• Wednesday, September 26, 2018

Biggest US investment in Bangladesh: GE signs $7.4 bn power, LNG deals

Discussion in 'Bangladesh Defence Forum' started by Black_cats, Jul 12, 2018.

  1. Black_cats

    Black_cats FULL MEMBER

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    Biggest US investment in Bangladesh: GE signs 7.4 bn power, LNG deals
    UNB NEWS
    http://www.unb.com.bd/bangladesh-news/Biggest-US-investment-in-Bangladesh-GE-signs-74-bn-power-LNG-deals /75168

    Wednesday 11 July, 2018 09:07:09 pm

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    Dhaka, Jul 11 (UNB) – US company General Electric (GE) on Wednesday signed two separate deals – one with state-owned PDB and another with Summit Group, a local business house – to implement a number of power and energy projects worth about $7.4 billion in joint venture in Bangladesh.

    Japanese firm Mitsubishi Corporation is also a partner in the GE-Summit initiative.

    Under the deals, GE-Summit-Mitsubishi will set up a gas-fired 2,400 MW power plant, having four combined cycle units of each 600 MW and also two units of LNG onshore terminals with total 380,000 cubic meter capacity, oil terminals with 100,000 MT capacity and 300 MW HFO-based power plant.

    The GE-Summit-Mitsubishi joint venture will invest $3 billion for their projects.


    Under GE-PDB deal, there will be 3,600 MW gas-based combined cycle power plant and associated LNG import terminal and infrastructures in Moheshkhali of Cox’s Bazar.

    In the GE-PDB joint venture project, PDB will have 51 percent equity investment while GE will hold 30 percent equity and the remaining 19 percent equity will be offered to a strategic partner which will be selected jointly.

    Welcoming the GE-PDB and GE-Summit deals, State Minister for Power and Energy Nasrul Hamid said this has been the biggest ever investment by an American company.

    He urged US companies to invest more in power and energy sectors.

    Prime Minister’s Energy Advisor Dr. Tawfiq-e-Elahi Chowdhury, who was present as chief guest in both the signing ceremonies held separately in the city, urged the GE to come forward with advanced technology and focus on improvement of the efficiency of the country power and energy sector.

    US Ambassador in Bangladesh Marcia Stephens Bloom Bernicat said the GE’s deals with Bangladesh public and private companies will further strengthen the commercial cooperation between the two countries and help grow Bangladesh in economic field.

    The GE-Summit-Mitsubishi deal signing ceremony, held at Sonargaon Hotel, was also addressed by Summit Group Cairman Mohammed Aziz Khan, Pesident and GEO of GE Power Russell Stokes, while GE-PDB deal signing ceremony held at Bidduyt Bhaban was also addressed by Power Secretary Dr. Ahmed Kaikaus, and PDB Chairman Khaled Mahmood.

    Implementation of the GE-Summit-Mitsubishi projects will start in 2019 and will be completed by 2023.

    However, share of equity in the investment by partners of GE-Summit-Mitsubishi JV and their project locations were not disclosed in the signing ceremony.

    Under the GE-PDB Joint venture, the 3,600 MW power plant, having three 1200 MW units, and LNG will be set up in Moheshkhali on a land of 5600 acres where power plant will require 100 acres.

    In the projects, land development will need $1.6 billion while power plant and other infrastructures will require $2.8 billion.
     
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  2. Black_cats

    Black_cats FULL MEMBER

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    DEALS
    JULY 11, 2018 / 9:00 AM / UPDATED 6 HOURS AGO
    Bangladesh unveils $5.8 billion energy investment, two JV's with General Electric

    https://uk.reuters.com/article/us-b...t-two-jvs-with-general-electric-idUKKBN1K11SI

    Serajul Quadir
    3 MIN READ

    DHAKA (Reuters) - Bangladesh announced two major energy deals on Wednesday, with a total $5.8 billion investment, two involving U.S. firm General Electric (GE.N).

    Nearly 30 percent of Bangladesh’s population do not have access to electricity. The country relies on its gas resources for 70 percent of its energy production but as demand has risen its supply has struggled to keep up and the country is now becoming an LNG importer.

    One of the joint ventures unveiled on Wednesday is a partnership between U.S. General Electric, Japan’s Mitsubishi Corporation (8058.T) and local privately-owned Summit. They will set up and invest $3 billion in a 2,400 megawatt (MW) thermal power plant and related oil and LNG terminals, the companies said.


    Summit, will have a 55 percent share of the joint venture while Mitsubishi will take 25 percent and GE 20 percent.


    “In partnership with Summit Power, our HA (gas turbine) technology enables unprecedented levels of efficiency to strengthen Bangladesh’s power generation,” Russell Stokes, president and chief executive officer of GE Power, said at the deal signing in Dhaka.

    The project involves four thermal units of 600 MW each, a 380,000 meter cubic capacity liquefied natural gas (LNG) terminal and oil terminals with 100,000 metric tons capacity.

    The three firms signed a memorandum of understanding (MOU) on Wednesday.


    Muhammad Aziz Khan, chairman of the Summit Group, said the plan is to launch the project next year and complete it by 2023.

    “The project will be using the world’s most efficient and environment friendly technology,” he said.

    “We have joined in this tripartite agreement with the widest experience in infrastructure and energy,” said Tetsuji Nakagawa, senior vice president of Mitsubishi.

    Later in the day General Electric and state run Bangladesh Power Development Board (BPDB) announced another venture to produce 3,600 megawatts of electricity.

    General Electric Co13.99
    GE.NNEW YORK STOCK EXCHANGE
    -0.18(-1.27%)
    [​IMG]
    • GE.N
    • 8058.T
    Saiful Hasan Chowdhury, a director of the BPDB said that a joint venture would establish a 3,600MW LNG to gas based combined cycle power plant and associated LNG import terminal and related infrastructure.

    “This will cost $2.8 billion and BPDB as lead partner will invest 51 percent while GE will invest 30 percent and the remaining 19 percent stake will be invested by a strategic partner,” he said.

    “Over the years, GE has demonstrated a strong willingness to partner with both the private and public sector here in Bangladesh to boost power generation,” said U.S. Ambassador to Bangladesh Marcia Bernicat at a signing event.

    She said that the United States, as Bangladesh’s largest foreign direct investor and export market remains committed to building a strong commercial relationship with Bangladesh.


    Reporting by Serajul Quadir; editing by Sanjeev Miglani and Elaine Hardcastle
     
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  3. UKBengali

    UKBengali ELITE MEMBER

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    Large energy companies are rushing to take a slice out of the fastest growing 100 million+ pop. country in the world.
     
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  4. Black_cats

    Black_cats FULL MEMBER

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    This is huge!!! On a single day MOU is signed for 6000 MW (3600MW + 2400MW) of electricity generation + for LNG + oil terminals.
     
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  5. mb444

    mb444 SENIOR MEMBER

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    This puts to rest argument about has BD economy reached economic take off.... its certainly has.
     
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  6. UKBengali

    UKBengali ELITE MEMBER

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    Plenty of pdf morons think they know more about economic growth in BD compared to multi-billion dollar multinationals.:cheesy:
     
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  7. Centaur

    Centaur FULL MEMBER

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    Alhamdulillah ,great news! May Allah make Bangladesh prosperous day by day. It's great that USA companies are investing in Bangladesh .
     
  8. Flynn Swagmire

    Flynn Swagmire SENIOR MEMBER

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    More JOBS !!! :cheers:
     
  9. bluesky

    bluesky SENIOR MEMBER

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    I thought BD needs no foreign investment in power because it has such a big GDP. This is what two posters @UKBengali and @Homo Sapiens were forwarding in other thread. What a stupid way of talking!!!
     
  10. abc123xyx

    abc123xyx BANNED

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    china ka patta saaf....

    after malysia....

    abhi to party shuru hui hai...
     
  11. TopCat

    TopCat ELITE MEMBER

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    LNG is expensive but quick fix
     
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  12. mb444

    mb444 SENIOR MEMBER

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    BDs economic engine is good enough for growth up to a certain point but it will off course require FDI to generate high growth. We are not really an export based economy like Vietnam. We need trade to with the world and integration with the global economy is happening day by day. But lets not over emphasise FDI over internal growth. Steady growth is what we need and FDI and internal development are both critical.
     
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  13. bluesky

    bluesky SENIOR MEMBER

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    The availability of natural resources is what attracts FDI in Vietnam. Coal, phosphates, rare earth elements, bauxite, chromate, copper, gold, iron, manganese, silver, zinc, offshore oil and gas deposits, timber, tin, lead, zinc, gemstones, nickel, industrial and non-ferrous metals, rare clay etc. etc. This availability attracts the would-be investors because they do not have to import the basic materials from abroad.

    Bangladesh has no such mineral deposits. As a result, only a select group of industries from abroad is likely to invest in the country. The total amount of FDI will remain low as a result. In such a situation, I believe, it is the people of BD who will have to build the country's industries one by one, from one sector to another and so on.

    Yesterday it was jute, today it is textile, pharmaceuticals, and shipbuilding. Tomorrow it will be some other sectors. I think the policymakers will have to target select sectors and invest all the needed money to strengthen those sectors instead of investing a little to all the weak sectors. In my opinion, the leather industries sector should be given top priority for now.
     
    Last edited: Jul 14, 2018
  14. bluesky

    bluesky SENIOR MEMBER

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    I think BD is still in the preparation stage for economic take-off. This stage will continue for many more years.

    Are not you yourself the moron who a few days ago was arguing that BD needs no foreign investment in power because the BD GDP is too high? Bloody below 49% IQ!!! By the way, where is your own thread? Not a single one so far!!