Summit Power Limited: Past, Present & Future

Summit Power Limited (SPL), sponsored by Summit Group, is the first Bangladeshi Independent Power Producer (IPP) in Bangladesh in private sector providing power to national grid. SPL was incorporated in Bangladesh on March 30, 1997 as a Private Limited Company. On June 7, 2004 the Company was converted to Public Limited Company under the Companies Act 1994.

In private sector power generation ‘Summit Power Limited’ is the pioneering Bangladeshi company. It started power generation from 2000 and has over the years gained experience in project implementation and operation & maintenance of power plants. This has given Summit Power Limited an edge over others in becoming the leading Bangladeshi company with eleven operating plants of its own and two operating plants with co-ownership. Summit’s portfolio in present power generation is 317 MW. In addition, Summit Power Limited has acquired 18.7% of Khulna Power Company Limited (KPCL). The total installed capacity under Summit Power Limited is 367 MW.

Out of all the awarded contracts by BPDB for construction of HFO fired quick rental power plants, Summit Power Limited is the only company that has completed, within the scheduled 270 days time, its 102 MW Summit Narayanganj Power Plant (SNPL) and for which it has received international gold award on September 28, 2011 as “The Best Fast Track” project in asia.

This is indeed a great recognition of the ability of the country in general and Summit in particular, to construct in world standard, a medium size power plant. Summit Narayanganj Power Limited has achieved financial close by receiving a foreign currency term loan of USD 45 million from DEG - Deutsche Investitions- und Entwicklungsgesellschaft mbH and FMO - Nederlandse Financierings-Maatschappij Voor Ontwikkelingslanden N.V.

Summit Power Limited has also been awarded ICAB National awards for best published accounts and reports of 2010 as well as Best Presented accounts and Corporate Governance Disclosures awards 2010 by South Asian Federation of accountants (SAFA – an apex body of SAARC) for its Transparency, accountability & Governance.

Summit Power Limited has always used brand new highly efficient engines/turbines and other auxiliaries of best international standard. The aim is to spend bare minimum fuel for per unit of generation of electricity which is provided by the State. The new and quality machine allows for Summit Power Limited to maintain its guaranteed contractual availability and Heat Rate (fuel consumption for generation of one unit of electricity) ensuring efficient use of fuel and gas. Furthermore the company has already taken initiatives for implementation of Integrated Management System (IMS), which includes - ISO 9001 : 2008 – Quality Management System (QMS), ISO 14001 : 2004 – Environmental Management System (EMS), ISO 18001 : 2007 – Occupational Health & Safety (OH&S).  Summit Power Limited and its subsidiaries at present operate 11 power plants. The Generation Capacity of these power plants is 317 MW (approximately). In 2011, all these power plants were made available to the extent required as per the Power Purchase agreement (PPa), indicating excellent operational performance of the company. as a result these plants could deliver electrical energy to the national grid totaling to 1,803 million units (Kwh) approximately, which is 23% higher than that in 2010.

Electricity is one of the main driving forces of the economy and it has a diversified use and multiplier effect on the economy. This year Summit Power Limited Company added 1,803 million units (Kwh) of electricity to the national grid. This addition has contributed significantly in enhancing industrial productions and providing more job opportunities in the country. The Company is now set to continuously increase and enhance its contribution to national economy in the years to come. The company has full tax exemption on its revenue, but it has contributed a significant amount to the national exchequer in the form of different duties, taxes and VAT while importing spare parts for the power plants’ maintenance work and at investment in capital and money market. The estimated amount of contribution was of Taka 94 million in 2011.

Summit Power Limited, the first Bangladeshi Independent Power Producer (IPP) has been awarded “AA” Credit Rating in the long term and ST–2 rating in the short term by an internationally linked joint venture rating agency Credit Rating Information & Services Limited (CRISL) in collaboration with Rating Agency Bernhard, Malaysia and JCR-VIS Rating Company Limited, Pakistan. The rating is a unique distinction for a Bangladeshi company in private sector power generation to receive such an internationally recognized credit rating. Entities rated in this category are adjudged to be high quality, offer higher safety and have high credit quality. This level of rating indicates a corporate entity with a sound profile and without significant problems. Risks are modest and may vary slightly from time to time because of economic conditions. The short term rating indicates high certainty of timely payment. Liquidity factors are strong and supported by good fundamental protection factors. Risk factors are very small.

Summit’s Power plants are operated and maintained wholly by Bangladeshi engineers and technicians setting an example of growing entrepreneurial and technical sufficiency of Bangladeshi industrial enterprises. The company has also received ISO 9001:2000 certification in 2002 for its quality management and for the maintenance of high environmental standard.

Summit Power Limited in 2001, has successfully established three power plants of 11 MW capacity each, for sale of electricity to Rural Electrification Board (REB) on Build, Own and Operate basis at Savar, Narsingdi and Comilla. During 2006 and 2007 in each of the above three places, 2nd unit was commissioned enhancing the capacity of SPL to 105 MW. In 2009 SPL with its 99% owned two subsidiaries has established 4 new power plants raising its capacity to 215 MW. In 2011 SPL has commissioned another power plant of 102 MW capacities at Narayanganj under Summit Narayanganj Power Limited, where SPL has 55% ownership. 

In the year 2011 Summit Power Limited has consolidated its position further by acquiring 53,955,326 numbers of ordinary shares of Khulna Power Company Limited (KPCL). It gives SPL the status of 18.7% of the ownership of KPCL and with that status an additional capacity of 50 MW (approximately) has been added with that of SPL being the total capacity of 367 MW.  Considering the immense opportunities, the company is striving to establish more power plants around the country. The fast-growing company has set a mission to expand the company with a power generation capacity to the tune of 1000 MW, which is a modest 20% of the electricity requirement in Bangladesh.