The Asian Development Bank (ADB) on Tuesday signed a loan agreement of $75 million with Summit Bibiyana II Power Company Limited for developing a gas-fired power plant in Bibiyana, Habiganj, BSS reports. “The project will benefit households, business and industry by improving access to electricity,” said Hayato Hoshi, senior investment specialist with ADB’s Private Sector Operations Department after singing the loan deal.
The Bibiyana II Gas Power Project involves the design, engineering, construction, and operation of a 341 MW combined-cycle gas-fired power plant to be located on the south bank of Khushiyara River, about 180 kilometers northeast of the capital city Dhaka. Construction is expected to be completed by October 2015, and the plant will produce around 2,500 GW-hours of power annually.
Summit Bibiyana II Power Company Limited is a joint venture between Summit Industrial and Mercantile Private Limited, a leading local independent power producer (80% ownership) and General Electric Energy with a well-developed global business in gas fired power projects (20% ownership). The company entered into a 22-year power purchase agreement to sell all electricity generated from the project exclusively to the Bangladesh Power Development Board, the country’s state-owned electricity company.
ADB is co-financing the project with the International Finance Corporation and the Islamic Development Bank.