Contracts of Summit’s three power plants extended

The government has extended the contracts of Summit-owned three gas-based power plants for the next five years.

The plants are located in Dhaka's Ashulia, Narshingdi's Madhabdi and Cumilla's Chandina, which have a combined capacity of around 50 megawatts (MW).

Yesterday, the cabinet committee on government purchase approved the extension of the power plants.

All three plants were established in 2003 and the contracts expired on November last year.

There will be no provision of capacity payments in the extended power plants, said Md Mahmudul Hossain Khan, secretary for coordination and reforms of the cabinet division.

"They will only get the operational charges which would cost Tk 6.04 per unit," he said.

In the next five years, the government would save Tk 0.0725 per unit electricity while the total save would be Tk 6.81 crore.

Meanwhile, the Summit Group informed the cabinet meeting on economic affairs that it has formed a special purpose vehicle company named Summit LNG Terminal II Co Ltd, which will build and operate the country's third Floating Storage and Regasification Unit.

The unit with 600 mmcfd capacity was supposed to be built by the Summit Oil and Shipping Co Ltd.