, when SPL signed an agreement with the Industrial and Infrastructure Development Finance Company (IIDFC), the lead arranger for a BDT3.96 billion (US$57.8 million) loan. The sponsor - Summit Industrial and Mercantile Corp. - was to provide BDT 1bn (USD 14.6mn) as an equity contribution. 18 banks participated in the loan consortium: Bank Asia (BDT300 million); Mutual Trust Bank (BDT150 million); National Credit and Commerce Bank (BDT100 million), Pubali Bank (BDT200 million), United Commercial Bank (BDT400 million), IDCOL (BDT600 million), SABINCO (BDT75 million), IIDFC (BDT100 million), Agrani Bank (BDT200 million), BRAC Bank (BDT330 million), Standard Bank (BDT100 million), Janata Bank (BDT350 million), BIFC (BDT50 million), Sonali Bank BDT450 million), Rupali Bank (BDT200 million), First Security Bank (BDT50 million), Prime Bank (BDT200 million) and Premier Bank (BDT100 million).