Earlier deal needs to be scrapped.
This became necessary for Bangladesh in order to entertain China's stated owned Dongfang Electric International Corporation interest in setting up a 300-450MW gas-fired power plant at Bibiyana in Habiganj.
Dongfang General Manager Wen Ya relayed the interest to Bangladesh's Power Division secretary Md Abul Kalam Azad.
In the said communication, Dongfang indicated it wants to set up on a turn-key basis and also offered to ensure financing for the project from Chinese bank or financial institutions.
Earlier, a Saudi firm also shown interest to set up a 225-megawatt gas-based power plant at Bibiyana.
But the government of Bangladesh could only consider proposals after scrapping a deal between the Bangladesh Power Development Board and Summit Power on power purchase from a 341MW Bibiyana-1 power project.
On 12 May, 2011, BPDB signed a power purchase agreement with Summit according to which it will buy electricity at 3.322 US cents or Tk 2.66 a unit for 22 years from the Bibyana-1 power plant.
Summit was awarded the Bibyana-1 project along with two others, one at Bibiyana and the other at Meghnaghat, through a bidding process.
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