The government singed a power purchase agreement (PPA) with Summit Group on Sunday to buy electricity from Gazipur 300 MW Power Plant, reports UNB.

 
As the state-owned body the Power Development Board (PDB) on behalf of the government signed the contract with Summit.

An implementation agreement (IA) was also signed between the Summit, Power Division and Power Grid Company of Bangladesh (PGCB) in this respect.

As per contracts, the Summit Group will set up the plant at Kodda of Gazipur and start its commercial operation by May 9 next year.

Addressing at the contract signing event, State Minister for Power and Energy, Nasrul Hamid said this will add 3000 MW power to the grid next year. Appreciating Summit, he said like the private firms, the public sector entities are also performing well.

Summit Group Chairman Mohammad Aziz Khan and PDB Chairman Khaled Mahmud also addressed the function.

Officials said Summit is setting up the power plant as part of the government's plan to generate about 2000 MW power before October next year ahead of the general election.

In July this year, the government awarded contracts for nine power plants to be set up between next six and nine months.

Officials said the sponsors of these power plants have already engaged in works to achieve the government target to set up the plants before October next year as they have been issued letter of intent (LOI) soon after approval by the cabinet purchase committee for the plants.

NS