Bangladesh's Summit in deal with GE, China firm on power plant

DHAKA Feb 16 (Reuters) - Bangladesh independent power producer Summit Power Ltd. signed deals with General Electric and China National Electric Engineering Co. to build a 335-megawatt (MW) dual-fuel power plant, the company's chairman said on Thursday.

"We will be able to produce electricity by the end of July of 2013 with an investment of $275 million," said Summit Chairman Muhammed Aziz Khan.

The plant to be built near the capital Dhaka is part of an aim by Bangladesh to cover chronic power shortages of around 1,500 MW daily that crimp industrial output.

But the policy is in some disarray as the country earlier this month banned the import of new oil-fired turn-key electricity generators.

The new plant will also be able to run on natural gas, which Bangladesh has ample sources of for now, though the government is worried about depleting supplies.

Khan said General Electric would supply gas turbines and be responsible for maintenance, while the Chinese firm would provide engineering, procurement and construction services.

Khan said Summit currently generates 10 percent of Bangladesh's total electricity, and expects to double that figure.

"We are working hard to get to 20 percent by 2015 when Bangladesh is expected to generate 10,000 MW of electricity," he said.