Tax exemptions were part of broader policy to attract investment: Summit responds to White Paper

Responding to findings of the White Paper Committee saying Summit Group benefited from tax exemptions during the tenure of the AL, the conglomerate today (22 December) said the exemptions were part of a broader policy initiative to attract investment to meet Bangladesh's critical energy needs. 

In a statement, Summit, a private power generation company, also responded to other concerns raised about governance in the country's power and energy sector. 

The White Paper, issued by the interim government under Chief Adviser Professor Muhammad Yunus, had outlined several challenges facing Bangladesh's energy sector, including excess capacity, reliance on gas imports, and the under-development of domestic natural gas resources. 

The document referenced Summit Group's operations, prompting the company to issue clarifications.

One of the key points raised in the White Paper was that Summit Group benefited from "exemptions on project income" and "exemption on income arising from power generation." 

Summit Power International Limited (SPIL), the parent company of Summit Corporation Limited (SCL), clarified that these exemptions applied to approximately 104 projects across the sector and were not exclusive to Summit Group.

The White Paper also highlighted allegations of contract conditions being changed after awards, citing the Summit Meghnaghat 335 dual fuel power plant as an example. The plant switched from heavy fuel oil (HFO) to high-speed diesel (HSD) without altering capacity payments. 

The SPIL explained that the Bangladesh Petroleum Corporation could not provide the specified oil and reached an understanding with the Bangladesh Power Development Board to supply an alternative. 

Summit Meghnaghat, it said, accepted this change to maintain operations but remains ready to revert to the original oil conditions.

In response to allegations of market rigging and regulatory exclusion, Summit Power Limited, listed on the Dhaka Stock Exchange, reiterated its commitment to corporate governance. SPIL assured that the company has never engaged in market manipulation and operates with the highest standards of integrity.

The White Paper also questioned the use of public funds in connection with Summit's second Floating Storage and Regasification Unit (FSRU), alleging that Summit supplied LNG at a premium while natural gas reserves were available with Petrobangla. SPIL clarified that Summit has not imported or supplied gas and that its long-term supply contract with Petrobangla had the lowest price among those awarded at the time.

Summit Group concluded by inviting further dialogue with stakeholders involved in preparing the White Paper, reaffirming its dedication to supporting Bangladesh's energy sector and long-term development.