Bangladesh Signs $5.8 Billion Energy Investment Agreement

Bangladesh announced two major energy investment deals on Wednesday with a total investment of $5.8 billion, both of which involved the US General Electric Company.

Nearly 30% of Bangladesh's population does not have access to electricity, and 70% of its energy production depends on its natural gas resources, but its supply has been struggling to catch up as demand has increased, and the country is now becoming an importer of LNG.

One of the joint ventures announced on Wednesday was a partnership between General Electric Company of the United States,Mitsubishi Corporation of Japan and Summit of the local private company. The three companies said they will build and invest $3 billion to build a 2,400 megawatt (MW) thermal power plant and associated oil and LNG terminals. Summit will account for 55% of the joint venture, while Mitsubishi will account for 25% and General Electric will account for 20%.

“By partnering with Summit Power, our HA (Gas Turbine) technology has achieved unprecedented efficiencies to enhance power generation in Bangladesh,” said GE Power President and CEO Russell Stokes in an agreement signed by Dhaka.

The project involves four 600 MW power generation facilities, a 380,000 cubic liter liquefied natural gas (LNG) terminal and a 100,000 metric ton oil terminal.

Summit Group Chairman Muhammad Aziz Khan said the plan will be launched next year and completed in 2023. "The project will use the most efficient and environmentally friendly technology in the world."Later that day, GE and the state-run Bangladesh Power Development Board (BPDB) announced a joint venture to produce 3,600 megawatts of electricity.

SaDB's director Saiful Hasan Chowdhury said the joint venture will establish a 3,600 MW LNG to natural gas combined cycle power plant and associated LNG import terminals and related infrastructure.

“The project will cost $2.8 billion, BPDB will invest 51% as a major partner, and GE will invest 30%, and the remaining 19% will be invested by strategic partners,” Saiful Hasan Chowdhury said.

“Over the years, GE has demonstrated a strong willingness to work with the private and public sectors in Bangladesh to promote power generation,”said US Ambassador to Bangladesh Marcia Bernicat in signing the event, “as the largest foreign direct investor in Bangladesh and In the export market, the United States is committed to building strong business relationships with Bangladesh."