Meghnaghat kicks off test operations

By gathering funds against the odds, the local power company Summit began test operations of its Meghnaghat 337 megawatt dual-fuel combined cycle power plant in late February.
Summit chief Muhammad Aziz Khan told The Daily Star that the plant was generating 126MW power using diesel supplied by the Power Development Board (PDB).
“We expect to achieve the simple cycle operation state by late March,” he said, adding, “This will fulfil a condition of international financiers, who have agreed to invest $190 million in the project.”
By then, Summit also targets successful generation of 220MW power for seven days at a stretch to achieve commercial operation date (COD) for its simple cycle power generation. Once the COD is achieved, Summit will be able to commercially sell power from this plant.
The combined cycle operation of this plant will start from October this year, supplying 337MW electricity to the national grid. A combined cycle plant uses technology to generate power from the heat created by a simple cycle operation and thus saving fuel costs.
Summit was facing problems relating to getting international financiers to fund this large power project that led many to doubt a successful launch of this plant.
Summit eventually took $300 million loans from local banks and pumped in its own funds to push ahead this large base-load power project.
At the same time, Summit has been negotiating with several international financiers -- DEG of Germany, FMO of the Netherlands and the Standard Chartered Bank -- to fund the project once it becomes successful with the plant's simple cycle operation.
Once the three financiers provide Summit with $190 million, it will clear its loans with the local banks and keep $110 million in the project as its own investment.
Summit's phase-2 of Bibiyana 341MW gas-fired combined cycle project has meanwhile registered a major progress as the plant's gas turbine, the heart of the project, arrived at Mongla Port yesterday. The turbine manufactured by US company General Electric is the most efficient equipment of its class in the country as it uses comparatively less fuel to generate power.
The Summit boss added that the Bibiyana plant was expected to go on simple cycle operation with 225MW power generation in November this year and combined cycle operation in October 2015. The International Finance Corporation, the Asian Development Bank and the Islamic Development Bank are providing $200 million for this project.
All these appear to be good news for the government, which has so far tackled the country's power crisis by going for short-term expensive rental power. Both the Meghnaghat and Bibiyana projects will sell power to the power board at a very low rate on a long-term basis.
Summit has also set an example of arranging funds from local banks to successfully push a large power project.
Operating power plants since 1998, Summit last year built three rental power plants ahead of schedule. It now contributes 560MW electricity to the national grid from a dozen plants.