Summit’s Ashulia plant gets BREB nod to continue production
The Bangladesh Rural Electrification Board (BREB) has allowed Summit Power Limited to continue operations of its Ashulia Power Plant (Unit-2) even though the Power Purchase Agreement between the two parties has expired.
The 33.75 MW power plant in Ashulia has been operating since 4 December 2007.
On Tuesday, Summit disclosed on the Dhaka Stock Exchange website that its 15-year contract with the BREB expired on 3 December this year.
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Swapon Kumar Pal, company secretary of Summit Power, said that six months before the contract expiry, the government formed a committee which will recommend an extended period of the contract as well as the power purchase rate.
"The new tenure and rate will be determined based on the committee's recommendations."
Summit officials are hopeful there will be another extension for the next five years. Other terms and conditions are also under decision, he added.
Summit Power Limited was incorporated in March 1997. Presently, it owns 15 power plants at different locations with a total installed capacity of 975.96 MW.
Alongside BREB, the company supplies electricity to the Bangladesh Power Development Board.
In February this year, BREB allowed Summit Power to restart its two power plants that were shut down because of the contract expiry.
The Chandina Power Plant (Unit-2) with a capacity of 13.5 MW remained closed since 15 November, and the Madhabdi Power Plant (Unit-2) with a capacity of 24.3 MW since 16 December 2021.
According to the fiscal 2021-22, the company's consolidated revenue stood at Tk5,318.54 crore, and the net profit at Tk925.27 crore.
During the year, its consolidated earnings per share stood at Tk3.87 and net asset value per share at Tk35.72.
It recommended a 20% cash dividend for the shareholders for FY22.
