Summit Meghnaghat Power Company Ltd.

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Summit Meghnaghat Power Company Ltd., incorporated in Bangladesh, will develop, construct and operate a 335MW dual fuel (gas/HSD) combined cycle power plant near Dhaka, Bangladesh.

Long-term finance is scarcely available in Bangladesh, which hampers projects such as this power plant that require longer tenors. The German, Dutch and British development finance institutes (DEG, FMO and CDC respectively) are financing an important loan, and BIO participates in the FMO loan. The DFI’s non-financial role in the project is important because of its contributions to a structured approach to the client’s environmental and social performance and the introduction of minimum standards such as the applicable IFC Performance Standards.

With its long-term financing of hard currency, BIO contributes to the project’s viability based on a reasonable electricity tariff.

The project contributes substantially to the availability and reliability of electricity in Bangladesh, a country which currently has an electrification rate of approximately 60% and faces frequent black-outs.


  • Investment amount (€):

    USD 17.5 million

    Energy efficiency project

  • Contract signature :

    2014

  • Nature of intervention :

    Senior loan

  • Development impacts :

    • 1 — contribute to availability and reliability of electricity in Bangladesh