IFC, a member of the World Bank Group, IFC Emerging Asia Fund, an investment fund managed by IFC Asset Management Company (AMC), and EMA Power, a joint venture between Daelim Energy and Islamic Development Bank Infrastructure Fund II, have invested US$175.5 million to finance local independent power producer, Summit Group's future power projects in energy-scarce Bangladesh.
Nearly a third of Bangladesh’s 160 million people do not have access to grid-connected electricity. This investment will enable Summit Group to install green-field electricity-generation plants, including a 500 MW dual-fuel combined-cycle power plant and a 150 MW heavy fuel oil-based power plant, to help address the country’s critical energy gap.
Muhammed Aziz Khan, Chairman and Managing Director of Summit Group, said:
“The investment, via a newly set up Singapore company, Power International, is part of Summit Group’s plans for raising finance from international markets. The sizable capital raised from the premier investor group, led by IFC, shows the commitment that these investors have towards Summit Group and Bangladesh.”
Wendy Werner, IFC Country Manager for Bangladesh, Bhutan, and Nepal, said:
“IFC, along with other co-investors, will help Summit Group add significant electricity-generation capacity to Bangladesh’s national grid. This is a positive signal to future developers and investors in the Bangladesh power sector.”
Stephen Vineburg, Chairman of EMA Power, said:
“We, along with IFC and IFC Emerging Asia Fund, are glad to support the leading independent power producer in the country to step up to a new level with enhanced access to international capital markets.”